SAINT ANTHONY ACADEMY OF GONZAGA SY 2020-2021

SUBJECT: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY ABM 12

LESSONS: FOUNDATIONS OF THE PRINCIPLES OF BUSINESS OF ETHICS
PREPARD BY: KELVIN JAY S. SAPLA Email: [email protected]

PART I. INTRODUCTION
Ethics or moral philosophy is a branch of Philosophy that "involves systematizing,
defending, and recommending concepts of right and wrong behavior.
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics,
that examines ethical principles and moral or ethical problems that can arise in a business environment. It
applies to all aspects of business conduct and is relevant to the conduct of individuals and entire
organizations. As an applied branch of General Ethics, it must be studied from the perspective of
Philosophy. This is because Ethics is a part of moral principles.
Ethics is more concerned with standards of conduct acceptable to a group, a profession, or
members of an organization.

PART II. STANDARDS

CONTENT:
1. classical philosophies specifically, virtue ethics (Socrates, Plato, Aristotle, Confucius, etc.)
2. the impact of belief systems (Buddhism, Islam, Christianity, etc.)
3. the Filipino Value System (Utang na Loob, Filial Piety, Padrino Suki, Bahala na ,Mañana, Amor
Propio, Filipino Family Values)
LEARNING COMPETENCIES:
The learners:
2.1 compare and contrast classical philosophies as they relate to the business setting ABM_ESR12- IIIe-
h-
2.2 give examples of how belief systems affect business practices ABM_ESR12- IIIe-h-2.2
2.3 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
2.4 distinguish what is GOOD vs. what is morally unacceptable among the given Filipino values
LEARNING TARGETS
At the end of this module,
In order to achieve the objectives of this module, it is necessary to have completed all the module
for you to fully understand the activities and discussions.
Specifically, this module consists of the following lessons:
 Lesson 2.1- Illustrate how these philosophies are reflected into business practices
 Lesson 2.2- Explain how the belief systems influence business practices
 Lesson 2.3- Infer how Filipino value systems influence business practices
 Lesson 2.4- Generate ways to improve business practices guided by the philosophies,
belief systems or Filipino values
PART III. TRANSFER
PERFORMANCE:
The learners shall be able to:
1. identify the classical philosophies and their implication for business principles and practices
2. describe various belief systems, and their similarities and differences in relation to the business setting
3. describe how the Filipino value system affects the attitudes of business constituents
PART VI. DISCUSSION/ SUMMARY

LESSON 1: ILLUSTRATE HOW THESE PHILOSOPHIES ARE REFLECTED INTO BUSINESS

PRACTICES
The philosophies of these Classical Philosophers have great implications on business and are the
foundations of the principles of the business ethics.
Socrates
He is known for his classic philosophy, “HAVE THE COURAGE TO DISAGREE.” He is best known
for the Socratic method of question and answer. The Socratic method is a way of thinking that allows
individuals to define their own purpose for learning. In business, administrators ought not to sleepwalk or
basically oblige the group.  
Plato’s classic philosophy
THE POWER TO RULE. His prime belief was that a person must study themselves in order to find out
their level of character. He is acclaimed for his choices regarding the matter of the real world. In
business, it is constantly vital to know the qualities and shortcomings of everybody.  
Aristotle’s classic philosophy
LET PEOPLE SEEK FULFILLMENT. He was the most practical and business oriented of all
philosophers. In business, the association must give and condition that is conducive to human
development and satisfaction.  
Confucius
The most famous for his golden rule: DO NOT 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. Confucian values can aid in the creation of business leaders who are true leaders of the
society.
Plutarch
The ancient Greek historian and educator, understood that humans are incredibly social creatures, who
constantly observe the people around them and imitate them. He is famous in his philosophy, “BE A
GOOD ROLE MODEL.” In organizational terms, it means, what you say to your employees is less
important than what you do. They will watch how you behave, how you treat others, how you cope with
pressure and whether you follow through on your promises, and they will imitate you, they will follow
your lead.

Epicurus
THE ART OF HAPPINESS. Epicurus was a fourth century Greek philosopher who taught, rather
scandalously, that the aim of life was simply to be as happy as possible here on Earth. He warned that
humans are very bad at being happy, and very good at inventing reasons to be miserable. Today, some
companies are embracing Epicurus' philosophy, and trying to teach their employees the art of happiness.
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.
Plato said that the 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 on the
other hand philosophized that virtues are good habits that acquire which regulate our emotions. Kantian
ethics emphasize a single principle of duty, that we have moral duties to one self and others.
Since ethics is universal and the same for all, companies should obey the same ethical rules
wherever they operate. It usually starts on those basic ethical norms on which all or the majority of people
agree. Thus, the history of ethics in business makes evident that ethical doctrines have influenced ones
thinking on the morality of businesses.
Various moral philosophers’ views get applied in day-to-day business situations. Since the time
of Socrates in the West and Confucius in the East, philosophers have sought the basis for right conduct in
human reason.
The theories of the three major Greek philosophers, Socrates, Plato, and Aristotle shaped western
thoughts in areas such as persuasion and negotiation, the structure of political society, and virtue ethics.
Their philosophical principles can be applied in management and leadership.
Socrates dialectic method of inquiry used to draw the truth out of the individual. Managers
needed to involve and guide their team while engaging them to action through the use of questions in a
process of clarity. Using the principles of the Socratic method, managers can draw out the best in
individuals while helping their goals and share their vision for mutual benefits.
Plato’s thought suggests that the right people be in the right position and in what ways his thought
can inform leadership.

Illustration I. Here are the names and lifespans of some of those figures: 

https://opentextbc.ca/businessethicsopenstax/back-matter/the-lives-of-ethical-philosophers/
The Ethics of Aristotle: Virtue Theory
Virtue Theory doesn't judge actions as right or wrong but rather the character of the person doing the
actions. It puts emphasis on the development of human values and moral character. His virtue theory
turns out to be 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 a sense,
we all know what it means to have a virtuous character, we all know who can be counted upon to do the
right thing. In this classic virtue theory, four virtues stand out, courage, moderation, justice, and prudence.
Virtues matter in management and finance.
The Ethics of Bentham and Mill: Utilitarianism
Jeremy Bentham, was a lawyer and a consultant to the British Parliament in the late-eighteenth century.
Bentham had a ready supporter and lieutenant in James Mill (1773–1836), a Scottish lawyer who came to
assist them in championing utilitarianism as a political philosophy. Utilitarian ethical theories are based
on one’s ability to predict the consequences of an action. When making moral decisions, we are advised
to select that action which produces the greatest amount of good for the greatest number of people. If the
balance of good or happiness or usefulness outweighs evil, harm, or unhappiness, then the choice is a
moral one. Due to this emphasis on the outcome of ethical decisions, utilitarianism is classified as a
consequentialist theory.
The Ethics of Kant: Deontology
The term deontology stems from the Greek deon—duty, obligation, or command. The deontological class
of ethical theories states that 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.
He calls it categorical imperative, it simply mandates an action, irrespective of one’s personal desires. 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, and never use them as mere instruments.
The Ethics of John Rawls: Justice Theory
Rawls is a uniquely American political philosopher, and this can be seen from his emphasis on political
liberty. He labeled his ethics as “justice as fairness,” and he developed it over nearly a lifetime. In
Western thought, Rights theories, a right refers to a person’s just claim or entitlement. Justice theories
define justice as the ideal, morally correct state of things and persons.

ACTIVITY
Direction. Identify the following. Write your answers on your activity notebook.
Confucius Epicurus Aristotle
Plato Plutarch Socrates
__________________ 1. He was the most practical and business oriented of all philosophers.
His classic philosophy is “LET PEOPLE SEEK FULFILLMENT.”
__________________ 2. He is best known for the Socratic method of question and answer. He
is known for his classic philosophy, “HAVE THE COURAGE TO DISAGREE.”
__________________ 3. He was a fourth century Greek philosopher who taught that the aim of
life was simply to be as happy as possible here on Earth. He is very famous for his “ART OF
HAPPINESS.”
__________________ 4. His prime belief was that a person must study themselves in order to
find out their level of character. His classic philosophy is “THE POWER TO RULE.”
__________________ 5. He is famous for his golden rule and his famous classic philosophy is
“LIVE A CONTENTED, MORAL AND HAPPY LIFE.”

PART IV. NEW IDEAS/ REFLECTION PART

What I learned in this lesson?
I learned that _________________________________________________________________________

LESSON 2: EXPLAIN HOW THE BELIEF SYSTEMS INFLUENCE BUSINESS PRACTICES

A belief system is a set of principles or tenets which together form the basis of a religion,
philosophy, or moral code.
Historically, since the dawn of civilization, religious beliefs have been some of the most powerful
influences on human behavior. This lesson defines religion and explores its impact on business practices.
Religion is defined as a set of beliefs concerning the cause, nature, and purpose of the universe,
especially when considered as the creation of a superhuman agency or agencies, usually involving
devotional and ritual observances, and often containing a moral code governing the conduct of human
affairs. It is a systematic set of beliefs that influences human behaviour.

There are 8 major religions in the world, namely, Judaism, Christianity, Islam, Hinduism,
Buddhism, Confucianism, Taoism, and Shintoism. Each of these religions has its own organized
system of beliefs, ceremonies, and worship. Each religion offers positive endeavor in both lives and in
business. In a global sense, business means dealing with people of different religions.
Judaism
The Jewish business ethics is illustrated by the widely quoted Talmudic tradition that in one’s judgment
in the next world the first question asked is: “Were you honest in business?” Thus, in the treatment of
workers, the Jews are obliged to pay their workers on time, pay their workers a living wage and treat their
workers with dignity and respect. On the side of the workers, it is important not to steal company time.
Christianity
Christian businessmen and women follow the stewardship doctrine. Accordingly, as God appointed
mankind as the stewards of the earth, the Lord entrusted them all his resources to manage them with care
and skill. Christian business professionals depend on the Lord’s leadership for their business by asking
blessings through prayer to provide strategic direction, resources, earnings, etc. Christian business
professionals also believed that the Lord delight in justice. Therefore, in conducting a business
transaction, they must be fair, like paying the workers with fair wages and appropriate work conditions.
Thus, it is not only biblical but most likely it improves business since employees will tend to work more
and be productive and happy in their work. Being productive means, we use our knowledge and resources
that the Lord has given to us. In the life of Christian business professionals, hard work is essential in
conducting business profitably.
Islam
Prophet Muhammad’s doctrine on honesty and kind dealings with customers are the secrets of success in
business. According to Islam, no fraud or deceit, sellers must avoid making many oaths when selling
merchandise. Mutual consent is necessary. They are also strict when it comes to weights and measures.
The prophet also forbade monopolies and a free enterprise is encouraged. Hoarding merchandise to
increase the price is forbidden. Islam also requires being honest in dealings with Muslim and non-Muslim
alike.
Hinduism
The third religion in the world by a number of believers mainly in India. The Tata Group is the most
respected business house in India. The five core Tata values describe their business processes. 1.)
Integrity is to conduct business fairly with honesty and transparency. 2.) Understanding is to care, show
respect, compassion and humanity for colleagues. 3.) Excellence is to constantly strive to achieve the
highest possible standards of work in the quality of goods and services. 4.)

Unity is to work with colleagues and 5.) building 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.
Buddhism
Work hard, no excuses, to those who do not want to work, they let their chance pass by. A good work
ethics and a great attitude, very little will stand in your way. If you work hard, rest well, is one of the
values of practicing Buddhism is a focus on centering and balance. The Buddhist practice of mindfulness
can be a key to good business. Remember to be calm, and not to obsess too much about positive or
negative feedback.
Confucianism
Confucian ethics are described as humanistic. Confucianism is the most profound and dynamic thought
system in traditional Chinese culture. It is not surprising that traditional Chinese business culture was
deeply associated with Confucianism.
Taoism
Taoists believe such good behavior is an essential part not only of self-improvement but of improving the
world as a whole. Taoism suggests that the ideal way for a leader to run their country is by example. A
good leader is one that the people respects and whose instructions are willingly followed.
Shintoism
Work is understood to be a self-expression of the great life force, Japanese people try to unify themselves
with the great life force by concentrating on their own work. 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.
While there are few common religious practices that may affect the business practices include -
prayer breaks for the Muslim employees, however, there are a few practices where people follow
religious guidelines to go ahead and help people out of their way, to forgive, follow healthy lifestyles like
no smoking and no alcohol, etc.
Religion and business have throughout history interacted in ways that relate to and affected one
another, as well as influenced sociocultural evolution, political geographies, and labor laws. As
businesses expand globally, they seek a new market which leads to expanding their corporation’s norms
and rules to encompass the new locations norms which most often involve religious rules and terms.
Activity 1

Direction: Read the paragraph below. Give a brief answer to the following question.
Write your answer on your activity notebook.

Falsifying Attendance
(Case prepared by Gov. Jose B. Fernandez Jr. Ethics Center, Ateneo de Manila, Philippines)

Mr. A, an employee, timed in 4 minutes and 27 seconds late for work this morning. While he
won’t get fired for it, being late this once means that he will not receive the perfect attendance incentive
which he needs to make ends meet, given his daughter’s recent series of hospitalizations. He actually
arrived in the office five minutes early but was unable to clock in immediately because his direct superior,
Mr. B, asked him for an informal project progress report as soon as he walked in the door. As a Junior
System Administrator, Mr. A has access and the capability to edit the company’s attendance records. He
figures that since he was unable to punch in only because of his boss, it wouldn’t hurt to edit the
timestamp on his attendance for today.
Has Mr. A done anything wrong? Discuss your answer.

LESSON 3: FILIPINO VALUES THAT INFLUENCE BUSINESS PRACTICES

 Most Filipinos are connected together with their beliefs, culture, tradition, characters, traits and
common values. Values are first taught at home and are adapted and implemented in the society. It plays
a vital role on the way we live, decide, choose and interprets our daily activities in life. In ethics, values
denote the degree of importance of something or action, with the aim in determining what actions are best
to do or what way is best to live, or to describe the significance of different actions.
Filipino values refer to the set of values that are significant and inclined with one’s culture. Like
family, relatives, ancestors or friends. 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 management and sustainability of the business depends on the values and beliefs of the
proprietor. In the Philippines, Filipino entrepreneurs may implement rules, practices and principles based
on their values they had grown up with their family, learnt and adapted.
The most popular Filipino values that influence business practices are the following:
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.
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.
Family Orientation
It refers to the family in which a person is raised. It includes one’s parents and siblings. It may also
include grandparents or other relatives. It is a primary platform for which one encounters early
socialization experiences. Values and beliefs can be learned from the family that will inculcate to a child
as he/she matures into an adult. The Filipino valued their family and being closed to one another until the
last of their generation. Most of the successful entrepreneurs acquired and gained this ample knowledge
in dealing with their business from their family. Consequently, they become well trained to manage their
family business. Others inherit the skills not only from their family business but also the values and
beliefs in managing and operating their business.
Joy and Humor
Business operates and grow not only by means of profit and management. An entrepreneur operates
business to find joy and happiness in his life. Helping people by promoting employment and providing
quality product and services to their clients create a joyful feeling. Filipino values always find reason to
feel joy and has a sense of humor to establish camaraderie to others. It sheds light on the optimism and
positivity of Filipinos in whatever situation they are in. It serves as a coping technique to remain
determined in every struggles or challenges in life and in business.
Ability to Survive
A Filipino has a sense of resourcefulness or the ability to survive with whatever situation or challenges
they have. They have an extraordinary ability to create something out of almost nothing. If a Filipino is
trapped in an uninhabited island, he would still be able to find a safe area to stay, provide materials to
build a house, find foods to eat and create different tools to survive. In business, if it is needed to promote
and increase the volume of sales, a Filipino has always the ability to find different techniques, marketing
strategies and ideas to perform and create a product in order for the business to survive.
Hard work and Industriousness
Filipinos are determined and persistent to accomplish whatever they have set in their minds. In business,
hard work and industriousness play a vital role to establish and develop business progress. They need
employees who are willing to work overtime, with minimal supervision and resourcefulness comes with a
hard work to serve the business.
Flexibility, Adaptability and Creativity
A Filipino has an ability to adapt, adopt and adept in any changes and challenges in life either in spiritual,
social, emotional and physical aspect. In business, unplanned and anticipated events in market would not
disturb the flexibility and adaptability values of Filipino entrepreneurs. They could easily produce
creative strategy, technique and style to adjust to challenges and compete with others.
Utang na Loob (Debt of Gratitude)
It shows duties and responsibility to pay the debts (utang) and return it with inner-self-free will (na-loob)
the unsolicited gift or good treatment received from other people. An obligation to appropriately repay the
good deeds which value is impossible to quantify or if there is a quantifiable value it may involve deeply
personal internal dimension that will usually start from one generation and continue to another generation.
In business, there are plenty of reasons that may influence the business practices, either positive or
negative outcome that may vary with ethical issues.
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 takes good care of 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.
Padrino (Whom you know system)
It supports with the strong relationship of people. Most of the job seekers automatically hired regardless
of their qualifications and educational background through endorsements, political connections, family
affiliations (nepotism) or friendships (cronyism).
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”.
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 submit everything to God or leaving things to happen by fate. Some of investors
operate business beyond their control. They will only believe that the market will accept it if they will “do
their best and let God do the rest.”
Mañana
It comes from the Spanish word “Mañana” which literally means “tomorrow” or “unspecified future
time”. In business, the attitude that tends to delay the task, putting off tomorrow what they can do for
today or postpone on the things that should be done right now may reduce volume of sales, loss customer
trust and satisfaction, waste opportunities and interrupt the work flow.
Amor Propio
Is a Spanish word which means “self – love”, a sense of self-esteem or self-respect that prevents a person
from swallowing his pride and concerned for one’s reputation. It includes sensitivity to personal insult or
affront.
Activity 3. Evaluate
Complete the crossword puzzle below by identifying what Filipino value is being described in the
statement. Write your answers on your activity notebook.
1. A mother offers her daughter’s friend food to eat and a room to spend the night.
2. Mario’s driver’s license is processed immediately by his godfather, an LTO personnel.
3. A farmer works at his farm rain or shine just to earn a living and to support the needs of his
family.
4. Pedro decided to play online games first and postponed answering his activities on Business
Ethics modules.
5. Anna is a new investor on an online business, she has no knowledge and idea how to deal with
different clients, but she is able to cope with the challenges and established marketing techniques
2
4 1

EVALUATION:
Direction. Answer the 10-item Simple Recall Test and write your answers on a paper.
______ 1.Defined as a set of beliefs concerning the cause, nature, and purpose of
the universe, especially when considered as the creation of a superhuman
agency or agencies, usually involving devotional and ritual observances, and
often containing a moral code governing the conduct of human affairs.
a. Business Ethics c. Religion
b. Ethics d. Belief System
______ 2.A form of applied ethics or professional ethics, that examines ethical
principles and moral or ethical problems that can arise in a business environment
a. Business Ethics c. Religion
b. Ethics d. Belief System
______ 3.In Islam, Prophet Muhammad’s on honesty and kind dealings with
customers are the secrets of success in business. It also requires being honest in
dealings with _________________________________ alike.
a. Christianity c. Muslim and non-Muslim
b. Judaism d. Islam
______ 4.A branch of philosophy that "involves systematizing, defending, and
recommending concepts of right and wrong behavior.
a. Business Ethics c. Religion
 b. Ethics d. Belief System
______ 5. Mario’s driver’s license is processed immediately by his godfather, an
LTO personnel.
a. Utang na loob c. Hard work
b. Hospitality d. Padrino
______ 6.A mother offers her daughter’s friend food to eat and a room to spend the
night.
a. Utang na loob c. Hard work
b. Hospitality d. Padrino
______ 7. His prime belief was that a person must study themselves in order
to find out their level of character. His classic philosophy is THE POWER
TO RULE.
a. Socrates c. Aristotle
b. Confucius d. Plato
______ 8.A set of principles or tenets which together form the basis of a religion,
philosophy, or moral code.
a. Business Ethics c. Religion
b. Ethics d. Belief System
______ 9.In _______________________ the Jewish business ethics is illustrated by
the widely quoted Talmudic tradition. Thus, in the treatment of workers, the Jews
are obliged to pay their workers on time, pay their workers a living wage and treat
their workers with dignity and respect. On the side of the workers, it is important
not to steal company time.
a. Christianity c. Muslim and non-Muslim
b. Judaism d. Islam
______ 10. He is best known for the Socratic method of question and answer. He is
known for his classic philosophy, HAVE THE COURAGE TO DISAGREE.
a. Socrates c. Aristotle
b. Confucius d. Plato

Congratulations!
You have completed your journey in this module. You did a great job! It is now time to go on to the
next adventure…
Good luck!

Reference: Aliza Racelis, RBS Business Ethics and Social Responsibility, First Edition 2017
DepEd Fundamentals of Accountancy, Business Management 1, E-Book
https://www.google.com/url?sa=t&source=web&rct=j&url=http://bcs.solano.edu/workarea/cogden/Bus
%25205%2520Spring%25202014/Ch
%25202/SG_Ch02_CE.pdf&ved=2ahUKEwjVw__Qi5PrAhXVa94KHTGpA4IQFjAAegQIARAC&usg=A
OvVaw2kNfU07EiA8lXI_4z_iC2U&cshid=1597146870324
https://smallbusiness.charon.com
https://www.entreprenuer.com
https://www.investopedia.com
https://www.code.com.au
https://bizfluent.com