TECHNOLOGICAL INSTITUTE OF THE PHILIPPINESBusiness Ethics and Corporate Social

ResponsibilityMr. Dominick Discarga

Business Ethics and Social Responsibility | Mr. Dominick Discarga | 1
The Filipino Value System and Its Effects onB u s i n e s s
The Filipino value system or Filipino values refer to theset of values or the value system that a
majority of theFilipinos have historically held important in their lives.
Filipino Cultural Values
Utang Na Loob (Reciprocity)
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Obligation and responsibility are often viewedin terms of reciprocity ( utang na loob),comprised
of debts ( utang), and inner-self-free will ( na-loob). The process begins withan unsolicited gift
and continues going ofteninto to the next generation.
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The essence of utang na loob is an obligationto appropriately repay a person who has doneone
a favor. The favors which elicit theFilipino's sense of utang na loob are typicallythose whose
value is impossible to quantify,or, if there is a quantifiable value involved,involves a deeply
personal internaldimension. This internal dimension, loob,differentiates Utang na Loob from
an ordinarydebt("utang"); being an internal phenomenon,utang na loob thus goes much deeper
thanordinary debt or even the western concept ofowing a favor.In business:
Utang na Loob may be good or bad forbusiness depending on a lot ofconsiderations, but it
affects the way businessis conducted especially when the businessperson is confronted with
ethical issue.
Filial Piety
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Filial piety is a virtue of respect for one’s

parents, elders, and ancestors
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Filial piety is an important concept in Filipinoculture. It is understood as essential tomaintain the
collective face of the family andto avoid experiencing hiyaIn business:
The Filipino family is so intact that it iscommon for members of the same familywork for the same
company.
Padrino System (Palakasan, Patronage)
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Padrino System, or patronage in the Filipinoculture and politics is the value system whereone
gains favor, promotion, or politicalappointment through family affiliation(nepotism) or friendship
(cronyism), asopposed to one's merit.In business:
Nepotism
is the practice of hiring familymembers regardless of their qualifications. Insome cases, a
relative of a companyexecutive may be qualified to perform the jobfor which she is hired. The
fact that she is anexecutive's relative gives her an advantageover the other applicants. But
when theemployee is not qualified to perform the job,then nepotism becomes counter-
productive.Your executive staff begins hiring familymembers because they need jobs, But
thefamily members' lack of qualifications andability can affect your company's profitability.
Cronyism
is the other side of nepotism. It isthe act of hiring friends regardless ofqualifications. One of the
main problems withcronyism, which you also find in nepotism, isthe feeling of entitlement that
employeeshired under these circumstances feel.Because they know or are related to
anexecutive with the company, they feel theydeserve raises and promotions that
should bereserved for more qualified staff members.This creates conflict in the workplace
and canresult in losing qualified personnel.
Suki System
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“Suki” is a Filipino term which means “loyalcustomers.”

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According to Ronald (1991), "in thecommercial context, suki relationships(market- exchange
partnerships) maydevelop between two people who agree tobecome regular customer and
supplier. In themarketplace, Filipinos will regularly buy fromcertain specific suppliers who will
give them,in return, reduced prices, good quality, and,often, credit."
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“Suki” is a distinct Filipino value system which

is rooted primarily in personal alliancesystems based on commercial relationshipsIn business:
Though a
suki relationship
usually takestime and many business transactions to besolidified, suggesting a suki like
relationshipand backing it up with concessions could beused as a measure to build trust