BUSINESS ETHICS

and
SOCIAL RESPONSIBILITY
analyze simple business situations as they
are affected by the Filipino value system
and recommend ways of confronting
ethical challenges in the business setting
ABM_ESR12-IIIe-h-2.3
 Filipino Value System Influence
Business Practices

In the previous lessons, you have learned

what the different belief systems are. These
systems are faith founded on a sequence of
beliefs but not formalized into a religion,
also a fixed set of consistent beliefs in a
culture or society.
 Activity 01: Case Analysis

Directions: Read and understand the

story below and after which,
answer the questions briefly but
substantially.
 Case Study
Mr. Jun Dy is an entrepreneur and runs a shoe
manufacturing business. He inherited the
company and its late father had run it
successfully before. Their ancestors are
entrepreneurs of opulence, prestige and
prosperity. He was taught from an early age
about how to run a company and be passionate
about it and committed to it. He saw numerous
strategies which his father used to run their
company. He said all of his success today is
because of his family, and he'll make it more
effective as a reciprocity.
 Case Study
Mr. Dy has recruited highly qualified
workers to ensure they are able to run
the company properly. Yet at some point,
because Mr. Dy is also a family centered
man, he hires family members or
relatives to be his employees as well. He
recruits mates to work for him, as well.
Mr. Dy has colleagues in politics who he
believed could support him in his
business.
 Case Study
One of his tactics is to establish
relationships with his clients that have
made his company successful. Mr. Dy
hates the mentality and
procrastination of workers who
cultivate the pattern of "come what
may" and he has taught them to
always be hard-working.
 Case Study

Directions: Choose the letter of your

answer from the given options. Write in
a
separate sheet of paper.
 Case Study
“Mr. Dy hates the mentality and
procrastination of workers who cultivate
the pattern of "come what may" and he has
taught them to always be hard-working”.
1. From this sentence above, what Filipino
Value System is being emphasized?
A. Amor Propio B. Bahala Na
C. Mañana Habit D. Suki System
 Case Study

1. B. Bahala Na
 Case Study

2. What value system is being practiced if

he hires his relatives even if he knew they
weren't qualified for that position?
A. Amor propio B. Filial Piety
C. Mañana Habit D. Nepotism
 Case Study

2. D. Nepotism
 Case Study

3. What value system will you

demonstrate if you respect and love
your parents, your
elders and your ancestors extremely?
A. Amor Propio B. Cronyism
C. Filial Piety D. Nepotism
 Case Study

3. C. Filial Piety
 Case Study
4. “Mr. Dy has colleagues in politics who he
believed could support him in his
business”, what conclusion can you
deduced from this statement?
A. Mr. Dy is very friendly
B. Mr. Dy practice nepotism
C. Mr. Dy practice padrino system
D. Mr. Dy plans to become a politician
 Case Study

4. C. Mr. Dy practice padrino system

 Case Study

5. Based on the story above, what Filipino

value would you imitate from Mr. Dy?
A. Amor Propio B. Cronyism
C. Filial Piety D. Nepotism
 Case Study

5. C. Filial Piety
 The Filipino
Cultural values
 The Filipino Cultural values
1. Utang Na Loob (Reciprocity)
The essence of utang na loob is an obligation to
reimburse a person who has done one a favor. The
favors that evoke the meaning of utang na loob from
the Filipino are usually those whose importance
cannot be quantified, or, if there is a quantifiable
importance involved a profoundly personal inner
dimension. This inner aspect, loob, separates utang
na loob from an ordinary debt ("utang"); being an
internal phenomenon, utang na loob thus goes much
deeper than ordinary debt or even the western idea of
owing a favor.
 The Filipino Cultural values
2. Filial Piety
Filial piety is a virtue of reverence for parents,
elders and ancestors of one another. In
Filipino culture it is an essential term. It is
understood as necessary to maintain the
family's collective face and avoid experiencing
hiya. In business, the Filipino family is so
intact that it is normal for the family members
work on the same company.
 The Filipino Cultural values

3. Padrino System
Padrino System, or patronage in Philippine
culture and politics, is the system of respect in
which one receives popularity, advancement,
or political position by family association
(nepotism) or friendship (cronyism), as
opposed to one's merit.
 The Filipino Cultural values
3.1 Nepotism
Nepotism is the practice of recruiting members of the
family no matter what their credentials. For certain
situations, a spouse of a business executive may be
eligible to do the job she is employed for. The fact she
is a relative of an executive gives her an advantage
over the other applicants. Yet if the employee is not
eligible to do the job, then nepotism is counter-
productive. Your executive staff starts recruiting
family members they need work, but the lack of skills
and capacity of the family members will affect the
competitiveness of the company.
 The Filipino Cultural values
3. 2 Cronyism
The counterpart of Nepotism is Cronyism. It's the act
of recruiting mates, no matter what qualifications.
One of the biggest issues with cronyism that you see
in nepotism, too, is the sense of entitlement that
workers working in these situations experience. If
they know the business or are connected to an
executive, they believe they merit raises and
promotions which should be reserved for members of
more skilled workers. This causes organizational
tension and can result in a loss of skilled workers.
 The Filipino Cultural values
4. Suki System
The Filipino word "Suki" means "loyal" buyers.
The suki relationships in the commercial
sense (Market- Exchange Partnerships) that
grow between two persons who agree to
become regular customers and suppliers. In
the marketplace, Filipinos will regularly buy
from certain specific suppliers who will give
them, in exchange, lower prices, good quality
and, sometimes, credit.
 The Filipino Cultural values
4. Suki System
"Suki" is a distinct Filipino belief system that is
mainly rooted in commercially oriented personal
alliance systems. Although a suki relationship
normally takes time and several business
transactions to solidify, it could be used as a
measure to create trust and at the very least to
hasten the establishment of a suki like
arrangement to imply a suki like relationship
and to back it up with concessions.
 The Filipino Cultural values
5. Bahala Na
The word Bahala is actually derived from the
word Bathala, which refers to the ancient
Supreme Being worshiped by the Filipinos during
the pre Spanish period. It can be assumed that
the best use of this sentence would be in the
form of leaving things in the Divine Being's
hands. Simply put, "Bahala na" may be the
equivalent of the Islamic word Inshallah,
meaning "God willing" or "if Allah wills."
 The Filipino Cultural values
5. Bahala Na
Bahala Na has been loosely translated as "come
what may." Hence, it is referred to as the
Philippine form of fatalism that is leaving
everything in the hands of fate. Filipinos typically
say "Bahala na" when they can’t determine their
next course of action or when they don't know
what’s going to happen next. They say this
phrase as if all they want is to do with the flow,
not knowing what the outcome could be.
 The Filipino Cultural values
6. Mañana Habit
Mañana Habit comes from the Spanish word
"Mañana" which literally means "tomorrow"
or "unspecified future period." Hence,
Mañana Habit refers to procrastination, or to
putting off for tomorrow what can be done
today. "Mañana habit," synonymous with
the Filipino phrase "Mamaya na," is just
another term for procrastination.
 The Filipino Cultural values
6. Mañana Habit
In business the following are the influences of
Mañana Habit:
a. Reduced efficiency
b. Damaged reputation– If you get to the point
that the consequences of procrastination
influence what and what you deliver to
customers, you’re clearly in trouble, and it
can lead to a reputation for lateness.
 The Filipino Cultural values
6. Mañana Habit
In business the following are the influences of
Mañana Habit:
c. Missed opportunities – If you're at the top of your
workload, you'll also be in a much better position to
take advantage of new opportunities.
d. Roadblocks / Bottlenecks – If you start ignoring
things, the process of your company may be
disrupted. Instead, an accumulation of tasks that
haven't been completed leads to tension for you and
disappointment with other team members.
 The Filipino Cultural values
7. Amor propio
"Amor Propio" is a Spanish word that
means self-love; a sense of self-esteem or
self-respect that prevents a person from
swallowing his pride. Love of its own is
part of the Filipino tradition. The Filipino
people are super-sensitive to the
emotional imperatives that drive asal or
actions.
 The Filipino Cultural values
7. Amor propio
"Delicadeza and Amor Propio" are the two
damdamin (emotional) norms that control
our sense of propriety and self-esteem.
“Sensitivity or "Balat Sibuyas", in the
corporate sector, the Filipinos are not
particularly fond of saying "no" and thus
the "yes" you got earlier in the day does
not necessarily turn out.
 Examine if Negative or Positive

Direction: Write negative if the Filipino values

denotes bad effect to a business, positive if it
has good effect to a business. Write your
answers in a separate sheet of
paper
 Examine if Negative or Positive

1. Utang Na Loob 6. Mañana Habit

2. Filial Piety 7. Amor Propio
3. Padrino System 8. Nepotism
4. Suki System 9. Balat Sibuyas
5. Bahala Na 10. Cronyism
 Examine if Negative or Positive

1. Utang Na Loob + - 6. Mañana Habit -

2. Filial Piety + 7. Amor Propio -
3. Padrino System - 8. Nepotism -
4. Suki System + 9. Balat Sibuyas -
5. Bahala Na - 10. Cronyism -