Business Ethics

Responsibility

T Foundations of the principles

opic:

of business ethics part 2

Learning Target:
 Describe how the Filipino value system affects the attitudes of business constituents

L 
esson Coverage:
The Filipino value system (Utang na loob, Filial Piety Padrino Suki, Bahala na manana, Amor Propio, Filipino
family Values)


m otivation:
Business Ethics in the
Philippines
Alejo Jose Sison and Antonette Palma-Angeles are two Filipino Scholars who directly talk about
business ethics in the context of the Philippine experience. In their article titled “Business Ethics in
the Philippines,” they contend that the Filipinos have a peculiar understanding of business ethics.
The two authors provide at least four reasons why this is so: plurality of languages and ethnicities,
geographic fragmentation, predominant Roman Catholic religion, and a relatively short experience
on nationhood. Geographic fragmentation pertains to the fact that the Philippine nation is also an
archipelago that consists of more than 7,100 islands. Because of the waters that separate the islands,
it is difficult to travel from one province to another. There is therefore lack of physical contact
among Filipinos. The people of Ilocos Norte may spend their whole lives not meeting the people
from Zamboanga del Sur. It may be one of the reasons why Filipinos belong to one nation yet the
phenomenon of regionalism remains highly prevalent. The geography may also account for
linguistic and ethnic plurality and differences. There are more than 100 languages and dialects
resulting from a myriad of ethnicities. The long experience of colonization also brought the Spanish
language and American English language into the Philippine shores. In fact, Spanish was once an
official language. At present, Filipino and English are considered as the official languages. Still,
controversies and debates persist on the language to be used as medium of instruction. Indeed, the
Philippines is a multi-lingual and multi-ethnic society. In another study, Sison notes that language is
significant in business transactions because when Filipino businesspeople find out that they are
dealing with a “kababayan” or somebody who comes from his or her own region and speaks the
same language, the business atmosphere softens up, trust is easily established, and special favors
may be given to the “kababayan.” Sison and Palma-Angeles also note the significance of the Chinese
language and ethnicity especially in the world of business. If we search the Internet, we will easily
find out the richest people in the Philippines today are Filipino-Chinese. Surnames such as Sy, Ty,
Tan, Gokongwei, Yuchengco, and Tan CakTiong have gradually replaced Manila’s old rich
surnames such as Palanca, Elizalde, Ysmael, and Puyat. Even if the Chinese is a minority group in
the Philippines, they are very influential especially in the Business sector. The Chinese language can
be considered as one of the most important business languages in the Philippines. Religion also plays
a vital importance for the Filipinos’ conduct of business. More than 90% of the Filipinos are
Christians and a large majority of these Christians belong to Roman Catholicism. Filipinos are very
religious people. The Ten Commandments, especially those that pertain to lying and stealing, are
important sources of guidance in business affairs. Violation of these commandments is deemed to be
“kasalanan sa Diyos” or a sin against God. The Filipinos are also mindful that there is an afterlife so
that the present state of affairs is less important as compared to the promise of Heaven for those who
do good and the punishment of Hell for those who do evil. Finally, Sison and Palma-Angeles also
remark that the Filipinos’ short experience of independent political life and nationhood must also be
considered in understanding business ethics in the Philippines. The Philippines got its independence
from Spain in 1898, but it was not actually a real independence because the era of American
colonialism immediately came in. Even if the Phillipines is labeled as an independent and sovereign
nation today, the traces of American colonialism c
An still be found in the many aspects of the society’s culture, language, education, politics, mass
media, business, and other social institutions. The Filipinos’ colonial mentality was not miraculously
wiped out when the last colonizer abandoned Philippine territory. Sison and Palma-Angeles also talk
about the main ethical concerns of the Philippine society in relation to business affairs. These
concerns are: rapid growth and liberalization of the economy, inequitable distribution of wealth,
environmental destruction, and corruption. Indeed, there is growth in the economy but this that not
mean that majority of the Filipinos truly gain from this economic growth. The widening gap between
the rich and the poor is not reflected in the traditional measurements of economic growth. Modern
infrastructures, technological and communication innovations, and the rise of commercial
establishments in the various urban areas of the country cannot be accepted as absolute indicators of
genuine development. With economic and trade liberalization as its main rallying cry, globalization
has ushered the influx of foreign goods from apples to shoes to chocolates to cellphones. Goods and
services become more available and accessible. Greater market and competition promises to lower
the price and to improve the quality of goods. However, on the questionable side, critics do not fail
to question whether there is a real market competition. What becomes more observable is that small
businesses are eaten up by the giant multinational corporations. Critics point out that there is no level
playing field in the global market and that “severe economic dislocations” are really triggered off.
Furthermore, globalization is also blamed for the continual rise of a consumerist and materialistic
culture. There is growth in the economy but there is also the widening gap between the rich and the
poor. It means that economic growth and development are not really felt by those who are at the
bottom. Wealth is not a distributive equitably. Businesses are also implicated in many unethical
practices such as labor exploitation and environmental degradation. Corruption not only permeates
the government but also the business institution. Many companies also start to become cognizant of
the need for establishing clear programs for ethics and corporate social responsibility. Ethical codes
are being formulated with the help of business ethics consultants from the academe. Trainings on
ethical conduct among employees become part of the regular activities of firms. The bigger
challenge is to translate these trainings, codes, and programs into the daily decisions made by
employees, supervisors, and managers. In other words, an ethical code must help in building an
ethical code must help in building an ethical culture inside the firm

Jocano: Filipino Value System

Felipe Landa Jocano (1930-2013) was a Filipino anthropologist, teacher and scholar. As early as
1966, Jocano and his associates started doing research on Filipino values. In his book Filipino Value
System (1997), Jocano says the term “value” can be translated into Filipino as “kahalagahan” and
“pamantayan.” In their early research, “kahalagahan” was used to because it refers to “merit,
significance, worth, or price we give to objects, ideas, sentiments, and actions.” But eventually,
Jocano and his team agreed that “pamantayan” is more a fitting translation of “value.” Jocano
explains that the term “pantay” means “aligned” or “at the same level.” A value is a “standard we
use as the basis for making decisions, choices and preferences.” Jocano clarifies further that a value
is something positive and therefore desirable. Thus, there is no such thing as a negative Filipino
value. He says that that “there are only wrong uses of the values because our models for value-
analysis are Western – particularly those used by former colonizers and foreign observers.” There is
a need, therefore, to re-evaluate our perception of Filipino values so that they can be channeled into
something worthwhile and meaningful for the lives of the Filipinos. Moreover, Jocano maintains that
“pamantayan” or values has three basic elements: halaga (evaluating core), asal (expressive care) ,
and diwa (spiritual core). The element of halaga accounts to why Filipinos give importance to some
thoughts, attitudes and actions while rejecting other thoughts, attitudes and actions. For example,
Jocano mentions about the Filipinos’ valuing of “protecting the face.” Because of this, we are not
frank and confrontational. We always think of how other people would feel. In the business world, it
manifests when we do not confront a co-employee who obviously commits a mistake. The element
of asal pertains to a person’s character. Its main standards include pakikipagkapwa (interpersonal
relationship), damdamin (emotional standard), and dangal ( moral standard). In concrete terms, a
Filipino with mabuting asal (good character) is supportive of community ideals, concerned with not
hurting other people’s feelings, and mindful of other’s welfare by doing his or her duties to the
society. The element of diwa pertains to the spiritual core of the Filipino value system. It is closely
related with the Western concept of “soul.” It provides the very meaning and significance of one’s
actions and life itself. In the absence of diwa, life becomes meaningless. It is the source of one’s
strength and motivation to face all the hardships that life brings. It is also the wellspring of one’s
conscience. It is where we encounter the divine. In a separate study, Jocano was able to gather the
core traits of successful Filipino workers. The personal traits include katimpian (self discipline),
kapunyagian (perseverance), kasipagan (industriousness), katiyagaan (patience), katapatan
(commitment), and kagitingan (integrity). The relational traits are the following: marunong
makisama (able to get along with others), marunong makitungo (flexible), marunong makiramay
(empathic), madaling lapitan (approachable), madaling kausapin (easy to talk to), matulungin
(helpful; supportive), and masayahin (happy disposition; collegial). Finally, the team traits refer to:
may pagkabahala (concerned), may paggalang (respectful), may pananagutan (accountable), may
pagkalinga (caring), may pakikibaka (involved), and may pagmamalasakit (selfless). Jocano admits
that success is a relative term so basing from the experiences of the Filipinos he interviewed, Jocano
defines success as “having achieved something that enhances one’s way of life – either from one
level of satisfactory life to another or from a life of deprivation to one of comfort.” Knowing
Jocano’s findings on the core traits of a successful Filipino workers makes us aware that ethics is not
just about nonviolation of a list of ethical codes. Rather, an ethics is about practicing values that
enhance our very humanity. Jocano also has a great contribution to relating the field of modern
business management with the traditional Philippine value system. In his book Towards Developing
a Filipino Corporate Culture (1999), he argues that the Western concept of business management
necessarily clashes with Filipino culture because the former is generally objective, impersonal, and
organizational while the latter is generally subjective, personal, and familial. Jocano says that
business managers must be able to find ways in order to consider the Filipino value system in the
practice of business relations.

Filipino Value system. How it affects the attitudes of business

constituents?

Other Filipino Values

Filipinos put primacy to the value of family and kindship. Jocano explains that the kindship structure
may be based on descent or blood relation (parent-children relations), marriage (husband-wife and
in-laws relations), and compadrazgo or compadre relations (godparents-godchildren through
baptism, confirmation and wedding). Many companies in the Philippines are run by family members.
When a person has entered a corporation and especially if he or she has attained a higher position, he
or she is expected to help his or her relatives. Jocano says that even multinational corporations
“become enmeshed with kinship and family when personnel are recruited from among the relatives
or townmates of officials and employees who are already working in these companies.” Maybe,
there is a tinge of truth in Chris Rowthorn’s observation that the kamag-anak system can be blamed
“why are the best qualified are passed over in favor of the well-connected when applying for jobs.”
One must be loyal to the family. The success of a political or business career may be anchored on the
extent of one’s kamag-anak system. Alejo Sison observes that especially among the Filipino Chinese
businesspeople, “the duties that arise from family relations are over and above what the law or strict
justice may dictate.” At present, many business organizations consider nepotism as a violation of the
ethical duty for fairness and justice. However, business managers must also try to understand the
Filipino’s kamag-anak system so that nepotism is also put in its proper context in Philippine
business. Kapwa is another importan value for the Filipinos. Jocano translates it into English as “of
the same nature,” “of equal status,” “a partnership,” and “a shared orientation.” Furthermore, Manuel
Dy says that “pakikipag-kapwa springs from an inner conviction that the other, though belonging to
a different region or faction, is a fellowman; like me, he or she is a human being who deserves to be
respected, attended to, and loved.” The Filipinos always see themselves as part of a larger
community: their mga kapitbahay (neighbors), mga kaklase (classmates), mga kababayan
(townmates), mga ka-manggagawa (coworkers). Furthermore, Filipinos believe that there is a basic
equality among people: kapwa-tao (shared humanity), kapwa manggagawa (fellow worker), kapwa
anak ng Diyos (fellow children of God). The value of kapwa serves as the Filipino’s basis for giving
prime importance to harmonious relationship and solidarity. Jocano says that the norm of pakikisama
must be understood not just in the negative connotation of blind conformity to somebody or to a
group whose actions are morally objectionable. Rather, pakikisama or “getting along with” is a
“willingness to subordinate one’s own interest in favor of others, in the spirit of harmony, friendship,
cooperation and deference to majority decision so that group goals can be easily achieved.”
Damdamin is also one of the important values for Filipinos. It is commonly translated into English
as “emotion or feeling.” In judging between right or wrong ang just or unjust, Filipinos always check
how they feel about it. Jocano says that Filipinos, naturally, of course use their rationality. However,
this rationality “often involves deep emotionalism, particularly in interactions having to do with
personal honor, dignity, and moral principles.” Manuel Dy, a Filipino scholar of philosophy, says:
“A Filipino hardly acts on the basis of his rationality. Not that he is irrational or does noy use his
head, but he tends to act more from the promptings of his heart, from an intuitive and immediate
grasp of reality.” One important implication of the damdamin when it come to decision-making in
the conduct of business affairs is this: Filipinos may be uncomfortable with utilitarianism and
deontological ethics. These ethical theories are highly based on rationality. Filipinos are more at
home with the ethics of care and the ethics of virtues. Jocano also notes that it is in the context of the
value of damdamin that one should understand the Filipinos’ norm of hiya (shame). Filipinos do not
want to hurt and offend the damdamin of other people. Bahala na is another famous Filipino value or
trait. Jocano explains that it has at least three meanings. First of which is the negative connotation
that a Filipino simply leaves everything to chance. Thus, he or she “lacks the initiative to move, the
creativity to innovate, and the drive to progress.” Second is the religious meaning as if the Filipino
simply relies on God to solve his or her problems. The Filipino word “Bathala” means God. Thus, a
typical Filipino may wait passively for God to provide for his or her needs. When there is a problem,
“Bathala na lamang.” Third is what Jocano would call as the positive connotation of bahala na. it
mean inner strength to dare, to take the risk, to initiate and move, to take up a challenge, to assume
responsibility for an act.” In the conduct of business, businesspersons may encounter ethical
dilemmas wherein the right course of action is not so clear. Bahala na as a positive value may help
the businesspersons to have the courage to decide, to take responsibility in his or her decisions, to
have the confidence in himself or herself, to trust others who are involved in the decision, and to
reaffirm his or her relationship with God. Moreover, bahala na as a positive value supports the
perspective that ethical dilemmas indeed involve the element of undecidability. To say bahala na is
to admit that one must not escape the call for decision when confronted with an ethical dilemma.
However, the decision is always clouded with uncertainties so that the decision-maker is always
ready to revise and reconsider his or her decisions in the event that circumstances change. For
example, a businessperson may decide to terminate some employees because of the economic
condition. To say bahala na on this instance is to admit the removing the employees is not
necessarily the ethical thing to do. But he or she has to do it while at the same time ready to
reconsider the decision when there are alternative courses of action. Dangal is also an important
value for the Filipinos. It is translated into English as “honor, dignity, or reputation.” We usually
hear the Filipinos say: “Hindi na baleng mahirap basta marangal” (It is better to be poor than to lose
your honor.); Hindi ko pakakainin ang aking mga anak ng galling sa masama.” Jocano says that the
concept of dangal “includes knowing that is morally right, feeling what is morally good, and acting
in a way that is morally desirable.” It is of course admitted that many Filipinos especially in business
and politics violate the value of dangal. The great challenge for the people in the business world is to
keep their dangal intact in spite of the many temptations for pure profit-seeking at the expense of
trampling on the other people’s rights, violating the basic principles of truth and justice, and
destroying the natural environment. Filipinos also value their relationship with the Supernatural,
with God, or with the Holy. Generally speaking, Filipinos believe in the afterlife. They also believe
in the existence of God. Dy says that “Filipinos in general have never doubted the existence of God;
indeed, to prove His existence is rather alien to the Filipino mind.” Furthermore, important events
are interpreted as having the “hands of God” at work in human affairs. For example, the 1986 EDSA
Revolution is seen by many Filipinos as a spiritual experience as well. When something good
happens to a Filipino, he or she usually utters: “Salamat sa Diyos.” However, Jiame Bulatao, another
Filipino scholar, is also quick to point out the observed feature of the Filipinos’ religiosity. Bulatao
calls this the split-level Christianity (religiosity). In essence, it means that many Filipinos (and that
includes the Filipino businesspeople) seem to have a divided personality: one that is highly religious
and one that is ready to subvert basic moral norms. This produces a double-standard morality or a
moral hypocrisy wherein many Filipinos are comfortable with being religious and at the same time
violating the basic tenets of justice and ethics. In simple terms, many Filipinos might go to their
place of worship t least once a week, but could also live dishonest, unjust, and unethical lives in their
worlds of business, politics, and workplace. Roman Catholism is the predominant religion in the
Philippines with almost 80% of the population belonging to this faith. Among its symbols are the
rosary; the bible; and the crucifix

What is Business Ethics?

Ethics is the discipline that investigates the rightness or wrongness of business activities and the
conduct of the businesspersons and professionals, then it is called Business Ethics. Let us list some
of the textbook definitions and descriptions of Business Ethics.

(1) “In its simplest form, business ethics can be defined as a systematical study of ethics as applied
to the issues arising in business.”

(2) “Business ethics is the study of good and evil, right and wrong, and just and unjust actions in
business.”

(3) “Business ethics involves the application of standards of moral behavior to business situations.”

(4) “Business ethics is concerned with good and bad or right and wrong behavior and practices that
take place within a business context. Concepts of right and wrong are increasingly being
interpreted today to include the more difficult and subtle questions of fairness, justice, and
equity.”

(5) “Business ethics is a study of moral standards and how these apply to the social systems and
organizations through which modern societies produce and distribute goods and services and to
the behaviors of the people who work within these organizations. Business ethics, in other
words, is a form of applied ethics. It not only includes the analysis of moral norms and moral
values but also attempts to apply the conclusions of this analysis to that assortment of
institutions, organizations, activities, and pursuits that we call business.”

FILIPINO VALUE SYSTEM IN BUSINESS

Filipino value system is defined by the way of people live their family as an influence of one’s
culture. It refers to the set of values or the value system that a majority of the Filipino have
historically held important in their lives. The Philippine value system includes their own unique
 collection of consistent ideologies, moral codes, ethical practices, etiquette, and cultural and
personal values that are encouraged by their society.

I ntegration
ACTIVITY:
I Give at least 10 examples of the Filipino Value System

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