PHILOSOPHY - systematized study of general
and fundamental questions  The most famous of his golden rule: DO NOT
about existence, reason, knowledge, values, mind,
and language.
1. Metaphysics
 the study of the nature of reality, of what exists in
the world, what it is like, and how it is ordered.
 Is there a God? What is truth?
2. Epistemology
 the study of knowledge.
 primarily concerned with what we can know about
the world and how we can know it.
 What is knowledge? Do we know anything at all?
3. Ethics
 concerns what we ought to do and what it would
be best to do.
 larger questions about what is good and right arise.
 What is good? What makes actions or people
good?
4. Logic
 the arguments or reasons given for peoples
answers to these questions.
 study the nature and structure of arguments.
 What constitutes "good" or "bad" reasoning? How
do we determine whether a given piece of
reasoning is good or bad?
PHILOSOPHERS
Socrates (WEST)
 HAVE THE COURAGE TO DISAGREE.
 Best known for Socratic method (way of
thinking that allows individuals to define their
own purpose for learning)
 “Do Not Go With The Flow…”
Plato’s classic philosophy
 THE POWER TO RULE.
 A person must study themselves in order to find
out their level of character (prime belief).
Aristotle
 LET PEOPLE SEEK FULFILLMENT.
 biologist and philosopher
 teaches: Keep People Motivated.
 Most practical and business oriented of all
philosophers.
The Ethics of Aristotle: Virtue Theory is the most
promising representative of the pre-modern category of
moral theory. Instead of trying to form specific rules for
everyone to follow, it proposes to build a virtuous
character. In this classic virtue theory, four virtues
stand out, courage, moderation, justice, and prudence.
Virtues matter in management and finance.
Confucius (EAST)
DO UNTO OTHERS WHAT YOU DO NOT
WANT OTHERS DO UNTO YOU, and his
famous classic philosophy is LIVE A
CONTENTED, MORAL AND HAPPY
LIFE.
 Confucianism - Philosophy in China
Plutarch
 Ancient Greek historian and educator
 BE A GOOD ROLE MODEL.
Epicurus
 THE ART OF HAPPINESS.
 Epicurus was a fourth century Greek
philosopher who taught that the aim of life was
simply to be as happy as possible here on Earth.
Immanuel Kant
 One of the most influential philosophers in the
history of Western philosophy.
 He advances the theory of deontology or
deontological ethics, the theory of duty and
obligation.
The Ethics of Kant: Deontology stems from the
Greek Deon—duty, obligation, or command.
 people should adhere to their obligations and
duties when engaged in decision making when
ethics are in play.
 Kant argued that there is more foundational
principle of duty.
 For Kant, we SHOULD TREAT people AS an
end, and NEVER as a MEANS to an end.
 That is why we should always treat people with
dignity,
 For example, if you see that someone is poor
and hungry, his end at that point might be to get
food.
Plato
 moral values are objective, absolute, or eternal.
They never change, they are universal as they
apply to all rational creatures around the world
and throughout the time.
Aristotle
 philosophized that virtues are goodhabit that we
acquire which regulate our emotions.
Kantian ethics
 emphasize a single principle of duty, that we
have moral duties to oneself and others.
Epictetus
 declares: Have a resilient mind.
 People must have the resilience to face any
challenges.
Rufus
 Roman philosopher
  teaches: Act what you learn.
Confucianism
 A philosophy and belief system from ancient
China, which laid the foundation for much of
Chinese culture. Confucius was a philosopher
The Ethics of Bentham and Mill: Utilitarianism
Jeremy Bentham, an attorney, a consultant to the
British Parliament in the late eighteenth century.
Bentham found a ready supporter and lieutenant in
James Mill (1773–1836), a Scottish lawyer who
came to assist Bentham in championing
utilitarianism as a political philosophy.
Utilitarian ethical theories are based on one's
ability to predict the consequences of an action.
Due to this emphasis on the outcome of ethical
decisions,
Utilitarianism is classified as a as an academic discipline as well as a policy in
CONSEQUENTIALIST THEORY.
History of Business
Ethics Many ethical practices found in the Holy
Scriptures include honesty, stewardship and truthfulness.
Ethics has its simple application in the Ten
Commandments found in the Bible.
Early Years
1. Business ethics has been recognized for thousands of
years dating back to the time of Aristotle.
2. John Locke's key philosophy on the defense of
property as a natural right also helped build the
foundation of business ethics.
3. Adam Smith explained that the common good is
associated with six psychological motives and that
each individual has to produce for the common good
with values such as prosperity, prudence, reason,
sentiment, and promoting the happiness of
mankind.
4. The contributors to the emergence of business ethics
include:
John Stuart Mill (1863),
Immanuel Kant (1899), and
G.W.F. Hegel (1820).
5. They wrote about distributive justice and fairness.
6. One of the greatest contributors to business ethics
in the early years is John Rawls. He propagated
the Difference Principle.
7. The greatest beneficiaries of equality of opportunity
are the least members of society.
New Generation Ethics
1. In 1937, the first managerial textbook in business
ethics was Business Ethics by Frank Chapman
Sharp and Philip D. Fox. It distinguishes between
right and wrong transactions common in business
organizations.
2. In 1986, One of the ethical decision-making
models was developed by Hunt and Vitel.
Ethical decisions are based on the characteristics of
the individual such as religion, personal values and
strength of moral character. The culture of the
organization can influence ethical decision.
3. in 1990, Ferrel and Fraedrich published another
book on business ethics. It defines the ethical
standards to be followed in business organizations.
4. In 1986, The Defense Industry Initiative on
Business Ethics and Conduct of the United States
Government was established and had a big impact
on business ethics in the 80s. it acted as a guide in
the practice of ethical standards in organizations.
5. The 1990s saw the development of business ethics
organizations.
6. As business ethics grew rapidly toward the 2000s,
massive scandals became widespread around the
globe.
SUMMARY
 Socrates, Plato, and Aristotle are the prominent
Greek philosophers who have contributed to the
development of the concept of business ethics.
 Business ethics has been recognized for thousands of
years dating back to the time of Aristotle.
 Virtue ethics is person-based rather than action-
based ethical theory. It focuses more on the moral
character of people in carrying out a particular action.
 The contributors to the emergence of business ethics
include John Locke, John Stuart Mill, Immanuel
Kant, and G.W.F. Hegel.
 John Rawls propagated the Different Principles
while the
 First book on ethics was published by Sharp and
Fox.
 Hunt and Vitell; Ferrell and Gresham; Trevino; and
Jones developed ethical decision models.
 The Defense Industry Initiative on Business Ethics
and Conduct had a big impact on business ethics in the
80s.
 The views of the THREE Greek philosophers can be
linked together. Plato was a profound advocate of
Socrates, his mentor. The Socratic view of Plato was
founded on his belief that knowledge is a virtue.
Knowing the right thing to do leads automatically to
doing the right thing. For Aristotle, to know what was
right was not enough. There should be a choice to act in
the right manner. It means that a person should
habitually do what is good.
 For Socrates and Plato, wisdom is the basic virtue
and it can unify all the other virtues.
For Aristotle, wisdom is a goal that can on be achieved
with effort and if there is a choice on the person to think
and act wisely.
RELIGIONS
1. Judaism
 There are about 12 to 17 million jews in the US
and in Israel. The jews divided into three
groups:
 Middle Eastern or Oriental Jews
 Sephardic Jews from Spain and Portugal
 Ashkenazi Jews from Europe.
 Judaism traces its roots from the covenant (Ten
Commandments) made between God and
Abraham. The eleven core Jewish values form
the basis of ethics in Judaism:
1. Honesty - always be truthful.
2. Integrity - consistency in words and
actions.
3. Brit - keeping one's word.
4. Loyalty - developing a trusting
relationship
5. Tzedakah - refraining from being
judgmental and doing acts of charity to
the poor.
6. Chesed - kind and merciful to others.
7. Respect for human dignity - respect for
human life.
8. Respect for Law - practice of good
citizenship.
9. Accountability - accountable for his/her
actions.
10. Taking Responsibility - take
responsibility for their decisions and set
examples for others.
11. Tikkun Olam - we can contribute
something to make the world a better
place
 One of the guiding principles is to have a high
regard for work. It also believes that a person
should be concerned with the welfare of others.
 believe that a person should have the things
needed for survival and happiness.
The Jews’ Rules to Follow in Business Orgs.
 Employers should be aware of the extent of their
employees' capacity and are not allowed to
insult or embarass them.
 Jewish employees should be allowed to go home
before the sun sets during Sabbath and holidays.
 Employees are required to pay employees fairly
and on time, and workers should be given
privileges (work breaks and the freedom to
organize themselves).
 Jews are obliged to pay their workers on time,
pay their workers a living wage and treat their
workers with dignity and respect.
2. Christianity
 Christianity has around 2 billion followers with
many branches and churches.
 Three main branches of Christianity:
 Catholic
 Orthodox
 Protestant.
 Christian Bible - main guide
 Christianity traces its roots to Judaism
Ethics in Christianity
 three-fold, the values propagated in
Christian belief are based on the
Christian Scriptures
 behavior is related to the behavior of
Christian prophets
 ethics is based on the standards of
behavior taught by Jesus.
 Jesus Christ - supreme norm
 Christianity emphasizes (honoring
contracts or agreements and working for
a common good)
 God appointed mankind as the stewards
of the earth, the Lord entrusted them all
his resources to manage them with care
and skill (stewardship doctrine).
 Christian business professionals believe
that hard work is essential in conducting
business profitably
3. Hinduism
 primarily centred in South Asia and nearly 85%
of Hindus lived in India. It has about a billion
followers.
 The Hindus worship Brahman (source of
ultimate oneness in the form of gods and
goddesses).
 The Hindus' present life is brought about by
whatever actions or behaviours they had in the
past.
 Karma - term for an act or deed, whether good
or bad, which may result in either happiness or
misfortune.
 Ancient Hindu scriptures such as the
Upanishads, the Bhagavad Gita, and the Brahma
Sutra have been used to develop the Vedanta
(ethics of the Hindus for practical life).
  wise men of India (most knowledgeable and
intelligent among the people).
 Integrity, character, truthfulness, ethics, and
morality (standards of conduct).
 The third religion in the world
 The Tata Group (most respected business house
in India)
 The five core Tata values:
 Integrity is to conduct business
fairly, with honesty and
transparency.
 Understanding is to care, show
respect, compassion and
humanity for colleagues.
 Excellence is to constantly
strive to achieve the highest
possible standards of work in
the quality of goods and
services.
 Unity is to work with colleagues
and build a strong relationship
across the group, and with
customers and partners around
the world, based on tolerance,
understanding, and mutual
cooperation and to continue to
be responsible.
4. Buddhism
 Nearly 2500 years ago, Siddhartha Gautama
separated from Hinduism and became known as
the Buddha or "Enlightened One."
 350 million Buddhists with 1/3 of the population
residing in China. 90% of Thailand's population
are Buddhists.
 based on the teachings of Buddha (not a god, but
he is their end goal).
 Buddhists do not worship gods or God.
 believe in the cycle of rebirths (causes: cravings,
aversions, and selfish motives) and part of this
rebirth is suffering.
 Let go of all these selfish yearnings and hostility
by purifying the heart (end goal).
 All the selfish attachments to oneself are
extinguished (Nirvana)
5. Islam
 The history of Islam started with Muhammad.
On his death, majority of the Arab countries
adopted Islam.
 Islam has about a billion followers. Muslims
believe that Muhammaed is God's last prophet.
 Islam laid the foundation for some moral
standards. It gives importance to the love of God
and man.
 The holy book of the Muslims is the Quran
(provides the basic principles on how to deal
with life including business).
 The Muslims believe that Allah (source of good
and evil & powerful and strict) is the Almighty
God who is the creator of the universe.
 Giving one's life to Allah is a sure way of
entering Paradise.
 Islamic ethics is governed by freedom,
responsibility, and honesty.
 Gambling is restricted among Musims.
 Prophet Muhammad’s doctrine on honesty and
kind dealings with customers are the secrets of
success in business.
6. Confucianism
 The religion propagated by Confucius in China
in the 5th century BC
 Found in China and Korea.
 One of the 3 traditional religions of China and
the fundamental belief system of the Chinese.
The other 2 are Buddhism and Taoism.
 Teachings of Confucius advocate stability by
organizing the society and placing more
emphasis on the common good and welfare of
all through interdependence.
Iinterpersonal relationships build on trust and
reciprocity (most important core value in
Chinese bus. practice)
7. Taoism
 based on the Tao Te Ching or the Book of the
Way and Virtue by Lao Tzu.
 Many of the 30 million Taoists blend their
religion with Buddhism and Confucianism.
 Found in Taiwan and other Chinese minorities
found in Southeast Asian countries.
 Promotes inner peace within an individual and
harmony with the surroundings.
 Tao means the path or the way. If someone
follows Tao, there is harmony; if not, there is
chaos.
 The Tao has three basic tenets, namely: Tao, Wu
Wei, and Yin and Yang.
 Tao refers to the universal laws of
nature
 Wu Wei means letting go.
 Yin and Yang means dualism or
interconnecting opposites but they are
within itself and vice versa. Opposites
but they are interdependent.
 Good behavior (essential part of improving the
world).
 The ideal way for a leader to run their country is
by example.
8. Shintoism
 Ethnic religion of Japan which started around
the 7th century AD.
 Emergence: closely tied to the development of
Japan as a nation.
 Shinto comes from the Chinese words Shen or
divine being and Tao which means way of the
spirits.
 Japanese considered Shinto (has no god and no
commandments) not as a belief but more as a
way of life (focus on rituals and Japanese
practices).
 Shintos worship sacred spirits called kami
(found in nature such as wind, rain, mountains,
trees, and other geographic forms).
 ethical principles were inspired by
Confucianism. (all human beings are basically
good and the world is good as well)
 Encourages group effort which recognizes
individuals in a group (treating employees like
family).
 For Japanese, the company name is more
important than the job title, the community they
belong to is much more important than what
they do.
Filipino values
 set of values that significant and inclined with
one’s culture by the influenced of people
connected.
 It preserves social harmony that promotes
connection, unity and may understand set of
people.
 It includes the inimitable collection of
dependable philosophies, moral codes, ethical
practices, etiquette, cultural and personal values
encouraged by the family or the society they
belong.
THE MOST POPULAR FILIPINO VALUES THAT
INFLUENCE BUSINESS PRACTICES ARE THE
FOLLOWING:
1. Pakikisama (Fellowship)
 The word “pakikisama” (fellowship) comes from
the word “sama” and prefix “paki”, and literally
means to accompany someone.
 Fellowship is used to maintain good relations with
others, and the fellowship is associated with
adaptation, dealings and harmony.
In business practices, the proprietor must establish
“pakikisama” to their employees, suppliers and
customers because it implies closeness to the others that
would create a sustainable growth relationship.
2. Hospitality
 Is the relationship between a guest and a host,
wherein the host receives the guest with goodwill,
including the reception and entertainment of
guests, visitors, or strangers?
Entrepreneurs should master on how to treat and
provide excellent services on welcoming their suppliers
and customers to create a good reputation and
relationship since
 hospitality plays the fundamental role to increase
or decrease the volume of sales, popularity and
production growth in a business.
3. Family Orientation
 It refers to the family in which a person is raised.
 It includes one’s parents and siblings.
 It may also include grandparent or if there is a
quantifiable value it may involve deeply personal
internal dimension that will usually starts from one
generation and continue to another generation.
In business, plenty of reasons that it may influence the
business practices either positive or negative outcome
that may vary with ethical issues.
4. Filial Piety
 To show respect, love, care and support to their
elders, parents, relatives and ancestors.
 It upholds the affection and display courtesy to
the family that most cases are likely working
together in one company; living together in one
house; paying the house bills of their parents.
 It also to take good care to one’s parents and
engage in good conduct not just towards parents
but also outside the home so as to bring a good
name to one’s parents and ancestors.
5. Padrino (Whom you know system)
 It supports with the strong relationship of people.
 Most of the job seekers automatically hired
regardless with their qualifications and educational
background through endorsements, political
connections, family affiliations (nepotism) or
friendships (cronyism).
6. Suki
 It shows loyalty and trust relationship between a
customer and supplier.
 It usually establishes at the market or business.
 If a buyer finds a trusted seller that offers a quality
product they need, the loyalty and commercial
connection of a buyer will be established to the
seller and made several business transactions with
their so called “suki”.
7. Bahala Na
 The Bahala Na Filipino value shows letting things
happen beyond their control.
  It shows an attitude of a person that is willing to  Relaxed attitude but poor time management
submit everything to God or leaving things to 4. Passivity and Lack of Initiative
happen by fate.
 Some of investors operate business beyond their  Strong reliance to others faith
control, they will only believe that the market will 5. Colonial Mentality
accept it if they will “do their best and let God do
 Patriotism vs active awareness
the rest.”
THE FILIPINO VALUE SYSTEM
8. Mañana
Values
 It comes from the Spanish word “Mañana” which
literally means “tomorrow” or “unspecified future  Principles or standards of behavior
time”. Filipino Traits
 In business, the attitude that tends to delay the task,
 Worth emulating
putting off tomorrow what they can do for today or
postpone on the things that should be done right Positive Traits
now may reduce volume of sales, loss customer  Hospitality
trust and satisfaction, waste opportunities and  Respectfulness
interrupt the work flow.  Strong Family Ties and Religion
 Generosity and Helpfulness
9. Amor Propio  Hardworking
 Is a Spanish word which means “self – love”, a  Loving and Caring
sense of self-esteem or self-respect that prevents a
person from swallowing his pride and concerned Negative Traits
for one’s reputation.  Fatalism - “whatever will be, will be”
 It includes sensitivity to personal insult or affront.  Crab Mentality
 Complacency
 Shame or Hiya
STRENGTH AND WEAKNESSES OF
 “Don’t be caught” Attitude
FILIPINO PEOPLE  Rationalization

Strengths:
Filipino Work Values
1. Pakikipagkapwa-tao
 Orderly Environment - physical conditions
 feeling one with others with dignity and respect with which Filipino are very particular
2. Family Orientation  Strong Family Ties - attachment to the family
 Interpersonal Relationship - utang na loob
 genuine and deep love for family.  Material Well Being - desire to acquire
3. Joy and Humor recognition, security, and economic gains
 cheerful and fun-loving approach to life  Occupational Expense - succeed in their
respective occupations
4. Flexibility, Adaptability and Creativity  Religiosity - exercise of one’s faith
5. Hard Work and Industry
6. Faith and Religiosity
7. Ability to Survive

Weaknesses:
1. Extreme Personalism
 Always trying to give personal interpretation to
actions
2. Extreme Family Centeredness
 Strong family protection (good or bad)
3. Lack of Discipline