BMSH2004

FOUNDATIONS OF THE PRINCIPLES OF BUSINESS ETHICS

The Classical Philosophies and their Implication on Business (Camilar-Serrano, 2016)
A. Socrates
Socrates was the first person to give a practical and political focus to philosophy and ethics. He
believed, to the contrary of many around him, that the most applicable questions that philosophy had
to deal with are related to how people should live mutually in communities and states.
Socrates equated knowledge with virtue, which eventually leads to ethical conduct. He believed that
the only life worth living was one that was carefully examined. He looked for principles and actions
worth living by, creating an ethical base upon which decisions should be made. Socrates definitely
believed that knowledge and understanding of virtue, or “the good,” was enough for someone to be
happy. To him, knowledge of the good was almost similar to an enlightened state. He believed that no
person could willingly decide to do something damaging or harmful if they were completely aware of
the value of life.
Application to business
In the business world, managers should not sleepwalk or simply go along with the crowd. In order to
live a virtuous life, morally unacceptable policies and practices must be prevented even though
“everyone else was doing it.” Managers should be responsible for their actions and must be prepared
to be fired or demoted rather than go against their conscience. A good manager is someone with a
functionally relevant set of virtues to view personal success and moral excellence. An organization
must encourage independent thinkers and their employees to follow their conscience. Employees,
too, must provide critical feedback to managers. This is to create opportunities for good people to
“blow the whistle” in cases of bad behaviors.
B. Plato
Beginning his early youth, he had been fascinated by political affairs. Starting from his associations
with Socrates and as of his own observations, he had arrived at certain beliefs about the suitable
credentials for those whose duty was to rule the government. He believed that only those who
possessed scholarly and ethical qualities should be trusted with the control to rule above others.
Another Plato’s prime belief was that a person must study themselves to find out their level of
character. He believed that personal development and personal insight is the only means to reveal
the gifts that God has given everyone.
Plato was famous for his discussions on the subject of reality. He believed that everything was
founded in perception, and the physical world is the lesser world in every way. He believed that most
of the greater world is not clear. He hated people who place all their faith in their physical sense and
no their intellectual senses for the intention of collecting insight. The weight Plato put on the
intellectual abilities indeed makes him one of the original personal development authorities.
“More will be accomplished, and better, and with more ease, if every man does what he is best fitted
to do, and nothing else.” According to Plato, each social class must happily perform the function for
which it is suited, like the philosopher rules, the warrior fights, and the worker enjoys the fruits of his
labor.
Application in business
In business, it is always important to know everyone's strengths and weaknesses in the organization,
whether a top executive or an ordinary employee. This can only be achieved by constant acts of
examination and analysis. Any firm must be aware of the path it is taking and make regular checks to
ensure that things are going well. There should be continuous communication among the member of
the organization. The company should also solicit inputs from everyone in the company on the
direction of tasks and how well they think they are going. Having more accurate and updated
information available to the firm will allow management to make better decisions. It is also best to hire

02 Handout 1 *Property of
 STI
 BMSH2004

the right people. Selection should be done carefully. Companies must fit the exact natural talents of
qualified applicants with the job requirements and expectations. The person’s instincts and habits will
prompt them to do what management wants them to do even without actual supervision. Each job
has a set of behaviors that let the right person stand out because that person is so perfectly matched.
C. Aristotle
Aristotle was the most practical and business-oriented of all philosophers, although there was never
any mention of a large business or corporation during his time. It is also amazing that the idea that a
person who’s been dead for nearly 2,400 years has many sensible things to say about modern
organizations. Aristotle remains relevant because he is chiefly interested in the ethical principles of
leadership.
Contained in his Nicomachean Ethics, Aristotle established that the leader is someone who must
construct an environment in which all members of an organization have the chance to recognize their
own potential. He says that the leader's ethical role in the establishment of the conditions under which
followers can attain their full potential and enhance their own power.
Aristotle was a great biologist as well as a great philosopher. He based his ethics on a psychological
theory of human nature, claiming that people are by nature virtuous, rational, social, and happiness-
seeking. Governments and organizations have to build the best systems to allow humans to carry out
their natural drives.
Aristotle’s philosophy influenced Edward Deci and Richard Ryan’s Self Determination Theory, which
suggests that employees will work harder for a company and perform better if given tasks they find
meaningful and morally worthwhile.
Application to business
In business, the organization must provide an environment that is conducive to human growth and
fulfillment. Employees will be inspired to work if they know that their contributions to the company are
significant and morally valuable. They will be more motivated if they are allowed to nourish their
innate curiosity through learning opportunities. Management could offer vocational training and
lectures. They can also be provided with time and even money for evening learning classes and
credit their accomplishments. In terms of the distribution of rewards, , employees must be rewarded
proportionately to their contributions based on ethical principles.
D. Immanuel Kant: Duty-Based Ethics (Cortez, 2016)
Immanuel Kant is one of the most influential philosophers in the history of Western philosophy. His
contributions to metaphysics, epistemology, ethics, and aesthetics have profoundly impacted almost
every philosophical movement that followed him. He was a German philosopher who advances the
theory of deontology or deontological ethics, which is the theory of duty and obligation.
Deontological ethical systems maintain that an action can be morally right even if an alternative action
in a given situation would have better overall consequences. Thus, theories of this type deny what
consequentialist ethical systems affirm, namely, that morally right actions are all and only those that
have optimal consequences. Acts such as lying, discrimination, stealing, bribery, and exploitation are
morally wrong in themselves without a need to evaluate whether they have overall good or bad
consequences for the agent or even for the majority of people.
Application to Business
For example, a store owner who does not deceive his customers by overpricing. Rather, the owner
arranges a uniform price for all customers, experienced and inexperienced alike. At the outset, an
external observer may see the store owner as a morally upright person because they honestly serve
each and every customer. Kant is not too quick to judge. The owner may just be acting in conformity
with a moral duty but is motivated by selfish interest, rather than acting from a moral duty but is
motivated by this duty itself. In the first instance, the store owner’s action has no moral worth. In the
latter, it has true moral worth (Cortez, 2016).

02 Handout 1 *Property of
 STI
 BMSH2004

Kant calls principles that are universally binding as a categorical imperative. It is imperative because
it poses itself as a command that obliges one to obey. It is categorical in the sense that it is
uncompromising and is not based on conditions.
To clarify this, it is important to distinguish between two (2) kinds of a proposition: categorical and
hypothetical. A categorical proposition is a direct assertion or denial of something (e.g., The sun is
shining). A hypothetical proposition is more complex because the truth of one part is dependent on
the truth of the other part (e.g., “If it is daytime, then the sun is shining”).
Application to Business
Applying it more concretely in business context, a hypothetical imperative takes these forms: “I should
pay taxes if it is favorable for my business or for society.” “I should not bribe if I want to keep my
integrity intact.” On the other hand, a categorical imperative may be expressed this way: “Tax evasion
and bribery are morally wrong. No ifs, no buts.
E. Jeremy Bentham and John Stuart Mill: Utilitarianism
“The sad truth is that it is the greatest happiness of the greatest number that is the measure of right
and wrong” – Jeremy Bentham
“A person may cause evil to others not only by his actions but by his inaction, and in either case, he is
justly accountable to them for the injury.” – John Stuart Mill
Jeremy Bentham (1748-1832) was an English philosopher and political radical. He is primarily known
today for his moral philosophy, especially his utilitarianism principle, which evaluates actions based
upon their consequences. The relevant consequences, in particular, are the overall happiness
created for everyone affected by the action. He famously held a hedonistic account of both motivation
and value, according to which what is fundamentally valuable and what ultimately motivates us is
pleasure and pain. Happiness, according to Bentham, is a matter of experiencing pleasure and lack
of pain.
John Stuart Mill (1806-1873) profoundly influenced the shape of nineteenth-century British thought
and political discourse. His substantial amount of works includes texts in logic, epistemology,
economics, social and political philosophy, ethics, metaphysics, religion, and current affairs.
Utilitarianism’s fundamental insight is that outcomes matter, and so we should decide what to do by
considering the overall consequences of our actions. In this sense, utilitarianism has been called a
consequentialist approach to ethics and social policy: We should act in ways that produce better
consequences than the alternatives we consider (Hartman, DesJardins, & MacDonald, 2018).
Application in Business
In a business context, a temptation is to answer in terms of financial consequences: The right
decision is one that produces the best financial returns. But this answer would reduce ethics to
economics by identifying ethically best as economically best. “Better consequences” are those that
promote human well-being: the happiness, health, dignity, integrity, freedom, and respect of all the
people affected. If these elements are basic human values, then an action that promotes more of
them than the alternative action does is more reasonable from an ethical point of view. A decision that
promotes the greatest amount of these values for the greatest number of people is the most
reasonable decision from an ethical point of view (Hartman, DesJardins, & MacDonald, 2018).
Types of utilitarianism
Rule utilitarianism – Put in place to benefit the most people by using the fairest methods possible.
Act utilitarianism – Makes the most ethical actions possible for the benefit of the people.
Belief Systems (Camilar-Serrano, 2016)
How World Religions View Business Ethics

02 Handout 1 *Property of
 STI
 BMSH2004

Judaism, Christianity, Islam, Hinduism, Buddhism, Confucianism, Taoism, and Shintoism are the
world’s eight (8) major religions. Each has its own organized system of beliefs, ceremonies, and
worships, and each offers a prescription for the positive endeavor in both lives and business.
Religious ethics provides a set of consistent and reasonable statements regarding business. It’s a
different approach that provides new horizons for thinking. In our global world, business means
dealing with people of different religions, and ignoring or misinterpreting religious, ethical approaches
can cause serious problems.
A. Judaism
Judaism sees nothing immoral with business and making a profit as long as the firm realizes it has
other responsibilities. Any organization must practice loving, kindness, justice, and righteousness as
stressed and demanded by God.
Certainly, business ethics occupies such an important place in Jewish law, culture, and tradition. The
Jews believed that the very first question and individual are asked in the next world at the final
judgment: “were you honest in your business dealings?”
Biblical law mandates the establishment of precise weights and measures that call for periodic self-
inspection and the appointment of an independent inspector. False or deceptive packaging and
labeling are likewise prohibited. Other sorts of deceptive practices are also banned. For instance, the
sale of an item at a very high or low price relative to its fair market price is considered oppression,
and under many circumstances, the sale could be canceled out by the wronged party. Relations
between employees and employers, as well, are regulated by Jewish law. The law recognizes the
legality of regulations promulgated by “the residents of the town” about wages and working
conditions. The definition of that body is later stretched to include guilds of tradesmen or craftsmen
who were permitted to agree to binding regulations. The rights and interests of workers and
management are to be taken into account by someone to whom a labor disagreement is brought for
arbitration or adjudication.
Jewish civil law is mindful of laws and regulations in the wider non-Jewish societies among which all
Jews lived for centuries. The authority of the government is accepted in such statues as that which
requires that Jewish citizens pay the taxes levied upon them fairly and honestly. The law of the land is
the law.
More largely than the dictates of the law, Jewish ethics advises the application of general ethical
principles in one’s business affairs as in every other aspect of one’s life. One is expected to take
safety measures not only to avoid taking inequitable advantage of those with whom one does
business but even to watch against creating the impression of impropriety. This is for the sake of
one’s own good name and the reputation of the Jewish people. More importantly, for the sake of the
God whom Jews claim to serve, one must be perceived as fair and honest, even at the cost of some
rightful gain.
Jewish ethics pushes the individual to go further than what the law says in determining one’s
obligations to others in the monetary sphere. No one is likely to agree to be taken advantage of, but
one must take even greater care not to get from any advantage one has over others. In this manner,
one brings to one’s own life and one’s community a measure of the holiness with which Jewish
spiritual practice seeks to instill even to the most ordinary affairs (Camilar-Serrano, 2016).
B. Christianity
There are three (3) biblical principles that stand out that define a Christian business worthy of that
name:
1. Integrity – It is about Christ-centered living. It is about doing what is right rather than what is
convenient. The organization with integrity will make its business decisions based on the
standards and principles of God, which are righteousness, truth, and honesty. That is, there is
congruency between what the organization verbalizes and what it practices. A Christian business
is the epitome of integrity. This means “we are whom we say we are.”

02 Handout 1 *Property of
 STI
 BMSH2004

2. Commitment to excellence – If an organization is to be recognized as an exemplary one, one

whose goal is to glorify God through its commitment to excellence in its service and product, it
must always honor God and be thoroughly aware of its role and mission in a pagan world. Such
an organization never forgets that God has called them to be His witness to the lost world in
which they do business. When business organizations commit themselves to the pursuit of
excellence, they exalt the Word of God. They also demonstrate God’s power to transform lives,
not only through their employees but also with their customers.
3. Commitment to its people – This includes the area of fair compensation, performance recognition,
and providing growth opportunities, both professionally and personally. It has been determined
that organizations that recognize the needs of their people and create opportunities for them to
fulfill those needs can bring out the very best in them. The apostle Paul indirectly addressed
relationships between employers and employees. He said that employees must obey their earthly
masters in everything with sincerity of heart and reverence for the Lord. Paul also gave a
command to employers because, just as their employees report to them, they have someone to
report to who is their Master in heaven. Employers could hardly expect to be treated fairly by God
if they failed to treat their employees fairly. Paul’s remarks concerning the employer/employee
relationship involve the mutual submission of employees to their employers and vice versa.
Employees, too, are to treat their employers with respect and “obey them not only to win their
favor when their eye is on you but as slaves of Christ, doing the will of God from your heart”
(Ephesians 6:6).
C. Islam
Business practices of Islam
Executives who understand the basic doctrine of the Islamic region related to commerce will have an
easier time trading with Muslims, they said. The following principles of behavior are expected among
business people:
1. Contracts should be fair to all parties – Partnership is preferred over hierarchical claims.
2. Speculation is prohibited – People do not like gambling. Investment in an Islamic mutual fund is
always encouraged among industries except for the gambling industry.
3. Interest is prohibited – Part of the religious belief is that you do not charge interest or accept
interest. Now, of course, that isn’t always practiced, but it is the theory.
4. Compassion is required when a business is in trouble – In any country with Islamic influences in
its legal structure, bankruptcy, or if somebody is experiencing financial reversals, no pressure
can be placed on them because that is not an appropriate thing to do when somebody is down.
Cultural differences can present straightforward logistical issues. Most Muslim countries have
Thursday-Friday or Friday-Saturday weekends. But the more complex aspects of culture present the
real challenge. Here are a few tips on broad cultural differences that business people may have to
navigate:
1. Power – In the Muslim world, power is largely ascribed, meaning that people can often reach
high places by virtue of their birth and social position. As a result, a person’s title or level of
influence may seem incongruous with their accomplishments or experiences.
2. Community – There is an obligation to the community. Muslim societies are usually “we”
societies, so people’s role in the society is respected, and the group takes precedence. This
affects performance management in particular because it is seen as unfair to reward one
person.
3. Rules – The written rules governing any scenario are the final authority. The existing business
practices and trusted guides are normally used in navigating business transactions.
4. Communication – Verbal communication is not direct. People get their points across in long,
winding stories, and being straightforward is seen as impolite. In negotiations, one should

02 Handout 1 *Property of
 STI
 BMSH2004

carefully listen. Patience will produce helpful information, especially if one can read between the
lines of the message.
5. Islamic Finance – Muslim finance takes the concept of fairness very sincerely, and charging
interest is regarded unfair, although, in practice, this rule is not absolute. Speculative finance is
also considered unprincipled, so it is expected that resistance to instruments like options and
futures would be encountered.
D. Hinduism
Hinduism is the major religion of India, practiced by more than 80% of the population. This is the
rationale behind most Hinduism practices, including business, could be found in India. Here are some
of those practices:
1. Doing a business meeting requires a handshake called namaste as part of etiquette. Using the
namaste is a sign of understanding their etiquette.
2. Names speak volumes about an Indian’s background. For example, a Singh will always be a
Sikh, the suffix -jee (as in Banerjee) is a sign of a high caste/ “Kar: (as in Chandraskar) denotes
that person is of Maharashtan high caste.
3. Always use the appropriate formal title when addressing a person if the person is personally
known as a professor, Doctor, Mr., Mrs. If the person is not quite familiar, use their names, then
sir or Madam will suffice.
4. Business cards should be exchanged at the first meeting. It is an excellent idea to have it
translated on one side into Hindi, more as a symbol of respect rather than linguistic necessity. It
must be received and given with the right hand. The card must not be simply pushed into a
trouser pocket.
5. Doing business involves building relationships because they only deal favorably with those they
know and trust, even in lucrative deals. It is essential that a good working relationship is founded
with any prospective partner. This must take place on a business level, like demonstrating strong
business sharpness and at a personal level, like relating to a partner and exhibiting the positive
traits of trustworthiness and honor.
6. Meetings should be arranged well in advance. This should be done in writing and confirmed by
phone. Meetings must not be scheduled near or on national holidays such as Independence
Day, Diwali, or either of the two Eids. In order to avoid the heat, meeting schedules must be
placed between October and March.
7. Punctuality is expected, although being 10 minutes late will not have ruinous consequences.
Flexibility is vital. Family responsibilities take priority over the business, so last-minute
postponements are likely when doing business.
8. When entering a meeting room, a person must always approach and greet the elder figure first.
Meetings should always start with some conversation. This is part of the getting to know the
process. Favorable topics of conversation are the newest business and the fortunes of the stock
exchange. Talking about personal matters is avoided. Commenting on matters such as poverty
or beggars must be prevented.
9. Business dealings involve negotiations and can be slow. If trust has not yet been ascertained,
then concentrate efforts on building a relationship. Decisions are always prepared at the highest
level. If the owner or director of the company is absent, the chances are these are early-stage
negotiations.
10. Business decisions are not solely based on statistics, empirical data, and exciting PowerPoint
presentations. They use intuition, feeling, and faith to guide them. Businessmen must apply
patience, demonstrate good character, and never display frustration or anger.

02 Handout 1 *Property of
 STI
 BMSH2004

11. When negotiating, avoid high-pressure tactics and do not be forceful. Criticisms and
disagreements should be expressed only with the most tactful language. There is an aversion to
saying “no” as it is considered rude due to the possibility of causing disappointment or offense.
Listen carefully to Indians’ responses to your questions. If terms such as “We’ll see”, “I will try,”
or “possibly” are employed, then the chances are that they are saying “no”.
12. Once terms have been agreed, there will be a celebration dinner for a successful negotiation and
the continuous process of the relationship building process.
E. Buddhism: Maxims for Business
Buddhist business practice and maxims can be beneficial to the decision-making process in the
workplace. The following are some Buddhist principles for business in order to achieve workplace
nirvana in no time.
“Too cold, too hot, too late” can always be the excuses to those who do not want to work. They let
their opportunity pass by. This reminds people that opportunity favors the hard worker, and those with
an uninspiring work ethic will always find a defense.
None can live without toil, and an ability that provides one’s needs is a blessing, really. But if people
work hard without rest, fatigue and weariness will overtake them, and they will be denied the joy that
comes from labor’s end. Indeed, life would not be so full without work, and it’s always nice to be
grateful for one’s work and to get sufficient rest.
Develop the mind of equilibrium. People will always be getting praise and blame, but do not let either
affect the composure of the mind. Just follow the calmness and the absence of pride. The practice of
mindfulness can be a key to good business, reducing supply costs and increasing the potential to
work with compassion. It is nice to instruct the mind and heart to be balanced, objective, and mindful
of the shade of pride. Mindfulness has benefits that cover many occupations and fields. Remember to
be calm and not obsess too much about positive or negative feedback. If people do a job long
enough, they are bound to have great moments of achievement, as well as great moments of failure.
These are both times to learn from, and keeping the mind situated rightly can be of the greatest
value, especially at work.
The Eightfold Path – These eight (8) signposts could prove helpful for one’s business dealings:
1. Seeing reality unfiltered and as it actually exists.
2. The purifying wisdom and intention of harmlessness
3. Saying the truth, practicing non-harm in speech patterns
4. Non-harmful action (this applies to self and others)
5. Commitment to a non-harming life
6. Seeking the mindful discipline to improve oneself constantly and overtime
7. Awareness of reality and freedom from temptations, cravings, and distractions
8. Proper concentration and meditation
Work means to discover the world and then give oneself wholeheartedly to it. When a person is in
business, it’s always nice to know that one’s work, which can be such a big part of one’s own world,
really impacts the outside world. In business and life, every action a person takes is part of a larger
journey of self-discovery. Therefore, what a person chooses to put his whole self into truly does
matter.
The most valuable service is one rendered to one’s fellow humans. This means that work is valuable
only since it helps other people. Taking a reverent and principled approach to one’s work and
discovering exactly how it produces importance to oneself and the marketplace and other individuals,
is an essential step on the way to performing one’s work with mindfulness. Simply being aware that
one’s work has an audience, sells a service or product that improves lives, or involves working with

02 Handout 1 *Property of
 STI
 BMSH2004

the common public on some level can be regarded as grateful ones. Maintaining what one is doing
with his life is adding value to the human experience.
Every individual has a responsibility to help guide the global family in the right direction. Good wishes
are not enough. People must become actively busy. This means that every person shoulders the
weight of responsibility to do good. It is the good actions, not the good intentions, which accomplish
the most on and off the job.
Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.
Living in the present is of the highest importance. It can definitely help a person in his work. One point
of having work is being meaningful and busy. Indeed, it is one of the blessings that productive value-
making brings. This is why a business person should concentrate one’s mind on the present to
increase productivity.
One can only lose what he clings to. This means that everyone should embrace change. Change is
everywhere. Nothing is permanent, and that adaptation and flexible uncertainty is vital to happiness
and avoiding disappointment and suffering. Concentrating detachment from dogmas, old rules, and
other weary modes of thought and action will help carry on one’s business and the work product
strong. It is normally positive to accept the change that one cannot otherwise escape. Keep calm, and
carry on.
A jug fills drop by drop. This means that things happen step by step and that methodological little by
little work is often superior to big splashes. When people focus on the small things, the big things
make sense, which is a lot true for the business world. Small efforts can amount to great success.
F. Confucianism
Confucianism teaches that there is a natural social order to society, which can best be explained
through the five (5) relationships, which are:
1. Ruler to ruled
2. Father to son
3. Older brother to younger brother
4. Husband to wife
5. Friend to friend
In these relationships, it was taught that if everyone recognized their place in society, the order would
reign. Several concepts needed to be practiced in order to reach an ordered society:
1. Jen - Human kindness should be shown towards one another.
2. Li - Proper etiquette should always be used, and one should strive to achieve perfect virtue.
3. Filial Piety - One should respect their elders.
Business Practices of Confucianism
In the business world, the Confucian emphasis on respect is reflected in the workplace decorum.
Workers use a completely different set of words when addressing superiors. An individual would use
one word when speaking about his superior’s action and a difference when talking about his own.
Likewise, when receiving a business card, it is significant to get it with both hands and actually look at
the card instead of quickly putting it in one’s pocket.
When doing business, the preservation of face is important. Simply “face” means good reputation. It
is critical that a businessman gives face, saves face, and shows face when doing business.
Here are some characteristics of Confucianism business ideology that would be useful for imitation:
1. The way to perceive a crisis – Crisis translates to a combination of danger and opportunity.
Every crisis poses a potential opportunity only if that danger is managed properly. This

02 Handout 1 *Property of
 STI
 BMSH2004

mentality leads to thinking positive and flexible, providing an appetite for change and
opportunity. Similarly, businessmen believe that when everything is going well, one must be
prepared for the worst-case scenario. It is believed 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.
2. The importance of relationship (Guanxi) – Interpersonal relationships in business is extremely
valuable. The business mentality reflected here is, “You scratch my back, I’ll scratch yours”.
In real meaning, this translates to exchanging favors, which are anticipated to be made
habitually and willingly. This ideology refers to the concept of respect within a business
environment. Respect between all with whom one conducts business is important.
3. Strategy and preparation – The significance of strategy in business is something worth
considering. Every business move implemented must come straight from business strategy.
4. Reevaluating what success really means – The Confucian discipline, Mencius, made it very
clear that rulers were immoral to think on profits for their respective states. Ethics was deeply
incorporated into business activities. Business behavior was encouraged to be ruled by
ethical principles. It was held that righteousness outweighs profits. The lone goal of profit
margins must be removed. Instead, the valued concept of having the bottom line for as long
as it’s not lost must be the main aim that should be embraced.
5. What Confucius said – According to Confucius, “when it is obvious that the goals cannot be
reached, don’t adjust the goals, adjust the action steps.” He added that “instead of being
concerned that you have no office, be concerned to think how you may fit yourself for office.
Instead of being concerned that you are not known, seek to be worthy of being known.”
G. Taoism: Action without Action
Taoism or Daoism is a spiritual, philosophical, and religious tradition of Chinese origin that
emphasizes living in harmony with the Tao. The term Tao means “way,” “path,” or “principle,” and can
also be found in Chinese philosophies and religions other than Taoism.
The “Way”
In Taoism, it is “the One, which is natural, spontaneous, eternal, nameless, and indescribable. It is at
one the beginning of all things and his way in which all things pursue their course.” It has variously
been denoted as the “flow of the universe,” a “conceptually necessary ontological ground,” or a
demonstration of nature. The Tao also is something that individuals can find immanent in themselves.
Good Behavior
Taoist believe such good behavior is an essential part not only of self-improvement but of improving
the world as a whole.

 Cultivate the Tao within oneself, and one’s virtue will be perfected.
 Cultivate it within the household, and one’s virtue will be abundant.
 Cultivate it within the neighborhood, and one’s virtue will be enduring.
 Cultivate it within the nation, and one’s virtue will be overflowing.
 Cultivate it within the entire world, and one’s virtue will be universal.
Leadership by Example
Taoist texts suggest that the ideal way for a leader to run their country is by example and with
minimal intervention:

 I take no action, and the people are of themselves transformed.

 I love tranquility, and the people are of themselves rectified.
 I do not engage in affairs, and the people of themselves become rich.
 I have no desires, and the people of themselves become simple.

02 Handout 1 *Property of
 STI
 BMSH2004

So, a good leader is one that the people respect and whose instructions are willingly followed. A good
leader achieves this by living virtuously in private and publicly living to influence his people for good.
H. Shintoism: The Way of the Gods
Shinto (way of the gods), also called kami-no-michi, is an ethnic religion of the people of Japan. The
word Shinto (way of the gods) comes from “shin,” meaning “spirit” and “to” meaning “a philosophical
path or study”. Shin or kami refers to the divinity, or sacred essence, that manifests in multiple forms:
rocks, trees, rivers, animals, places, and even people can be said to possess the nature of kami.
Everything has a Soul
The Japanese religions, Confucianism, Shintoism, and Buddhism, are transcendental in nature. This
means that everyone believes that everything, including people, has its soul or spirit, or numen as the
Japanese call it. Work is understood as a self-expression of the great life force, and Japanese people
unconsciously and sometimes consciously try to unify themselves with the great life force by
concentrating on their work.
Superiority of Groups
The second aspect of transcendentalism that affects Japanese working practices, and therefore
ethics, is the emphasis on groups. In the group environment, a group is considered to be superior to
its ordinary members mainly because, while the group is expected to be able to connect with the
numen of the universe directly, the members of the group individually are not related to the force in
the same way. The only way for the members to connect with the life force is through the activities of
their group.
Four Circles of Business Relationships
Groups exist on all levels, but in Japan, there are four (4) concentric rings that encompass them all.
These rings, from inner to outer, are family, fellows, Japan, and the world. Japanese people and
organizations are likely to attribute different ethics or moral practices to each circle.
The business also uses the four (4) rings to delineate the nature of its business dealings. The family
circle consists of closely-related business partners, while the fellow circle comprises cross-
shareholding corporations, steady customers, banks, fellow traders, and the like. The third is the
Japan circle. In this circle, fellow circle ethics are substantially replaced by the principle of free
competition. Competitors, unrelated corporations, ordinary stockholders, and so forth all fall within this
circle. The last circle is all other competitors around the world.
Perception of Work
“Ask most Japanese about what they do, and they will answer, “I am a company employee,” and add,
“I work for Toshiba.” They give their company’s name. Few people answer with a job title such as
accountant or salesman.” For Japanese, the company name is more important than the job title; for
Japanese people, their community is much more important than what they do.
Filipino Value System in Business (Camilar-Serrano, 2016)
1. Bahala na – Has been loosely translated as “come what may.” Hence, it is referred to as the Filipino
version of fatalism, leaving everything in the hands of fate.
But “bahala na” actually comes from the word “Bathala na,” which means God. Hence, the expression
“Bahala na” actually means, “let God take charge of the affairs;” or “I have done my part, let God take
charge of the rest;” or “whatever happens, God has willed it.”
However, others use the “Bahala na” concept erroneously to mean the person’s state of helplessness
and resignation of one’s fate. Sometimes it is used to refer to the person’s ignorance or laziness to do
anything at all.

02 Handout 1 *Property of
 STI
 BMSH2004

On the contrary, the “Bahala na” attitude requires courage from the person to face the challenges or
uncertainties as in business endeavors.
2. Utang na Loob (Debt of Gratitude) – It means that one does not forget the good deeds that others
may have done to them, especially in times of great need. This debt of gratitude is sometimes
abused by those who have done well to others as they may ask favors or things that may either be
unreasonable or beyond the means of the one in debt.
3. Ningas Cogon – Ningas is a noun that means flame, blaze, or combustion, while cogon is a grass
that can be easily burned with its representation. Ningas cogon means the fast burning of cogon,
which signifies Filipinos’ way of eagerness only at the beginning but then quickly losing enthusiasm
soon after to continue it, or the lack of a follow-up. It is usually observed as a negative value.
The phrase refers to a rather regrettable tendency to start projects and never finish them. Many
business meetings seem optimistic and fruitful, fueled by the adrenaline rush of money to be made,
and confident to lead to grand and wonderful things. All too often, the projects under discussion fail to
get off the ground as the parties involved move on to other projects. This is typically because some
participants were hesitant to demonstrate their doubts in the first place. They desired to go along with
the group compromise and share their fervor. While this has the short-term advantage of everyone
leaving the meeting with a pleasant buzz, the longer-term results consist of confusion,
disappointment, and bitterness.
4. Padrino – Patronage in the Filipino culture, business, and politics is the value system where one
gains favor, promotion, or political appointment through family affiliation or friendship, as opposed to
one’s merit. The Philippines' Padrino System has been the source of many controversies and
corruption, both in government and in the business sector.
Padrino System is definitely bad for business, especially when the business person is confronted with
ethical issues. The Padrino system cannot be made as a basis for ethical decisions in business.
5. Mañana Habit – Comes from the Spanish word “Mañana,” which literally means “tomorrow” or “an
unspecified future time.” Hence, Mañana habit refers to procrastination or putting off for tomorrow
what can be done today.
6. Amor Propio – Literally means “love of self” or self-love. Amor propio refers to a person’s feeling of
self-respect and personal worth or the quality of being worthy of esteem or respect, sometimes an
inflated feeling of pride as superior to others or sometimes even feelings of excessive pride.
Filipinos feel pressured to meet the status quo of the society when it comes to economic standing.
One indication of this might be a willingness to spend more than what they can afford to a party rather
than be shamed by their economic circumstances.
7. Delicadeza – A Spanish term that means daintiness when translated in English. It is defined as an
act of being refined or delicate in tastes or manners. But in simpler terms, it’s a sense of good
manners or how to behave rightly in all situations. It is an etiquette that was passed on to Filipinos as
a legacy of the Spanish culture.
It could also mean proper decorum or strict adherence to what’s right, moral, or ethical. Perhaps it
can be better understood by saying that those who don’t have it meaning walang delicadeza or
makapal ang mukha, or thick-faced. Nevertheless, whatever it is, very few among pubic officials
appear neither nor willing to abide by it.
In other words, delicadeza stands for the deep feeling on the part of an individual such that it sees
and reads the clear signs when the same is frowned at or looked down upon, held in scorn, and
looked down upon with contempt. Consequently, someone without delicadeza is basically despised,
clearly disrespected, or even already hated by neighbors, by the community, or the people in general.
He may eventually packs-up and goes away, finally leaves, or simply disappears from the sight of the
public in the know.

02 Handout 1 *Property of
 STI
 BMSH2004

8. Hiya – Shame or hiya is a very common Filipino value. It is a sense of social propriety and
conforming to societal norms of behavior. Filipinos believe they must live up to the accepted
standards of behavior, and if they fail to do so, they bring dishonor not only upon themselves but also
upon their family. If someone is publicly embarrassed, criticized, or does not live up to expectations,
they feel shame and lose self-esteem.
9. Pakikisama – Loyalty or pakikisama is another Filipino value. This is the shared sense of identity and
consciousness of the other person. It is treating others with respect and dignity as an equal and not
someone below the individual.
Filipinos are said to be loyal to their friends and fellowmen to guarantee peace in the group. This is
evident in their fundamental sense of justice and fairness, and concern for other’s well-being. Filipinos
recognize the indispensable humanity of all people and regard others with respect and empathy. With
this orientation, Filipinos develop sympathy for the nature and quality of interpersonal relationships,
which are their main cause of security and happiness.
10. Filial Piety – A virtue of respect for one’s parents, elders, and ancestors. Filipinos are taught to
become polite and respectful individuals. This is also due to the influence of Christianity that tells
them to honor both parents and elders. The use of “po” and “opo” when in conversation with an elder
or someone older is a manifestation of how Filipinos respect their elders. Filial piety may be good or
bad for business depending on many considerations, but it definitely affects the way business is
conducted, especially when the business person is confronted with ethical issues.
11. Hospitality – It refers to the relationship between the guest and the host. Although Filipinos are not
the only people in the world who can be friendly and welcoming, their attitude towards other people is
said to be exceptional. The host entertains and gives relief to the guest while staying in the house of
the host.
12. Joy and Humor – The famous trait is the ability of Filipinos to find joy and humor in everything. It
sheds light on Filipinos' optimism and positivity in whatever situation they are in to remain determined
in going through struggles or challenges. Filipinos have a cheerful, optimistic, and fun-loving
approach to life and its ups and downs. They have a pleasant disposition, a sense of humor, and a
propensity for happiness that contribute not only to the Filipino charm but also to the indomitability of
the Filipino spirit. Laughing is an important coping mechanism.
13. Flexibility, adaptability, creativity – Studies show that Filipinos often have a dislike for a set of
standardized rules or procedures. They are known to follow a natural clock or organic sense of time –
doing things in the time they feel is correct. They are present-oriented, which means that one attends
to a task or requirement when needed and does not worry much about future engagements. This
allows the Filipino to adapt and be flexible in doing the tasks at times not bound to a particular
schedule or timeframe. This allows them to think on their feet and be creative in facing whatever
challenge or task they have, even when it is already right in front of them.
14. Faith and Religiosity – The Philippines is approximately 92.5 percent Christian (mostly Roman
Catholic), 5.6 percent Muslim, and 1.9 percent other religions, including the Taoist-Buddhist religious
beliefs of Chinese and the indigenous animistic beliefs of some peoples in upland areas that resisted
300 years of Spanish colonial rule.
This reflects the Filipinos’ strong faith in God, as seen in their various practices. This includes the
numerous Church Holidays they observe, the customary (and obligatory) Sunday Mass, the
individual’s basis of their moral standpoints, the influence of the Church on the minds, actions, and
opinions of the majority, importance of the Sacraments, praying at almost any possible time of the
day, extreme practices during Holy Week, etc.
While not a guarantee, being religious is a positive trait favorable in business and the workplace.
15. Ability to survive – Filipinos, as a people who have been constantly under the rule of numerous
powerful countries, has, over time, developed a sense of resourcefulness or the ability to survive with
whatever they have. They have the extraordinary ability to make something about basically nothing.

02 Handout 1 *Property of
 STI
 BMSH2004

Filipinos have an ability to survive, which is manifested in their capacity for endurance despite difficult
times in their ability to get by on so very little. Filipinos make do with what is available in the
environment. Garbage scavengers in the poor Manila areas are not looking just for reusable goods
among the garbage but increasingly for food to feed their families.
16. Hard work and industry – With resourcefulness comes hard work. Filipinos are very determined and
persevering in accomplishing whatever they set their minds to.
Over the years, Filipinos have proven time and time again that they are a people with an industrious
attitude. Sadly, this is seen by others as Filipinos being only useful as domestic helpers, working
abroad to help their families in the country. This is also present in the country’s workforce, particularly
the farmers. Even with little support, technological weaknesses, and the country’s seasonal typhoons,
the Filipino farmer still strives to earn their daily meal.
17. Filipino time – Filipino time is a coined phrase for the embarrassing affliction of tardiness among
Filipinos. It has become a phenomenon and impression for Filipino Schedule, making it a
characteristic of Filipinos to be generally late. Obviously, this trait was also an influence from the
Spanish occupiers, for people would rather give more attention to their amor propio (hiya) in some
events than going there as early as possible. This trait is also a root of the manana habit.

REFERENCES
Camilar-Serrano, A. O. (2016). Business Ethics and Social Responsibility. Manila: Unlimited Books
Library Services & Publishing Inc.

Cortez, F. G. (2016). Business Ethics and Social Responsibility. Quezon City: Vibal Group Inc.

Hartman, L. P., DesJardins, J., & MacDonald, C. (2018). Business Ethics: Decision Making for Personal
Integrity & Social Responsibility (4th ed.). New York: McGraw-Hill Education.

02 Handout 1 *Property of
 STI