Pagadian Diocesan Schools

HOLY CHILD’S ACADEMY

San Jose, Pagadian City, Zamboanga del Sur
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name: Grade & Section:

MODULE 5– FOUNDATIONS OF THE PRINCIPLES OF BUSINESS ETHICS

(Impact of Belief System in Business, Filipino Value System)
Learning Competencies:
At the end of the module, you can:
1. explain how the belief systems influence business practices
2. infer how Filipino value system influence business practices
3.generate ways to improve business practices guided by the philosophies, belief system or Filipino values
Instructional Materials:
Valerie N. Choa, et. al. Essentials in Business Ethics. Brilliant Creations Publishing, Inc.
3G Elearning FZ LLC (2017). Business Ethics and Social Responsibility
Pre-assessment
Directions: Identify the given statement below and choose your answer in the box. Write the letter of the correct answer
on the space provided before the number.

A. Jewish Law B. Filial Piety C.Islam D. Christianity E. Judaism

_____1. They obligate fees on transactions with gentiles or non-Jews.

_____2. They banned interest charges, as it is considered to be taking advantages of other people’s misfortune.
_____3. They encourage the spirit of brotherhood between employer and employee. It is the moral responsibility of the
employer to take care of the welfare of his employees.
_____4. A prime virtue that requires reverence and respect for parents and elders
_____5. It states that everyone must be treated with respect and dignity, appropriate wages must be paid on time, and
mocking or embarrassing workers are prohibited.
INTRODUCTION
Motivation

What is the gist of the illustration above?

________________________________________________________________________________________________
________________________________________________________________________________________________
_______________________________________

INTERACTION
Learning Activities
An Introduction to Christianity
As the world’s largest religion, Christianity has more than two billion followers worldwide. It is a monotheistic
religion based on teachings of Jesus Christ as the son of God and savior. Christians believe in the Holy Trinity as forms of
the same God.

Jesus Christ
The Bible, the holy book of Christians, records some events of Jesus of Nazareth’s life story- his birth, a brief time in
childhood, and a few years of adulthood when he preached until his crucifixion. Jesus Christ was a Jew who was born in 1
CE in Bethlehem to an Israelite virgin named Mary who becomes miraculously pregnant. According to canonical gospels
from Luke and Matthew, Jesus Christ was born in a manger and wise men came to bring gifts to Jesus, born king of Jews,
as proclaimed by angels. King Herod orders the massacre of all the boys less than two years of age in Bethlehem, but the
family fled to Egypt and settled in Nazareth. Jesus Christ was fully human and had experienced the world as a man.
By the power of God, Jesus performed many miracles on Earth, including healing diseases, bringing dead people back
to life, casting out demons, controlling the weather, walking on water, turning water into wine, etc. Jesus Christ taught

1
humankind to love God as God loved them. He preached the gospel of the kingdom of God and those who believed in
Jesus and did the will of God would enter his kingdom.
Jesus Christ is also known as the Son of God, Light of the world, Lamb of God, and Good Shepherd.

Christian Beliefs
1. One God
As a monotheistic religion, Christians believe in one God, the creator and sustainer of life.
2. Justification by Faith
Through believing in Jesus as the son of God, and his death and resurrection, Christians can have a right relationship
with God, whose forgiveness was made possible through the death of Jesus. Salvation comes through Jesus Christ’s death
and resurrection. Christians are taught that salvation occurs with faithfulness and each must live in accordance with
principles of love.
3. Eternal Love
Christians believe that there is life after death. Heaven is the final destination of believers.

4. Saints
Saints are recognized when they have lived particularly good and holy lives, with which miracles are claimed to have
been associated after their death. Saints can intercede to God on behalf of Christians. Only the Roman Catholic and
Orthodox perform the canonization of saints.

Prayers and Rituals

1. Prayers
It is the way to communicate with God. Prayers can be formal and ritualistic but they can also be personal and
spontaneous. Some traditions encourage prayer to God through intermediaries, such as saints and martyrs. Prayers through
the Virgin Mary are central to some churches.
2. Church
The church is the structure used for religious activities and worship. Symbolically, the church is the body of Christ
and is made up of a community of believers. Jesus is the head of the church and to save others, believers spread the gospel
of the kingdom.
The church is the place where faith is nurtured and where the holy spirit manifests itself on Earth. It is where
Christians receive the faith and are brought together into one body through the Eucharist.
3. Priests
Priests, ministers, and vicars are the spiritual leaders of Christians. They worship by reading from scriptures, prayers,
speech, music, sermons, and holy ceremonies.
4. Bible
The bible is the holy book and a product of divine inspiration and considered by believers as the infallible word of
God. It is a collection of sacred scriptures in Christianity and divided into the old and new testaments. Christians believe
that God’s intentions, revealed in the Bible, are the final authority of what is true and right.
5. Eucharist
Eucharist is a celebration during mass to commemorate the final meal that Jesus took with his disciples before
crucifixion. The rite came from the actions of Christ in taking bread and wine during his last supper. He asked his
disciples to consume them and continue to do so in his memory. The wine represents his blood; and the bread, his body.
6. Second Coming of Jesus
According to the gospels, the return of Jesus to Earth after his ascension to heaven many years ago will come after the
apocalyptic signs.
7. Ten Commandments
1. Thou shalt have no other gods before me.
2. Thou shalt not make unto thee any graven image.
3. Thou shalt not take the name of the Lord thy God in vain.
4. Remember the Sabbath day and keep it holy.
5. Honor thy father and thy mother.
6. Thou shalt not kill.
7. Thou shalt not commit adultery.
8. Thou shalt not steal.
9. Thou shalt not bear false witness against thy neighbor.
10. Thou shalt not covet anything that is thy neighbor’s.

Denominations
Christians are subcategorized as Roman Catholic, Orthodox, and Protestant. Each denomination is further divided, but
they all believe in core ideas, such as the resurrection of Christ, authority of the bible, and eternal life in heaven even if
they worship and pray in different ways.

1. The Roman Catholic represents the church as it developed in Western Europe, headed by bishops in communion with
the pope, who is the bishop of Rome. The pope is the highest authority in faith, morality, and governance. The church
traces its origin to the Christian community founded by Jesus Christ.
2. The Orthodox comprises those churches developed in Eastern Europe in communion with the Patriarchal Sees of the
East. Similar to the catholic church, the Orthodox church traces its heritage to the foundation of Christianity through

2
apostolic succession. Its main difference with Roman Catholics is the allegiance to the pope, its emphasis on the use of
icons in worship and the date it celebrates Easter.
3. Protestantism was inaugurated in the 16 th century by Martin Luther, Huldrych Zwingli and John Calvin. More sects
followed [in the 18th century. Protestants do not acknowledge the pope and reject many traditions and beliefs of the
catholic church. They emphasize the importance of reading the bible and they hold doctrine of salvation by faith alone.

IMPACT OF CHRISTIANITY IN BUSINESS PRACTICES

Christians glorify God in many ways- through worship, ev angelism, giving alms, having faith and doing actions in
imitation of God. A Christian may apply his beliefs to align with his business practices as demonstrated in the examples
below.

1. In producing Goods
God has intended for mankind to develop Earth, by imparting the knowledge and skills to be able to make something
from the materials that God had provided. But there are temptations that accompany the productions of goods and services
when the focus is on acquiring material things. One might also be tempted by pride and turn one’s heart away from one’s
neighbors. Christians are taught to avoid selfishness and greed. Producing harmful, evil or destructive work, such as drugs
or pornography must be avoided.

2. In Employing People and Being Employed

The bible does not view hiring another as exploitation. In the bible, Jesus taught that laborers deserve wages and
employers also benefit by having the work done. Employers must exercise caution not to oppress and be unfair.
Employees, on the other hand, must exercise caution to avoid carelessness in work, laziness, jealousy, bitterness,
dishonesty, theft, or rebelliousness.

In the early 1900s, Max Weber examined the relationship of religion and capitalism. He emphasized that protestant
ethic would provide a template for living a righteous life and thereby be in God’s good grace. Hard work, discipline,
frugality, sobriety, and obedience to laws are examples of inner-worldly asceticism. Weber explained that by engaging in
these activities, the chances of succeeding in business are higher- a sign of grace from God. Protestants therefore strive to
embody these ethics to reach salvation.

3. In Buying and Selling

Commercial transactions are in themselves good because the community is able to help and fulfill each other’s needs.
Again, Christians must guard themselves from seeking only their good and having no thought of others. One must
overcome selfishness. Amassing wealth at the expense of other people is not the Christian way. One must not engage in
dishonest businesses, use low-grade materials, or overprice goods and services.

4. In Earning Profit
The Bible teaches about stewardship- expanding or multiplying the possessions God has entrusted mankind. Seeking
profit is fundamentally good, however, caution must be made that the profits are not acquired through the exploitation of
others or due to unfair business practices.
God gives Christians the opportunity to imitate his character and glorify him in everything they do – they must reflect
God’s attributes of love for others, wisdom, etc.

IMPACT OF ISLAM TO BUSINESS PRACTICES

The Islamic code of ethics is governed strictly so that Muslims are required to behave in accordance to it because all
dealings are witnessed by Allah. Adherence to the moral code and ethical behavior is part of the Six Pillars of Iman.

1. Practice freedom of enterprise

Muslims are free to choose a way to earn a livelihood within the limits set by the Islamic Shari’ah. One must operate
with a sense of responsibility to pursue lawful and just businesses.

2. Be honest and truthful

Qu’ran disapproves any wrongdoings. One must strive to earn through legitimate transactions and interests. For
example, making profit might lead to temptations to enhance or exaggerate attributes during product presentation. Islam
encourages sincerity and purity of intentions. Avoid fraud, deception, and dubious means to sell products.

3. Trade through mutual consent

The validity of a transaction depends on mutual consent. Sales under coercion are not acceptable in Islam. Taking
advantage of others’ plight and usury is exploitation and therefore forbidden.

4. Treat workers fairly

Islam encourages the spirit of brotherhood between employer and employee. It is the moral responsibility of the
employer to take care of the welfare of his employees. They should be given fair wages and have well working conditions.

5. Keep one’s word

Muslims should honor and fulfill business obligations as promised. According to Islamic teachings, contracts must
clearly define the details and explicitly enumerate the rights and obligations of the concerned parties.

3
6. Be humble
One should conduct life in accordance to the teachings of Allah. Muslims should avoid extravagance and must exhibit
goodwill in all transactions.

7. Seek halal earnings

Muslims are obliged to earn halal money, not just earn from any enterprise. Muslims are prohibited to deal in haram
(unlawful) items such as dead meat, pigs, and idols. They are also prohibited to sell commodities that are speculative or
risky; arbitrarily fix prices; hoard food items; exploit the ignorance in market conditions; trickery; cheating; and fraud. No
matter how rewarding the profits, Muslims must refrain from engaging in riba (interest usury), gambling, liquor, and
pornography. Swearing and dealing in stolen goods are unlawful. The shari’ah list prohibited matters in business
transactions. Businessmen should treat others in a fair manner that they themselves would like to be treated.

IMPACT OF BUDDHISM IN BUSINESS PRACTICES

Buddhism’s main tenet is to do no harm. An analysis will show that Buddhism can affect business practices
positively. You have learned that Buddhism emphasizes how to foster minimalistic world view and free oneself from
worldly attachments. Buddhist principles also teach that opportunity favors the hard worker. If one has good work ethics
and attitude, very little will stand in his way.
However, teachings also remind Buddhist to strike a balance between toiling and overworking. Practicing
mindfulness can be a key to good business as it helps one to work smartly. The mind and the heart have to be balanced,
objective, and mindful of pride.
The Eightfold path states one must see reality unfiltered, say the truth, practice no harm in words and in actions, and
commit no wrong. These can be used in the daily lives of business constituents.
One must free oneself from temptations, cravings, and distractions. There are many instances in a workday where one
can exercise to choose the right actions instead of bribing, avoiding work, cheating, or wasting away the time.
Buddhists are reminded to be mindful and to keep calm. One can only lose what one clings to, and because nothing is
permanent, one has to be adaptable and flexible, both necessary to find happiness and to avoid disappointment and
suffering.
The basic principle in Buddhism is no exploitation. It emphasizes that there is no need for a connection between what
is given and what is received. However, in real life, people negotiate to maximize what they can get for what they are
giving. Withholding goods to control supply and then, later selling the goods at an exorbitant price is an example of
exploitation.
Using slaves to do hard labor is another example of exploitation which withholds the rights of a person to earn a
decent wage and true human existence. Buddhists believe that to earn a living, one must find work that will do no harm.
Harmful work includes harming animals for slaughter, trade in poisons, manufacturing and trading weapons of
destructions.
As an employer, one makes use of the labor and the skills of employees but also take responsibility so that their needs
are met. As an employee, one works to the best of one’s ability.

IMPACT OF JUDAISM IN BUSINESS PRACTICES

In traditional Judaism, there are 613 mitzvot (commandments) that are equal in importance to the ―ten
commandments‖. The mitzvoth are taken from the written and oral Torah. Many pertain to doing business in accordance
to Jewish laws.
 Business in Good Faith
Business activity is in itself as a holy activity and one should seek to conform to Jewish laws. Jews should be honest.
As traders, they are prohibited to commited fraudulent actions in buying and selling goods. Monetary and verbal
deceptions are prohibited. For example, scales and weights must not mislead people in business to make profit.
It is the obligation of Jews to avoid poverty by earning a living through gainful employment. One must not borrow on
interest because it causes the lender to sin.
Jews are obligated to protect the poor. They are discouraged to lend to an Israelite on interest and should never take
part in usurious transactions. When one lends to a poor person, one must not press or demand repayment when the lender
cannot pay.
Pledges for money lent were taken, but Jews are reminded not to take pawns, such as utensils used in preparing food.
One should not exact a pledge by force and to always return the pledge to its owner.
 Treatment of Workers
Jewish law state that everyone must be treated with respect and dignity, appropriate wages must be paid on time, and
mocking or embarrassing workers are prohibited.
In Biblical times, farmers hire employees to assist in harvesting. Servants are permitted to eat produce he is reaping.
As an employer, one must not engage a Hebrew servant to do the work of a slave, not sell a Hebrew servant as a slave.
Helpers are reminded not to take more than one can eat and not eat produce that is not being harvested.
In contemporary times, the same laws apply. One should not ban bathroom breaks, change work hours or assign shifts
without notice, nor require overtime work without consent and payment. Employees, on the other hand, must work with
honesty and not waste time during work.
 Trading
After their exile, the small Jewish community had little trading activity except in Jerusalem. When Islam and its
control over European lands gained popularity, Jewish commercial activities rose with it. Christians do not trade with
Muslims nor do Muslims transact with Christians. Jews, however, were tolerated in both spheres as commercial
intermediaries. Within two centuries, Jews have monopolized the trade between Europe and Asia. At one time, the Jews
monopolized the spice trading.

4
RELIGIOUS INFLUENCES IN BANKING AND FINANCE
Religious systems in the past had great influence over how people dealt with finances. Some were strict and forbade
usury, while others legitimized interest charging even for food money. Food money comes in different forms such as
olives, dates, or animals.

Judaism
The Torah criticizes charging interests to fellow Jews but obligates fees on transactions with gentiles or non-Jews.
Usury is condemned, however, this was sidestepped in the 14 th century when Jews living in Europe justified lending
money for profit to Christians. Christians were not involved in the lending but were able to take loans. In general, Jews
are discouraged, but not prohibited, to get into debt at all to avoid being bound to someone else.
Systematic repression of the Jewish business began in the 12 th century when they could no longer directly purchase
merchandise for trade. This situation led them to money-lending activities where they could source produce from pledges,
eventually leading to innovations in modern banking and commerce. Examples of innovations are interest on loans,
securing bonds for loans, and the use of bills of exchange.

Islam
The Qu’ran strictly prohibits lending money on interest, and making money through unethical means is haram.
Despite the prohibition on riba or usury, the Islamic banking model found ways to operate for profit and still be compliant
to Shari’ah laws. They experimented on profit sharing schemes where financial institutions paying for the capital get a
specific portion of the profits. Another scheme is to lease the capital asset to the business and earn through the payments.

Christianity
Christian churches also banned interest charges, as it is considered to be taking advantages of other people’s
misfortune. It is morally wrong because it amounts to double charging for the item or money2, then, charging for the use
of the item or money. In modern times, the prohibition has not been enforced.
______________________________________________________________________________
FILIPINO VALUE SYSTEM
Gorospe (1994) outlines how the Filipino value system has emerged from culture. He posits that Filipinos experience
and extends solidarity, politeness, hospitality, gratitude subjectively and emotionally. These values are not just concepts
for Filipinos but a way of life.
These behavioral patterns influence the way Filipino deal with one another and also affect business constituents.
1. Filial Piety
Filial piety is a prime virtue that requires reverence and respect for parents and elders. In a Filipino household,
parents exercise absolute powers over the children who grow up respecting parents as they have been taught how.
The father is usually considered the head of the family as he is the breadwinner, while the mother takes care of the
household, education, and finances of the family. In more recent times, however, as more and more mothers work outside
of the home, fathers and mothers share the responsibilities of the family inside and outside the home.
2. Paggalang (Respect)
Respect and filial piety trains Filipinos to be obedient and to follow orders and rules set by elders. They also learn
from them as they share their wisdom. However, filial piety also discourages Filipinos from deciding on their own.
3. Pagpapahalaga sa Pamilya (Prioritizing Family or Family Orientation)
This implies that Filipinos have a high regard for their families and prioritize them before anything else. You can see
this value being practiced in life—elderly people are rarely sent to homes for the aged. Filipinos prefer to take care of
their elders in their own homes.
This value is good in itself. But, in the business setting, it poses some difficulties.
4. Hiya (Shame)
Many values reflect the desire to be together as a group, and Filipinos experience hiya when one goes against societal
expectations. Hiya is a pronounced sense of embarrassment. It is a trait that motivates the Filipino’s behavior to be
obedient and respectful. It is also a key ingredient in the loyalty to one’s family. Filipino’s believe they must live up to the
accepted standards of behavior, for not doing so will bring shame to them and their family.
5. Amor Propio (Self-Respect)
Amor Propio is best translated as self-worth or self-respect and each transgression of self-worth can contribute to
hiya. Generally, Filipinos are not confrontational and this trait stems from a desire not to offend another’s sense of amor
propio and bring about a sense of shame. When Filipinos have issues, they resort to an intermediary to mediate the
dispute. In tge Philippine civil law, amor propio is seen as defamation of character and can be used to file libel and
slander.
6. Pakikisama (Being with others)
Pakikisama is the ability to get along in a group. It fosters camaraderie. This trait leads people to be cooperative and
perform good deeds for others. Thus, others view the person in a favorable light. Filipinos yearn to be accepted and well-
liked by society and this applies to all people in their lives—family, friends, colleagues, bosses and relatives. One usually
yields to the group’s opinion and sacrifice self-welfare for the group’s welfare.
As a leader of your business, you show that you have pakikisama by mentoring newly hired employees, teaching
them the tasks and duties they need to do so that they can perform well. You do not promote pakikisama when you cover
up for a colleague or help co-workers hide their mistakes that have lost the company a sum of money.
7. Suki
Suki relationship occurs when two people or organization agree to become regular customer and supplier. It is not an
explicit agreement. Filipinos will regularly buy from certain suppliers who can give in return, reduced prices,better

5
quality, credit, or give them preferential services. They received special treatment in return for their regular patronage.
Because trust is a vital aspect of this, it therefore creates a personal relationship between the individuals.
8. Utang na Loob (Debt of Goodwill)
The Filipino term utang na loob is the willingness and even eagerness to acknowledge such internal debt of
benevolence and then, to return it in kind by providing a similar favor or through token gifts and services. These are
renderes to express one’s appreciation and loyalty to the benefactor.
9. Manana Habit (Procrastination)
Manana is Spanish term for ―tomorrow‖. This Filipino trait encourages procrastination, relegating tasks for another
time and only working on them close to the deadline. It may be due to non-interest in the task or the mood of the person
involved.
10. Bahala na ( Come What May)
Bahala na can be viewed as a positive value when used in situations wherein accidents happen despite preparedness
or when one loses something in spite of careful attention to the situation; when one feels there are uncertainties that lie
ahead despite making careful and deliberate choices; or when one cannot decide even after careful deliberation. The
person has resolve, peace of mind, and stability and bahala na is used as a coping mechanism in the face of risky
undertakings. It shows determination and strength in trying times.
However, bahala na becomes a negative value when there is ambivalence. The person becomes lazy, irresponsible,
and randomly chooses an option without thinking or doing anything; relying too much in God without doing any effort; or
doing something detrimental, regardless of the consequences. Bahala na becomes a scapegoat of one’s irresponsibility.

Exercises and Drills

Activity 1
Directions: Identify the following statement.
___________1. It is a term which means willingness and even eagerness to acknowledge such internal debt of
benevolence and then, to return it in kind by providing a similar favor or through token gifts and services.
___________2. It occurs when two people or organization agree to become regular customer and supplier.
___________3.It strictly prohibits lending money on interest, and making money through unethical means.
___________4.It encourages procrastination, relegating tasks for another time and only working on them close to the
deadline.
___________5. It teaches that opportunity favors the hard worker. If one has good work ethics and attitude, very little will
stand in his way.
___________6. It is a trait that motivates the Filipino’s behavior to be obedient and respectful.
___________7. It does not view hiring another as exploitation but taught that laborers deserve wages and employers also
benefit by having the work done.
___________8. A religion which believes that one must not borrow on interest because it causes the lender to sin.
___________9.It is a monotheistic religion that believes in one God, the creator and sustainer of life.
___________10.They experimented on profit sharing schemes where financial institutions paying for the capital get a
specific portion of the profits
Activity 2
Directions: Specify how each belief system can be applied to business.

Christianity Islam

Buddhism Judaism

6
Activity 3 Build your Business know-how on Filipino Value System
Directions: Let us go through your business know how, give your insights to the following questions.
1. Are you being responsible to go ahead with your business plan saying ―bahala na‖ even your parents are skeptical?
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
_________________

2. You wanted to build a bakery, however, your parents is advising you that it is not ideal. Should you listen to them out
of respect or you continue with your business plan?
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
______________

Activity 4. Build your Business know-how on Impact of Belief System in Business

Directions: Let us go through your business know how, give your insights to the following questions.
1. If you were a business owner, would you require your employees to work on Sundays? Explain your answer.
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
______________
2. Are the practices of treating customers well and following the health code applicable to business owner?
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
______________

Processing Question:
As future entrepreneurs, what is the importance of understanding the Filipino Value System?
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________

INTEGRATION
Closure/Synthesis

To check your learning from the activities you’ve done, summarize your overall experience while doing the activities in
this module.
Framing Concept
3,2,1 Chart
3 Things that I have learned 1.
2.
3.

2 Things that caught my attention 1.

2.

1 Thing that I want to elaborate 1

Reflection Guide
Most of the people are God-fearing people and they follow their religions and cultural beliefs meticulously. This might
also affect their everyday work and business. The owner of a business or the employees may lean towards following a
religious practice which may or may not adversely affect their work.

Reflective Questions:
1. How could religion or beliefs impact a business?
__________________________________________________________________________________________________
__________________________________________________________________________________________________
_________________________________________________________________________________________
2. How could Filipino Value System impact a business?

7
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
______________

INTERVENTION
Evaluation
Directions: Answer the following.
1. Choose one of the values that Filipinos practice. Give concrete examples of the proper and improper applications of this
value in the business setting.
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________
2. Of the virtues discussed, what traits do we need to eliminate? Justify your answer.
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________
Post Assessment
_____1. They obligate fees on transactions with gentiles or non-Jews.
_____2. They banned interest charges, as it is considered to be taking advantages of other people’s misfortune.
_____3. They encourage the spirit of brotherhood between employer and employee. It is the moral responsibility of the
employer to take care of the welfare of his employees.
_____4. It is a prime virtue that requires reverence and respect for parents and elders
_____5. It states that everyone must be treated with respect and dignity, appropriate wages must be paid on time, and
mocking or embarrassing workers are prohibited.