Business

Ethics
Foundations of the
Principles of
 Business Ethics
Augustine, Rene Descartes and Immanuel
Kant.
- "The unexamined life is not worth living"-
ETHICS Socrates
- Principles of conduct governing an SOCRATES
individual or group. - Socrates is one of the few individuals whom
Personal Ethics - It refers to the rule by which an one could say has shaped the cultural and
individual lives his personal life. intellectual development of the world that,
Accounting Ethics - It refers to the code that without him, history would be profoundly
guides the professional conduct of accountants. different.
Work Ethics - It refers to your willingness to work - The Socratic Method is a way of thinking
hard on your work. that allows individuals to define their
PHILOSOPHY purpose for learning and explore it through
- from the Greek word Philosophia "the love open-minded questioning of what they hold
of wisdom." It is a set of ideals, standards, to be true.
or beliefs that describe behavior and - Entrepreneurship Learning or acquiring
thought. knowledge necessary for creating a business
BUSINESS PHILOSOPHY venture is built around constant questioning
- A business philosophy is a set of beliefs and and testing.
principles that a company strives to work - Dare to disagree.
toward. Business Philosophy is often "Good people do not need laws to tell them to act
referred to as a company's mission and responsibly, while bad people will find a way
vision statement. around the laws." – Plato
BRANCHES OF PHILOSOPHY PLATO
METHAPHYSICS - Answers the question, "What - He was the student of Socrates and the
is the nature of reality?" It is concerned with reality teacher of Aristotle, and he wrote in the
and existence. middle of the fourth-century B.C.E in
- TWO CATEGORIES OF METAPHYSICS ancient Greece.
1. Ontology – deals with the nature of - held that moral values are objective in the
existence. sense that they are exist in a spirit-like realm
2. Cosmology - inspects the origin and beyond subjective human convention. He
organization of the universe. held that they are absolute, or eternal, in that
EPISTEMOLOGY - It is answering the question, they never change, and also that they are
"what is the nature of knowledge?" Logic is the universal insofar as they apply to all rational
critical dimension of epistemology. creatures around the world and throughout
(1) deductive logic (moving from general time.
to specific) - Plato thinks that a child's education is the
(2) inductive logic (specific to last thing that should be left to change or
generalization) parental whim since the young mind is so
AXIOLOGY - It answers the question, "what is the easily molded.
nature of values?" - Plato identifies education as one of the most
(1) ethics which studies human conduct and important aspects of a healthy state.
examines moral values. "Act only according to that maxim by which you
(2) Aesthetics which values beauty, nature, can at the same time will that it should become a
and aesthetic experiences universal law" – Immanuel Kant
STRANDS OF PHILOSOPHY Immanuel Kant
Idealism - refers to the world of minds and ideas, - Kantian ethics emphasizes a single principle
where reason is primarily. of duty. Influenced by Pufendorf, Kant
- In this philosophy, reality is shaped by our agreed that we have a moral duty to oneself
thoughts and ideas. The leading proponents and others.
are Socrates, Plato (father of idealism),
 - Deontology - An ethical theory that says He famously held a hedonistic account of
actions are good or bad according to a clear motivation and value according to what is
set of rules. fundamentally valuable.
- Categorial Imperative - Act as you would "A person may cause evil to others not only by his
want all other people to act towards all other actions but by his inaction. And in either case, he
people. is justly accountable to them for the injury." –
- Hypothetical Imperative - This imperative John Stuart Mill
is opposite to the categorical. JOHN STUART MILL
- conditional command of reason. - Profoundly influenced the shape of
Realism - in philosophy this is about given object is nineteenth-century British thought and
the view that this object exist is true. The leading political discourse.
proponents of realism are Aristotle (the father of
realism), Francis Bacon, John Locke, and Neo-theism - also known as theistic realism, where
Pestalozzi. God exists and can be known through faith and
- He was a student of Plato, who, in turn, reason.
studied under Socrates. He was more
empirically minded than Plato or Socrates Contemporary Philosophies
and is famous for rejecting Plato's theory of a. Pragmatism - - also known as
forms. experimentalism (experience of things that
- Virtue and happiness - this happiness is our work) Leading proponents are:
highest goal. - Charles Darwin
- Moral Education - Aristotle clearly does not - John Dewey
think virtue can be taught in a classroom or - August Comte
using arguments. His ethics, then, is not b. Existentialism - appeared as a revolt against
designed to make people good but rather to the mathematical and scientific philosophies
explain what is good. that preceded it. Soren Keirkegaard being a
- The life of contemplation - Aristotle father of existentialism “Man exists and, in
ultimately concludes that Contemplation is the process, man defines himself and the
the highest human activity. world in his own thoughts between choice
Utilitarianism - a doctrine that an action is right if and freedom.”
they are useful for the benefit of the majority. c. Analytical Philosophy - this philosophy
- an action is good if it is for the good of apply the method of philosophical problem
greatest number of people. through analysis to the term in which they
Types of Utilitarianism are expressed.
1. Act Utilitarianism- choosing of action based

The Impact of Belief

on what will cause the most significant
amount of happiness.
2. Hedonistic Utilitarianism - pleasure, and
pain are the only consequences in
determining whether our conduct is moral.
Systems on
3. Rule Utilitarianism - is put in place to
benefit the most people using the fairest
methods possible.
Business
"The sad truth is that the greatest happiness of the
greatest number is the a measure of right and
wrong" – Jeremy Bentham
Practices
BELIEF SYSTEM - is a set of principles or tenets
JEREMY BENTHAM which together form the basis of a religion,
- He is known today for his moral philosophy, philosophy, or moral code.
especially utilitarianism, which evaluates
actions based on consequences. The relevant RELIGION - is set of beliefs concerning the cause,
consequences, particularly, are the happiness nature, and purpose of the universe.
created for everyone affected by the action.
 - an Indian religion, a religious and universal
CHRISTIANITY order or way of life by which followers
-Christian religion follows the Hebrew Bible abide.
and believes that God created humanity in - ·Brahman - one true, formless, boundless,
Jesus Christ image. all-inclusive and eternal God.
- Christian business professionals depend on - Soul – Good Deeds – Good Karma – good
the Lord's leadership for their business by next life
asking blessings through prayer to provide - Salvation – Moksha - freedom from
strategic direction, resources, earnings, etc. saṃsāra, the cycle of death and rebirth)
- Christians should be transparent and honest - Bhagavad-Gita – one of the most
in their business dealings, products, and fundamental texts that form the basis of
services. Hinduism.
GAWAD KALINGA - Yoga (self-discipline)
- The brainchild of Catholic entrepreneur and - Dharma (purpose)
social worker Mr. Tony Meloto. - Karma (consequences)
- This mobilized a massive army of volunteer - Tat-Twam-Asi (nature, human, spiritual)
who are working together as Bayanihan. - This encourages managers to look at the big
- Known largely because of its success in picture, a holistic view, for guidance with a
mobilizing donor and volunteers. realization that there can be no simultaneous
JUDAISM winners and losers.
- Jewish people believe there's only one God - positive attitude towards business and
who has established a covenant or special wealth creation
agreement with them. - Ethics - (dharma - what one should do and
- According to Jewish people's beliefs in their why one should do so)
business. Deal with others in a spirit of - Business – fair prices and profits
tolerance, compassion, and compromise. - Workers - fair and just wages, depending on
- Do not take unfair advantage of another their ability and productivity.
business, and refrain from the appearance of - Tax system – reasonable rates, economical,
impropriety. no adverse impact on economic growth
- One's good name and the reputation of the - high taxes on luxury goods
Jewish people are important and must be ISLAM
safeguarded through honest and ethical - Muslims believe in the Oneness of God.
dealings. They further believe that God has no
BUDDHISM offspring, sex, class, or body, and He is not
- Founded on the teachings of Siddharta affected by human life’s characteristics.
Gautama, who has ever since been named Principles are expected among Muslim
“Buddha” or “The enlightened one”. businessmen.
- The fourth largest religion in the world - Contracts must be fair to both or all parties.
harboring 6.9% of the world population. - Speculation, such as gambling, is not
the impacts of Buddhism in business allowed.
practices - Interest is prohibited.
- The goal should be defined. - When a business is in trouble, compassion is
- The principle of cause and effect should be required.
followed - No fraud or deceit must be practiced.
- Empathy and compassion for the customers - Sellers must avoid making many oaths when
have to be developed. selling merchandise.
- Be flexible, innovative, and mindful of - Mutual consent is necessary.
impermanence. - Strict when it comes to weights and
- Your team, yourself and the consumer must measures.
be respected. - Hoarding merchandise to increase the price
HINDUISM is forbidden.
- Gambling is restricted.
 - connotes the eagerness of the Filipinos
- Not allowed to invest in the stock market. just at the beginning, but then rapidly
- ZAKAT- narrowing the gap between the lose interest shortly after it begins, or
rich and poor. lack of follow-up.
"No Arab has any superiority over a Non-Arab, 4. Padrino system
nor does a Non-Arab have any superiority over an (palakasan/patronagesystem) Padrino
Arab, nor does a white man have any superiority system, or patronage in Filipino culture
over a black man, nor black man have any and politics, is the system of value in
superiority over white man. You are all children of which one gets support, endorsement, or
Adam, and Adam was created from clay." – political appointment through family
Muhammad affiliation (nepotism) or friendship
(cronyism), as opposed to one's worth.

Filipino Values System 5. Amor propio / self-respect- Amor propio

is a Spanish term meaning caring for
oneself, or self-love. It is a feeling of
& Business self-esteem or self-respect that prevents
a person from swallowing his or her
pride.
Ethics 6. Mañana habit - The Spanish word
mañana means tomorrow or the future. It
is also known in English as
Challenges procrastination and as mamaya na in
Filipino. It might just as well mean
putting off something until another time.
YELLOW BOAT OF HOPE
- The Yellow Boat of Hope Foundation is 7. Delicadeza- Delicadeza is a Spanish
responsive to the needs of the communities. term which when translated into English
A program that works for one might not means daintiness. It is defined as acting
work on other communities. That is why we in a manner which is refined or being
progressively develop programs that are delicate in taste.
well-suited on every community that we 8. Hiya- Shame or hiya is a common
want to help. If needed, we will develop a Filipino value. This is a sense of social
program specifically for a certain project. propriety, and it conforms with
FILIPINO VALUES established cultural standards. Filipinos
1. Bahala na - Bahala was derived from feel they ought to live up to agreed
the word Bathala, who was worshipped moral expectations and if they fail to do
by the Filipinos during the Pre-Spanish so, they add dishonor not just to
period. Bahala Na is determination and themselves, but also to their families.
risktaking. He said that when Filipinos 9. Pakikisama/pakikipagkapwa-tao -
say “bahala na”, they are ready to face Another Filipino characteristic is loyalty,
every difficult situation and are or pakikisama. That is a shared
determined to achieve their goals or understanding of the other person's
objectives. personality and consciousness. It is
2. Utang na loob - Gratitude or utang na treating others as equal, and with respect
loob is typically embedded in the and integrity.
Filipino culture. One should not forget to 10. Family orientation - Philippines is
consider the good acts others may have recognized as a family-centered country.
done particularly in times of great need. The Filipinos consider their family an
3. Ningas-cogon- Ningas is a noun that important social structure hey must look
means flame, burning, or fire, while after. They put premium on their
cogon is a plant that can be quickly burnt family's safety and unity. The practice of
with its presence. Ningas cogon means nepotism is evident (members of the
the swift burning of cogon, which same family employed in the same
 enterprise). It is the closeness of the Bartering - a system of exchange of goods or services to
Filipino families that makes them the another goods or services without entering a money in
model of most business organizations. the conversation.
11. Suki system- Suki is a Tagalog term ETHICAL THEORIES
1. Consequentialist - (utilitarianism as an
which means loyal customers. Here,
example) or teleological (from the Greek telos or
there is a customersupplier relationship “end”) ethics.
that is built. Normally, the supplier 2. Deontological or duty-based ethics action can
would give discounts, good quality be done depending on your duty or obligation.
products or service, or even “credit line”
once the trust is earned. 3. Pure aretaic ethics (Primarily Aristotelian
12. Bayanihan/team spirit- The bayanihan theory of Virtue Ethics)
is a Filipino term which originated from - talks about character.
the word bayan meaning town or - behaviour showing high moral standard.
community. Later, bayanihan meant - an individual pursuing of moral excellence.
"being a bayan" and is being used to MORAL VIRTUES
1. Prudence Virtue – ability to govern and
refer to a spirit of unity within a group,
discipline oneself using reason (eliminate
or individual cooperation and joint mistake on our actions).
efforts. 2. Justice Virtue – to give everyone his/her due.
13. Palabra De Honor- Palabra de Honor is 3. Virtue Courage – choose to do good, especially
a Spanish word meaning "Word of when that is the most difficult to do.
Honor", This is an individual’s unwritten 4. Temperance Virtue – we can act temperance in
promise to someone to do or not to do restraint of our desire or passion, thus food,
something. Palabra de honor needs a drink, sex is all necessary for survival. (Disorder
sense of truthfulness and honesty in desire bring evil to us)
every Filipino. 5. Right and Justice Theories - refers to a person’s
14. Lakas ng loob - Courage or lakas ng just claim or entitlement. It can be interpreted as
in absence of prohibition, authority, or existence
loob, is the strength of mind or spirit that
of prohibition.
enables a person to meet challenges, Right can be categorized into two.
situations, or pain bravely or without A. Legal Rights – defined by a system of law.
fear. - right, that is established through legal action
15. Pakikipagsapalaran - B. Moral Rights – based on ethical standard.
Pakikipagsapalaran or being venturous is - Right, that are established through mutual
the ability of a person to take risks, even respect by people and community.
if they are prone to a potential loss. JUSTICE THEORY
16. Frugality/pagtitipid- This is known as - On the other, we defined justice as ideal and
economical management of resources, morally correct, give what is due to him/her.
being careful in spending, and avoiding Three categories of Justice
a. Distributive Justice – refer to fairness in
unnecessary expenses.
a way things are distributed.
Implications of Ethical - defined as perceived fairness of how rewards
and cost are shared and distributed to the group

for Traditions for member. Ex. When a worker of same job are
paid different salaries, group member/individual
may feel that distributive justice has not
Business occurred.
b. Retributive Justice – refer to a punishment be
TRADITIONS proportionate and meted out at the same level as
- relating to past and is commonly accepted in a the crime. - Punishment
now a days action. administered in return for a wrong committed.
- pattern of thoughts, actions or behavior that Ex. Act of tardiness, misuse of company
is being practice in a society. property, theft, dishonesty…….
ETHICAL TRADITIONS c. Compensatory Justice – refer to the extent to
which people are fairly compensated for the
injuries by those who have injured them. Just
compensation is proportional to the loss inflicted
on a person.