PHILOSOPHERS’ CONTRIBUTIONS TO BUSINESS ETHICS

SOCRATES: SOCRATIC METHOD & INDEPENDENT THINKING

Socrates is a Greek philosopher whose way of life, character, and thought exerted a profound
influence on ancient and modern philosophy. Socrates was a widely recognized and controversial figure
in his native Athens (Kraut, 2019).

Socratic Method in Entrepreneurship

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 (Houser,
2014).

According to Bondoc (n.d.), entrepreneurs can find value in Socratic Method because
entrepreneurs have 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; assumptions which can range from beliefs about what
the market wants, where opportunities lie, to the effectiveness of a new product feature. Therefore the
Socratic Method makes you question methods or strategies on how to keep or make your business have
successful operations today and in the future.

The Socratic Method provides focus through clarity of purpose and can be used to develop and
reinforce an entrepreneurial mindset (Houser, 2014). Our questions would then revolve on the existence
of the business, or the existence of our project, our proposals and such. As for reinforcing an
entrepreneurial mindset, business owners should inquire as to how they should act on a particular
situation, on what possible challenges to face, on how to properly manage the people and such.

Independent Thinking – dare to disagree

Socrates insisted on our right to think for ourselves. Too often, he warned, humans sleepwalk
through life, simply going along with the crowd (“What can business leaders learn from ancient Greek
philosophers?”, n.d.).
This lesson from Socrates teaches us to have our conscience or to fight for what we stand, if we
think we are on the right. For example, in terms of corruption in a certain firm, it is not right to just
remain silent as they acquire money illegally. As professionals, individuals should always do what is
right.

PLATO: THEORY OF FORMS & EDUCATION FOR THE HEALTH OF THE STATE
 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, and he wrote in the middle of the fourth century B.C.E. in
ancient Greece (Brickhouse and Smith, n.d.).

The Theory of Forms

Plato’s Theory of is the idea that non-physical but substantial Forms or ideas represent the most
accurate reality (Wilber, 2018). According to Cummings (n.d.), Plato stated that there are two realms: the
physical realm and the spiritual realm. The physical realm is the material stuff we see and interact with on
a daily basis; this physical realm is changing and imperfect, as we know all too well. The spiritual realm,
however, exists beyond the physical realm. Plato calls this spiritual realm the Realm of Forms (also called
the Realm of Ideas or Realm of Ideals). Plato's Theory of Forms asserts that the physical realm is only a
shadow, or image, of the true reality of the Realm of Forms.

The dual-existence explained by Plato's Theory of Forms gave an answer to the puzzle about
change. Although that which we perceive may change, the entity still participates in its particular form.
As one author phrased it, "It may be that we can never step in the same river twice, but the ever flowing
river in the main keeps within its banks" (“Plato’s Theory of Forms as Applied to Ethics and Politics”,
n.d.). Therefore, even if something changes, there is still its original form.

According to Wilber (2018), the Platonic Forms, according to Plato, are just ideas of things that
actually exist and only represent what each individual thing is supposed to be like in order for it to be that
specific thing. The Forms, according to Plato, are the essences of various objects. Forms are the qualities
that an object must have to be considered that type of object. Because the Forms exist independently of
time and space, they can be said to exist only as ideas in people's minds and are objective "blueprints" for
perfection.

People know what a business is – an entity that offers goods and services to achieve a certain goal
like for charity, well-being of its owners or to generate profit. Businesses should have integrity,
accountability, responsibility, and transparency in its operations. This would then lead to success or
‘perfection in terms of businesses. A business may be small or large but it is still a business.

Education for the Health of the State

According to Bondoc (n.d.), in both the Republic and the Laws, Plato identifies education as one
of the most important aspects of a healthy state. Plato apparently considered most of his fellow Athenians
to be hopelessly corrupt, easily inflamed by hollow rhetoric and seduced by easy pleasures. One can
achieve only so much by arguing with a corrupt soul that a virtuous life and to seek wisdom. Therefore, if
one is educated, people would not be naïve and can analyze the implications of the options in their
decisions.

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 In addition, Plato thinks that a child’s education is the last thing that should be left to chance or
parental whim since the young mind is so easily molded (Bondoc, n.d.). It is when our perceptions are yet
to be developed and this would be crucial since the child’s view on what is right and wrong is not yet
developed.

In relation to business, education would be crucial for businesses to know its legal terms,
responsibilities and on what rules and regulations to conform to. It would also be important for analyzing
the plans and processes for a successful business venture.

ARISTOTLE: MORAL EDUCATION & VIRTUE AND HAPPINESS

Aristotle is a towering figure in ancient Greek philosophy, making contributions to logic,

metaphysics, mathematics, physics, biology, botany, ethics, politics, agriculture, medicine, dance and
theatre. 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 (“Aristotle”, n.d.).

Moral Education

 A question of high importance in any investigation of ethics is how we can teach people to be
good. His ethics 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
(Bondoc, n.d.).

As Aristotle said, “Ethical role of the leader is not to enhance his or her power but to create the
conditions under which followers can achieve their potential”. Leaders won’t aim for power to let his
employee work, but leader instruct their followers in order to have improvement to have a better work
(O’Toole, 2004).

Businesses have managers and supervisors who instruct the employees on what they should do
for day to day operations. As stated, leaders should also instruct or teach the employees on how to be a
good worker in the company, not only in terms of productivity but also in morals and right conduct.
These would also make every company efficient and have a good reputation.

Virtue and Happiness

The achievement of happiness, according to Aristotle, is the end goal of every man as all human
activities are done in order to attain something that is good. We don’t do something because we think it
will be bad for us. In addition, most of these activities are not the main objective, but rather a means to a
higher end. We aim at happiness for its own sake, not because it will achieve something else (“The Goal
of Happiness: A Summary of Nicomachean Ethics”, 2013).

The word happiness in the Ethics is a translation of the Greek term ‘eudaimonia’, which carries
connotations of success and fulfillment. 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 (Bondoc, n.d.).

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 Aristotle starts with the claim that happiness is dependent on virtue. He describes virtue as a
disposition, rather than an activity. The individual needs to be naturally a ‘virtuous’ person, rather than
just acting accordingly. This exemplary man finds doing virtuous acts pleasurable, which is presumably
why he does them (“The Goal of Happines: A Summary of Nicomachean Ethics”, 2013).

In terms of business, as an employee, we should always fulfill our duties and responsibilities
because it is the right thing to do, not because we expect that our salary would then be increased or
promoted in a higher position. As an individual find being ‘virtuous’ pleasurable, he would then be a
virtuous person no matter what. And by that, an individual can find happiness in doing the right thing.

IMMANUEL KANT: FIRST, SECOND AND THIRD MAXIM

Immanuel Kant is German philosopher whose comprehensive and systematic work

in epistemology, ethics, and aesthetics greatly influenced all subsequent philosophy, especially the
various schools of Kantianism and idealism (Duignan and Bird, 2019). He is the most important
proponent in philosophical history of deontological, or duty-based, ethics. Kant’s contribution to ethics
have been just as substantial, if not more so, than his work in metaphysics and epistemology
(McCormick, n.d).

First Maxim

The first maxim states, "Act only on that maxim through which you can at the same time will that
it should become a universal law." The command states that you are not allowed to do anything yourself
that you would not be willing to allow everyone else to do as well (“Kantian Ethics, n.d.). 

For example in business, you need to lie in order to cover up your bad deeds. In Kant’s point of
view we can’t escape certain promises we made which is very important to business world because there
are certain possibilities that you need to face any circumstances such as contract, rules and regulations,
and law wherein it all have punishment or you have responsibilities to abide it.

Second Maxim

The second maxim states that a person should be treated as an end and not the means to achieve
an end (Bondoc, n.d.). Treating the humanity in a person as an end, and not as a means merely, in a
business relationship requires two things. First, it requires that people in a business relationship not be
used. Second, it means that business organizations and business practices should be arranged so that they
contribute to the development of human rational and moral capacities, rather than inhibit the development
of these capacities (Borman, n.d).

In business world we would encounter a lot. For example partnership, you must not use each
other in order to go on top, but help each other to be on top because sometimes there are situation that you
use money in order to buy trust of people but do remember that morality and dignity is important too and

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money can’t buy it but respect do. In reality, if we were facing client or other business partners, respect is
important for we are saving our dignity in order to catch their attention or continue your partnership.

Third Maxim

Kant's third formulation of the categorical imperative states that you should act as if you were a
member of an ideal kingdom of ends in which you were both subject and sovereign at the same time
(Borman, n,d).

For example, in terms of business, if one would embezzle money and use it for his personal
intents. If all of the people in the company would do that, it would not be good. Therefore, the act of
embezzlement is not good. Another example is if one accountant would participate in money laundering
activities. If all accountants would take part in money laundering, if you think that would be bad for
everyone’s sake, then that is a bad act.

JEREMY BENTHAM: UTILITARIANISM

Jeremy Bentham was an English philosopher, economist, and theoretical jurist, the earliest and
chief expounder of utilitarianism (Duignan and Plamenatz, 2019). Bentham's work combined an
empiricist approach with a rationalism that emphasized conceptual clarity and deductive argument, as he
was influenced by empiricists, John Locke and David. He then developed an ethical theory grounded in a
largely empiricist account of human nature (Sweet, n.d.).  With John Stuart Mill, they were the classical
utilitarian and stated that the good is ought to be maximized that is, to bring about ‘the greatest amount of
good for the greatest number’ (Crimmins, 2014).

Utilitarianism is a moral theory, which asserts that an action is good if it is for the good of the
greatest number of people (Academic Writers Bureau, 2016). It encourages individuals to act in a way
that the wellness of the many is considered. This could be considered as a downfall to this theory as
individuals may do unethical things but is still considered ‘good’ since it is for the well-being of the
many.
Under utilitarianism, Bentham stated that, “Mankind was governed by two sovereign motives,
pain and pleasure; and the principle of utility recognized this state of affairs” (Duignan and Plamenatz,
2019). The pursuit of pleasure simply is the pursuit of good.  Bentham reformulated the principle of
utility to say "that we ought to act so as to promote the greatest happiness of the greatest number."  In
addition, utilitarian are not only concerned with physical pleasure and pain, but all types of pleasure
(‘Utilitarianism’, n.d.). Utilitarian believe that the purpose of morality is to make life better by increasing
the amount of good things such as pleasure and happiness in the world and decreasing the amount of bad
things such as pain and unhappiness (Nathanson, n.d.). But then again, there are certain circumstances
that in pursuit of happiness and in an attempt to decrease pain and unhappiness for the many, the means
of doing so is unethical or is actually against morality. This implies that utilitarianism only considers the
positive or negative of what is done, not how the action was done.

Bentham’s theory on utilitarianism can be applied in business. According to the Academic

Writers Bureau (2016), the theory of utilitarianism has four principles to understand how utilitarianism
can be applied in business; however, its application could either be positive or negative. The first
principle is consequentialism, which is the understanding that the wrongness or rightness of actions is
entirely determined by their actions. The second principle that businesses require to apply utilitarianism is
welfarism which is the belief that what makes anything (an act, a change, a policy measure, a rule)

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morally right or wrong, good or bad, ultimately depends only on its effects on individual utilities
according to Yew-Kwang Ng (1990). The third element is individualism which holds that every
individual, as it is human nature, pursues happiness, thus, will engage in actions that maximize utility.
And the fourth element required to apply utilitarianism in business is aggregation, which is the notion that
the wrongness or rightness of actions depends on their ability to average the benefits brought to all
individuals and suggests that the consequences of an action should bring happiness not only to an
individual but also the community around him or her.

Businesses are profit-oriented and its employees are also encouraged to act accordingly for
the benefit of the business. In relation to the first principle, consequentialism, in pursuit of generating
more income, businesses may refer to unethical and immoral means to do so. For example, in order to
produce more inventories to generate sales, the business would purchase inputs that are low quality for a
cheaper cost of sales. As an example for the second principle, welfarism, to motivate employees to work
efficiently, the management can decide to increase the benefits and salaries of its employees by engaging
in partnerships may it be legal or illegal. For individualism, to make customers happy, they shall be given
the optimal quality of service and products for the business to gain customer loyalty, thus, maintaining or
generating more money. And as an example for aggregation, we all know that charity is a good thing as it
helps people in various ways. In the same manner, a corporation who establishes a foundation is deemed
to be good as it brings happiness by helping people in terms of poverty, education, living, and many
others.

Utilitarianism is important in business ethics as it concern the benefit of the many. As stated,
it is not concerned on how the deed was done as long as many individuals are happy and can benefit from
it. However, it does not necessarily mean that utilitarianism in business always involves illegal
transactions and such. It can also urge individuals to consider the greater good like employees to the
company.

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