1. Chapter 5 Ethics & Social Responsibility
Group 2
Hazel G. De Mesa
Gregorio M. Cudiamat
Fritzie P. Tangkia-Fabricante
Christopher L. De Jesus
Ma. Dolorosa E. Ferrer

2. Learning Objectives:
Define Ethics and explain how ethical behavior relates to behavior governed by law and free choice.
Explain the Utilitarian, Individualism, Moral-Rights & Justice approaches for Evaluating Ethical Behavior.
Describe How both individual and organizational factors shape ethical decision making.
Define Corporate Social Responsibility and how to evaluate it along economic, legal, ethical & discretionary criteria.
Describe four (4) organizational approaches to environmental responsibility and explain the philosophy of sustainability
Discuss how ethical organizations are created through ethical leadership and organizational structures and systems.
Identify important stakeholders for an organization and discuss how managers balance the interests of various stakeholders.
CASE

3. Introduction:
In this topic: Discuss fundamental approaches that help managers think through ethical issues and by way of understanding the approaches will help managers build a solid foundation on which to base future decision making.

4. Ethics:
code of moral principles and values that governs behaviors of a person or group with respect to what is right or wrong
sets standards as to what is good or bad in conduct and decision making
deals with internal values that are part of corporate culture and shapes decisions concerning social responsibility with respect to the external environment

5. Three Domains of Human Action:

6. Domain of Codified Law: (Legal Standard)
values & standards are written into the legal system & enforceable in the courts
set of rules by lawmakers being followed
Domain of Ethics: (Social Standard)
No specific laws but have standards of conduct based on shared principles and values about moral conduct that guide an individual or company
Domain of Free choice: (Personal Standard)
Pertains to behavior about which the law is disregarded and individual/organization has complete liberty or freedom

7. Ethical Dilemma: Disagreements about proper behavior.
Concerns right or wrong values when values are in conflict
Right or wrong cannot be clearly identified
A situation that arises when all alternative choices or behaviors are deemed undesirable because of potentially negative consequences, making it difficult to distinguish right from wrong
Involve a conflict between the needs the individual versus the organization or the organization versus society as a whole
Example: Should a company implement mandatory alcohol & drug testing for employees which may benefit organization but reduce individual freedom of employees?

8. Moral Agent:
the individual who must make an ethical choice in an organization
Manager:
faced with tough ethical choices. Decision making is based on norms and values as guide.

9. Different Approaches to describe values for guiding ethical decision making:

10. 1. Utilitarian Approach:
moral behavior produces the greatest good for the greatest number.
each alternative is considered and the one that optimizes the satisfaction for the greatest number of people is selected.
Example:
An engineer for a residential subdivision was instructed by the VP for Finance to cut down the cost of a proposed retaining wall by using ordinary concrete hollow blocks in some portions of the wall. The engineer knows that if he would follow the VP’s instructions, the integrity of the entire retaining wall will be affected, which may or may not result to the collapse of certain portions of the wall. The VP told the engineer that if he will not change the plan, the company will spend an additional P3 Million. This would mean higher cost of development, which will be passed on the lot buyers. Higher price of lots per square meter would adversely affect sales, which in turn, would mean lower sales revenue for the Company for the said year. The VP likewise reminded the engineer that should the Company fail to meet the sales target for that project, the employees, including the engineer, should not expect any bonus.
If the engineer were to use the utilitarian approach, he may be able to justify his decision to follow the instructions of the VP. Lower cost of development would mean lower sales price for the lot buyers. Further, if the sales target would be met because of the low selling price of the lots, the employees of the Company would benefit because they would receive a bonus for that year.  Hence, more people will be benefited by following the VP’s instructions.

11. 2. Individual Approach:
contends that an act is moral when they promote the individual’s best long-term interests, which ultimately leads to a greater good
Individual Self-direction is paramount
Individuals calculate the best long-term advantage to themselves as a measure of a decision’s goodness
Individualism ultimately leads to behavior towards others that fits standards of behavior people want toward themselves.
Can be described like Domain of free choice

12. Example:
Should an executive secretary report his boss, an EVP, for bringing home a brand new company desktop computer for the personal use of the EVP’s daughter? The EVP says that his daughter’s computer bogged down and she will just be using it for a week. The computer was bought by the Company for an employee who happens to be on leave at that time, and hence, nobody would be deprived of the use of the computer.
If the secretary were to use the individualism approach, she may just decide to keep the incident to herself and retain the trust and confidence of her boss.

13. 3. Moral Rights Approach:
The ethical concept that moral decisions are those that best maintain the rights of those people affected by them
Asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision

14. Moral Rights to Consider:
right of free consent- Individual’s consent is treated
right to privacy- individuals have rights to their own private life
right of freedom of conscience- Individuals may refrain from carrying out any
right of free speech- truthful criticism of the ethics or legality of actions of others
right to due process
right to life & safety- Individuals have a right to live out of danger and away from hazards.

15. As a manager, we should avoid to interfere with the basic rights of others.
Example:
A staff should be given a healthy work environment especially during work hours.
A staff being accused of stealing office property should still be given due process in investigating the accusation before any sanction will be given.

16. 4. Justice Approach: Types: Example:
Holds that moral decisions must be based on standards of equity, fairness and impartiality
Types:
Distributive justice- requires different treatment of people not be based on arbitrary characteristics. Amount of treatment as same level of responsibilities
Procedural Justice- requires that rules be administered fairly and impartially enforced
Compensatory justice- individual should be compensated for the cost of their injuries by the party responsible ; also, individuals should not be held responsible for matters over which the have no control.
Example:
Senior agents have longer contract term of 5 months but with bigger quota of 30M and bigger allowance of 12,000 pesos per month; than Regular agents who has only 3 months contract term and quota of 12M and has 8,000 pesos allowance per month.

17. FACTORS AFFECTING ETHICAL CHOICES
Ethical or unethical business practices usually reflect the values, attitudes, beliefs & behavior patterns of the organizational culture
MANAGER & THE ORGANIZATION
Manager- bring specific personality and behavioral traits to the job. His/ her value system is shaped by personal needs, family influence & religious background

18. Three Levels of Personal Moral Development
Post Conventional
Follows self-chosen principles of justice & right. Aware that people hold different values & seeks creative solutions to ethical dilemmas.Balances concern for individual w/ concern for common good.
LEVEL 2: Conventional
Lives up to expectations of others. Fulfills duties & obligations of social system. Upholds laws.
LEVEL 1: Preconventional
Follow rules to avoid punishment. Acts in own interest. Obedience for its own sake
Leadership style: Autocratic/coercive Guiding/encouraging, Transforming, or
team oriented servant leadership
Employee Behavior: Task Accomplishment Work group collaboration Empowered employees,
full participation

19. ORGANIZATION
Values adopted within the organization are highly important especially in making ethical choices

20. In the chapter, Exhibit 5.4 shows Questions for analyzing a company’s Cultural Impact on Ethics:
Identify the organization’s heroes. What values do they represent? Given an ambiguous ethical dilemma, what decision would they make and why?
What are some important organizational rituals? How do they encourage or discourage ethical behavior? Who gets the awards, people of integrity or individuals who use unethical methods to attain success?
What are the ethical messages sent to new entrants into the organization- must they obey authority at all costs, or is questioning authority acceptable or even desirable?
Does analysis of organizational stories and myths reveal individuals who stand up for what’s right, or is conformity the valued characteristic? Do people get fired or promoted in these stories?
Does language exist for discussing ethical concerns? Is this language routinely incorporated and encouraged in business decision making?
What informal socialization processes exist, and what norms for ethical/ unethical behavior do they promote?

21. Corporate Social Responsibility:
Management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization
Has become an important topic on the corporate agenda because of corporate scandals, concerns about globalization and a growing mistrust of business
Philippine Scenario:
The League of Corporate Foundations (LCF) is a membership association of over 70 operating and grant-making corporate foundations and corporations, seeking to provide business solutions to social problems in the Philippines through Corporate Social Responsibility (CSR). For more information on the Philippine companies that are members of LCF, please go to
One of the companies that take corporate citizenship and social responsibility seriously is Petron Philippines. For more information on Petron’s CSR Programs, please go to

22. CSR – A Difficult Concept to Grasp. Why?
Different people have different beliefs as to which actions improve society’s welfare.
Covers a range of issues, many of which are vague with respect to right or wrong. (Example, companies declaring bankruptcy – which is perfectly legal – to avoid financial obligations to labor unions and suppliers).
Managers must answer the question “Responsibility to whom?”

23. ORGANIZATIONAL STAKEHOLDERS
From a CSR perspective, organizations view the internal and external environment as a variety of stakeholders.
Socially responsible organizations consider the effects of their actions on all stakeholder groups and may also invest in a number of philanthropic causes that benefit stakeholders.

24. A stakeholder is any group within or outside the organization that has a stake in the organization’s performance.
Each stakeholder has a different criterion of responsiveness because it has a different interest in the organization.
For example, Walmart’s aggressive bargaining tactics with its suppliers to provide low prices for its customers benefit the consumers, a stakeholder. Some argue that such behavior is socially irresponsible because it forces US manufacturers to lay-off employees and outsource from low-wage countries.

25. The organization’s performance affects stakeholders but stakeholders can also affect the organization’s performance and success.

26. The Monsanto Case
Most organizations are similarly influenced by a variety of stakeholder groups.

27. Primary Stakeholders:
without them, the organization cannot survive; when any primary stakeholder group becomes seriously dissatisfied, the organization’s viability is threatened
examples are investors and shareholders, employees, customers and suppliers
investors, shareholders and suppliers are served by managerial efficiency – the use of resources to achieve profits
employees expect work satisfaction, pay and good supervision
customers are concerned with the quality, safety, and availability of goods and services

28. Other Important Stakeholders :
Government – most corporations exist only under the proper charter and license within the limits of safety laws, environmental protection requirements, and other laws and regulations issued by the government
Community – includes the local government, the natural and physical environments and the quality of life provided for residents; today, environmental responsibility has become a primary issue
Special Interest Groups – include trade associations, political action committees, professional associations and consumerists

29. THE ETHICS OF SUSTAINABILITY AND THE NATURAL ENVIRONMENT
Activist
Approach
Sustainability; Actively
conserve the environment
The model Shades of Green is used to evaluate a company’s commitment to environmental responsibility.
Stakeholder Approach
Address multiple
stakeholder concerns
Market Approach
Respond to customers
Legal Approach
Satisfy legal requirements regarding
environmental conservation

30. It has 4 approaches/levels:
Legal Approach – (the lowest level) the organization does just what is necessary to satisfy legal requirements.
Market Approach – (the next step) there is a growing awareness of and sensitivity to environment concerns, primarily to satisfy customers
Stakeholder Approach – (a further step) companies attempt to answer the environmental concerns of various stakeholder groups, the local community, business partners and special interest groups
Activist Approach – (the highest level) organizations actively search for ways to conserve the earth’s resources

31. Sustainability or Sustainable Development – refers to economic development that generates wealth and meets the needs of the current generation while saving the environment so future generations can meet their needs as well.
ISO is an international environment management system that aims to boost the sustainability agenda. To become ISO compliance, firms develop policies, procedures and systems that will continually reduce the organization’s impact on the natural environment.

32. Sustainable Development in Shell
For oil giant Shell, contributing to sustainable development means helping meet the world’s growing energy needs in economically, environmentally and socially responsible ways. In short, helping secure a responsible energy future. For more information on this, please click

33. CRITERIA OF CORPORATE SOCIAL PERFORMANCE
Total corporate social responsibility can be subdivided into 4 primary criteria.

34. Economic Responsibilities – be profitable
The business institution, being the basic economic unit of society, has the responsibility (a) to produce the goods and services that society wants and (b) to maximize profits for its owners and shareholders.

35. Economic Responsibilities – be profitable
Under the profit-maximizing view, the corporation should be operated on a profit-oriented basis, with its sole mission to increase its profits as long as it stays within the rules of the game.

36. Economic Responsibilities – be profitable
The long-term pursuit of profits necessitates being a good corporate citizen.
The purely profit maximizing view is no longer considered an adequate criterion of performance.

37. Legal Responsibilities – obey the law
Businesses are expected to perform their economic goals within the legal framework.
In the Philippines, corporations have to comply with national laws, the rules and regulations issued by various government agencies like PSE, SEC, BIR, etc.

38. Ethical Responsibilities – be ethical, do what is right, avoid harm.
Include behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests.
To be ethical, decision-makers should act with equity, fairness and impartiality, respect the rights of individuals, and provide different treatment of individuals only when relevant to the organization’s goals and tasks.

39. Ethical Responsibilities – be ethical, do what is right, avoid harm.
Unethical behavior occurs when decisions enable an individual or company to gain at the expense of other people or society as a whole.

40. Discretionary responsibilities – contribute to the community and quality of life.
Organizations responsibilities that are voluntary and guided by the organization’s desire to make social contributions not mandated by economics, law or ethics
This is the highest criterion of social responsibility because it goes beyond societal expectations to contribute to the community’s welfare.

41. MANAGING COMPANY ETHICS AND SOCIAL RESPONSIBILITY
Management is responsible for creating and sustaining conditions in which people are likely to behave themselves.
Ethical business practices depend on individual managers as well as the organization’s values, policies and practices.

42. 3 PILLARS OF AN ETHICAL ORGANIZATION

43. Ethical Individual
Managers who are ethical possess honesty and integrity, which is reflected in their behavior and decisions.
Ethical managers must also encourage the moral development of others.

44. Ethical Leadership
If people don’t hear about ethical values from top leaders, they get the idea that ethics is not important in the organization.
Relevant site:

45. Ethical Leadership
Lower level managers and first line supervisors are more important as role models for ethical behavior because they are leaders employees see and work with on a daily basis.
Using performance reviews and rewards effectively is a powerful way for managers to signal that ethics counts.

46. Organizational Structures and Systems
Refer to the set of tools that managers use to shape values and promote ethical behavior.
Three of these tools are:

47. Code of Ethics
is a formal statement of the company’s values concerning ethics and social issues; it communicates to employees what the company stands for. It states the values or behaviors expected and those that will not be tolerated, backed up by management action.

48. PLDT’s Code of Ethics
On March 30, 2004, the Board of Directors of PLDT approved and adopted its Code of Business Conduct and Ethics (the “Code of Ethics”) that sets out its business principles and standards of behavior and business relationships.
It is PLDT’s declared objective that all its actions and those of its directors, officers and employees must, at all times, be consistent with the principles of accountability, integrity, fairness and transparency.

49. Compliance with applicable laws, rules and regulations;
PLDT’s Code of Ethics provides standards to foster honest and ethical behavior including the following:
Compliance with applicable laws, rules and regulations;
Ethical handling of conflicts of interest, corporate opportunities and confidential information;
Protection and proper use of our assets;
Fair dealing with our employees, customers, service providers, suppliers and competitors;

50. PLDT’s Code of Ethics provides standards to foster honest and ethical behavior including the following:
Compliance with our reporting and disclosure obligations to the relevant regulators and the investors;
Compliance with our disclosure and financial reporting controls and procedures;
Assessment and management of risks involved in our business endeavours; and
Adoption of international best practices of good corporate governance in the conduct of our business.
For more information, please go to

51. Principle-based statements are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products and treatments of employees.
Policy-based statements outline the procedures to be used in specific ethical situations like marketing practices, conflicts of interest, observance of laws, proprietary information, and political gifts.

52. Ayala Corporation has a Policy on Conflict of Interest, which is incorporated in its Manual of Corporate Governance. It defines “conflict of interest” and outlines the procedure to be followed in there is an actual or potential conflict of interest on the part of directors. For more information on this, please click
Ethical Structures represent the various systems, positions and programs a company can undertake to implement ethical behavior.
An ethics committee provides rulings on questionable ethical issues and assumes responsibility for disciplining wrongdoers. A chief ethics officer oversees all aspects of ethics and legal compliance.

53. In the Philippines, the Securities and Exchange Commission requires certain companies (publicly-listed companies and those which require secondary licenses like banks, pre-need companies, investment houses, etc.) to have certified compliance officers to ensure that corporate governance principles and practices are observed and laws are complied with.
An ethics training program helps employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior.
However, it is not enough to have an impressive ethics program. The ethics program must be merged with day-to-day operations, encouraging ethical decisions throughout the company.

54. Mechanisms for Supporting Whistle Blowers – Employee disclosure of illegal, immoral or illegitimate practices on the employer’s part is called whistle-blowing.
Without effective protective measures, whistle blowers suffer. To maintain high ethical standards, organizations need people who are willing to point out wrongdoing.

55. According to Grant Thornton’s International Business Report 2008, two of every three local privately held businesses in the Philippines have a support system for whistleblowers to help detect not only business fraud but also violations of company regulations by employees.
The IBR 2008, which covers 78,000 businesses in 34 countries and territories, also showed that the Philippines ranked fifth in terms of support for whistleblowers. (Taken from the Philippine Daily Inquirer, 27 May 2008).
For more info, please log on to

56. ETHICAL CHALLENGES IN TURBULENT TIMES
When organizations operate in
Highly competitive industries
Rapidly changing markets
Complex cultural and social environments
A strong corporate culture that emphasizes ethical behavior becomes even more important because - it guides people to do the right thing even in the face of confusion and change.

57. ECONOMIC PERFORMANCE Will good citizenship hurt performance?
A recent study of the financial performance of large US Corporations considered as “best corporate citizens” found that they enjoy both superior reputations and superior financial performances.
One survey found that 70% of global CEOs believe corporate social responsibility is vital to their companies’ profitability.
People prefer to work for companies that demonstrate a high level of ethics and social responsibility; these organizations can attract and retain high quality employees.
A study likewise showed that all things being equal, 2/3 of customers say they would switch brands to do business with a company that is ethical and socially responsible.

58. The Case of Empress Luxury Lines
Brief Statement of Facts[1]:
Empress Luxury Lines had been experiencing sagging earnings since Bookings went down while fuel costs kept on increasing.
Antonio, an employee of Empress, had been requesting for a computer system upgrade ever since he’d taken the job two years ago.
Kevin, a probationary computer technician, informed Antonio about the former’s meeting with Phil, the supervisor of Kevin.
The night before Kevin’s meeting with Phil, EMPRESS’s computer system had been hit by a power surge during a thunderstorm.
Phil instructed Kevin to check out the damage on EMPRESS’s computer system and was asked to report directly to Phil.
Kevin reported to Phil that the damaged underground wires and computer circuits could be repaired at a cost of $15,000.

59. Brief Statement of Facts[1]:
After calling EMPRESS’s CFO, Phil instructed Kevin to dig up all the underground wires and cables and haul them off before the insurance adjustor appeared. This would mean that the damage would go up to about $500,000, an amount that would cover the costs of a computer system upgrade.
Kevin refused to follow Phil’s instructions.
Matt, another EMPRESS employee, did the job of digging and the hauling of the underground wires.
Since taking the job, Antonio heard rumors that EMPRESS had successfully defrauded insurance companies before.
No confidential mechanism is in place for employees to report wrongdoing internally and no protections were available for whistle blowers.
[1] The entire text of the case is found on pages of the textbook.

60. Question No. 1
When determining what his obligations are to his subordinate, Kevin, what decision would Antonio most likely reach if he applied the utilitarian approach to decision making? What conclusions would probably result if he employed the individualism approach?
A) Ethical Dilemma
Should Antonio value integrity and honesty in his own and his subordinate’s professional lives or should he value his work and security of tenure at Empress?
B) Options
With respect to determining what Antonio’s obligations are to Kevin, Antonio may choose to:
i. advise Kevin that he will not interfere in this case and that he is leaving it to Kevin to decide on what the latter should do;
ii. advise Kevin that both of them would bring the matter to the attention of the proper corporate officer/s of Empress (other and higher than the CFO); or
iii. advise Kevin to be silent about the matter considering that the Company, as a whole, will benefit from the insurance proceeds.

61. C) Decision Using the Utilitarian Approach
If Antonio were to decide using the utilitarian approach, he would advise Kevin to be silent about the matter. This decision will be beneficial to the most number of concerned stakeholders.
The utilitarian approach holds that a decision maker is expected to consider the effect of each alternative decision on all parties concerned and select the one that optimizes the satisfaction for the greatest number of people.
In this case, the stakeholders that will be primarily affected by the decision are the Company and its shareholders, directors, officers, and employees, Kevin and Antonio, and the insurance company.
Should Kevin maintain his silence, the Company would receive the bloated insurance proceeds, thereby allowing it to upgrade its computer system. The shareholders, directors, officers and employees would also benefit from Kevin’s continued silence because the Company would be able to improve its system without using corporate funds. Hence, the cost of the upgrade would not reduce the unrestricted retained earnings of the Company, which is the source of the dividends to be declared in favor of the shareholders. The Company will likewise have more funds for the compensation and benefits of its directors, officers and employees.

62. By keeping silent about the insurance fraud, Antonio would not be in danger of losing his job, either as a result of being fired or because the Company would financially suffer from the negative publicity or worse, a suit for insurance fraud.
Kevin, on the other hand, would have greater chances of being regularized because the Company officers would realize that while he will not perform the act itself, he is nevertheless willing to turn a blind eye to certain shenanigans.
The only stakeholder here which would incur a cost is the insurance company. However, from Antonio’s perspective, whatever cost the insurance company would incur would be acceptable to him because such cost would not directly affect him.

63. D. Decision Using the Individualism Approach
If Antonio were to decide using the individualism approach, he would not interfere in this case and simply advise Kevin to decide on his own.
The individualism approach is of the view that acts are moral when they promote the individual’s best long term interests. This approach is closest to the domain of free choice.
Antonio’s long term self-interest would be best promoted by not interfering in this case. Should Kevin decide to report the fraud to the insurance companies, then Antonio can honestly say to the Empress’ bosses that he had nothing to do with Kevin’s decision. And should the insurance company decide to file a case against Empress and its corporate officers for fraud, then Antonio would not be implicated in the case because he had not advised Kevin to keep silent about the insurance fraud.
Further, by leaving the decision (on whether or not to report the fraud) to Kevin, Antonio has adhered to the principle of free choice – that Kevin be free to choose his own decisions.

64. Question No. 2
Put yourself in Antonio’s position and decide realistically what you would do? Is your response at a preconventional, conventional or postconventional level of moral development? How do you feel about your response?
Answer:
If I were Antonio, the initial step that I would take, together with Kevin, is to submit a confidential memo addressed to a corporate officer higher than the CFO.
The CFO is Antonio’s boss. Hence, it would be futile if he were to submit the complaint to the person who authorized the fraudulent act.
Addressing the issue internally first would be better for the Company than going public right away. It is possible that the fraudulent act was not sanctioned by the other officials of the Company and was simply decided upon by a lone corporate official – the CFO. By reporting the matter to the other officers first, Antonio will give the Company the chance to correct the fraudulent act. And on the assumption that the higher officials of the Company did not and would not have sanctioned such act (had they known beforehand), then Antonio has spared the Company from all the negative publicity and lawsuits that would possibly result from his act of going public right away.

65. My next step would depend on the action of the Company to my confidential memo. Should it decide to correct the action of the CFO, impose the appropriate sanctions on the erring officers and inform the insurance company that the amount of damage has been bloated, then I would leave it at that.
However, should the Company fail or refuse to act on my memo, then I would submit a letter to the proper government agency outlining the insurance fraud committed by Empress. This letter-complaint would likewise be signed by Kevin, who had personal knowledge of the transactions. This way, the proper government agency which has jurisdiction over these kinds of fraud, would be able to conduct an independent investigation.
I will not report the fraud to the concerned insurance agency because the latter is an interested party. It is better to report the fraud to an independent body which could do a fair and unbiased investigation on the matter. This is the least that I can do as an employee of Empress.
I believe that my decision is at the postconventional level of moral development. Despite the fact that the fraudulent act is sanctioned by a high-ranking official of the company who happens to be my boss, I have decided to contest his order because I know that said act runs counter to the values of honesty and integrity. Despite the possibility that I may lose my job for being a whistle-blower, I have decided to report the matter to the higher-ups for appropriate action. More importantly, while retaining my sense of honesty and integrity, I have acted fairly to my Company by giving the latter the chance to correct a fraudulent act.

66. Question No. 3
If Antonio or Kevin were fired because they reported EMPRESS’s fraud, would they be justified in removing all traces of their employment at the cruise line from their resumes so they don’t have to explain to a prospective employer why they were fired? Why or why not?
Answer:
No, they are not justified in removing all traces of their employment at Empress.
Antonio and Kevin owe their prospective employers honesty in their dealings. Failure to state in their resumes their previous employment at Empress is dishonesty by intentional omission. It is ironic that after losing their jobs for reporting a dishonest and fraudulent act, they themselves would likewise do the same thing.
Further, nowadays, prospective employers conduct background check before hiring employees. In the event that their new employers find out that they intentionally did not disclose their previous employment and termination, this may be considered as fraud or analogous to fraud, and hence, may be used as a ground for termination.
Antonio, who worked for Empress for 2 years, would also find it very hard to explain to a prospective employer why he has no work for 2 years.
It would be better for Antonio and Kevin to state in their resumes that they were once employed by Empress. During the interview, prospective employers normally ask why they left their previous employer. It is during this time that Antonio and Kevin can clearly explain the reason behind their termination, emphasizing that they value honesty and integrity in their personal and professional lives.

67. Chapter 5 Ethics & Social Responsibility
Group 2
Hazel G. De Mesa
Gregorio M. Cudiamat
Fritzie P. Tangkia-Fabricante
Christopher L. De Jesus
Ma. Dolorosa E. Ferrer