Business Ethics and Social Responsibility

1
Foundation of the Principles of Business Ethics: The Filipino Values System

Module 007 Foundation of the Principles of

Business Ethics: The Filipino Value System in
the Business

The distinct value system of Filipinos is rooted primarily on culture that has
been set throughout the history of Filipinos. These values influences not just
the personal association of a Filipino to its society but also to trade industry.
At the end of this module, you will be able to:
1. Identify the different cultures that influenced Filipino Values;
2. be familiar with the different Filipino values;
3. Realize the effect of Filipino values in the business set-up.

The Filipino Value System in the Business

The Filipino Values System is defined by the way people live their life as an influence of
one’s culture. Cultural values are guiding principles set to decipher what is right and
important in a society. The complexity of Filipino culture has been exposed to various
streams of culture and summation of influences from different foreign lands. The set of
values that Filipinos considers important are collective ideologies, moral ethics, etiquette
and cultural and personal values that are promoted by its society.

The Malays

Malays are the basic component of Filipino culture. it is described as the

nicest and most pleasant among other cultures. These clans has the world's
best security system.

The Chinese

Chinese community has great influence in the Filipinos relationship with

family. Filial Piety between parents and children is one of the best traits that
has been passed on to Filipinos.

The Indians

The influence of Indians can be seen through the artistic side of the Filipinos;
Architecture, colorful dresses and arts. Another influence can be the folk
beliefs that might have been handed down to Filipino Traditions.

The Spanish Heritage

Course Module
 Years of colonization has given Filipino a lot of cultural and historical
heritage. The Spaniards even influenced Filipinos religious beliefs by
introducing Christianism, another foundation that has a great influence in
Filipino businesses.

The American Heritage

Americans introduced the importance of democracy in a country, thus, this is

also being applied to in families and even workplaces. An individual's liberty
and equality of all is very important to promote a happy working
environment.

Common Filipino Values that may have an influence in the Business

I. Utang na Loob (Debt of gratitude)

Utang na loob is a technique of reciprocity of debt of gratitude to others.

Either in the personal or business side, utang na Loob means to pay your
debt with gratitude. The essence of utang na loob is an obligation to properly
pay back a person who has done a favor. The favors which elicit the Filipino's
sense of utang na loob are typically those whose value is impossible to
quantify. With utang na loob, there is usually a system of obligation. utang na
loob thus goes much deeper than ordinary debt or even the western concept
of owing a favor. Filipino psychology explains that this is a reflection of
the kapwa orientation of shared self, which is at the core of the Filipino
values system.

The Debt as a Cycle

Obligation and responsibility are often viewed in terms of reciprocity that is
comprised of debts. The process begins with an voluntary gift and continues
going even up to the next generation of families.
There is a filipino saying, “Ang ‘di marunong tumingin sa pinanggalingan ay
di makakarating sa paroroonan.” This proverb serves as a reminder that one
has to be thankful and endlessly grateful to those people who have helped
them reach their goals in life. This is the basic context of “utang na loob”, a
person must have an attitude of gratitude and a commitment to return the
favor of being the receiver of good deeds and even the moral support that has
been given by the family, relatives, and the community.
Although "utang na loob" is valued by Filipinos, it also has a negative
consequence in the context of blind loyalty to a family, a friend, a relative,
even political leaders and persons in authority. Blind loyalty is invoked by
those who have the power and material resources to manipulate and control
the person due to its obligatory relationship and will be banded to this
obligation even to the next family generation.
On the other hand, “Utang na loob” has a positive context in enlightened
loyalty. There are Filipinos who are able to look at “utang na loob” as a social
 Business Ethics and Social Responsibility
3
Foundation of the Principles of Business Ethics: The Filipino Values System

concept without having to be blind to the limits of loyalty. They appreciate

the meaning of “utang na loob” as a moral concept, but it does not mean that
they will give up the higher set of principles that they value for the sake of
family, friendships, and community loyalty.
“Utang na loob” may be invoked by some people to demand favors from
someone, for the right or wrong reasons. One is free to return the favor or
not, but must take the risk of “burning his bridges”. Social conformity in
Filipino culture is valued (the term “pakikisama” captures this virtue), and
one has to face the possibility of being ostracized for not being loyal. This is
the immediate drawback. In the end, it is a choice between social conformity
and one’s valued principles. ”

II. Filial Piety

Filial Piety is a virtue of respect given to one's parents, elders, and ancestors.
The Filipinos as influenced by the Chinese have great deal of respect to the
elderly people especially those in the ancestral family. with this respects
comes general obedience.

It has been a practice by heart of most Filipinos to pay respect to elderly,

parents, anyone older and this close family tie goes beyond the family circle
as families in the Philippines extend not only to blood relations but even
close family friends. This is a value that is very powerful because it involves
love and concern to another person. It is more than just paying respect but it
extend to performing duties of love, concern, caring and involving respect
and support, physically, emotionally and even financially.

In the business side, a deeper sense of respect in authority maybe related to

our deep respect to elderly and family circle. The relationship among
employer-employee are profound that sometimes workplaces are extended
family members. This can be good as your working environment because a
friendly home to employees, more relaxed and become a happy place for all.
But a person in authority may take advantage of this situation and take
advantage of the good gestures given by employee out of love and concern
not just to the bosses but even to the business or company itself.

III. Padrino

The Padrino System in the Philippines has been the source of many
controversies and corruption. It has been an open secret that one cannot
Course Module
 join the political arena of the Philippines without mastery of the Padrino
System. Many would still deny this, it may even be contested and be
considered as a false accusation but in our political system, from the
lowest Barangay official, to the President of the Republic, it is expected that
one gains political debts and dispenses political favor to advance one's
career or influence, if not wealth.
Padrino in business may have a negative effect as dealings and financial
obligations to government such as taxes may be influenced between the
business owner and the government official. Padrino System in the Filipino
culture, business industry and politics is the value system where one gains
favor, promotion, exemptions or political appointment through family
affiliation (nepotism) or friendship (cronyism), as opposed to one's merit.

IV. Suki (loyal customer)

The word suki is a Filipino term which means "loyal customer." This is
commonly heard and used in market places used by common ordinary
Filipinos. It is a so-called "market-exchange partnership" can be developed
into an agreement where one can be a regular customer and supplier in
business and trade.
Filipinos often buy from a supplier who will provide their customers reduced
prices, good quality and allows credits as well. The suki system is a general
patronage wherein a customer regularly buys from a certain store or
business entity. In the merchandising business, trust and the development of
friendship between the two parties is a vital aspect in the establishment of an
economic exchange relationship. In some instances, regular patrons of retail
stores, restaurants and even "karenderya" and small retailers gives receive
special treatment in return for a loyal customer.
Customer satisfaction is essential in order for any business to survive the
industry. Some retailers develop strategies to build relationships that result
to customers returning back to make more purchases. This increase the
change for your business to gain more loyal consumers especially if the
business exceed the customers satisfaction.

V. Bahala Na
The closes translation of Bahala Na in English would be the phrase,
"whatever will be, will be.” Bahala na- From the word, Bathala na, which
means, “Leave it to God” or “Come What May”. Filipinos usually say “Bahala
na” when they are unable to make a decision about something important and
unable to decide on their next course of action. This phrase is uttered if all
they want is go through something and not thinking of the end result.

The use of the phrase “Bahala na” as "bathala na somewhat manifests the
tendency of Filipinos to humbly submit everything to the Higher Being
 Business Ethics and Social Responsibility
5
Foundation of the Principles of Business Ethics: The Filipino Values System

during tough times. People who frequently use this phrase do not see
anything wrong with it. They even see it as a positive thing because it
acknowledges that a person is entrusting its life to a Supreme Being. This is
somewhat important especially in businesses where owners believes in
higher beings and would seek intervention for the business to prosper.
However, some sees it negatively as a form of avoidance of responsibility. It
may also cause boil down to a laziness as a trait for entrusting everything to
the higher being and neglecting responsibilities in promoting your business
activities. Some may see it as just as an excuse from their personal
responsibility. It is like admitting the lack a sense of control, which means
that they do not believe they have the power to control change in their lives.
Bahala na may also be a form of encouragement. Telling Affirming oneself
that tough situations can easily be handled, declaring confidence that they
can come up with solutions when events arrive.

VI. Amor Propio

Amor Propio has an influence on Filipinos. Although it’s not actually

discussed openly and may not be known to most people, it is still an integral
part of the society and plays a big part in relationships.

Amor Propio has a spanish origin and may be translated in english as “self
love.” In an positive light, it can be seen as having a sense of self worth or self
respect. In western terms translated as ego. It is also an individual's highly
emotional reaction to protect his or her honor and dignity when they are
threatened or questioned and at some point the reaction is retaliation.

Negative Effects of Amor Propio

In a scenario of responsibility and taking the blame; Pride is an aspect

of Amor Propio. It can get in the way of constructively taking responsibility
for their actions. Too much pride in oneself can cause a lot of
misunderstanding on a personal level and even in the corporate world. On a
personal level, it can take the form of people not apologizing even if they
were completely in the wrong or even a tendency to blame others for the
offense. Looking for other people to take the blame rather than admitting to
oneself of their wrong doing. In workplaces, this is a complete commotion of
a healthy working environment, blaming another of a fault, for a
disobedience, for a short-coming, for a mistake. It may be a report, a project,
a financial matter, and these commotion affects business revenue and
income.

Course Module
Other Common Filipino Values that may have an influence in a business:

1. Paggalang (Respect)

The English translation of "paggalang" is to be respectful or to give respect to

a person. Filipinos are accustomed to using the words “po,” “opo,” and “ho”
when they are conversing with older people or, sometimes, with those who
are in a high role or a prestigious member of society. Using these words is
customary in the Philippines, and it shows a sign of respect if you do so. This
is being used even with people you converse with, even not related to, just to
simply show your respect regardless of the age bracket.

2. Pakikisama (Helping Others)

Pakikisama has the implication of getting along with people in general. Doing
your best to be socially acquainted to everyone whether in the family, in a
community or society, in a workplace or business place. This desire is what
steers one to perform pakikisama The desired to be accepted, the desire to be
a part of a group or system, the desired to be liked and be appreciated, the
desired not to hurt or offend anyone. The word pakikisama literally
translates to "helping others." Therefore, this trait usually fosters general
cooperation and performing good or helpful deeds, which can lead to others
viewing you in a favorable light. on the other hand, too much of pakikisama
can also give an negative effect on the system. The person giving too much
what is supposed to be given can be exhausted and may feel used and
abused and the receiver may take advantage of this good trait by asking for
more than what is supposed to be given. In a workplace, unpaid overtime
that happens regularly out of pakikisama to the boss or supervisor or even
the owner. These are simple situations that can be taken forgranted but often
abused.

4. Hiya (Shame)
Hiya means shame. This controls the social behaviors and interactions of a
Filipino. It is generally dependent of what others may think. It is the value
that drives a Filipino be obedient and respectful to their parents, older
siblings, and other authorities. This is also a key ingredient in the loyalty of
one’s family. But this can also prevent a person from exerting effort into
giving more and sharing more of its time, ideas, skills and talent. Hiya is very
natural attitude of a person, but extreme hiya may hinder the improvement
and operation of a business. Just imagine a marketing staff such as a
promodiser hired to promote a specific product in the grocery store. An
extreme attitude of hiya would hinder this employee into promoting its
product, thus will affect sales and revenue of the business.
 Business Ethics and Social Responsibility
7
Foundation of the Principles of Business Ethics: The Filipino Values System

References and Supplementary Materials

Glossary
Debt: a feeling of gratitude for a service or favor.
Cycle: a series of events that are regularly repeated in the same order.
Gratitude: the quality of being thankful; readiness to show appreciation for and to return
kindness.

References and Supplementary Materials

Books and Journals

F. Landa Jocano; 2008; Filipino Value System: A Cultural Definition; PUNLAD Research

House

Online Supplementary Reading Materials

https://en.wikipedia.org/wiki/Filipino_values; May 25, 2017

Understanding the Filipino Values and Culture; http://www.senkotiros.

org/Philippines/ philippine_culture.html; 2005; may 25, 2017

Online Instructional Videos

Filipino values(utang na loob and hardworking) ; https://www.youtube.com/watch?
v=xzgFAPYGk1w; 2014; may 25, 2017

Course Module