ETHICAL ISSUES

AND PROBLEMS
IN BUSINESS & THE CORPORATE WORLD

LESSON 5
 is a problem or
situation that
ETH IC AL requires a person to
ISSU E choose between
two options, where
both options are
morally wrong.
SEXUAL HARASSMENT
SEXUAL HARASSMENT

It includes unwelcome sexual advances,

requests for sexual favors, and other
verbal or physical harassment of a
sexual nature in the workplace or
learning environment, according to the
Equal Employment Opportunity
Commission (EEOC).
SEXUAL HARASSMENT

is an issue in the corporate world that

must be looked into because it can
create a hostile and unhealthy
workplace for the employees. For this
reason, the Congress of the Philippines
enacted the Anti-Sexual Act of 1995 or
R.A. 7877 declaring sexual harassment
unlawful in the employment, education
or training environment, and other
purposes.
Republic Act No. 7877 defines sexual
harassment as, “Employer, employee,
manager, supervisor, agent of the employer,
teacher, instructor, professor, coach, trainor
or any other person who, having authority,
influence or moral ascendancy over another
in a work or training or education
environment demands, request or otherwise
requires any sexual favour from the other,
regardless of whether the demand, request,
or requirement for submission is accepted
by the object of said act.”
 LEGAL PENALTIES
OF R.A. 7877

Imprisonment of not Fine of not

MISSION
less than one month less than P 10,000
but not more than six but not more than
months P 20,000
3 Types of Sexual Harassment
TWO TYPES OF SEXUAL HARASSMENT

“Quid Pro Quo” Harassment- “Quid

Pro Quo” means “This for That”
(something for something) and is
defined as requiring a sexual favour
or interaction as a condition of
employment or in exchange for an A harassment that creates a hostile
employment benefit (such as environment- In this environment,
promotion, transfer, pay raise and
abuses include verbal, physical and
the like)
visual conducts that create an
intimidating, offensive or hostile
environment in the workplace that
interferes with work performance.
 Unwanted touching, patting,
pinching against a person

Comments about your body,

wolf-whistling

Workplace blackmails
SOME
EXAMPLES Green jokes
ARE AS
FOLLOWS: Suggestive looks
The profiles of the Victim and the Harasser

1. The victim as well as the harasser may be a

woman or a man. The victim does not have to
be of the opposite sex.
2. The harasser can be the victim’s supervisor,
an agent of the employer, a supervisor in
another area, a co-worker, or a non-employee.
3. The victim does not have to be the person
harassed but could be anyone affected by the
offensive conduct.
4. The harasser’s conduct must be unwelcome.
It is helpful for the victim to directly inform
the harasser that the conduct is unwelcome
and must stop.
The victim should use any employer
complaint mechanism or grievance system
available.
Although the victim of sexual harassment
and the person accused of sexual
harassment may be peers, more frequently
the victim is in a position of lesser power
than the accused.
The most common example is the boss-
subordinate situation. Harassment also
occurs between customer/ client and
providers.
COMMUNICATING 1. The best policy is ineffective if it is not
THE SEXUAL communicated well. Even if the company

HARASSMENT
already has a well-written policy, it is
important to expose it regularly through :

POLICY Permanent posting on bulletin board

Memos
Articles in the organization’s newsletter
Meeting and trainings

2. Training program may come up with various

topics to support the anti-harassment programs
and to assure each employee of a safe and
harassment-free workplace environment.
THE PROBLEM OF
JUST WAGE
TOPIC 2
 WORK

• Is said to be for the

purpose of obtaining
economic gain for the
labor.
 COMPENSATION
BENEFITS
• It can be in the form of • Being compensated for a
wages, shares on profits, work done or for services
harvest or commercial rendered is the very essence
goods, in-kind of “work”.
payments and other
remunerative fringe
benefits.

• The main objective of compensation

is to create a system of reward that is
equitable to the employer and
employee.
JUST WAGE
The idea of a just wage centers around
providing enough income for a worker to
live with “reasonable and frugal
comfort.” This doesn’t imply luxury, but
it should be enough to cover essential
living expenses, including housing, food,
healthcare, education, and basic leisure.
The goal is that workers can sustain
themselves and their dependents
without financial stress.
SOME ISSUES ON JUST WAGE

The minimum wage Organizations and

mandated by the businesses usually
government is not a conclude that they are
guarantee of a just and fair
wage.
legally and morally right
when they fulfill their
ISSUES
mutual agreement with
the employees.

Geographical difference
hinder the formulation of a
perfectly common definition
of fair wage. Some
communities have a higher
cost of living than others.
SOME ISSUES ON JUST WAGE

Wage indexation to
cost of living, where
wage is automatically
adjusted with the
increases of cost of
Companies have different
living, is not usually
interpretations of the justifiable
met by majority of the
employers.
pay for certain job position,
skills, and tasks. Thus, the
ISSUES
prevailing rate in industry alone
could not perfectly establish a
just wage.
 FACTORS TO
CONSIDER IN
FORMULATION
OF FAIR WAGES
 EXTERNAL MARKET ORGANIZATIONAL
FACTOR FACTOR

LAWS AND REGULATIONS JOB FACTOR

INDIVIDUAL
COST OF LIVING
PERFORMANCE

PREVAILING INDUSTRY
RATE
BARGAINING CHIP AGREEMENT

A "bargaining chip" agreement

refers to the leverage or
negotiating power that parties
bring to wage discussions, often
shaping outcomes in wage
setting.
GIFT-GIVING AND
BRIBERY
TOPIC 3
GIFT - GIVING
The decision to accept
tokens or gifts depends
on a person’s ethical
values, combined with
existing company policy
and considering industry
practice.
REASONS WHY BUSINESS
USUALLY ENGAGE IN GIFT-GIVING
To show To effectively To advertise To compete
appreciation establish effectively
for a favor goodwill with against
received business competitors
partners
FACTORS IN Value of the Gift
DETERMINING Purpose of the Gift
THE MORALITY Circumstances under which

OF GIFT-GIVING
the gift was given or received
Position between or
Relationship of the Giver and
the Receiver
Acceptable Business Practice
in the Industry
Company Policy
Laws and Regulations
SECTION 7(D) OF
REPUBLIC ACT Solicitation or acceptance of gifts.
— Public officials and employees shall

6713 not solicit or accept, directly or

indirectly, any gift, gratuity, favor,
entertainment, loan or anything of
monetary value from any person in
the course of their official duties or in
connection with any operation being
regulated by, or any transaction
which may be affected by the
functions of their office.
CORPORATE
GIFTING
The practice of
companies presenting
gifts to their employees,
clients, partners or other
stakeholders.
BRIBERY
A practice of giving
remuneration for the
performance of an act that is
inconsistent with the work
contract or the nature of the
work one has been hired to
perform.
THE
MORALITY OF
ADVERTISING
TOPIC 4
 Guess
Guess ? ??
that
that
TV Ad...
TV Ad...
ADVERTISING
is the paid promotion of
goods and services,
designed to influence
the behavior of
consumers.
 “EVEN PALESTINE
HAS A COKE FACTORY”
 ADVERTISING ETHICS
refers to the moral principles
that guide the creation and
dissemination of advertising
messages.

YOU’RE RESPONSIBLE NOT

JUST FOR WHAT YOU SELL,
BUT HOW YOU SELL IT.
 MISLEADING ADVERTISEMENTS DECEPTIVE ADVERTISEMENTS
Do not misinterpret, do not make false claims Make a false statement or misrepresents
but it make claims in such a way that a the product.
normal person looking at it comes up with
Ex: Nivea’s body lotion claimed that “its
wrong conclusion.
regular use significantly reduces body size.”
Ex: Sunsilk mentions in their TV commercial, Nivea had to pay $900,000 as settlement
“Sunsilk for stronger and longer hair up to 1.2 and had to stop production of the “Bio-slim
cm every month.” Complex” product.
 USE OF “WEASEL WORDS” MANIPULATIVE ADVERTISEMENTS
words used to make a claim seem significant, Uses psychological tactics to exploit
but without actually guaranteeing anything. consumers' vulnerabilities and emotions.

Ex: “Virtually stain-free" suggests it’s almost Ex: The "Are You Beach Body Ready?" ad
completely stain-resistant, but doesn't campaign by Protein World was widely
guarantee it. criticized for being manipulative and
promoting unrealistic body image standards.
 EXAGGERATION PSYCHOLOGICAL APPEALS
A technique where claims about a product or A visual or aural influence on the
service are overstated or exaggerated to subconscious mind and emotions.
make them seem more appealing.
Ex: A model has accused Burger King of using her
Ex: The Axe ad showed angels falling from image without consent in a sexually suggestive ad.
the sky after smelling the deodorant. The ad’s tagline reads: “It’ll blow your mind away.
Fill your desire for something long, juicy and
flame-grilled with the New BK Super Seven Incher.”
 CONSUMER ACT OT THE PHILIPPINES (R.A. 7394)
Article 108 of the Act declares that “The State shall protect
the consumer from misleading advertisements and
fraudulent sales promotion practices.”

The Department of Trade and Industry enforces this for

general products, while the Department of Health oversees
food, drugs, cosmetics, and hazardous substances.

PHILIPPINE ASSOCIATION OF THE NATIONAL ADVERTISERS

The PANA issued a Code of Ethics which includes the
following statement of general principles;
Good advertising serves the public interest.
Good advertising informs consumers.
Good advertising avoids disparaging competitors.
Good advertising respects intellectual property rights.
 TOPIC 5

WORKPLACE ROMANCE
Forbes Advisor commissioned a survey of 2,000 employed Americans by market research
company OnePoll, in accordance with the Market Research Society’s code of conduct.

60% had been involved in a workplace romance

43% led to marriage

40% have cheated on their current partner with a coworker
35% don’t report their relationship to their employer
18% have dated their superiors

forbes.com/advisor/business/workplace-romance-statistics/
PROXIMITY
Closeness, shared experience
and values allow office
relationships to flourish
BENEFITS
OF WORKPLACE ROMANCE

1. Increased Morale
2. Improved Teamwork
3. Reduced Stress
4. Potential for Long-Term
Relationships
DISADVANTAGE
OF WORKPLACE ROMANCE

1. Damaged Professional
Reputation
2. Disturbed Work Environment
3. Decreased Productivity
4. Unfair Treatment Perceptions
5. Sexual harassment
TIPS ON HOW TO HANDLE WORKPLACE ROMANCE
1. Learn about and adhere to your company’s relationship
policies.
2. Avoid dating anyone in the workplace who’s your
subordinate.
3. Expect attention from your co-workers.
4. Avoid public display of affection.
5. Don’t let your relationship affect your productivity.
6. Be prepared for a breakup.
 TOPIC 5

THE PROBLEM
OF FAIR
PRICING
AND TRADE SECRETS
AND CORPORATE
DISCLOSURE
 FAIR a pricin
is base
g strate
d on pr
gy that

PRICING
inciple
of equi s
ty, hon
esty,
and int
egrity.

It involves setting prices that The goal of fair pricing is to

are reasonable and justifiable, ensure that both the company
MISSION
taking into account factors and the customer receive a
such as production costs, fair deal, with neither party
market demand, and value feeling exploited or
delivered to customers. shortchanged.
 INSULIN PRICING
IN THE U.S
Ave. Insulin Price
Country
(2018, USD)

U.S. $99
A 2018 study
Chile $21
estimated it costs
roughly $2 to $4 to Korea $10
produce a vial of
analog insulin, the Australia $7
type used by most Turkey $3
patients.
https://www.visualcapitalist.com/cost-of-insulin-by-country/
 1. The true cost of the
product is concealed

2. Promotional Pricing

ETHICAL 3. Follow the leader pricing

ISSUES 4. Price gouging

IN FAIR
PRICE 5. Price fixing
 TRADE
SECRETS
AND
CORPORATE
DISCLOSURE
 The secret formula for Coca-
TRADE
SECRETS
Cola, which is locked in a vault,
has not been patented. Hence, it
has never been revealed.

These are the

confidential business
information. It gives the
company a competitive
advantage over its
competitors and is often a
product of internal
research and development.
CHARACTERISTICS
1. They are not public
information.

OF TRADE
SECRETS
2. The information must have
"independent economic value
due to its secrecy."

3. The trade secret holder

must use "reasonable
measures under the
circumstances to protect" the
secrecy of the information.
SOURCES OF LEGAL
PROTECTION FOR
TRADE SECRETS
There is no specific law protecting trade
secrets in the Philippines, though there are
different Philippine statutes that apply to
the protection of trade secrets and that
penalize the revelation of such.
 Consumer Act

Article 40(f) prohibit “the

using by any person to his
Intellectual Property Code advantage,, or revealing,
own advantage
other than to the Department or to
Article 4(g) of the Intellectual the courts when relevant in any
Property Code of the Philippines judicial proceeding under this Act,
includes “protection of undisclosed any information concerning any
information” or trade secrets under method or process which as a trade
the term “intellectual property secret is entitled to protection”.
rights”.
rights”.
 CRIMINAL
LIABILITY
Article 292 of the Revised Article 40(f) of the
Penal Code Consumer Act
“The penalty of prision correccional “Any person who violates any of the
(6M&1D - 6Y) and a fine not exceeding provisions of Article 40 hereof shall, be
P500 shall be imposed upon the person subject to imprisonment of not less
in charge who, to the prejudice of the than 1Y but not more than 5Y 5Y,, or a fine
owner thereof, shall reveal the secrets of of not less than P5k but not more than
the industry of the latter.” P10k,, or both such imprisonment and
P10k
fine, in the discretion of the court.”
CORPORATE is the information

DISCLOSURE
that a corporation is
morally and legally
obliged to disclose.

refers to the action

of making all
relevant information
about a business
available to the
public in a timely
manner.
 The moral basis for corporate disclosure rests
primarily on the following arguments:

1. Each person has the right to

the information he needs to
enter into a transaction fairly.

2. Each person has the right to

those action of others that will
seriously and adverse affect
him.
De George
 VOLKSWAGEN
EMISSIONS SCANDAL
(DIESELGATE)
In September 2015, it was discovered that
Volkswagen had intentionally installed software
in their diesel cars that only activated emissions
controls during laboratory testing. This meant
that the cars only met US standards during
testing, and emitted up to 40 times more
emissions in real-world driving conditions.
THANK YOU
THANK YOU