IBE survey results conducted annually over the past 11 years into the

attitude of the British public to business behavior indicates that consistently

between 47%-59% consider business to behave ethically (58% in 2014).

Philippa Foster, Director of the IBE said: “Business should set its own
agenda, not wait for government to set one for it.

 cases of payment / financial disclosure

 poor treatment of suppliers
 poor treatment of customers ect…

Each time one company commits such an offence, it lays

the entire business community open to a backlash from the
public and invites government intervention. Ultimately that is
expensive and damaging to everybody. The IBE offers practical
advice to businesses which want to avoid that.”
 In 2015, survey - 72% think that the next Government should make it a
priority to promote ethical practices among businesses. 

A survey conducted by the Forum for Private Business

reveals that around three quarters (72%) think that the next
Government should make it a priority to promote ethical
practices among businesses.

Conor, (2015), One long-held business concepts states that when it comes
to government oversight in the free market, the less intervention, the better.

This is true to some extent, at least in that it is undesirable

for the market to be distorted by heavy-handed restrictions.
However, it cannot be assumed that all businesses will
behave ethically without enforcement of regulations.
The government plays an important role in encouraging
businesses to behave in an ethical manner, both by
encouragement and coercion.

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Conor, (2015), Role of Government in Business Ethics:

 Legislative activities

Some degree of legislation is necessary to ensure that businesses

comply with their ethical obligations and the public does not suffer
as a result of unethical and dishonest business practices for instance,
bribing authorities to circumvent laws that would place them in a
competitive business disadvantage.
 Supervisory role

Anti-competitive behavior can occur when large organizations

merge or are taken over, and when a large organization has a
very substantial market share or a monopoly, there is always the
temptation for it to act in an unethical manner, which will be
detrimental to the public. The government must monitor and
supervise such mergers -- which are subject to antitrust law -- to
ensure that they are acting ethically and are not abusing a
position of dominance.

 Incentivizing role

The government can encourage ethical behavior by incentivizing

it with tax breaks.
Ministry of Trade and Industry, Singapore: - Roles of Government:

 Providing the Legislative Framework

The government provides a clear legal framework for
businesses. Regulations are administered in an open and
transparent system, and applied fairly to all parties. There is no
favoured treatment for local companies or for government-
linked companies.
 Providing Infrastructure and Manpower
The government invests in infrastructure and manpower,

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areas in which the private sector is likely to under-invest. It
ensures that the education and training system is geared
towards the needs of the economy, with a strong emphasis on
providing technical and professional manpower. Similarly, an
efficient infrastructure lowers business costs and makes it
attractive for investors to come to Singapore.

 Facilitating Businesses
The government facilitates businesses, including foreign
investors wishing to come.

Sarbanes-Oxley Act

Congress passed the Sarbanes-Oxley Act to restore investor confidence,

which had been deflated by massive business and audit failures.

To protect investors by improving the accuracy and reliability of corporate

disclosures.

Creation of PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD :

 Inspections of registered public accounting firms.
 Investigations and disciplinary proceedings
 Audit partner rotation
 Conflicts of interest
 Mandatory rotation of registered public accounting firms.
 Corporate responsibility for financial reports, disclosures in periodic
reports.
 Disclosures of transactions involving management and principal
stockholders. (Enhanced conflict of interest provisions)
 CORPORATE AND CRIMINAL FRAUD ACCOUNTABILITY (Criminal penalties
for altering documents)

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 BIR - Authority to Examine Taxpayers’ Books

Authority of Revenue Officer. - Subject to the rules and regulations to be

prescribed by the Secretary of Finance, upon recommendation of the
Commissioner, a Revenue Officer assigned to perform assessment functions in
any district may, pursuant to a Letter of Authority issued by the Revenue
Regional Director, examine taxpayers within the jurisdiction of the district in
order to collect the correct amount of tax, or to recommend the assessment of
any deficiency tax due in the same manner that the said acts could have been
performed by the Revenue Regional Director himself.

Clearly, while the BIR has the power to conduct the audit and
investigation of records of taxpayers to determine the correct amount of tax
liabilities, the same should be done in accordance with the procedures
prescribed by law and the rules promulgated by the BIR itself. An examination
should be preceded by a duly issued LOA or MO, and the actual conduct of
investigation shall be limited to the persons and the scope specified in said LOA
or MO. Absent compliance of these requirements, an examination or
investigation may be a valid assessment.

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 PROTECTION AGAINST DECEPTIVE, UNFAIR
AND UNCONSCIONABLE SALES ACTS OR PRACTICES

 Declaration of Policy. – The State shall promote and encourage fair, honest
and equitable relations among parties in consumer transactions and
protect the consumer against deceptive, unfair and unconscionable sales
acts or practices.
 Implementing Agency. – The Department of Trade and Industry, hereby
referred to as the Department, shall enforce the provisions of this Chapter.
 An act or practice shall be deemed deceptive whenever the producer,
manufacturer, supplier or seller, through concealment, false representation
of fraudulent manipulation.

The act or practice of a seller or supplier is deceptive when it represents that:

 a) a consumer product or service has the sponsorship, approval,

performance, characteristics, ingredients, accessories, uses, or benefits it
does not have;
 b) a consumer product or service is of a particular standard, quality, grade,
style, or model when in fact it is not;
 c) a consumer product is new, original or unused, when in fact, it is in a
deteriorated, altered, reconditioned, reclaimed or second-hand state;
 e) a consumer product or service has been supplied in accordance with the
previous representation when in fact it is not;
 f) a consumer product or service can be supplied in a quantity greater than
the supplier intends;
 g) a service, or repair of a consumer product is needed when in fact it is
not;
 h) a specific price advantage of a consumer product exists when in fact it
does not;

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Article 60. Penalties. (AGAINST DECEPTIVE, UNFAIR Acts)

Any person who shall violate the provisions of Title III, Chapter I, shall upon
conviction, be subject to a fine of not less than Five Hundred Pesos (P500.00) but
not more than Ten Thousand Pesos (P10,000.00) or imprisonment of not less than
five (5) months but not more than one (1) year or both, upon the discretion of the
court.

Conclusion:

 Profit
 Social Responsibility
 Government regulation is required
 Business Holds Ultimate Responsibility

Business Holds Ultimate Responsibility : Although government

play an important role in ensuring that business operate in an
ethical matter, ultimately, the responsibility to do so lies with the
business.
It would be impossible for government to oversee all
operations to such an extent that they could force all businesses to
behave ethically. Such unduly strict implementation and supervision
would most likely adversely affect the smooth operation of the
market.

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