GOOD GOVERNANCE & CODE

OF ETHICS
Governance & Social Responsibility
Prof. Ruel D. Garcia
After this session, the student should be
able to:
1. Explain the basic concepts and elements
of good governance;
2. Appraise the importance of ethics,
values and morals in governance;
3. Assess the different individual and social
influences on ethical behavior;
4. Understand some policies on ethical
practices in a code of ethics; and
5. Create a code of conduct based on given
characteristics.
 Where do the evils like corruptions
arises from? It comes from the never-
ending greed. The fight for
corruption-free ethical society will
have to be fought against this greed
and replace it with ‘What can I give
spirit.’

A. P. L Abdul Kalam
 Governance describes the Governance is an ideal
overall management approach concept which is difficult to
through which senior achieve in its totality. It
executives direct and control involves goodhearted people
the entire organization, using who brings their ideas,
a combination of management experiences, preferences and
information and hierarchical other human strengths and
management control shortcomings to the policy-
structures. making table.
• The concept of good
governance has Both governance & government
become a buzzword came from the French word
around the world in “gouvernance” which means the
recent times. act or manner of government.
• Currently, the term
governance has It means a “system by which
become synonymous something is governed.”
to sound development
management. GOVERNING AUTHORITY
• The concept of good
governance has
become a buzzword Basically, good governance in its
around the world in generic approach is the efficient,
recent times. transparent and equitable delivery
• Currently, the term of goods and services as well as the
governance has policy-making by means of
become synonymous exercising authority.
to sound development
management.
• The concept of good
governance has Good governance as a principle
become a buzzword denotes as approach in
around the world in administration that could be
recent times. applied in internal operations of
• Currently, the term both public and private sector
governance has organizations.
become synonymous
to sound development RECEPTIVE TO THE PRESENT &
management. FUTURE NEEDS OF THE
ORGANIZATIONS
RULE OF LAW
• Good governance requires the rule of law.
• Rule of law is the protection of human
rights and civil liberties particularly those
of minorities by the independent,
unbiased and principle law enforcement
agencies.
• It is exemplified by autonomous judiciary
workers such as a lawyers and judges,
good legal framework, equal access to
justice, incorruptible police force and
tested dispute mechanism among others.
TRANPARENCY
• Good governance requires transparency of the decision-
making process to make certain that information is
easily and freely obtainable to those who will be
affected by such decisions as well as the outcomes
resulting by the decisions taken.
• In the business sector, transparency can earn level of
trust in winning over shareholders, employees, and the
general public.
• Transparency means making sure everyone is aware of
what is going on throughout the organization at all
times.
RESPONSIVENESS
• Responsiveness is a requirement in
good governance.
• It simply means that organization Value is any information in
and their process need to be the form of question, data,
planned in a manner that services insights, research, context,
the best interest of all stakeholders case studies and so on that a
within a practical and realistic
period of time.
company can offer, and that
• Responsiveness is the combination allows its buyer in moving
of two inseparable elements which closer to decision-making.
are value and speed.
RESPONSIVENESS
• Responsiveness is a requirement in
good governance.
• It simply means that organization
and their process need to be
planned in a manner that services Speed is the time it takes to
the best interest of all stakeholders give the demanded
within a practical and realistic
period of time.
information to a customer.
• Responsiveness is the combination
of two inseparable elements which
are value and speed.
CONSENSUS ORIENTED
• Good governance requires
knowing the broad consensus
about the interest of the entire
stakeholder group and how this A consensus decision
can be achieved in a practical way. depends on the assumption
• Consensus means seeking the that every individual’s input
many different needs,
perspectives, and expectations of
is valuable and significant to
a diverse of people. the final solution.
• The consensus people necessitates
commitment and patience.
EQUITY & INCLUSIVENESS
• Equity & inclusiveness is based on Employees feel being included when
the idea that all members of an they experienced both:
organization or society must feel 1. A sense of uniqueness that they
the sense of belongingness and are acknowledge and
must not have the impression of appreciated for their specific
being excluded from the typical attributes and contributions.
group. 2. A sense of belonging that they
• Inclusivity means individuals are are received and treasured as
expect to be treated with respect, member of their workgroup and
dignity, collegiality, and kindness. among their co-workers.
EQUITY & INCLUSIVENESS
• Equity & inclusiveness is based on Employees experience a sense of
the idea that all members of an exclusion when they feel:
organization or society must feel 1. Degraded, dismissed, or
the sense of belongingness and discounted for the exceptional
must not have the impression of qualities they bring to the
being excluded from the typical company.
group. 2. Treated like outsiders because of
• Inclusivity means individuals are their differences such gender,
expect to be treated with respect, race/ethnicity, nationality, age,
dignity, collegiality, and kindness. religion, sexual orientation, and
in some cases, job role or formal
position of power.
EFFECTIVENESS & EFFICIENCY
• Effectiveness & efficiency is vital in
good governance.
• It is developed by sustainable use of
resources to create advantageous
results to meet the needs of its
stakeholders,
• Sustainability means guaranteeing
social investments are carried
through and protecting natural
environment, human and
ecological health for future
generation.
ACCOUNTABILITY
• Accountability is a key requisite of
good governance.
• Generally, an organization is
accountable to those who will be
Accountability is a key
affected by its decisions or actions governance best
whether they are internal or
external to an organization.
practices in many other
• Accountability extends to the aspect of business and
applicable rules of law which could
be violated in the course of the
social life.
implementation of the decisions or
action.
PARTICIPATION
• Participation in good governance
requires equal participation by all
groups with everyone having a role
in the process of decision-making,
either directly or through
legitimate representatives.
• It consists of the freedom of
association and expression.
• It needs attentive concern for the
best interest of the organization
and society especially for those
most weak and helpless.
ETHICS, VALUES & MORAL
• Ethics is about directing human conduct using the Good
standards of right and wrong that tells people what must
be done based on rights, obligations, benefits to society,
governance
fairness, or specific virtues. cannot be
• Values are an individual’s judgment or standard of
behavior. They are another individual factor that affects
successful in
ethical behavior. the absence
• Moral are another individual characteristics that can
affect an individual’s ethics. Morals are the rules people
of ethics and
develop as a result of cultural norms and values and are moral
traditionally, what employees learn their childhood,
culture, education, religion, and others.
values.
INDIVIDUAL FACTORS AFFECTING ETHICS
1. Stages of moral development – the process wherein
children are able to develop their right attitudes and
behaviors on how to treat other people in the society
founded on social cultural norms.
2. Personal values and moral – the ethical standards of
people are influenced by their individual values and
morals.
3. Family influences – everything starts form the family, so
they say.
4. Peer influences – are those co-workers who are always
around during the conduct of operation in the
workplace.
INDIVIDUAL FACTORS AFFECTING ETHICS
5. Life experiences – people help them evaluate whether
their behavior and attitudes are ethically correct,
incorrect or acceptable.
6. Social norms – ethical behavior could be defined
through local customs and traditions in a certain
culture.
7. Religious beliefs – most faith believes in life beyond
death.
8. Upbringing – a person’s upbringing defines his ethical
behavior.
9. Laws – laws and a person abiding by them, are
ethically influential.
SITUATIONAL FACTORS
• Issue-related – the Moral Intesity is amount that people observe
importance of decision to an issue as an ethical one.
the decision-maker. 1. The magnitude of consequences – this is
• Moral intensity – when the sum of the harm or benefits that
facing with conflicting could be impacted as the consequences
ethical demands or of a given action.
differing ethical values in 2. The social consensus – it is the degree
very difficult situations, that members of a society approve that
moral intensity is severely an act is good or bad and the possibility
vital. of effect is the increase and decrease of
moral intensity based on how likely
people consider the results are.
SITUATIONAL FACTORS
Moral Intesity is amount that people observe
• Issue-related – the an issue as an ethical one.
importance of decision to 3. Temporal immediacy – this is the distance
the decision-maker. between the time an action happens and
• Moral intensity – when the start of consequences or the soonest
facing with conflicting the results of any effect are likely to take
ethical demands or place.
differing ethical values in 4. Proximity – this refers to the emotional
very difficult situations, intimacy the decision-making feels to
moral intensity is severely those disturbed by the decision.
vital. 5. Concentration of effect – it is to whether
the effect is focused on a few people or
may affect a lot people in a small extent.
SITUATIONAL FACTORS
• Moral Framing – a frame Moral muteness usually take place due to
of reference, or point of some concerns on perceived threats to:
view, refers to the way 1. Harmony – this is the belief that moral talk
people look at a given would encourage conflict and retaliation.
situation. 2. Efficiency – it is about the belief that moral
talk could cloud issues which leads to a
more time-consuming decision-making.
3. Image of power and effectiveness –
managers consider that their image will be
hurt if they would be seen as someone
idealistic or making-decisions for ethical
reasons.
SITUATIONAL FACTORS
• Context Related – Factors of Context-Related
something ethics are take 1. Reward – putting into practice ethical
into consideration the principles and standards may possibly be
particular background of repeated and become contagious
an act when evaluating it throughout the organization when
whether right or wrong, appropriately recognized and rewarded.
rather that judging it 2. Authority – subordinates are likely just to
based on absolute moral follow instructions from their superiors.
standards. 3. Bureaucracy – most employees are likely
to follow rules instead of reflecting about
the ethics of decision created.
SITUATIONAL FACTORS
• Context Related – Factors of Context-Related
something ethics are take 4. Work roles – consists of a complete set of
into consideration the expectation of what to value, the manner
particular background of of relating to other people and the
an act when evaluating it approach of displaying behavior.
whether right or wrong, 5. Organization cultures – the norms of the
rather that judging it group often define the standard or
based on absolute moral satisfactory behavior in an organization.
standards. 6. National context – every country practices
different ways of ethics based on its
cultures. Culture is the basis for a decision
to be considered as ethically right or not.
ETHICAL FOUNDATION: Code as a tool
 Code of ethics are commonly used in
the business and professional
perspective to guarantee the public
• Code of ethics govern decision- that corporation and members of
making when confronted with
ethical dilemmas or
regulated professions are acting in a
questionable issues. socially and professional satisfactory
• It refers as the value statement manner.
of a company designed to
assist professionals in running
a business fairly and with
integrity.
POLICIES ON ETHICAL PRACTICES
1. Employee code of conduct – a framework
of policies founded on laws and values that
a company requires all employees to follow
to.
2. Confidentiality and privacy policies – all
employees need to be required to preserve
confidentiality as an ethical practice as well
as the company should have the same
privacy statement.
3. Professional appearance policies – a dress
code or dress policy can also be made as
requirements. Employees’ clothing must
be clean and pressed to look more
presentable and professional.
POLICIES ON ETHICAL PRACTICES
4. Promoting green business practices –
being an environment-friendly is a sound
practice by regulating the disposal of
waste such as waste segregation and
recycling.
5. Obeying the law – complying and abiding
the law is a mandatory ethical practice to
protect organization’s image.
6. Caring and consideration policies –
business must not allow their customers to
feel that they are just after profit by way of
being considerate manner atmosphere to
customers and train their employees to be
helpful and sympathetic staff.
KEY COMPONENTS
1. Legal issues – employees must
know those specific rule-
breaking scenarios that may
subject them to immediate
disciplinary action.
2. Compliance & regulations –
financial, transportation
energy & telecommunication
sector are highly regulated
industries, which bounded by
tight regulatory system.
KEY COMPONENTS
3. Value-based components –
every company normally
embraces the six universal
moral values consists of the
following: trustworthy,
respectful, responsible, fair,
caring and good citizens.
4. Violation of the Code of Ethics
– the process of disciplinary
action must be clearly stated,
always be fair and justifiable.
 Code of ethics is a set of principles and
rules used by companies, professional
organization and individuals to oversee
CATEGORIES
their decision-making in selecting
Compliance-Based Code of Ethics – between right and wrong.
based on specific rules and distinct
consequences instead of
individual observing of personal
behavior.
 Code of ethics is a set of principles and
rules used by companies, professional
organization and individuals to oversee
CATEGORIES
their decision-making in selecting
Value-Based Code of Ethics – between right and wrong.
addresses a company’s core value
system by shaping standards of
accountable conduct and by
defining a company’s guiding
values and permitting to make
their own interpretation of those
values.
 Codes of conduct govern action.

EMPOWERING EMPLOYEES
• It defines how company’s
employee should act on a
everyday basis.
CONTAINING DEFINITE BEHAVIOR
• It reflects the organization’s
day-to-day, core values and the A TOOL FOR CONTROLING
general company culture. MEASURES
• A core is a vital guide and
reference for employees to A LIST OF SOME DEFINITE LAWS
support routinary decision- RELEVANT TO DIVERSE AREAS OF
making. ORGANIZATION OPERATION
 Codes of conduct govern action.

A great code of conduct is:

1. Written for the reader – it is simple to understand
and does not contain any technical or legal
terminology.
2. Comprehensive – it covers all significant details that
may influence the daily lives of employees and
answers common questions that arise.
3. Supported by leadership – it has been recognized
and ratified by the company’s senior management
team.
4. Accessible – it is available to all employees, current
investors and potential investors.
5. Visually appealing – it follows a style that is clean
and reflective of the organization.
 Republic Act 6713 spelled out the
conduct and ethical standards for
This act describes as: public officials and employees.
• Public office being a public
trust principle
• Expresses the giving of
incentives and rewards for
those who have shown
exemplary service.
• It enumerates those forbidden
acts and transactions and their
equivalent for those would
violate.
1. Please visit your
respective LMS.
2. Read the case study on
Disney & McDonald’s
linked to $0.06/hour
sweatshop in Vietnam.
3. Do this case study in
your group.