initiatives to improve business ethics and reduce corruption (1).pptx

INITIATIVES TO
IMPROVE BUSINESS
ETHICS AND REDUCE
CORRUPTION
Presented by
Maricris Jenn Rufo
Rian Von Basco
.

TABLE OF
CONTENTS
Introduction
The Integrity Initiative Campaign
Corporate Values
Need For A Code Of Conduct
Bishops-Businessmen’s Conference Philippines
Code Of Ethics For The Philippines Business
The Unified Code Of Conduct For
Business (Integrity Initiative)
01
02
Presented by
Aaron Loeb
03
04
05
06
Some Principles for the Conduct
of Business
07

INTRODUCTION
• Improvement of business ethics is a common
concern of everybody.
• It is imperative that all parties involved
manufacturers, sellers, consumers,
government and relevant organizations must
participate in improving business ethics.
• Unless there is a concerted effort on the part
of everybody, we cannot effectively remind
businessmen and professional of their
ethical responsibility to each other, to their
customers and clients.
01
• Unethical practices are ever present. Even
people who have not yet been victims of
these practices are vaguely aware that they
exist and agree that something must be
done to rid the world of them.
• Accordingly, various approaches to
improving business ethics have been
brought forward not only in the Philippines
but also in other countries.

02 THE INTEGRITY
INITIATIVE CAMPAIGN
• In 2010, a private sector-led campaign aiming
to strengthen ethical standards in business, the
Integrity Initiative was organized after the
Philippines received a grant from Siemens.
• The Makati Business Club (MBC) and the
European Chamber of Commerce of the
Philippines (ECCP) serve as the Integrity
Initiative Secretariat.

02 THE INTEGRITY
INITIATIVE CAMPAIGN
• The Integrity Initiative is a multisectoral campaign that seeks to
institutionalize integrity standards among various sectors of
society business, government, judiciary, academe, youth, civil
society, church and media.
• Led by the private sector, the initiative aims to help in
diminishing, if not fully eradicating, the vicious cycle of
corruption in the Philippines, which has not only exacerbated
poverty but also obstructed the development of a competitive
business environment that operates on a level playing field.

02 THE INTEGRITY
INITIATIVE CAMPAIGN
Ultimately, the Integrity Initiative hopes to build trust in government, a
more equitable society and fair market conditions. This will result in
improved competitiveness and increased business confidence, which
will evident with the increase in domestic and foreign investments, and
more employment generated for Filipinos. Subsequently, with more
Filipinos employed in a vibrant and dynamic Philippine economy, the
alleviation of poverty should become inevitability. Through the
initiative, the Philippines will become a benchmark in the
transformation process of any country regarded as highly corrupt to
one that fosters an ethical and progressive business environment

02 THE INTEGRITY
INITIATIVE CAMPAIGN
To achieve this goal, consultations, roundtable discussions
and public forums involving business leader compliance
officers, corporate governance experts, academics and
practitioners from small and medium enterprises to
Fortune 500 companies. "An Integrity Compliance
Handbook" containing the key documents and toolkits in
Integrity Initiative was published for the use of
organizations to promote ethical business practices.

02 THE INTEGRITY
INITIATIVE CAMPAIGN
Since 2010, MBC and ECCP have been joined by various
organizations and industry associations in taking an active role in
promoting honesty and transparency in Philippine business. As of
2018, a number ber of the organizations and industry associations
have been taking active participation in this movement.
With the active participation of these organizations, is hoped that
the problem of massive graft and corruption in the Philippines will
be minimized if not totally eliminated.

CORPORATE VALUES
03
• The increasing scrutiny by regulators, lobbyists, non-
government organizations, consumer groups and the media
have the potential to affect a business firm market
perception and hence value.
• It is therefore important that the organization's values, and
its code of conduct, address the legal and other obligations
owed to important stakeholders, including, for example,
trade practices laws, privacy laws, employment laws,
occupational health and safety, equal opportunity in the
workplace, superannuation and environmental regulations.

CORPORATE VALUES
03
• Managing, protecting and enhancing
reputation has become one of the greatest
challenges facing today's board.
• The reputation of a business is a critical factor
in the determination of its value. The values
and ethics of the organization need to be
explicitly managed.

NEED FOR A
CODE OF
CONDUCT
04
Those responsible for business policy should consider not only the
interest of the owners of the business, but also the interest of those
affected by the activities of the business.
Guide directors and senior executives
Promote responsibility and accountability
as a minimum, as to the practices necessary to maintain
confidence in the organization's integrity. Other members of
staff should also have a code of conduct relevant to them
which may be the same as that for directors and senior
executives or may be a complementary version; promote
responsibility and accountability
promote responsibility and accountability of individuals for
reporting and investigating reports of unethical practices
Ensure compliance
ensure compliance with legal and other obligations to
legitimate stakeholders.

04 NEED FOR A CODE OF
CONDUCT
• An organization's code of conduct recognizes the
important role that business ethics play in the success
of today's business, encouraging the board to actively
develop an organizational culture that is established
on transparency, accountability and integrity.

04 NEED FOR A CODE OF CONDUCT
One of the most significant accomplishments of the Integrity Initiative is
the preparation of the "Unified Code of Conduct for Business". The Code's
purpose is two-fold.
• First, it harmonizes existing ethical standards among business
operating in the Philippines. It ensures that different market
players adhere to the same rules of the game in order to create
fair market conditions and promote transparency in doing
business
• Second, the Code formally communicates the signatories'
commitment to upholding high standards of ethics in all business
transactions. It articulates the belief that securing profit at the
expense of integrity is an unacceptable and unsustainable way of
conducting business and that measures have been taken to
enforce and cultivate integrity habits within the signatories'
respective organizations.

05 THE UNIFIED CODE OF CONDUCT FOR
BUSINESS (INTEGRITY INITIATIVE)
Top Management
• Our top management leads by example by consistently demonstrating
the value of conducting business with integrity.
• Our officers strongly communicate our organization's position against
bribery, corruption and unethical business practices within the
company and the broader public; comply with all the requirements of
government regulatory bodies; and prohibit cover-ups and falsified
reports that conceal improper transactions.
• Management strongly supports integrity practices and allocates
sufficient resources for their implementation

05 THE UNIFIED CODE OF CONDUCT FOR BUSINESS
(INTEGRITY INITIATIVE)
Human Resources
• We foster a culture of integrity among employees by maintaining
open communication channels, emphasizing honesty, transparency,
and integrity in all business transactions.
• In the spirit of fairness and due process, all employees have the right
to file and respond to complaints against practices suspected to be
illegal or unethical.
• We have appropriate tools to confidentially receive, monitor, and act
on internal and external complaints.
• Employees filing complaints will be protected from all types of
retaliation, while those involved in unethical practices will be subject
to commensurate disciplinary actions.
• We have instituted training programs on business ethics covering all
levels of the organization.

Sales and Marketing
• We clearly communicate rules and guidelines on giving gifts,
entertainment, tokens of hospitality, and contributions to/from public
and private organizations and their representatives.
• Employees and all third parties engaged by our company to act as our
intermediaries, agents or representatives are not permitted to offer,
promise, or give, as well as demand or accept concessions directly or
indirectly in order to obtain, retain, or secure any undue advantage in
the conduct of business.
• We abide by existing laws when transacting with government agencies
(as stipulated under RA 6713-Code of Conduct and Ethical Standards
for Public Officials and Employees and RA 3019 Anti-Graft and Corrupt
Practices Act).

Finance and Accounting
• We require all our employees to ensure that all books and
records they create or are responsible for are complete
and accurate.
• Our financial records conform to standard accounting
principles, comply with Securities and Exchange
Commission requirements on disclosure and
transparency, and abide by anti-money laundering laws
(RA 9160) and international conventions.
• We pay taxes in compliance with all laws.

Procurement
• A track record of integrity and compliance with existing laws is a
prerequisite when we vet third party consultants, suppliers,
intermediaries, and agents. Our company has transparent
procurement procedures, provides equal opportunities for all
suppliers, and prohibits, collusion between and among our employees
and suppliers.
• Recognizing that the Integrity Initiative is sustained through widely
shared ethical practices within the business community, we enter into
integrity pacts with our suppliers and ensure that they comply with
the provisions of our pact.
• Contracting a third party to bribe or commit corrupt practices on
behalf of the company is strictly prohibited.

Logistics
• We comply with laws and regulations pertaining to supply
chain management.
• We do not tolerate any breaches in existing laws in exchange
for undue advantage and unethical concessions or favors. We
pay correct duties and taxes based on transparent assessment
of goods and services.
• Employees are not penalized for refusing to pay bribes or
facilitation payments even if it results in failure to meet
deadlines or loss. of revenue.

Implementation and Monitoring
• We will continually to align our operations to the principles
contained in this Code periodically assess and monitor our
compliance to it. We will continue to share best practices
with the business community strengthen ethical business
processes in the Philippines.

06
BISHOPS-BUSINESSMEN'S CONFERENCE
PHILIPPINES CODE OF ETHICS FOR THE
PHILIPPINE BUSINESS
• The Code of Ethics for the Philippine Business issued by the
Bishops-Businessmen's Conference Philippines is
reproduced in this chapter for reasons of continuing
applicability, relevance and significance to entities doing
business in the Philippines

06
• This Code of Ethics has been formulated impelled by the
belief that man has a dignity that must be respected, and
that all the resource of the earth has been created for his
growth and development.
• As here presented, this Code is considered a major step in
the on-going and changing process of understanding the
growing role of business activity in the development of man
and, as much, is open to further improvement
Preamble

06
• The Code seeks to express systematically and coherently the
principles of business practices accepted and professed by
Philippine business at its best, and seeks to apply these to
current and changing needs.
• It is the hope that this Code will serve as a general stimulus
to renevy and develop or amend existing standards, and
that individual entities will expand and adopt it to the
specific needs of their own organizations.

06
• It is general Code intended to be influential rather than
coercive. It is hoped that individual entities will consciously
adopt and embrace it as a statement of principles and,
having done so, will be unwilling to incur the sanction of
adverse public opinion through failure to live up to the
Code.
• Finally, it is Code for all people, formulated on the premise
that the modern manager must be a strategist for human
development, and that the business of business is to build
an enterprise oriented to the development of man.

06
BISHOPS-BUSINESSMEN'S CONFERENCE
PHILIPPINES CODE OF ETHICS FOR THE
PHILIPPINE BUSINESS
The Concepts
• All business is essentially an expression of human relationships; not only
with those who work in the enterprise, but also with those who own and
provide financial resources, with those who supply it with materials and
services, with those who buy its products or services, with the government,
and with the wider public whose lives are affected by the business activity.
The interest of all those members of society must be taken into account in
formulating business policy. These interests, in themselves legitimate, will at
times conflict. While conflict and tension can be themselves being
constructive, the aim of business must always be to reconcile opposing
interests in a balance of justice and mutual concern.

• The owners, management, the work force, the suppliers and
subcontractors, the customers, and government contribute to the
performance of the business enterprise, and are therefore entitled to
receive the proper worth of their contributions.
• The resources employed by a business enterprise are financial,
technological and human. The human resources have a unique quality
and should be employed in a manner consistent with personal dignity.
The individual should be given opportunity to use and develop his
faculties in his work. His contribution to the success of the enterprise
should be properly recognized and rewarded.
• Business enterprise has a public responsibility to use all its resources
efficiently. Profit in a system of free enterprise is recognized as a
fundamental incentive, and is necessary for the maintenance and growth
of the enterprise, for raising the quality or life, and for helping meet the
broader needs of society.

• Competition and incentives are essential for the maintenance and
continuing improvement of the quality of goods and services for growth
and for technological progress. However, to guard against unfair forms of
competition, a consistent standard of business behavior must be
established and observed.
• In business, as in any other institution of society, any right or authority
enjoyed by or entrusted to business presupposes, and is justified by.
corresponding duties, responsibilities and performance.

SOME
PRINCIPLES FOR
THE CONDUCT OF
BUSINESS
07
Presented by Aaron Loeb
interest of the owners of the business, but also the interest of those
affected by the activities of the business.
Code of Ethics
Leadership Commitment
Implementing a formal set of rules that guide
employee conduct.
Ethical behavior should be modeled by leadership,
setting an example for the rest of the company.
Training and Education
Regularly providing employees with the tools and
knowledge to identify and address ethical challenges.
Whistleblower Protection
Encouraging employees to report unethical
behavior without fear of retaliation.

SOME PRINCIPLES FOR THE CONDUCT OF BUSINESS
TOWARDS THE EMPLOYEES TOWARDS THE CUSTOMERS
Business shall recognize the unique
position of employees as individuals with
a vital stake in their work and at the
same time with inherent obligations to
their own families, and provide:
Business shall, in the production of
goods and services:
• Strive for quality and efficiency
• Ensure safety and health for users
• Leverage scientific discoveries to
innovate and improve
products/services
interest of the owners of the business, but also the interest of those affected
by the activities of the business.

TOWARDS THE SUPPLIERS TOWARDS THE OWNERS AND OTHER PROVIDERS
OF CAPITAL
TOWARDS THE LOCAL AND NATIONAL
GOVERNMENT TOWARDS SOCIETY IN GENERAL
Businesses should:
• Clearly state and honor contract terms.
• Avoid abusing economic power over
smaller businesses.
• Make payments promptly and in full.
• Provide reasonable guarantees for long-
term contracts to protect suppliers'
resources.
Businesses should:
• Provide a fair return on investment to
capital providers.
• Use financial resources responsibly and
efficiently.
• Share relevant information with capital
providers.
• Pursue owner objectives, while adhering to
ethical principles.
Businessmen shall recognize in their decision-
making the interest of the general public and,
realizing that they are utilizing to an
important degree the nation's resource
Businesses have a duty to:
• Participate in discussions on proposed
legislation and its implementation
• Propose sound policies for the use of
human and material resources.

SURVEY OF LAWS
ADVOCATING
BUSINESS ETHICS
08
Presented by Aaron Loeb
"The Consumer Act of the
Philippines" approved on April
13, 1992
RA 7394
"The Food, Drug and
Cosmetics" approved on June
22, 1963.
RA 3720
"The Intellectual Property
Code of the Philippines"
effective January 1, 1998.
RA 8293
The Intellectual Property Rights Law
covers
1. Copyright and Related Rights
2. Trademarks and Service Marks
3. Geographic Indications
4. Industrial Designs
5. Patents
6. Lay-out-Designs (Topographic) of
Integrated Circuits
7. Protection of Under

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