Business Ethics

Module 4

Jumpstart

Activity 1: Read Me! Understand Me!

Directions: Read the definition of philosophy and the introduction of the

four classical philosophers that made an impact on the philosophy of businesses in
today’s world. Understand what you are reading.

Philosophy’s literal meaning is “love of wisdom” (philo - love), (sophos –

wisdom). The most common definition of philosophy is that it is an action people
carry out when they look to understand major truths about themselves, the world
in which they live, as well as their relationships to the world and to each other.

Business philosophy on the other hand, is the set of principles and beliefs
that a company is working toward to achieve success. It is an important epitome
that is being used as a guide for the business to keep moving forward towards their
ultimate goal.

The four main classical philosophers are Socrates, Plato, Aristotle and
Confucius.

a.) Socrates coined the term “the unexamined life is not worth living”. He is
best known for the Socratic method of question and answer, his claim
that he was ignorant, and his claim that unexamined life is not worth
living, for human beings. He was the motivation for Plato; the thinker
widely helps to be the founder of the Western philosophical tradition.
Plato, in turn, served as the teacher of Aristotle, thus establishing the
famous triad of ancient philosophers: Socrates, Plato, and Aristotle.

b.) Plato is the philosopher with the famous quote “Good people do not need
laws to tell them to act responsibly, while bad people will find a way
around the laws”. Plato is one of the world’s best-known and most widely
read and studied philosophers. He was the student of Socrates and the
teacher of Aristotle. He popularized the theory called “Theory of Forms”.
 c.) Aristotle is a famous philosopher that quoted “happiness is the meaning
and the purpose of life, the whole aim and end of human existence”.
Aristotle is a towering figure in ancient Greek philosophy. He was a
student of Plato who in turn studied under Socrates. He was more
empirically- minded than Plato or Socrates and is famous for rejecting
Plato’s theory of forms.

d.) Confucius is a Chinese philosopher that quoted “our greatest glory is not
in never falling, but in rising every time we fall”. Confucius philosophy
was constructed on the principle of "ren", or "loving others," combined
with the Golden, or Silver Rule; "What you do not wish for yourself, do
not do to others." He also advocated the concepts of self-discipline,
humility, compassion and positive example.

Directions: Choose and encircle your answer from the given choices.

1. Which classical philosopher is infamous on his teachings of the “Golden

Rule”?
A. Aristotle B. Plato C. Confucius D. Socrates
2. Who is the great philosopher that rejected Plato’s “Theory of Forms”?
A. Confucius B. Aristotle C. Socrates D. None of the above
3. Who is the classical philosopher that mentored Plato who ultimately also
became a famous classical philosopher?
A. Socrates B. Confucius C. Plato D. None of the above
4. Who is the philosopher that emphasized the difference between good and
bad people?
A. Aristotle B. Plato C. Confucius D. Socrates
5. What is the set of principles and beliefs that businesses use as a guide to
achieve their goals?
A. Business Income
B. Business Philosophies
C. Business Laws
D. Business Etiquettes

Classical Philosophies

Socrates was a Greek philosopher who

searches for the foundations of his learners' and
associates' views by asking questions continuously
until a conflict or a contradiction is exposed, thus
proving the fallacy of the initial assumption. This
became known as the Socratic Method, and may be
Socrates' most enduring contribution to philosophy.
The infamous “Socratic Method” refers to asking
questions to find out how to act by learning the
essence of a thing—what makes it be, for example,
an act of holiness or justice.
Figure 1. Socrates in front of the National
Academy of Athens. (Credit: Getty Images )
Socrates’ implications on a business philosophy

The Socratic Method is a way of thinking that allows individuals to define

their own purpose for learning and explore this purpose through open-minded
questioning of what they hold to be true. Entrepreneurs can find value in Socratic
Method because they, too, are bombarded by assumptions based on what others
and they themselves believe to be the best plan of action for pursuing a business
idea. Entrepreneurial Learning or the acquisition of knowledge necessary for
creating a business venture is built around the constant questioning and testing of
these assumptions theories about what we hold to be true for validity. These
assumptions can range from beliefs about what the market wants, where
opportunities lie, to the effectiveness of a new product feature.

Socrates insisted on our right to think for

ourselves. Too often, he warned, humans sleepwalk
through life, simply going along with the crowd. This
is dangerous in questions of morality, and particularly
in corporate governance. When corruption is
uncovered, too often people say “everyone else was
doing it.” But our characters are our responsibility.

Figure 2. Entrepreneurial Socrates was prepared to die rather than go

Learning(Credit:http://www.kellenkaut against his conscience. Does your organization
zman.com/ideas-better-customer-

encourage independent thinkers and people who follow

their conscience? Does it allow people to give critical feedback to managers? Does it
create opportunities for good people to blow the whistle on bad behavior?

Plato was a student of Socrates before

forming the Academy, his own school. Early
Platonic dialogues reflect the early teachings of
Socrates; later dialogues show more of Plato’s
original thought. Plato argued that our senses
provide only illusion and that reason can provide

true knowledge. Figure 3. Plato (Credits:

https://www.bbc.co.uk/programmes/b08vwn6h)

Plato reconciled the assertions of Parmenides (two views of reality: Truth vs.
Opinion) and Heraclitus (doctrine of change: “you cannot step twice into the same
river”) in his theory of forms. The temporal and changing world of becoming we
perceive with our senses derives its meaning from a world of being and from forms
that are timeless, immutable, and can’t be extended. Plato discusses psuche,
usually translated as “soul” or “mind” in numerous works that extend over years of
his life. He speaks of a tripartite mind including the appetitive soul, the affective
soul, and the rational soul.
Plato’s implications on a business philosophy

The Theory of Forms

The Theory of Forms represents Plato’s

attempt to cultivate our capacity for abstract
thought. Philosophy was relatively new in
Plato’s day, and it completed with mythology,
tragedy, and epic poetry as the primary means
by which people could make sense of their
place in the world. Like philosophy, art and
mythology do so by appealing to our emotions
and desires. Philosophy appeals to the
intellect. The Theory of Forms differentiates
the abstract world of thought from the world
of Figure 4. The Theory of Forms (Credits:
https://www.researchgate.net/figure/Platos-

the senses, where art and mythology operate. process-of-form-alteration-as-applied-to-the-

process-of-change-of-a-heritage_fig3_281110163)

Plato also argued that abstract thought is superior to the world of the senses. By
investigating the world of Forms, Plato hopes to attain a greater knowledge.

Aristotle was a student of Plato who, after leaving the Academy at Plato’s
death, founded his own school, the Lyceum. He recognized the importance of
pleasure and pain in human motivation, Aristotle advocated a “golden mean”
between the extremes of human activity. He recognized four factors that affected
human ability to achieve the good life: individual differences, habit, social supports,
and freedom of choice. Psychological thought after Aristotle moved from a pursuit
of knowledge to a pursuit of gratification and the determination of what constitutes
a good life.

Aristotle’s implications on a business philosophy

Virtue and Happiness

The word happiness in the Ethics is a translation of

the Greek term eudaimonia, which carries connotations of
success and fulfilment. For Aristotle, this happiness is our
highest goal. However, Aristotle does not say that we should
aim at happiness, but rather that we do aim at happiness.
His goal in the Ethics is not to tell us that we ought to live
happy, successful lives, but to tell us what this life consists
of.
Figure 5. Aristotle
Credit s:http://www.liveyourmagic .
com/2014/02/aristotl e-the-
purpose-of-life/

Moral Education

A question of high importance in any investigation of ethics is how we can

teach people to be good. Aristotle is quite clear that he does not think virtue can be
thought in a classroom or by means of argument. His ethics, then, is not designed
to make people good, but rather to explain what is good, why it is good, and how
we might set about building societies and institutions that might inculcate this
goodness.

“The rational person doesn’t seek money for its own sake. The rational person uses
money so that they can spend their time on good moral works and developing their
mind.” Aristotle concludes that the role of the leader is to create the environment in
which all members of an organization can realize their own potential. He says that
the ethical role of the leader is not to enhance his or her own power but to create
the conditions under which followers can achieve their potential.

He did raise a set of ethical questions that are directly relevant to corporate
leaders who wish to behave in ethical ways.

1. Am I behaving in a virtuous way?

2. How would I want to be treated if I were a member of this organization?

3. What form of social contract would allow all our members to develop their full
potential in order that they may each make their greatest contribution to the good
of the whole?

4. To what extent are there real opportunities for all employees to develop their
talents and their potential?

5. To what extent do all employees participate in decisions that affect their work?

6. To what extent do all employees participate in the financial gain resulting from
their own ideas and efforts?

Confucius is a Chinese teacher, editor, politician,

and philosopher of the spring and autumn period of
Chinese history. The philosophy of Confucius
emphasized personal and governmental
morality, correctness of social relationships,
justice and sincerity. Confucius' principles had a basis in
common Chinese tradition and belief. He championed
strong family loyalty, ancestor worship, respect of elders
by their children and of husbands by their wives. He also
recommended family as a basis for ideal government. He Figure 6. Confucius

espoused the well-known principle "Do not do to others

(Credits:https://www.biography.comscholar/confucius
/

what you do not want done to yourself", the Golden Rule.

Confucius’ implications on a business philosophy

Crisis in the Chinese language (pictured) literally translates to a combination

of Danger and Opportunity. Every ‘crisis’ poses a potential opportunity to the
Chinese, only if that ‘danger’ is managed properly. This mentality has made
Chinese thinking positive and flexible, providing an appetite for change and
opportunity. The Chinese similarly believe that when everything is going well, one
must plan for the worst-case scenario. This is not to say that you should be
prepared to fail, far from it. What the Chinese believe is that when you find
success, you have much more to lose, and that in order to prevent future failure,
one must effectively evaluate worst case scenario planning to ensure a business is
adequately prepared for any “crisis”.

The importance of “Guanxi”

“Guanxi” literally means “relationships”, and interpersonal relationships in

Chinese business are extremely valuable, as Guanxi has been stated to be their
‘second currency’.

The Chinese business mentality is very much one of “You scratch my back,
I’ll scratch yours.” In essence, this translates to exchanging favours, which are
expected to be done regularly and voluntarily. What underpins this ideology is the
concept of respect within a business context. Respect between all with whom you
conduct business with should be something we imitate from the Chinese business
culture, as Confucius said; “without feelings of respect, what is there to distinguish
men from beasts?”

Explore

Enrichment Activity 1: Philosophical Crosswords

There are different philosophies that can affect businesses and their
approaches in attaining their goals. Can you identify the terminologies?

What you have to do:

Answer and complete the crossword puzzle below about the different topics
on business philosophies. Copy and answer the puzzle on a separate sheet
of paper.

Across:

2. It is the study of what is right and what is wrong

6. It represents Plato’s attempt to cultivate our capacity for abstract thought.
8. It is the name of the school Aristotle created
9. “Do not do unto others what you don’t want others do unto you 10 It
literally means “love of wisdom
Down:

1. It is the name of the school that Plato built

3. He is a philosopher that distinguished the difference between a good and a bad
person
4. Known as Socrates' most enduring contribution to Philosophy
5. He is a classical philosopher known to reject the Theory of Forms
7. It literally means relationships and was thought heavily by Confucius

Figure 7. Crossword Puzzle

Gauge
Directions: Read carefully each item. Use a separate sheet for your answers. Write
only the letter of the best answer for each test item.

1. What is the very basic definition of the word “ethics”?

A. System of rules and regulations
B. System of moral beliefs
C. System of laws and protocols
D. System of the dawn and unjust

2. What is the literal translation of the word philosophy?

 A. Passionately in love
B. Laws are ultimate
C. Love for wisdom
D. An eye for an eye
3. What refers to the set of principles and beliefs that a company is working
toward to achieve success?
A. Business Competitions
B. Business Dilemma
C. Business Laws
D. Business Philosophies
4. Who coined the term “the unexamined life is not worth living”?
A. Aristotle B. Plato C. Socrates D. Karl Marx
5. Who is the philosopher behind the famous philosophy “The Golden Rule”?
A. Confucius B. Plato C. Aristotle D. Socrates
6. Who said the quote “the rational person doesn’t seek money for its own
sake. The rational person uses money so that they can spend their time on
good moral works and developing their mind”?
A. Aristotle B. Socrates C. Confucius D. Plato
7. Who is the philosopher that is focused on human happiness?
A. Plato B. Confucius C. Socrates D. Aristotle
8. What is the term that is used in the Chinese business mentality “you
scratch my back, I’ll scratch yours?”
A. Guanxi B. Karma C. Socratic D. None of the above
9. What is the method used by Socrates that made his biggest impact on
philosophy?
A. The Socratic Experiment
B. The Socratic Argument
C. The Sarcastic Method D. The Socratic Method
10. What word did the direct translation of "happiness in Ethics" came from?
A. Eudora B. Eudaimonia C. Eureka D. Euphoria
11. Which of the following questions is NOT raised by Aristotle pertaining to
- corporate leaders who wish to behave in ethical ways? A. Am I
behaving in a virtuous way?
B.To what extent are there real opportunities for all employees to develop
their talents and their potential?

C. To what extent do all employees participate in decisions that affect their

work?
D. Is it just or is it unjust?
12. What is the name of the school that Plato founded?
A. University B. Academy C. Lyceum D. College
13. What is the name of the school that Aristotle founded?
A. College B. Lyceum C. Academy D. University
14