THE ETHICAL ENVIRONMENTAL OF THE FIRM

ETHICS- is a set of principles that guides people’s behaviour and judgement.

- good or bad and with duty and obligation.
ETHICAL ISSUE- refers to concern on which an individual must decide based on
several alternatives on what is morally right or wrong.
BUSINESS ETHICS- are principles that guide managers whoever they are
confronted by ethical issue in the business.
CIVIL SOCIETY- a type of organization founded to promote the interest of local
community.
FIVE GUIDING PRINCIPLES OR PERSPECTIVES IN EHTICS
1. UNIVERSALISM- states that all people should have certain values like honesty,
respect and cooperation.
2. EGOISM- focuses on the on the promotion of the greatest good to oneself.
- self-centered attitude/ advancement.
3. UTILITARIANISM- focuses on the greatest good for the greatest number of
people.
- make decisions that are beneficial to the greatest number of people.
4. RELATIVISM- is an ethical perspective where ethical behaviour is based on
person’s own and other relevant people’s opinions and viewpoints.
5. VIRTUE ETHICS- believes that what is moral depends on the maturity of a
person with good moral character.
CORPORATE INTEGRITY- refers to that sense of wholeness created by
the right relationships among the members of the organization.
FIVE DIMENTIONS OF CORPORATE INTEGRITY
1. CULTURAL DIMENTIONS- it has the most impact on the internal relationship
in the company.
* Managers are encouraged to establish an open atmosphere that will
facilitate communications among people with different cultures and background.
2. INTERPERSONAL DIMENTIONS- focuses on the relationships among people.
This includes family relationships, civic life and work relations.
3. ORGANIZAIONAL DIMENTIONS- considers the main purposes of the
business, particularly the economic and financial purposes, managerial purposes
and civic purposes.
4. SOCIAL DIMENSIONS- views the organization as actively engaging with
society, a significant social element in the community.
5. NATURAL DIMENSIONS- looks into hoe the organization relates to nature,
business operations and activities impact the environment.
CORPORATE SOCIAL RESPONBILITY
- refers to the engagement of a business firm in activities that pursue
goals that are beneficial to society.
TWO RELATED CONCEPTS OF CORPORATE SOCIAL
RESPONSIBILITY
1. CONCEPT OF SOCIAL OBLIGATIONS- complying with legal and ethical
standards to uphold social welfare.
2. SOCIAL RESPONSIVENESS- goes beyond the prescribe standards and
implements actions that aim to make an impact on society, protect the
environment, recycle materials, illegal logging & pollutions.
FOUR SOCIAL RESPONSIBILITIES
1. ECONOMIC RESPONSIBILITY- the company should produce goods and
services with reasonable prices.
2. LEGAL RESPONSIBILTY- the organization should comply with the local &
international laws that apply to its business operations.
3. ETHICAL RESPONSIBILITIES- include establishing norms, standards, moves
and practices that reflect to the consumers, employees, shareholders, and the
community.
4. PHILANTROPIC RESPONSIBILITIES- include the initiation of voluntary
activities such s establishing corporate programs, donating charitable institutions
and other causes