Chapter 1 lesson 1.
2: Fairness, Accountability and Transparency
Fairness
refers to equal treatment
in business it refers to the value of treating people with a standard of performance that is
consistent and equal based on commitments.
it means giving customers a reasonable value for their money
it also means providing an unbiased work environment where employee have identical
opportunities to good benefits and working conditions.
is considered with actions, processes, and consequences that are morally right, honorable, and
equitable
Accountability
refers to the obligation and responsibility to give an explanation or reason for the company’s
actions and conduct.
also has a strong connection to expectations.
is crucial in ensuring high performance within an organization
is applicable not just for profit-oriented company, but also to non-profit organizations.
In the past, companies were primarily accountable to just two entities which are their customers, whom
they owned and a quality product at a fair price, and their shareholders, whom they owned regular
profits. Customers and shareholders still demand business’ accountability, but scores of other entities
are also demanding information about organizations’ operations.
Today, companies’ constituencies include:
1. Institutional Investors
Institutional investors are becoming much more vocal and more active.
people want to make sure that the companies and the boards that manage them are
held accountable. Transparency and accountability are the watchwords, with return on
investment and protection of shareholder interests as the criteria.
2. Customers
although customer power has always been a force to contend with, consumers have
never used their influence in the ways they are using it today.
customers are now starting to voice out their concerns and demand information in all
sorts of areas,
3. Employees
Nowadays, employees need information, prior to making employment decisions, they
are asking information about compensation practices, the amount of money devoted to
training and development, the company’s growth potential etc.
4. Communities
Companies face enormous pressure from community groups to be good corporate
citizens. Corporations determine far more than another institution the air to breathe,
the quality of water to drink and even where to live. As a result, an increasing number of
environmental and public-interest groups are demanding companies to be accountable
for any and all actions that may affect the communities in which they operate.
Transparency
means openness, a willingness by the company to provide clear information to shareholders and
other stakeholders.
it ensures that stakeholders can have confidence in the decision-making and management
process of the company.
a company to be called transparent has to open and willing to disclose financial performance
figures which are truthful and accurate
transparency is not just about consumers. Employees too place a high value on transparency in
their relations with different levels of management.
is even one of the top factors in shaping happiness and satisfaction in the work place.
Advantages:
Respect
o respect for both employees and customers
Positive Public Perception
o protect themselves from scandal and other issues that involves the company
Staff Involvement
o Open and honest communication must be maintained with the staff.
Customer Service
o Can get better through transparent business operations.
Image Management
o Established media connections can help disseminate information during crisis.
transparency of a non-profit organization involves how much it tells publicly about its agency, and how
truthfully and promptly it discloses this information. One common way to be transparent is to make
public the organization’s financial records, principal programmatic activities and officer’s compensation
package.
Fairness, Accountability and Transparency for Socioeconomic Development
Fairness
o so that the best will be acknowledge fairness has to practice for a healthy competition.
Corruption and cronyism in business must be removed to move forward towards
development.
Aristotle – “Equals should be treated equally and unequal’s inequality.”
oFavoritism, cronyism, and nepotism all interfere with fairness since they furnish
unjustified benefit to somebody who is not worth of this treatment.
Transparency and Fairness
o are important pillars also for socioeconomic development of a county especially for
developing ones like the Philippines
o are very vital for the resourceful and effective functioning of a modern economy and for
nurturing social well-being.
o are significant for making certain that resource wealth is administered for the advantage
of the entire population.
o Transparency guarantees that information is accessible to assess the authorities’
performance and to protect against any potential abuse powers.
o Transparency serves as a way to realize accountability, which means that authorities can
be held answerable for their actions
o the absence of transparency and accountability will create mistrust between a
government and those whom it rules. the outcome would be an unsteady society and
environment that is less than contributing to economic growth.
