Foundations of the Principles

of Business ethics
 Learning Objectives
• Identify the classical philosophers and their implication for the
business principles and practices
• Describe various belief systems and their similarities and differences in
relation to the business setting; then cite some examples of how the
belief system
• Describe how the Filipino value system affects the attitudes of the
business constituents
• Analyze simple business situations as they are affected by the Filipino
value system, and recommend ways of confronting ethical challenges
in the business settings; and
• Distinguish what is good versus what is morally acceptable among
given Filipino values
CLASSICAL
PHILOSOPHERS
Introduction
• In this chapter, you will trace the foundations
of good business principles through
philosophical teachings. Great thinkers Plato,
Aristotle and Confucius, how can their
teaching be applied in business? How does
your own values system affect the way you
operate business? How can you undertake
these challenges?
 Learning objective:
Identify the classical philosophers and their implication for
the business principles and practices
Ethics
• A branch of philosophical thinking that investigates the set of
questions that arises when one considers how to act.
• A system of moral standards that distinguishes right and wrong.
• Its objective : to evaluate practices by calling upon principles and
giving advice on how to act morally in a given situation.
• To arrive at good judgement and recommendations, people study both
moral and immoral behaviors to reach an ethical choice
Three distinct ethical theories

1. Virtue Ethics
2. Deontological Ethics
3. Consequentialism
 Virtue Ethics
• It is a moral theory that focuses on the development of
virtuous character
• It focuses on the desirable characteristics that a virtuous
person should employ
• One’s action is a mere reflection of one’s inner morality.
• The formation of virtuous character is the first step towards
morally correct behavior.
• HONESTY, LOYALTY , PRUDENCE, MODERATION, SELF-
CONTROL, FORTITUDE, LIBERALITY, JUSTICE &
TRUTHFULNESS
 DEONTOLOGICHAL ETHICS
• Derived from the word “Deon”-meaning duty,
• It is often referred to as DUTY ETHICS
• A category of a normative ethical theory,
• Emphasizes on adhering to ethical principles or duties and obedience to
some higher moral absolute. (adherence to certain rules and duties)
• It assumes the existence of moral absolutes that make an action moral
regardless of circumstances.
• Intention is relevant .
Deontological ethics example:
1. You are duty bound to keep your promise to be faithful to your spouse,
even a more attractive one comes along.

2. You are duty bound to always telling the truth, even if it cost you a job

Duty is not based on what is pleasant of beneficial, but rather upon the
obligation itself.
CONSEQUENTIALISM
• Bases the morality of an action upon the consequences of the outcome.
However, the main contention of this branch is what outcomes can be
identified as objectively desirable .
• John Stuart Mill assets that the desirability of an action determines the net
amount of happiness it brings.
• Based on the premise that our ethical choices, like other types of decisions,
should be based on their consequences.
• The consequences of an action is measured against one value
• The ‘useful value’ can be happiness, welfare or pleasure . It should be
maximized.
• If the consequences are good, then the act is right; if the consequences are
bad, then the act is wrong.
 Illustration:

When someone requires help;

Virtue ethicists would regard helping as benevolent;
Deontologist would act with a moral rule, (Golden Rule)
Consequentialist would point to the fact that the consequences
of assisting will maximize the well-being of all concerned.
Aristotle

• He is the leading authority in virtue

ethics and his teaching continue to
influence modern philosophies and
application.
• His predecessors and mentors are :
• Plato
• Socrates.
The development of ethical theory has been a
gradual accumulation of thoughts by the
Classic Greek philosophers Socrates, Plato and
Aristotle.
Confucius – Chinese Philosopher shared his
wisdom of the concepts of virtue.
Socrates (c.470-
c399BCE)
Socrates
“The knowledge exist in knowing that
you know nothing”

• Dialectic method
• Compels the audience to
think through a problem to
a logical conclusion.
• Socratic method – groundwork
for Western system of logic and
philosophy.
Socrates
Plato (c428 BCE-
c. 348BCE)
 Plato
“Knowledge is Virtue”
• One can be taught a virtue or qualities every person should have.
• Education – teaches the appropriate virtues, produces the ideal government
and brings forth morality.
• His writings– distinguished in (3) periods
1. Conveying Socrates’ philosophy and teaching he believed in the pre-
existence and immortality of the soul and that it is imprisoned in the body.
The Republic –A treatise that discusses what knowledge, illusion and reality
are. He distinguishes realities presented by the senses (touch, sight, sound and
smell) and the essence or “Form” of that reality.
2. Focused on his own ideas on justice, rule and obedience, and courage, and
wisdom.
3. Explores the role of art, ethics and morality.
 Plato
• He outlined in hid treatise , the ideal society consists of :
• Producers ( craftsmen, farmers, artisans)
• Auxiliaries (warriors)
• Guardians (rulers)
2. Focused on his own ideas on justice, rule and obedience, and courage, and
wisdom.
3. Explores the role of art, ethics and morality.
• Foundation of modern democracy is largely based on Plato’s work on the use
of reason to develop a fair and just society focused on the equality of
individuals.
• Founded the The Academy in Athens
• Astronomy, Biology, Mathematics, Political Theory and
Philosophy.
 Aristotle c. 348
BCE – c322 BCE)
• Student of Plato’s Academy
(20years)
• Founded his own school
• Teacher researcher, writer at the
Lyceum.
• As a scientist in Biology ( classified
animals into species)
• Studied Marine Biology
• Earth Sciences (Meteorology)
 Aristotle
• He believed that knowledge could be obtained by interacting with objects
• Human interpretations and personal associations – play roles in
understanding objects.
• First used the term “ethics” to name the field of study developed by his
predecessors.
• Ethics is the attempt to offer a rational response to how humans should
best live.
• Plato believed : there was Form
• Aristotle disagreed : man was born with knowledge.
• Ethics is discovered in reason and thought, and acquired by practice and
that knowledge comes from experience
 Aristotle
• He emphasized the importance of developing excellence of character (
virtue arete) as the way to achieve excellent activity (energeia)

• HONESTY, COURAGE, LOYALTY AND INTEGRITY

• With all these traits one is considered virtuous and has reached excellent
activity.
• A person who possesses excellent character, therefore does the right
thing at the right time and in the right way.
 Aristotle
• In the energeia, he conceptualized ‘THE GOLDEN MEAN” between two
corresponding vices.
• He counsels on moderation of things and values.
• example
• courage – a virtue found between cowardliness (deficiency) and rashness (excess).
• One does not display excellent character when one is rash nor when one is
cowardly.
• Virtue Ethics – is character-based ethics.
• A virtuous person embodies a virtue through and through. Rather than looking at
ethical duties or rules or the consequences of a particular action, one looks at the
moral character of the person carrying out an action.
• Virtue ethics deals not only with right or wrong but provides guidance as to the
characteristics and behaviors a good person will seek to achieve.
 Aristotle
• Asks why people are called to action.
• All of actions aim to some purpose to be achieved.
• Defines this ultimate goal to HAPPINESS.
• To live the best life , one’s highest aim is to achieve well-being, happiness, or human
flourishing (eudaimonia).
• Suggest the way to build a good society is to help members to be good people rather
than to use laws and punishments to prevent bad actions.

“We are not studying in order to know what virtue is, but to become good, for otherwise
there would be no profit in it” – Aristotle

• His main focus in philosophy was his concept of logic through inference and
deduction.
• It is the basis for syllogism ( a logical argument where the conclusion is inferred from
 Aristotle
• PRIOR ANALYTICS – Aristotle wrote where he defined the main components of
reasoning in terms of inclusive and exclusive relationship.
• At present it is visually shown through the use of VENN DIAGRAM.
Aristotle
Criticisms for virtue ethics point out that virtue ethics do not
provide clear guidance on what to do in moral dilemmas.
There is no general agreements on what the virtue are since they
may be relative to the culture.
End of the slides.
Thank you
 CONFUCIUS
• Chinese Philosopher (551 BCE – 479 BCE)
• 6th century BC - he saw the moral decline which resulted from
deterioration of Chinese principles.
• He believed that it was his obligation to reinforce the societal
values and compassion.
• Golden Rule,
• “WHAT YOU DO NOT WISH FOR YOURSELF DO NOT DO
UNTO OTHERS.”

• Golden Rule of Jesus

• “WHAT YOU WANT OTHERS DO UNTO YOU, DO UNTO
THEM”
 CONFUCIUS
• RECEPROCITY ETHICS
• Based on self-discipline
• A leader must set a positive example,
remain humble, treat people with
compassion.
Treat people with
compassion
 Confucius
• Believed that he must teach people to live
with integrity, diligence and obedience.
• One has to focus on the highest concept of
behavior even if it is impractical or foolish.
• He considered harmony of highest
importance, between ruler and subject,
father and son, husband and wife, elder
brother and younger brother, and
relationship between friends.
• Harmony brings prosperity and ultimately
good relationships.
Confucius
• By 2nd century BC, the foundation
of HAN DYNASTY’s state ideology
was based on his philosophies,
which emphasized personal and
governmental morality, correctness
of social relationships, justice and
sincerity.
 Classical philosophies in the Business Setting
How do Business professionals apply virtue ethics in decision-making?
• In business , virtue ethics provides the organization a set of
desirable characteristics for each member to follow. Business
ethics makes specific judgement on what is right and wrong,
what ought to be and ought not to be done, what is just and
what is unjust. The attentions is focused on duties and
compliance. However, one should also consider whether an
action is consistent with being a virtuous person.
• When leaders of the organization utilize good governance and
the code of ethics, they become examples for each member of
the organization to follow.