Business Ethics Midterm Examinations Reviewer

Tuesdays and Fridays 4:30 PM – 6:00 PM CLASS

Introduction to Business Ethics and Ethics in General
1. Ethics has been existing ever since man could think of his or her actions thus, we can say
that it is a subject concerning with the science of action.
2. In relation to management and business, ethics still lay a moral foundation to these fields.
As we define management or the work of a manager – it is when we work with and deal
with other people. When we work and deal with other people, we create actions. Thus, it
is important for us to determine the humanity of these actions so that we may become a
person who does the good for the sake of the good, ultimately leading us to become ethical.
3. Ethics is a subject that deals with the deepest whys and the reasoning of the human
existence, actions, problems, and our destiny, hence, we can say that ethics is the
philosophy of life.

Dimensions of Ethics (Norms, Goods, Virtues)

1. Ethics can be divided into three general dimensions, namely: Ethics of Norms, Ethics of
Goods, and Ethics of Virtues.
2. Ethics of Goods can be defined as something that appears to be “worthy of being desired,
worthy of being an object of aspiration”.
3. These goods manifest in your own values and the things that you value. Therefore, it can
be said that the goods of other people may be also good or bad for you; your goods can be
good or bad for them.
4. Further, there is no common perception of what is good. As what Voltaire said, Common
sense is not so common.
5. Ethics of Goods can be also classified into utilitarian good (goods that maximizes your
satisfaction), pleasurable good (goods that you consume because you are attracted to it),
and honorable good (goods that are good in its own sake), or instrumental goods (goods
that you use to attain a better good) and intrinsic good (goods that are good in its own sake).
6. Ethics of Norms – can be defined as the formation of basic structure to guide raw
instincts, inclinations, perceptions, and decisions as we develop to grow.
7. Ethics of Norms can be comparable on how parents teach their children what are the basic
rules and regulations of life (i.e. do not talk to strangers, look left and right before crossing,

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 Business Ethics Midterm Examinations Reviewer
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make up your bed, etc.) such that these norms may become a basis of our morality as we
grow up.
8. Ethics of Virtues on the other hand is considered as the traits of a moral character which
promotes human flourishing.
9. Virtues are recognized as expressions of human excellence which gives us inner strength
to achieve the highest human good. Virtues are also guide actions so one develops habits
for good, or stable disposition that lead to human excellence.
10. In life, we follow basic virtues in the form of Four Cardinal Virtues which include:
Prudence (Acting right with reason), Justice (firm, constant, and joyful giving of what is
due), Fortitude (Having a courage to face and resolve difficulties), and Temperance
(Practice of self-control or the modulation of passions).

Perversion of the Dimensions of Ethics

1. Despite the goodness of intention, there are times that it is possible for a man to focus on
one dimension only which lead to incomplete moral outlook in life.
2. When a man focuses on Ethics of Goods alone, there is a possibility that one may aspire
the goods irrationally such that they forget the virtues and disciplines that govern them.
It is also possible that one may become a utilitarian (accepting something that seem useful
for them) or a “user friendly” person seeking for material things.
3. When a man focuses on Ethics of Norms alone, there is a possibility that man can become
too rigid in life such that he or she may eliminate different factors so that people can stick
to the status quo or behave in a specific way. It is also possible for them to fall into
rationalism, the supremacy of reason as well deontology (assessing choices based on what
we are supposed to do).
4. When a man focuses on Ethics of Virtues alone, there is a possibility that a man’s virtues
lose the meaning of their own virtues since they are too immersed on having and knowing
what the “perfect” virtue is out there.

Freedom and Will

1. According to St. Thomas Aquinas, Freedom is the property of human will which you
and I commit ourselves to an end.

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 Business Ethics Midterm Examinations Reviewer
Tuesdays and Fridays 4:30 PM – 6:00 PM CLASS
2. How does the will work? We can say that Will is inescapable as we always will. Even
though we choose not to choose, we still choose.
3. In line with the Will of a person, its target is always for the good.
4. We don’t decide to want the good simply because it is natural for us to choose the good.
The will always seeks the good. The search for the good is always engraved in us.
a. “Are you saying then that we are predetermined?” For the case of searching of what
is good, yes. Are you a kind of person who seeks something that is not good for
you?
b. “Are you saying then that we are not free?” No, we are free in so far that we can
actually make choices and take control on how we can achieve that good. That is
the time that will comes through.
5. The intellect provides information for the will as the will is actually blind in which only
activated when intellect is involved.
6. It is expected for us to make will and intellect work together but sometimes, we don’t make
them work as they should hence leading us to irrational decisions and even impatience.
7. Our will has 2 dimensions
8. Spontaneous Will: it is natural, automatic, always there to seek on what is good.
Responsible for natural inclination for happiness. Will can never be attracted to what is
evil.
9. Will as a Choice: We desire for specific good. What specific happiness we want that is
related to our own happiness. We choose it. Ex: getting 1.0 in class
10. We are NOT TOTALLY responsible for what we choose since we are restrained to certain
conditions. But we can still make the choice.
a. Laws (Dress Code). We are somehow restricted to wear certain outfits because of
the dress code of the school but then again, we chose to be a UA&P student so we
have to go about it.
b. Q: Then I am not free! A: No, you are free. Given the clothes that you have, you
are free to mix and match the outfit that you have so that you can comply to the
dress code of the university. You are free to shop those outfits. Or perhaps free to
transfer to other campus that will entertain the kind of clothing that you want.
11. What is the end of Freedom? Happiness

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a. All of us clamor for freedom because of happiness.
b. We cannot be happy unless we are bound due to certain circumstances.
12. If freedom is for happiness, then we must use it to fulfill ourselves.
a. We can utilize our freedom to the use of tools such as rules, norms, laws,
principles, standards, moral values which allows us to develop.
b. These things shouldn’t restrict our freedom but rather it should help us manage
our freedom.
13. Freedom is always for the sake of what is good and true (things that makes us happy.)
a. But sometimes our will and intellect are defected and it gives us a different notion
of what are the things that makes us happy. Hence, rules and laws are there to
help us regulate our freedoms.
b. This makes our freedom imperfect since it doesn’t always deliver what is good.
14. Sometimes our perception of what is good is not leading us to our happiness.
a. Why not have perfect freedom? Only God has the perfect freedom
b. That is why sometimes, the common good does not suggest the good of the
majority since all of us does not share the same idea of what is good. What may
be good for the one will trample the freedoms as well as the liberty of the other
people.
c. That is why laws are present to regulate our freedoms so that we won’t trample
the freedoms of the other. Yet these laws actually brings us more freedom since if
we intend to do the good, the more free we become (free meaning not being
restrained of going to jail or being convicted).
Note: Why still live here if we are always happy and free? Where’s the challenge in
life??
Self-Awareness
1. In terms of self-awareness, the goal of employing various psychological tools will enable
us to understand our tendencies, inclinations, and intellect work together.
2. That is why when we define personality: it is the concrete manifestation of an integral
human person.
3. Despite these, it is also important to take note that these psychological tools does not define
us totally. These are just parts of our character which are affected by various variables such

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 Business Ethics Midterm Examinations Reviewer
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as the environment that we grew up in, school, family, friends, country, culture, societal
norms, and the like. Thus, types should never be used as an excuse for one’s behavior.
4. Being self-aware actually enables us to work properly and ethically with our decisions in
life – pursue what are the good ones, and halt or suppress what are the bad ones.
5. Temperaments are considered as a proto-psychological theory that were based on the
bodily fluids called “humors”. The temperaments include Choleric, Sanguine, Melancholic,
and Phlegmatic.
6. Choleric are considered as the most powerful temperament as it represents fire. They are
considered as passionate, strong, and sometimes destructive.
7. Phlegmatic are considered as the peace makers as they are considered as the most moderate
among the temperaments since they do not have any “spikes” of emotions which make
other people too emotional.
8. Sanguine are considered as an extrovert who has a high need to include and be close to
other people.
9. Lastly, Melancholic are the people who are considered as the most introvert wherein they
become selective of people who they can open up with.
10. But there is a new temperament that are backed up by modern science which is called
“Supine” wherein it is a cross of being sanguine, melancholic, and phlegmatic. Being a
supine actually considers you as a servant leader, meaning you put yourself behind for
other peoples’ sake.
11. Moving further, there are new psychological tools that are backed up with modern sciences
such as the MBTI, Big 5 Personality, and Whole Brain Thinking System
12. MBTI or the Myers Briggs Type Indicator is a psychological tool created by Isabel Myers
and Katherine Briggs.
13. It is based on Carl Jung’s theory on psychological types as well as the 4 temperaments.
14. MBTI suggests the preference of a person on how they manifest their energies, gather
information, make decisions, and manifest lifestyles.
15. E – I or Extroversion and Introversion deals with the expression of one’s energy. ALAM
NYO NA TO GRABE.
16. S – N or Sensing and iNtuition deals with how a person acquires information. People who
prefer Sensing focus on the immediate experience as well as the present moment which

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 Business Ethics Midterm Examinations Reviewer
Tuesdays and Fridays 4:30 PM – 6:00 PM CLASS
actually lead them to enjoyment of what is the apparent and present. iNtuitives on the other
hand deal with the possibilities, meanings, relationships, and the “what-ifs” which actually
lead them to become imaginative and creative.
17. T – F or Thinking and Feeling deals on how the person creates decisions. For those who
prefer thinking they link the ideas together and seeks knowledge through order while those
who prefer Feeling weighs the relative value and merits of an action, thing, or the like.
18. J – P or Judging and Perceiving deals with how a person orient themselves toward the outer
world. People who prefer Judging want to settle things as soon as possible; business before
pleasure; accomplishing, organizing, and finishing one task before starting on the others.
Perceiving on the other hand prefers experiences as well as adapting to events in life. They
are considered as flexible and spontaneous, prefers to understand life than controlling it
(go with the flow).

Decision Making Approach by Henry Mintzberg

1. Sometimes decision defy purely the step-by-step logic. To be effective, companies should
also embrace intuitive or action-oriented forms of decision making (Mintzberg & Westley,
2001)
2. Mintzberg and Westley devised a decision-making approach basing on three points:
Thinking First, Seeing First, and Doing First.
3. Thinking First deals with the rational approach in deciding things such as following the
scientific process, making decision tree analyses, computing for the Return on Investment,
Net Present Value, and Payback Period. It follows the process of defining -> diagnosing ->
designing -> deciding.
4. Seeing First suggests that decisions on actions are driven by what a person sees as
compared to what is thought. This can be comparable the Filipino concept of “patingin
muna”.
5. Doing First suggests that in making decisions, sometimes you just have to do it. The
process for doing first is enactment -> selection -> retention.
6. Feeling first (added by me) deals with decision making in line with the values, merits,
consequences of the decisions. It is considered as people focus rather than problem focused.

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 Business Ethics Midterm Examinations Reviewer
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It always asks the question that probes the humanity or the ethicalness of the actions of a
man and even a manager. Feeling first is relational as it deals with what is Vital – life of
an organization which are human beings.

Characteristics of The Approaches

Thinking First Seeing First Doing First Feeling First

Science Arts Crafts People
Planning, Visioning, Venturing, Feeling,
Programming Imagining Learning Relating
Verbal Visual Visceral Vital
Facts Ideas Experiences Relationships

When to Use The Approaches?

1. Thinking First: Issue is clear, data is reliable, context is structured, thoughts can be pinned
down, and discipline (operations, finance, law, etc.) can be applied.
2. Seeing First: many elements have to be combined to form a solution, commitment to the
solution, and communication.
3. Doing First: situation is confusing, there are complicated specifications, lack of data, new
situations.
4. Feeling First: when everything is in disarray (step back and feel the surrounding), when
dealing with problems related to people and behavior, marketing problems, understanding
stakeholders.

Motivation (Drive by Daniel Pink)

1. Rewards don’t work. People are more motivated by internal factors than by external drivers.
Once basic financial needs are met, people are more motivated by having a desire
for Mastery and a sense of Autonomy/self-direction towards a driving Purpose (MAP).
2. Mastery: We have an innate desire to grow and develop – to become really good at
something. And this mastery leads to a sense of personal fulfillment. But without passion
and engagement, mastery will not happen.
a. Mastery is a mindset – What people believe shapes what they can achieve.

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 Business Ethics Midterm Examinations Reviewer
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b. Mastery is painful – It takes ‘grit’ (a key determinant for success at WestPoint) to
overcome the inevitable setbacks along the way to mastery.
c. Mastery is an asymptote –Total mastery is never fully realized (which keeps
people constantly pushing on).
3. Autonomy: People want autonomy in four areas: Task, time, techniques and team
Studies have shown that perceived control is an important component of one’s happiness.
Lack of free-will and choice reduces a person’s vitality. Having a sense of autonomy has
been shown to have a powerful effect on performance, attitude, job satisfaction, and
causes less burn-out.

4. Purpose: Passion behind a meaningful purpose makes us more motivated and engaged.

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