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The Filipino
Classical Values
Ethical System
Philosophies:
and Business Ethics
An Introduction
Challenges

Class Instructor: Ms. Marion Pia B. Calderon

B U S I N E S S E T H I C S
 The Filipino Value System and Business Ethics Challenges

Lesson Objectives

At the end of this lesson, the students will be able to:

1. Provide a historical background to business ethics in the Philippines

2. Explain the major Filipino values affecting business; and
3. Enumerate the various business ethics challenges flowing from these Filipino
business values.

The Term “Business Ethics” in the Philippine Context

The semantics of the term business ethics cannot help but reflect the
ethno-linguistic and cultural wealth of, or the complexity present in, the Philippines. The
understanding of business ethics expresses the values both particular and peculiar to
each of the idioms currently used in the country. Business ethics is largely understood
in its American sense, as what is right and wrong in business. “Business”, just like any
rule-guided activities, possesses its own list of do’s and don’ts, or “ethics”. Ethics has
got to do with rules, with what is legally allowed or socially accepted, as opposed to
what is frowned upon, prohibited, or penalized in whatever form in business practice.
Business, on the other hand, is a very specific and defined field of human endeavor. For
some, it is a chosen occupation, career, or profession which, due primarily to its
economic consequences, has become a focus of public concern. In other words, public
concern over business does not at all arise from any purportedly inherent value which
such a class of activities may have, but solely from their external effects of harm or
benefit on the general state of well-being of those concerned. “Business ethics”
therefore refers to some problem-solving techniques designed to help the practitioner
when confronted with dilemmas.

One can say that Filipino business values are greatly affected by family-oriented
laws prevailing in the country. For example, The Family Code of the Philippines(art. 209)
provides that the parents and those exercising parental authority shall have with respect
to their unemancipated children or wards the following rights and duties:
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1. To keep them in their company, to support, educated and instruct them by right
precept and good example, and to provide for their upbringing in keeping with
their means;
2. To give them love and affection, advice and counsel, companionship and
understanding;
3. To provide them with moral and spiritual guidance, inculcate in them honesty,
integrity, self-discipline, self-reliance, industry and thrift, stimulate their interest in
civic affairs, and inspire in them compliance with the duties of citizenship;
4. To enhance, protect, preserve and maintain their physical and mental health at all
times;
5. To furnish them with good and wholesome educational materials, supervise their
activities, recreation and association with others, protect them from bad
company, and prevent them from acquiring habits detrimental to their health,
studies and morals;
6. To represent them in all matters affecting their interests;
7. To demand from them respect and obedience;
8. To impose discipline on them as may be required under the circumstances; and
9. To perform such other duties as are imposed by law upon parents and guardians.

A Filipino experiences family closeness and solidarity (pagpapahalaga sa

pamilya), politeness (use of po or ho or opo), hospitality (tuloy po kayo), gratitude (utang
na loob) from within, that is subjectively and emotionally, etc. Such Filipino values as
social acceptance (pakikisama, amor propio, economic security, pagmamay-ari) and
trust in God (pananalig sa Diyos, Bathala or Maykapal, and Bahala na) find their
philosophical basis in man’s dynamic openness toward nature and the world (e.g. the
value of hanapbuhay ng magsasaka), one’s fellowmen (the values of paggalang, hiya,
katarungan, pag-ibig), and God (the values of pananampalataya, panalangin, kabanalan).

Since there are lots of Chinese influence on Filipino culture because of the
migration to the Philippines of many Chinese since centuries ago, one needs to also
mention the familiarity with Confucian ethics and business lessons derived from
Confucius’ sagely wisdom. From Confucian ethics emanate the emphasis on social
obligations, ethical decision-making, positive business dealings and harmonious
relationships within the organization, and the value of learning and education; these
bring attendant benefits and good practices including good business management and
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labor practices. In Confucian ethics, the practice of the Tao -- “the way of life”, or the
ultimate purpose and enlightenment in life -- is very important. Along with this, we also
recognize other common Confucian values: (a) Filial piety; (b) brotherhood, peer-ship,
and equality; © loyalty and fidelity; (d) trustworthiness; (e) courtesy and politeness; (f)
righteousness, right conduct, and courage; (g) uprightness, honor, integrity and
character; and (h) humility and shame. Wherever Confucin ethics has influenced
business, the business people would establish good relationships amongst one other,
and thus more people would be encouraged to practice similar good habits or virtues.

The ultimate basis of the Filipino psyche for its judgements in the realm of
business ethics rests, however, on the concepts of sin (kasalanan) and virtuous action
(mabuting gawa), which are clearly of a religious extraction. About 90% of the
population adheres to the Christian faith and therefore subscribes to the morality
encapsulated in the Decalogue. Of specific incidence to our case are the seventh and
the tenth commandments concerning respect for property, and to a lesser degree, the
eight, referring to trustworthiness. A sin is something forbidden on account of its being
primarily an offense against God, a violation of His manifest Will, and secondarily an
offense against one’s fellow or even against oneself in his irrevocable dignity as a
creature or a child of God. As such, a sin deserves to be punished, either in one’s earthly
existence or in the afterlife. On the other hand, a virtuous action is a conscious and
deliberate deed performed by man in accordance with God’s Will. For such an action
one may reasonably expect a reward, either in his life or in the next, from God. In
addition, we must remember an important feature of the Christian mindset: the absolute
value of one’s future immortality, and the relativeness of one’s present life.

Business ethics corresponds to a wide range of concept pairs in Filipino. On the

immediate level, business ethics implies what is right or correct (tama) and what is
wrong (mali), what is allowed or legal (pwede or hindi bawal) and what is prohibited or
illegal (bawal) in trade or business (pangangalkal). On another level, there is a reference
to what is good (mabuti) and what is bad (masama), although in a highly utilitarian and
instrumental rather than in an absolute moral sense. That is to say, what is good in
business is what is profitable and brings prosperity; whereas what is bad is what
constitutes a losing proposition. Of course, there is also a term for what is jut
(makatarungan), but hardly does this bear on the ordinary conduct of business. The
appeal to justice seems to be restricted either to legislation or to the courts, which is an
arena different from that of business. Aside from being non-confrontational in manner,
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Filipinos also happen to be non-litigious and avoid bringing their conflicts, business-
related or otherwise, to the courts of justice. Instead, they prefer to have recourse to
arbitration procedures brokered by neutral third parties, such as elders, in order not to
upset the much-prized pakikisama or smooth interpersonal relationships. Furthermore,
influenced perhaps by their Chinese neighbors, Filipinos have developed a very high
regard for luck (buenas or swerte), considering it to be a much sought after though not
always morally deserved good in business (Sison and Palma-Angeles, 1997).

Business Ethics Challenges in the Philippines

Basic education’s usual approach to ethics teaching in the Philippines has been
generally pedantic. Teachers and parents repeatedly admonish us about inherited do’s
and don'ts, perhaps thinking that the repetition would drive us ethical. In a country where
much is needed to combat what critics call endemic corruption, moral numbness has
crept in. Along with moral courage makes business ethics learning particularly
challenging in the Philippines. Undeniably, it is an increasingly morally numb and
indifferent culture. Like a highly resistant disease, corruption in the Philippines seems to
refuse to go away despite highly publicized criticisms from local and international
media, multilateral funding agencies and prominent local academics. The truth is the
average Filipino has become immune to unethical behavior among high-ranking
business and government officials because many publicized cases have gone
unresolved; few leaders have been sanctioned and imprisoned. The issues get buried;
the unethical business and government leaders go scot-free and are promptly forgotten.
The long-term result is that future generations of officials never learn the lesson that
their power and offices are not their personal entitlement but a duty to communities.
Even more unfortunate is the fact that sometimes these misbehaving role models are
admired despite the source of their money. They are emulated. Without moral
indignation and vigilance, one of the most effective corrective to ethical wrongdoing
among leaders is gone, and unethical behavior perpetuates. (Palma-Angeles, 2013).