Ethical Issues in 


Operations and
Production
GROUP 2 9:00 - 10:30 MW GR 344
ABELLA - CAI- FERENAL-LAUDE- VILLAMORA

To ensure that all
necessary precautions
are taken to ensure that
The Due Care products that reach the
Theory obligates market are safe and free
manufacturers to from defects.
exercise due
Manufacturers are held
care.
liable for damages if
they fail to carry out this
obligation - Negligence
1. Use of Hazardous
Chemicals.
2. Pollution
3. Environmental Hazards
4. Use of Substandard
Materials
5. Dangerous Product
Design
6. Intellectual Property
Rights
7. Experimental Products
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Use of Hazardous Chemicals
Products that contain addictive substances such as :
▪ nicotine in cigarettes
▪ caffeine in coffee
▪ artificial sweeteners in beverages

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 Pollution
Factories , vehicles , etc. release pollutants into the air. The
wastes from factories are oftentimes disposed into the
seas.

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 Environmental Hazards
The consequence of the imbalance caused by
most business activities.

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Illegal Logging ,
land conversion
◦ Mountains go bald and
are converted into
subdivision real estates
for the rich.

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Cause flash floods killing
hundreds of people and
destroying millions worth of
properties and infrasturcture.

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Damage to
marine life and
coral reefs are
irreparable.

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Global Warming due to
the damage in the Ozone
Layer resulting to the
increase in the earth's
temperature which then
causes the rise in water
levels.

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 Use of Substandard Materials
Manufacturers including construction contractors should
never compromise the quality of their products / service to
save costs and earn more profits, sacrificing the quality of
their products and the safety of their clients.

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Tragedies in constructions.

part of the building

collapsed while concrete was
being poured on the upper
floors, say authorities

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Accidents due to vehicle
malfunctions
He was using Tesla's Autopilot,
a system that does allow the
car to accelerate, brake and
steer by itself on major roads,
but is not designed to
completely replace a driver.

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 Dangerous Product Design
Some products require special instructions, labels or warnings
because of the design of their parts.

▪ inflammable
▪ may choke children

Duty of businessmen to prioritize consumer safety.

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Intellectual Property
Rights (IPR)

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 - The right of the owner of an idea, a
design, a book, a film, music or those
properties that are product of the
Intellectual mind/intellect.
Property - IPR is a property ownership
Rights Samples of IPR issues: Piracy, Patent
Infringement, Copyright Infringement,
Trademark Infringement and
TradeSecret Infringement
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Experimental Products

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 What are
Experimental Sample of
Products? Experimental
Experiment Products:
-Products that have
not really been fully -Cleaning Products
al Products
tested, especially in -Beauty Product
terms of side effects
-Fireworks
or safety.

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 Ethical Labor/ Human
Resources ManagementIssues

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Child Labor

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 -The exploitation of children through any form of
work that deprives children of their childhood,
interferes with their ability to attend regular school,
and is mentally, physically, socially or morally
harmful.

Child -Right to Education, Play, and Care.

Labor -Most Common work done:

Port Worker (Kargador)
Muro Ami (Dangerous Fishing)
Prostitution Miner
Selling of Candles Sikad Driver
Construction Worker
Factory Worker Farm Worker
Discrimination
 How ◦ It occurs when one is deprived
of an opportunity because of
does it gender, civil status, age,
nationality, or race, political
occur? affiliations, and the like.

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 Discrimination is often management’s
prerogative.
The Employer has the right to choose whom to
employ.

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 Woman are said to be
struggling for equal treatment
with men in the workplace.
 “
The Philippines is a
predominantly Christian
country. The majority of the
people are also Catholic.

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◦ Some societies have a
more heightened
consciousness about
what is fair.

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Privacy
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 ◆ Information is considered
Property, Information belongs
to its owner
Privacy ◆ Personal Information is
personal property
◆ Permission

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 ◦ Surveillance
◦ Trust is an important
element in the organization
Privacy ◦ Cctv
Issues
◦ Drug Testing
◦ Right to privacy

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Sexual Harassment

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 ◦ Someone in
authority uses Affects both men
Sexual their power to and women
Harassment get sexual
favors.

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Substandard
Working
Conditions
 Factories Workspace
Focused on
where the is small and
making
Substanda working ventilation
money that
rd working conditions is
scrimps on
are not fit inadequate
conditions the facilities
for human or non-
work existent.

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Safety and
Health
 ✴ It is the responsibility of the owners
Safety of business to ensure that the
and workplace is safe for the workers
and the workers are provided
Health health care.

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Safety ✴ Policies must be in place.

and ✴ Businessman should not accept

non-compliance for workers.
Health

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Whistleblowing
 ✴ act of informing authorities of the
malfeasance of individuals or
Whistleblowing
company resulting to the filing
cases against the erring individual
or company

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 ✴ Before a person attempts to “blow
Whistleblowing the whistle” on an erring individual
or enterprise, he/she must possess
tangible evidences to support the
claim of wrongdoing.

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 ✴ May result to the loss of job or the
inability to get another job
Whistleblowing
✴ There is what we call a “culture of
silence” in the Philippines.

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Nepotism
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 ✴ Nepotism happens when
someone, by virtue of his
relationship or affiliation with the
Nepotism person in authority, gets
preferential treatment in terms of
opportunities.

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