Module 4: Foundations of the Principles of Business  The Ends of an action justify the means

Ethics taken to reach those ends.

1. Know and understand the philosophical
ethics.
2. Know some basic belief system and how it
affects ethical practices.
Philosophical ethics
 Provides justifications that must be
applicable to all people regardless of their
religious viewpoints.
Religious Ethics
 Which explain human well-being in
religious terms.
Study the following statement:
1. I will donate to the typhoon victims to help
them rebuild their lives.
2. I will donate to the typhoon victims because
God expect me to help other people.
Both involved the same action, but the first
statement is philosophical justification for ethical
judgement, while the second statement is primarily
a religious reasoning behind the action.
 Also called “consequentialist” approach ---
that each one should act in ways that
produce better consequences or results,
regardless of the means taken to reach those
results.
 Better consequences are results that
promotes human well-being such as
happiness, dignity, health, integrity,
freedom, and respect of all the people
involved or affected.
 This approach upholds the following
principles:
o A decision is morally right if it
promote the greatest good for the
greatest number of people.
o It is morally right if the net benefits
over costs are greatest for all people
affected, compared with the net
benefits over costs of all other
possible choices.
o It is morally right if its benefits are
greatest for each individual and if
these benefits outweigh the costs and
benefits of alternatives.

3 ethical Framework Source of Moral 2 types of Utilitarianism

Activity
Rule based Act based
Utilitarianism  Making General principles are The decision is based
decisions based used in making a on the likelihood of
on ethical decisions on the achieving greatest
consequences greatest benefits that utility or good by
 Result based can be achieved from analysing particular
approach an action actions or behavior
 The ends justify Uses rules to determine Uses analysis of
the means ethical behavior particular actions or
Ethics of Principles  Making behaviour to determine
and Rights decisions based what is the best
on principles, behaviour.
and not just on Ex. Companies usually An employee which
consequences. have a confidentiality makes their products in
 The ends do not clause where unethical way may
justify the means employees who share choose to divulge this
Virtue Ethics  Grounded on trade secrets, information to the
character traits formulations, may be media or public in
and emphasizes given sanctions or order to save the
moral character terminated when they customer.
in contrast to divulge this While it violates the
moral rules or information to a confidentially clause of
consequences of competitor or to the the company the
actions. public employee may feel that
he is doing the right
thing to serve the
UTILITARIANISM: A Consequentialist (results- greater good of more
based) approach people.
 Holds that an action is judged based on its
overall consequences.
Utilitarian concepts are widely practices in the Impacts of different belief system on the business
government and business environment, because ethics.
utilitarianism considers both the collective interest
 Buddhism
as well as some particular interest, analyses and
formulates alternative choices based on the greatest o Originated in India around 525 BC
good of everyone involved in the decision, and o Founded by Siddhartha Gautama
estimates the costs and benefits of alternative Buddha .
choices for the affected groups. o It is a flexible system of beliefs that
allow it to adapt to country-specific
Ultimately, utilitarianism’s goal is to achieve the customs and agrees with the moral
best consequences for all parties involved in the teachings of other religions.
actions. o Centered in the Buddhism beliefs are
Utilitarianism answer the fundamental question the five precepts or training rules ---
“what should we do?” which is always applicable which help promotes peaceful
on business because of the many decisions that need coexistence and harmony in the
to be done society.
o Refrain from:
Business organization can use utilitarianism by  Harming or taking lives of
identifying the different stakeholders that will be beings.
affected by decision, calculate the cost and benefits  Taking what is not given.
for each group, and decide on a course of action that  Engaging to sexual
will generate the greatest good for the greatest misconducts
number.  Lying or spreading gossip
ETHCS OF PRINCIPLES AND RIGTHS  Taking intoxicating
substances such as alcohol r
This explores the relationship between legislative drugs.
and judicial branches of the government ---  Islam
legislative role creates policies and regulations o Shariah, the Islamic religious laws
based on utilitarian principles, while judicial role based on the Qur’an ---- shariah law
enforces these laws to achieve justice and fairness. is the legal authority.
 The second framework in this ethical o Islam favors trading or business, but
philosophy is that some decisions are needed it has to obey rules and most
to be made based on principles rather than importantly, be guided by honesty.
consequences. o Cheating or deception in economic
 It upholds that the ends do not always justify transactions is condemned by the
the means. Qur’an.
 Mostly dealing with following the Laws,  Christianity
regulations and guidelines. o Christian beliefs are all based on the
bible containing the old and new
VIRTUE ETHICS testament
 Virtue can be described as the character o Christians see themselves as
traits that would constitute a good and stewards of resources or
meaningful life. responsibility, which cover
 Being happy, friendly, joyful, and calm; stewardship to other people (leading
preserving integrity and dignity; having them to the right path) or using and
good relationships; and possessing modest caring for the environment.
things are few of the characteristics of Impacts of Filipino Practices and belief system on
having a meaningful life. the business ethics.
 It is grounded on character traits and
emphasizes moral character in contrast to 1. Filipino time
moral rule or consequences of actions.  Which is synonymous to being late.
 It focuses on the type of person you want to  This trait is used as an excuse fro
be grounded on good character, motives, and being tardy in meetings, events and
core values and not on the actions that other social affairs, whether formal
should be taken. or informal.
2. Padrino system
  Patronage happens when one gains
favour, promotion, or political
position through family affiliations
or friendship, as opposed to earning
it due to one’s skills and abilities.
3. Utang na loob
 Indebtedness in gratitudes is the
concepts of paying back a person in
nonmonetary terms.
4. Pakikisama
 Is a Filipino trait that describes how
Filipino take care of their
interpersonal relationship by
agreeing to what the majority wants
or by getting along with others.
5. Bahala na
 Is leaving everything to chance
6. Manana Habit
 Habit of delaying to do things
instead of doing things now.
7. Filipino Hospitality
 Filipino are known worldwide for
their excellent hospitality.