The Role of Business in Social and Economic

Development
5. Unlimited Liability - the liability of a sole
I. NATURE OF BUSINESS ORGANIZATIONS proprietor is always comprehensive and
Business Organization is an ART as one has to use his unlimited; the personal property of the
skill and knowledge in solving many complicated proprietor would also be used to pay off the
problems of business to achieve the enterprise debts and loans of any incurred from the
objectives. Organization is one of the most creative outsider if the business assets one insufficient to
art as it is concerned with getting work done through meet such of outsiders in case liabilities of the
others by motivating them to work and coordinating enterprise cannot be paid out of assets of the
their activities. enterprise
6. Limited Area of Activities - as a result of limited
Business Organization is also viewed as a SCIENCE as finance and managerial ability, the sole
it is an organized body of knowledge built up by proprietor has a limited area of operation;
management practitioners, thinkers and unlimited liability also restricts the proprietor
philosophers over a period of years. It has certain from taking bold decisions and expands its area
principles and rules developed after continued of operations.
observation. 7. No Legal Formalities - anybody and everybody
can start the business any time any everywhere
so also they can dissolve the same as per their
wishes
FORMS OF BUSINESS ORGANIZATIONS
8. Freedom of Line of Business - the sole
Sole Proprietorship - has single owner called the proprietor is free to select any business of his
proprietor who generally is also the manager choice. It provides an excellent opportunity for
self-employment
- tend to be small service-type businesses and retail
establishments
Partnership - two or more persons bind themselves
- owner receives all profits, absorbs all losses and is to contribute money, property, or industry to a
solely responsible for all debts of the business common fund, with intention of dividing the profit
among themselves
Characteristics:
Characteristics:
1. Single Ownership - ownership management and
control of the organization is vested with that 1. Mutual Contribution – there cannot be a
individual only partnership without contribution of money,
2. Capital Contribution - capital is contributed by property or industry to a common fund
the sole proprietor from his own resources 2. Division of Profits or Losses – the essence
3. No Separate Legal Existence - no distinction is partnership is that each partner must share in
made between the enterprise and its owner and the profits or losses of the venture
both are looked upon as one any same person; 3. Co-Ownership of Contributed Assets – all assets
death or insolvency of the sole proprietor brings contributed into partnership are owned by the
his business to an end partnership by virtue of its separate and distinct
4. One-Man Control - sole proprietor is personally juridical personality
responsible for the control and management of 4. Mutual Agency – any partner can bind the other
enterprise partners to a contract if he is acting within his
express or implied authority
5. Limited Life – it may be dissolved by the 4. Relative Ease of Transferring Ownership Rights -
admission, death, insolvency, incapacity, a person who buys stock in a corporation is
withdrawal of a partner or expiration of the called a stockholder and receives a stock
term specified in the partnership agreement certificate indicating the number of shares of
6. Unlimited Liability – all partners (except limited the company she/he has purchased
partners), including industrial partners, are
personally liable for all debts incurred by the 5. Professional Management - investors in a
partnership corporation need not actively manage the
7. Income Taxes – partnerships, except general business, as most corporations hire professional
professional partnerships, are subject to tax at managers to operate the business.
the rate of 30% (per R.A. No. 9337) of taxable 6. Ease of Capital Acquisition - a corporation can
income obtain capital by selling stock or bonds
8. Partners’ Equity Accounts – each partner has a 7. Government Regulations - the sale of stock
capital account a withdrawal account serves results in government regulation to protect
similar functions as the related accounts for sole stockholders, the owners of the corporation
proprietorship

Cooperative - an autonomous and duly registered

Corporation - an artificial being created by operation association of persons, with a common bond of
of law, having the right of succession and the interest, who have voluntarily joined together to
powers, attributes and properties expressly achieve their social, economic and cultural needs
authorized by law or incident to its existence; a and aspirations by making equitable contributions to
business owned by its stockholders the capital required; patronizing their products and
services and accepting a fair share of the risks and
Characteristics:
benefits of the undertaking in accordance with
universally accepted cooperative principles
1. Unlimited Life - as a corporation is owned by
stockholders and managed by employees, the Characteristics:
sale of stock, death of a stockholder, or inability
1. Voluntary Membership - a person who has a
of an employee to function does not impact the
common interest and is prepared to be abide by
continuous life of the corporation
the rules of the society has the right to join the
society as and when he wishes to do so,
2. Limited Liability - the liability of stockholders is
continue in it as long as he likes, and leave it at
limited to the amount each has invested in the
his will
corporation
2. Open Membership – It is open to all irrespective
of race, color, creed, caste, or sex
3. Separate Legal Entity - the corporation is
3. Finances - the finances of a cooperative are
considered a separate legal entity, conducting
contributed by members through the purchase
business in its own name; corporations may own
of shares
property, enter into binding contracts, borrow
4. Liability of Members - like company
money, sue and be sued, and pay taxes
organization, a cooperative may be organized on
the basis of either limited or unlimited liability
5. Democratic Control - cooperation is democracy
in action; the business of cooperative is
generally managed by a committee elected by
the members at annual general meeting
6. Limited Interest on Capital - cooperation  It will focus on the energies and resources
recognizes the capital is useful and necessary for of the organization.
running a business, but it should be relegated to
Workers and their knowledge are the resources of
the level of a servant, not a master
the organization. This will make a healthy
7. Distribution of Surplus - unlike profit-oriented environment in the team and keeps the organization
enterprises, the surplus of a co-operative society strong and successful. 
is not distributed to the members in the ratio of
In any business organization, customer’s faith is the
their capital contribution or in an agreed ratio;
most valuable property. It should focus on following
under the provisions of the law, at least 25
three factors:
percent of the profit must be transferred to the
general reserve 1. Responsiveness
8. Service Motive - a cooperative society is formed -The organization should be able to respond
with the basic objective of providing useful quickly to meet the customer’s needs. The
service — be it credit, consumption goods, or customer’s needs also vary. It changes with the
input resources — to its members and the passes of time and the services of the
society organization. So the organization, too, has to
9. Registration and Legal Status - being voluntary develop accordingly.
in character, registration of a cooperative is 2. Reliability
optional -There should be reliability to meet the
commitment made to the customers.
10. Education and Training – it also exhibits the
Commitment to the customers should not be
feature of education and training to its
made lightly. It should be the highest priority of
members with the purpose of developing co-
the business and should always be meet.
operation into a well-organized movement
3. Design with Quality
-The goods and services delivered to the
customers should be in new design with quality.
The production should not be considered as a
II. Purposes of Business Organization
sold production as soon as it is bought by a
Businesses exit to serve customers. So customers are customer, it is sold only when it is bought and
more important than any stockholders, the workers, satisfied the customer.
or the management. Without customers, there is no
business. So the main purpose of the business
Each factor is equally important to make any
organization is to serve and satisfy its customers.
business organization strong and successful.
However, in the beginning and in the unstable Comments and suggestions, from the customers, are
condition the purpose of the organization will be to always to be listened. It helps the organization to
survive. track the right path.

 There should be shared vision and values. Types of business organizations and their
 It must have a mission statement and purposes:
commitment to the mission at all levels of
the organization. 1. Sole Trader/Sole Proprietorship
 This mission statement prevents the - Make highest possible profit by personal
organization from being distracted and effort.
sidetracked. - Keep the high risk as low as possible.
 - Satisfy the customers with product
availability.
- Keep good relation with both customers III. The core principles underlying fairness,
and suppliers. accountability and transparency in
2. Partnerships business operation and stewardship)
- Make profit by acquiring the good relation
respect for others’ property):
with the clients.
- The property or assets must be used Fairness - equal treatment, fairness in the treatment
appropriately. of all stakeholders including employees,
- Try to minimize the risk by good relation communities and public officials.
with the partners
3. Corporations For example, all shareholders should receive equal
- Highest possible growth. consideration for whatever shareholdings they hold.
- Survival Accountability - obligation and responsibility to give
- Profit maximization an explanation or reason for the company’s actions
- Sales maximization and conduct.
- Grab the market share
For example, the board should communicate with
stakeholders at regular intervals, a fair, balanced and
ROLES OF BUSINESS ORGANIZATIONS IN understandable assessment of how the company is
SOCIO-ECONOMIC DEVELOPMENT achieving its business purpose.

Socio-economic development is the relationship Accountability goes hand in hand with responsibility.
between economic activity and social life. The The Board of Directors should be made accountable
NEPAD (New Partnership for Africa's Development) to the shareholders for the way in which the
Declaration implies that socio-economic company has carried out its responsibilities.
development is the continuous improvement in the
Transparency - openness, a willingness by the
well-being and in the standard of living of the
company to provide clear information to
people. Government, trade groups, colleges and
shareholders and other stakeholders.
businesses often cooperate to promote
development in a targeted geographic area. For example, transparency refers to the openness
and willingness to disclose financial performance
Fundamental role:
figures which are truthful and accurate.
 To provide goods and services that people
Business Practices - functional requirements
need
governing how company polices are implemented.
Other roles:
Business Policies - fundamental requirements
 Provide employment governing all decisions and actions.
 Add to tax bases
 under the oversight and administration of
 Donate for charities
the Policy Committee (members are
 Support local schools designated by CEO)
 Supports and participates in local programs
and activities Policies and Business Practices - fundamental
 Helps in economic growth of the requirements governing all decisions and actions
community worldwide.
Some of the Philippines Business Practices 4. Improve the skills of your workplace.
5. Use technology more effectively.
Greetings: standard greetings are an exchange of
6. Reduce waste and improve quality.
handshakes and a smile. In formal situations, the
7. Respond more quickly to innovations.
oldest or most important person is greeted first.
Presentation: bargaining is part of the Filipino's way The following are the common practices in business
of life, and it has been natural for the region's organizations:
businessmen to negotiate and bargain in order to
a. Benchmarking – the process of comparing your
obtain better commercial conditions.
own organization, operations, or processes against
Gifts: imported brandy and whisky are priced gifts. It other organizations in your industry or in the
is important to give something and accept broader marketplace
something from someone.
b. Forecasting–the use of historic data to determine
Business Communication: Filipino's are attached with the direction of future trends; it is a decision-making
great importance to not losing face and sometimes tool used to help in budgeting, planning and
have very strong reactions when they are estimate future growth
contradicted or reprimanded in public.
c. Strategic Planning –defines on “where” your
 never raise voices company is heading; this is used to set priorities,
 never signal to someone with your finger focus energy and resources, strengthen operations,
pointing upwards, this is considered an and ensure that the employees and stakeholders will
insult. Rather signal with hand, palm work toward a common goal
downwards.
d. Financial Planning – the task of determining how a
Business Relations: entertainment takes place in business will afford to achieve its strategic goals and
restaurants, bars and hotel lounge bars, at home and objectives
sometimes in night clubs.
e. Performance Monitoring–a vital part of
Visiting Cards: present visiting cards with both hands monitoring organization’s progress because it
and to take of other contacts with both hands also. comprises measuring the actual performance
In addition, never slip the visiting card into your outcomes or results of an organization against its
pocket, wallet, put it with the papers you are using intended goals
during negotiations
f. Decorum – the set of unwritten rules that apply to
social situation, professional workplaces and
relationships which aims to produce polite, and
IV. COMMON PRACTICES IN BUSINESS respectful people
ORGANIZATIONS g. Protocol –refers to a legal document, more
specifically, an agreement that either supplements
Applying the appropriate standards to your
or amends a treaty or convention
business will enable you to apply best practice across
the organization, and to work against objective h. Policies–these are principles, rules, ad guidelines
criteria to achieve manufacturing or service quality. formulated or adopted by an organization to reach
its long-term goals; typically published in a booklet
A best practice can help your business to:
or other form that is widely accessible
1. Become more competitive.
i. Marketing – an important piece for the
2. Increase sales and develop new markets.
management of internal and external
3. Reduce costs and become more efficient.
communications to supporting the creation of tools concerning company finance may include an
to improve customer satisfaction; used to create and insistence that all applicable tax law regarding the
maintain the company’s image and its brands business be followed. Formal ethics codes usually
include penalties for violating the code.
j. Bookkeeping–the storage of accounting and
financial documents which is very important in any Engaging Employees: LRN, a management consulting
business firm that helps companies develop ethics codes,
states that it is not enough for a company to have a
k. Reportorial requirements and documentation –
written code. While such a code is a necessary
this refers to government requirements that are
prelude, the real goal is to inspire employees toward
needed in order to establish a business; done before
the highest moral behavior at work. The code must
you can run your business
be taught and promoted so that the code becomes
CODE OF ETHICS IN BUSINESS ORGANIZATIONS an integral part of the work culture.

We are all probably aware of companies that crossed Ethics Code Provisions: Companies categorize code
an ethical line by cheating customers, knowingly provisions differently depending on their industry,
manufacturing shoddy products, or deceiving their own goals, regulations and laws governing their
stockholders by falsifying financial statements. While industry, and other characteristics that make them
business codes of ethics do not prevent all such unique. Some typical provisions included are those
behavior from occurring, they can help instill an concerning employment practices, vendor relations,
ethical workplace culture. An ethical culture lessens communications, conflicts of interest, governmental
the kind of bad behavior that can put a company in and environmental issues, and ethical management
jeopardy. practices.

What business codes of ethics do? Business codes of Executive Responsibility: The executive ranks of a
ethics help define what is acceptable behavior in the company need to take the lead in developing and
workplace. A code that is accepted by employees living out a business ethics code. It starts at the top.
generally promotes high standards, whether in Executives need to ensure that all employees have a
manufacturing, finance, customer service, or any hand in the codes' development, but the executives
other functional area of the company. Employees themselves are the ones who need to get the
working under the code have a benchmark upon process started and seen to completion.
which they can judge their own behavior and that of
Compliance-Based Codes of Ethics: For all
others within the organization. Additionally,
businesses, laws regulate issues such as hiring and
companies with a reputation for enforcing their
safety standards. Compliance-based codes of ethics
ethics codes can more easily lay claim to an
usually not only set out guidelines for conduct, but
occupational maturity their competitors cannot.
also lay out penalties for violations.
Informal and Formal Codes: Most small businesses
This type of code of ethics is based on clear-cut rules
do not have a formal written code of ethics and
and well-defined consequences rather than
instead rely on owners and executives to set the
individual monitoring of personal behavior.
tone concerning what is acceptable behavior at
Therefore, despite strict adherence to the law, some
work. Employees understand the informal codes by
compliance-based codes of conduct do not promote
observing how management acts in workplace
a climate of moral responsibility within the
situations such as how customers are treated and
company.
whether safety procedures are followed. Formal
codes are written documents that outline expected Value-Based Codes of Ethics: A value-based code of
behaviors at work. For example, written ethics ethics deals with a company's core value system. It
may discuss standards of responsible conduct as CODE OF RIGHT CONDUCT IN BUSINESS
they relate to the larger public good and the ORGANIZATIONS
environment. Value-based ethical codes may require
A code of business conduct, sometimes called a code
a greater degree of self-regulation than compliance-
of ethics, is a management tool for setting out an
based codes.
organizations values, responsibilities and ethical
*Some codes of conduct contain language that obligations. The code of conduct provides employees
addresses both compliance and values. For example, with guidance for handling difficult ethical situations
a grocery store chain might create a code of conduct related to the business. Businesses develop their
that discusses the company's commitment to strict own codes, based on their core values, and no two
adherence to health and safety regulations above codes are the same. To be truly effective, the code of
financial gain. The chain might also include a conduct must also be embedded in the business, so
statement about refusing to contract with suppliers employees know how it applies to them.
that feed hormones to livestock or raise animals in
Developing a Code: The first step is to find out what
inhumane living conditions.
topics employees feel they need guidance on--for
Examples of Code of Ethics: example, bullying, bribery or addressing work-life
balance. The code also must take into account needs
Kraft - The Kraft code of ethics contains just 10 short
of shareholders, customers, suppliers and the local
rules of ethical behavior that all employees must
community. To do this, the company can employ
follow. The introduction to the Kraft code of ethics
surveys and formal and informal discussions. The
suggests that employees should let values guide
code also should include a way for employees to
their actions in all cases. The code also stresses that
report violations anonymously, and a way for
if something seems wrong, it should be addressed
employees to get advice about ethical issues or
directly. The code includes a speaking-up policy that
concerns.
requires employees to speak up if they are aware of
any violations of the code, even those they have Effect on Employee Behavior: Having a code of ethics
committed themselves. The 10 rules are: Make food can lead to improved employee behavior. According
that is safe to eat; market responsibly; treat people to the 2009 National Business Ethics Survey, 89
fairly; respect the free market; compete fairy; percent of those polled felt management adequately
respect the environment; deal honesty with the discussed the importance of ethical conduct.
government; keep honest books and records; never
Similarly, KPMG’s 2008-2009 Integrity Survey,
trade on inside information; give Kraft Foods your
published by KPMG Forensic, found that ethics
complete business loyalty.
programs, including codes of conduct, had a strong
Colgate-Palmolive - The Colgate-Palmolive code of impact on how employees felt. Ninety percent of
ethics is a long document, but is broken down into those surveyed who worked in companies with a
individual areas of conduct. The code is intended as code of conduct felt they were motivated to "do the
a guide to all daily business interactions and is used right thing." This compares with just 43 percent of
in conjunction with the company's business practice people who work in companies without strong codes
guidelines. The code covers 10 areas, including: Our of conduct.
Relationship with Each Other; Our Relationship with
Instituting the Code: For a code of conduct to be a
the Company; Our Relationship with Consumers; Our
useful tool, it is important to introduce and endorse
Relationship with Government and the Law; Our
it at the highest levels of the business. Once the
Relationship with Society and Our Relationship with
code is written, the CEO and governing body should
the Environment.
sign off on it. Then, the company can incorporate it
into orientation and training programs. Many
companies require staff members to sign a addresses many of the issues that should be covered
document that they read and understand the code, such as retaliation, conflicts of interest, bribery and
and others require all employees to abide by the confidentiality.
code of conduct as a condition of their employment.
 Hershey’s Code of Conduct: Hershey’s code
Many companies also use an audit or internal review
of conduct is very similar to Dell’s in that it
to measure the effectiveness of their code.
also uses the question and answer feature
Significance: A 2009 study by the Ethics Resource to help employees navigate potentially
Center found that organizations with strong codes of unethical situations. There are also
conduct experience less misconduct, less failure to questions and answers on almost every
report misbehavior and less retaliation on the job. page, which helps to clarify the points being
This improved ethical behavior can positively impact made.
business performance. Thus, one way to view a code
of conduct is as a type of preventative medicine. Also, the design of the PDF is very appealing. The use
Without it, a business is vulnerable because it has of candy and chocolate colors helps to brand the
neglected to take business ethics seriously. code of conduct, while the bold headlines,
hierarchical fonts and multiple colored fonts make
Good Business Conduct: Codes of conduct are the document easy to read.
especially important for small and medium-sized
businesses, which often rely for their success on  Pepsico’s Code of Conduct: Pepsico’s code
good relationships with staff members and the local of conduct is extremely detailed. For
community. These businesses should develop a code example, in the section on business gifts,
which focuses on establishing and maintaining their they say exactly what’s considered a gift,
core business values. and they even provide a specific dollar
amount.
For example, safeguarding medical records is a core
value for a medical school, so Houston-based Baylor Pepsico also encourages employees to speak up
College of Medicine includes in its code of conduct. when they see or experience unethical behavior. To
Make sure all business and medical records for make it easy for employees to follow these policies,
which you are responsible are accurate and the code of conduct gives clear instructions on
maintained as required by federal and state law. reporting, provides resources for who to contact and
Codes of conduct also can ensure that all business explains what will happen once a complaint is filed.
partners share your values and support the local
 Starbucks’ Code of Conduct: One of the
community.
interesting things about Starbucks’ code of
Examples for Code of Right Conduct: conduct is the environmental commitment
in the section on community involvement. It
 Google’s Code of Conduct: One thing that’s shows that a code of conduct isn’t simply
great about Google’s code of conduct is limited to discouraging negative behaviors.
that it’s easy to read. You don’t need a law In fact, it can help affirm the positive things
degree to understand what the company is about your company culture.
saying. The tone is conversational, yet they
make the points that need to be made with Additionally, Starbucks has a frequently asked
authority. questions section. This section goes over the
purpose of the code of conduct and provides
It’s also easy to find online. The links to different additional information on a helpline services offered
sections are easy to navigate and the answers to employees for questions.
provided are thorough and detailed. Finally, it
 computers. Codes, along with other measures, have
helped some companies dig themselves out of
WHAT’S THE DIFFERENCE BETWEEN A CODE OF
scandals, and have helped many companies build a
ETHICS AND CONDUCT?
healthier work climate and reputation.
The terms “Code of Ethics” and “Code of Conduct”
*Similarities: Both a Code of Ethics and a Code of
are often mistakenly used interchangeably.
Conduct are similar as they are used in an attempt to
They are, in fact, two unique documents. Codes of encourage specific forms of behaviour by
ethics, which govern decision-making, and codes of employees. Ethics guidelines attempt to provide
conduct, which govern actions, represent two guidance about values and choices to influence
common ways that companies self-regulate. They decision making. Conduct regulations assert that
are often associated with large companies, and some specific actions are appropriate, others
provide direction to employees and establish a inappropriate. In both cases, the organization’s
public image of good behavior, both of which desire is to obtain a narrow range of acceptable
benefits businesses of any size. behaviors from employees.

Code of Ethics: *Differences: With similarities, come differences.

Both are used in an attempt to regulate behavior in
Sometimes referred to as a Value Statement, it very different ways. Ethical standards generally are
behaves like the Constitution with general principles wide-ranging and non-specific, designed to provide a
to guide behaviour; outlining a set of principles that set of values or decision-making approaches that
affect decision-making. For example if an enable employees to make independent judgments
organization is committed to protecting the about the most appropriate course of action.
environment and “being green”, the Code of Ethics Conduct standards generally require little judgment;
will state that there is an expectation for any you obey or incur a penalty, and the code provides a
employee faced with a problem, to choose the most fairly clear set of expectations about which actions
“green” solution. It works on the bases of “treat are required, acceptable or prohibited.
others as you would like to be treated.” When faced
with ethical dilemmas or debatable situations, *Working Together: Bigger organizations sometimes
what’s articulated in the Code of Ethics can help have both Codes in separate formats, or they are
guide decision making. sometimes combined into one general Ethics
document that blends principles for the right action
Code of Conduct: with a list of actions that are required or forbidden.
It provides the meat and potatoes to the Code of
Ethics. A Code of Conduct applies the Code of Ethics
to a host of relevant situations. A particular rule in GOOD POLICIES OR PRACTICES VS. MORALLY
the Code of Ethics might state that all employees will UNACCEPTABLE POLICIES OR PRACTICES
obey the law, a Code of Conduct might list several
Morality is knowing how to accurately calculate the
specific laws relevant to different areas of
differences between Right and Wrong,
organizational operations, or industry, that
and Good and Bad. There are many benefits of being
employees need to obey.
right and good, and there are many negative
The Code of Conduct outlines specific behaviours consequences that are the result of being bad or
that are required or prohibited as a condition of wrong.
ongoing employment. It might forbid sexual
The more you understand these differences, the
harassment, racial intimidation or viewing
more you will benefit, and the less you will suffer
inappropriate or unauthorized content on company
from mistakes. Knowing comes from learning, and
there is a lot to learn, as you can see. This is not Employees put ethical guidance for justice by
about restricting your thoughts or actions, this is treating each other and all clients and
about increased Awareness and fully understanding customers fairly and equally. Anti-discrimination
the differences between what is logical, and what laws are examples of just employee practices.
is illogical. 

All federal government employees must ensure their Morally Unacceptable Policies or Practices
actions and decisions respect the values of the Public
Service and conform to the ethical standards - Pertains to unwanted behaviors that violates
outlined in the Values and Ethics Code for the Public the expected conduct and required behaviors of
Service, 1993. workers in a workplace that usually contribute
to the downfall of the company and the good
Good Policies or Practices relationship between co-workers.
- Ethical violation
-pertains to the expected conduct and
required behaviors of workers in a workplace that 1. Human Resources (HR) Ethics - Discrimination
bring good to both co-workers and the success of based on ethnicity, gender, age or other factors
the company. is an issue. Managers who discriminate against
minority groups in hiring practices,
1. Integrity Practices- Integrity requires the
compensation decisions and the terms of
courage to do what is right despite popular
employment can face legal and social
opinion. They keep their word to their clients
consequences. Dishonesty and manipulation are
because it is the right thing to do and because
also examples unethical workplace behavior,
their word is the company's word. It requires
whether on the part of supervisors or
consistent practice.
subordinates.
2. Confidentiality and Privacy Practices- A healthy
2. Accounting Ethics - Dishonest business people
work culture displays respect for employee
reporting financial information in unethical
privacy. Employees practice confidentiality by
ways. Certain unethical accounting practices are
refraining from gossip about colleagues' private
illegal, such as flat-out misrepresenting income
issues.
or expense figures on financial statements.
3. Self-Control Practices- When challenging
3. Community Impacts – business process that
situations arise, employees who can control
affects the community such as causing water, air
their emotions and actions exhibit ethical
and even noise pollution. Completely ignoring
behavior in the workplace. Self-control prevents
these external impacts is clearly unethical. 
difficult situations from escalating into conflicts
that disrupt workflow and threaten staff morale. 4. Theft and Fraud- Executives and employees can
When they avoid backlogs, they help their embezzle money from their companies for
colleagues to maintain a steady work pace and years, taking thousands or millions of dollars for
they contribute to the overall productivity of the personal use before getting caught. Even front-
business. line store associates can steal money or
4. Team work practices - A vital aspect of the inventory directly from their employers, proving
workplace is working well with others. While not that breaches of ethics can occur at any level of
all employees will always like each other, they a business.
do need to set aside their personal or even
work-related differences to reach a larger goal.
5. Justice Practices - The Golden Rule is a succinct
guide for just practices in the workplace. Criteria
for justice applies to all people and all situations.