Business Ethics and Social Responsibility

Ethics
Is a set of moral principles and values that we use to answer questions of right and wrong.

Ethics can also be defined as the study of the general nature of morals and of the moral choices
made by individuals in their relationship with others.

Ethics—Pragmatic Terms
Our choices are based on what seems reasonable or logical to us according to our personal value
system.

Ethical Relativism it casts ethics in the role of being relative to what the situation is or how we
feel about it.

In truth, ethics is something different the very concept of ethics suggests that there is a real
distinction between good and bad, and that it is our obligation to do our best to distinguish
between these and then always try to do what is right.

Business Ethics (Corporate Ethics)

 Is a form of applied ethics or professional ethics that examines ethical principles and
moral or ethical problems that arise in a business environment.
 It applies to all aspects of business conduct and is relevant to the conduct of individual in
the business organization.
 Refers to contemporary standards or sets of values that govern the actions and behavior of
an individual in the business organization.

Social Responsibility
 It pertains to distinguish the right from wrong and doing right.
 Having a sense of Leadership that moves one step forward and that is creating a sense of
mission than other companies.

The mission called as Corporate Social Responsibility (CSR). There is no formula for creating a
sense of mission though certainly, one necessary ingredient is a conviction since nobody will
follow a company without a leader who doesn’t believe wholeheartedly in going beyond the four
walls of the company.

The formal definition of Corporate Social Responsibility (CSR) is management’s obligations to

make choices and take actions that will contribute to the welfare and interests of society as
well as the organizations.

Social Responsibility is an ethical framework which suggests that an entity, be it an

organization or individual, has an obligation to act for the benefit of society at large.

It is a duty that every individual has to perform so as to maintain a balance between the
economy and the ecosystems.

It is important to distinguish between social responsibility and business ethics: “The Social
Contract”
 Not to pollute the air we breathe and water to drink
 Not to damage the ozone layer
 To offer fair wages and employee benefits
 To provide satisfactory product or services at a reasonable price, and
 To participate in making the community in which they operate a better place.

Unit 1 – The Role of Business in Social and Economic Development

Nature and Forms of Business

 Business is an organization or economic system where goods and services are exchanged
for one another or for money.
 Every business requires some form of investment and enough costumers to whom its output
can be sold on a consistent basis in order to make a profit.

Instruments of Exchange
The problems of the barter system created the need for a medium that could be used to facilitate
trade. Money solved the problems of the barter system. Money is anything that is acceptable for
the purchase of goods and services. Presently, it is in the form of notes and coins. Early forms of
money included shells, beads, precious metals and stones.
The Characteristics of Money
 Acceptable—money is universally accepted
 Convertible—easily exchanged for goods and services.
 Divisible—can be easily broken down into smaller units.
 Durable—long lasting
 Homogeneous—similar Ex. All $100 bills are the same in appearance
 Scarce—this ensures its value
 Portable—easy to carry

Functions of Money
 A measure of value—the price of an item indicates its value
 It is a medium of exchange i.e. since money is acceptable by all, persons will not have
difficulties to trade.
 It is a standard for deferred payments. i.e. it can be used to repay debts over time.
 It is a store of wealth i.e. money can be easily stored/saved.

A business is also known as an enterprise, agency, or a firm, is an entity involved in the

provision of goods and/or services to consumers.

A business organization is an entity formed for the purpose of carrying on commercial

enterprise.

Basic Forms of Business Organizations

 Sole Proprietorship
 Partnership
 Corporation
 Limited Liability Corporation (LLC)
 Cooperative

Sole Proprietorship
 Also known as a sole trader, is owned by one person and operates for their benefits.
 The owner may operate the business alone or with other people.
 It is not an ideal for high-risk businesses because they put your personal assets at risk.

Partnership
 Is a business owned by two or more people. In most forms of partnerships, each partner has
unlimited liability for the debts incurred by the business.
 In a partnerships, two or more people share ownership of a single business.
 The partners should have a legal agreement that sets forth how decisions will be made,
profits will be shared etc.

Types of partnerships that should be considered:

 General Partnerships
 Limited Partnership and Partnership with limited liability
 Joint Venture

Corporation
 The owners of a corporation have limited liability and the business has a separate legal
personality from its owners.
 This can be either government-owned or privately owned.
 They can organize either for profit or as not-for-profit organizations. The corporation has
a life itself and does not dissolve when ownership changes
 There are two types of corporations: C corporations and the S corporation

C Corporations
-Are considered separate tax-paying entities. C corps file their own income tax returns, and
income earned remains in the corporation until it is paid as a salary wages to the corporation’s
officers and employees.

S Corporations
-Are pass-through entities, meaning that their income, losses, deductions and credits pass through
the company and become the direct responsibility of the company’s shareholders.

Limited Liability Corporation (LLC)

 These are hybrid forms of business that have characteristics of both corporation and a
partnership.
 An LLC may choose to be taxed as a sole proprietorship, a partnership, or a corporation.
 This is a limited liability company. This business structure protects the owner’s personal
assets from financial liability and provides some protection against personal liability.

Cooperative
 Often referred to as “co-op,” a cooperative is a limited liability business that can organize
for profit or not-for-profit.
 Are typically classified as either consumer cooperatives or worker cooperatives.
 Is a business organization owned by a group of individuals and is operated for their mutual
benefit.
Cooperative organizations are those organizations, which are different from the rest, as they are
formed not for the purpose of making profit but to provide its members goods and services at
reasonable rates.

Different types of cooperatives

 Consumer cooperatives
 Producers cooperatives
 Marketing cooperatives
 Housing cooperatives
 Credit cooperatives
 Farming cooperatives

The structure of a cooperative organization ensures:

 All members have an equal say (Ex. Voting—one vote per member, regardless of the
number of shares held)
 Open and voluntary membership
 Limited interest on share capital
 Surplus is returned to the members according to amount of patronage.

Basic Classifications of Business

 Service Businesses
 Merchandising Businesses
 Manufacturing Businesses
 Hybrid Businesses

1.Service Businesses
 A service types of business provides intangible products. Service type firms offer
professional skills, expertise, advice, and other similar products.
 It pertains to intangible goods or services and typically charge for labor or other services
provided to government, to consumers, or to other businesses.
 Interior decorators, consulting firms and entertainers are service businesses.

Financial Businesses
Include banks and other companies that generate profits through investments and management of
capital.

Transportation Businesses
Deliver goods and individuals to their destinations for a fee.

Utilities
Produce public services such as electricity or sewage treatment, usually under a government.

2. Merchandising Businesses
 This type of business buys products at wholesale price and sells the same at retail price.
They are known as “buy and sell” businesses.
 They make a profit by selling the products at prices higher than their purchase costs. A
merchandising business sells a product without changing its form.

Retailers and Distributors

Act as middlemen and gets goods produced by manufacturers to the intended consumers; they
make their profits by marking up their prices. Most stores and catalog companies are distributors
or retailers.

3. Manufacturing Businesses
 Buys products with the intention of using them as materials in making a new product. Thus,
there is a transformation of the products purchased.
 A manufacturing business combines raw materials, labor, and factory overhead in its
production process. The manufactured goods will then be sold to customers.

Agriculture and mining businesses

Produce raw material, such as plants or minerals.

Manufacturers
Produce products, either from raw materials or from component parts, then sell their products at a
profit, for example, cars, clothing or pipes.

Real-estate businesses
Sell, rent, and develop properties—including land, residential homes, and other buildings.

Information businesses
Generate profits primarily from the sale of intellectual property—they include movie studios,
publishers, and internet and software companies.

4. Hybrid Businesses
Hybrid Businesses are companies that may be classified in more than one type of business.
Chapter 2 Purposes of Establishing a Business Enterprise

Why Start a Business?

The purpose is the reason you want to pursue your destiny for yourself and for the organization
you will create.

According to Ralph Waldo Emerson, Starting a business of your own is a “Divine Activity.”
Aim High your Business soar high. Keep the right values in business while adjusting strategies
along the way.

Common Reasons why people create or start a business or an enterprise:

 To make Money and Have Financial Independence

 To be your own boss
 To self-actualize/ to fulfill own interest and enjoyment
 To make dreams come true
 To use your skills and knowledge for yourself
 To have a second career
 To have variety at work
 To create Opportunities
 To employ relatives, friends and community members
 To take up a challenge
 To come up with better ways, to create, to innovate
 To be efficient at work
 To set and meet own deadlines
 To avoid commuting
 To create customer
 To offer value
 To have more life, more freedom
 To solve problems
 To move society, to change the world, to make the world better
 To build our future

Chapter 3
A. Core Principles in Business Operations

1. Fairness
2. Accountability
3. Transparency
4. Stewardship

A).Fairness refers to the level of even-handedness in dispensing justice whereby claims are
recognized in the order of their legal and contractual priority.

Justice means giving each person what he or she deserves or, in more traditional terms, giving
each person his or her due.

Justice and fairness are closely related terms that are often today used interchangeably.

Different kinds of Justice

 Distributive Justice
 Retributive or Corrective Justice
 Compensatory Justice

Distributive Justice
 Refers to the extent to which society’s institutions ensure that benefits and burdens are
distributed among society’s members in ways that are fair and just.
 When the institutions of a society distribute benefits or burdens in unjust ways, there is a
strong presumption that those institutions should be changed.

Retributive or Corrective Justice

 Refers to the extent to which punishments are fair and just.

Compensatory Justice
 It pertains to which people are fairly compensated for their injuries by those who have
injured them; just compensation is proportional to the loss inflicted on a person.

B).Accountability is the obligation of an individual or organization to account for its activities,

accept responsibility for them, and to disclose the results in a transparent manner.

In organizations, accountability is a management control process in which responses are given

for a person’s actions.
Accountability is often used synonymously with responsibility, blameworthiness, and liability.
As an aspect of governance, accountability has been central to discussions related to problems in
the public, non profit, and corporate sectors.

C.Transparency refers to the lack of hidden agendas and conditions, accompanied by the
availability of full information required for collaboration, cooperation, and collective decision
making.

It refers also to the minimum degree of disclosure to which agreements, dealings, practices, and
transaction are open to all for verification.

D.Stewardship was originally made up of the tasks of a domestic steward, from stig (house,
hall) weard (ward, guardian, guard, keeper). Stewardship in the beginning, referred to the
household servant’s duties for bringing food and drink to the castle’s dining hall.

B. Samples of Core Principles of Companies

“Mission statements become the deeply ingrained principle and fabric that guide employee
behavior and company decisions and actions—the behaviors the company and employees expect
of themselves,” says Eric Jacobson former Executive.

10 Principles of the Un Global Compact

The UN Global Compact’s ten Principles are derived from: the Universal Declaration of Human
Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights
at Work, the Rio Declaration on Environment and Development, and the United Nations
Convention Against Corruption.

Shell Global
 As a global energy company operating in a challenging world, we set high standards of
performance and ethical behaviors. We are judge by how we act—our reputation is upheld
by how we live up to our core values of Honesty, Integrity, and respect for People.
 Our 8 core values and indicate how we promote trust, openness, teamwork and
professionalism, and pride in what we do.

Bank of America
 “we are here to help make financial lives better. Better by connecting our costumers and
clients to the financial solutions they need. And, better by connecting across our company
to deliver those solutions.”
a) Costumer-Driven
b) Great place to work
c) Manage Risk
d) Operational Excellence
e) Deliver for our Shareholders

Twitter
Mission Statement: To give everyone the power to create and share ideas and information
instantly, without barriers.

Build a Bear
Core Values: Reach, Learn, Di-bear-sity, Colla-bear-ative, Cele-Bear-Ate

Whole Foods Market

Purpose Statement: With great courage, Integrity and Love—we embrace our responsibility to co
create a world where each of us, our communities, and our planet can flourish. All the while,
celebrating the sheer love and joy of food.

L.L. Bean
Core Values Statement: Sell Good Merchandise at a reasonable profit, treat your customers like
human beings, and they always come back for more.

Zappos
10 Core Values:
1. Deliver WOW through Service
2. Embrace and Drive Change
3. Create Fun and A little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open Honest Relationships with Communication
7. Build a positive team and Family Spirit
8. Do more with Less
9. Be passionate and Determined
10. Be Humble

Wegmans
Our “Who We Are” Values: Caring, High Standards, Making a Difference, Respect, and
Empowerment.
Bright Horizons
Core Values Statement: The HEART Principles:
Honesty
Excellence
Accountability
Respect
Teamwork

Chapter 4: Common Practices in Business Organizations

Business Practice
Is a method, procedure, process, or rule employed or followed by company in the pursuit of its
objectives.

A. Decorum
An individual who exhibits politeness and decorum is often rewarded with success in his chosen
field. There are, however, additional formalities he must to assure that he is viewed by superiors,
peers and customers alike as a pleasant and cultivated professional. (Henderson, 2016)

1. On Time and Promptness

 Perhaps the easiest way to exhibit professionalism is to consistently be punctual. On a daily
basis, one must arrive at the office on time, ready to work.
 She/he also be prompt when meeting with others: supervisors, clients, and prospective
employers.
 A professional who is regularly late for appointments gives the impression that she does not
respect the value of other people’s time (Henderson, 2016).

2. On Preparation
 In addition to arriving on time, business etiquette dictates that an individual must be
prepared to conduct the business at hand. He must have all resources such as reports, sales
brochures, and other documents ready for use (Henderson, 2016).
 Each participants should come to the meeting with all of the materials and data she will
need and understanding of the meeting topic (Root III, 2016).

3. On Agenda
The chairperson of the meeting should circulate a meeting agenda to each participant at least one
week in advance. Participants should call the chairperson to express any concerns about the
agenda at least 48 hours prior to the meeting. The chairperson and concerned participant will
then have time to determine if changes need to be made. The agenda should also mention the
meeting’s start and ending time as well (Root III, 2016).

4. On Attire and Appearance

 An individual who wishes to be taken seriously in the workplace must dress appropriately
for his environment. If his office culture is to dress in formal business attire, he must wear a
jacket and tie at all times. On the other hand, if his industry dictates a t-shirt and jeans, he
would look pretty silly dressed in a tuxedo.
 By wearing appropriate attire for his line of business, he ensures that everyone he comes in
contact with will take him seriously (Henderson, 2016).
 Both men and women should always dress appropriately and conservatively at work and
during meetings. Dressing well is a vital part of earning respect in the Philippines.

5.On Decorum
 An individuals attitude and deportment exhibit just as must about his seriousness as his
wardrobe does. Excessive use of slang, profanity, and other offensive language is an
immediate sign of unprofessionalism. Additionally, the spreading of gossip and
communication of private or confidential information does not win him any points with
colleagues and costumers (Henderson, 2016).
 Avoid nervous habits such as tapping a pen on the table, making audible noises with your
mouth, rustling papers, or tapping your feet on the floor (Root III, 2016).

6. On Basic Courtesy and Respect

 One of the most basic elements of business etiquette is courtesy, or respect, which should be
displayed to the people you work with, including your costumers, no matter what.
 People who are disrespectful may find themselves losing credibility and the respect of their
peers (Magloff, 2016).
 A consistently respectful attitude will also build your credibility within the business or
industry. Showing respect also means refraining from gossip and from being critical and
negative to others. (Magloff, 2016).

7. On Greetings
Standard greetings are an exchange of handshakes and a smile. In formal situations, the oldest or
the most important person is greeted first.

8. On Handshakes
The rules on handshakes are about the same as in the west, although the Filipinos may use a little
more contact ( a pat on the side of the arm as a gesture of hospitality or friendship ). If there is a
clear status differential, or you are meeting a senior executive, it may be best to let him/her offer
the handshake first (Henderson, 2016).

9. On Body Language
 Filipinos have a fascinating nonverbal language, much of it involving facial expressions.
 Ex. Lifting the eyebrows without smiling means NO—but lifting the eyebrows while
smiling is used to greet a friend.
 Filipinos often point by pursuing their lips. Pointing your finger is a definite NO—NO, and
you should avoid “too-direct’’ eye contact (Henderson, 2016). Direct or continuous eye
contact as staring is considered rather rude and confrontational.

10. On Formal and Informal Address

 Start out by addressing a new business acquaintance by his or her family name.
 “Mister” is obviously proper for men, while many married Filipinas prefer “Mrs.” use
“Ms.” sparingly, or at least preference is clear. Filipinos are status conscious, so be quick to
use formal titles: Doctor Aquino, Attorney Rodriguez, Secretary de Ocampo. Avoid using
someone’s first name until they’ve known you for a while, or until they ask you to be more
informal. (Henderson, 2016)

11. On Speaking in Meetings

 Keep the meeting organized by only speaking when you have the floor. Ask questions
during the designated question period, and raise your hand to be recognized by the
chairperson as having the floor. Do not interrupt someone while they are speaking or asking
a question (Root III, 2016).
 Do not raise your voice or interrupt your business partners, as this is regarded as terribly
disrespectful.

12. On Listening
You may find that many of the questions you have about a topic are answered by the content of
the meeting. Listen attentively to the meeting and take notes (Root III, 2016).

13. On Cell Phones and Laptops

Turn of your cell phone prior to the start of the meeting. If you are expecting an urgent call, then
set your phone to vibrate and excuse your self from the meeting if the call comes in. unless
laptop computers have been approved from the meeting, turn yours off and lower the screen so
that you do not obstruct anyone’s view (Root III, 2016).

14. On Business and Visiting Cards

It is advisable to present your or visiting card with both hands, and to take that of your contacts
with both hands also, to show a certain short of consideration for the person. In addition, never
slip the visiting card into your pocket, or your wallet; put it with the papers you are using during
negotiations.

15. On breaks
Meetings should have a break every 2 hrs. Breaks should be 20 minutes long, and meal breaks
should be 30 minutes long. (Root III, 2016).

16. On Appropriate Communication

Speak in a polite and considerate manner. A professional must be mindful of the subject matter
of all spoken and written conversations.

17. On Bargaining
Bargaining is part of the Filipinos’ way of life, and it has become natural for the region’s
businessmen to negotiate and bargain in order to obtain better commercial conditions. Do not get
angry and avoid shouting or imposing unreasonable deadlines for decision-making.

18. On bringing in Guests

Do not bring unannounced guests to a meeting. If you have someone you would like to bring to a
meeting, then contact the chairperson for permission to bring your guest. If permission is not
granted, then do not bring him (Root III, 2016).

19. On Building Relationships

Show others that you value your work by taking the time to visit and talk with them. This can
include not immediate colleagues but also people who work under you, such as secretaries and
janitorial staff. These people can help you look more professional and will go to the extra mile
for you if you treat them with respect.

20. On Business Meals and Recreation

Entertainment in the business world takes place in restaurants, bars, and hotel lounge bars, at
home and sometimes in night-clubs. In general, in restaurants, the person who issues the
invitation is the one who pays.

21. On Gift Giving

Imported brandy and whiskey are prized gifts, even if the recipient does not drink alcohol. If you
are given a small gift, accept it amiably, but do not open it in front of other guests or only do so
after you have left.
B. Protocol

In general, protocol means the unwritten rules or guidelines that are peculiar to other culture or
organization, and are supposed to be observed by all parties in the conduct of business,
entertaining, negotiating, politics, etc.
Business protocol is a general term that may define several aspects of a business.

1. The Basic of a Protocol

 The purpose of business protocol is to encourage all employees in a company to act in a
uniform manner.
 Business protocol helps to ensure all the employees understand their role in the company,
the tasks and challenges they face, and how to execute them as quickly and accurately as
possible (Monet, 2016)

2.Training in Protocol
 A business may provide business protocol and etiquette training for its employees.
 Etiquette expert notes that an increasingly diverse workforce requires such training to help
people from all walks of life communicate with each other and work together.
 Protocol and etiquette may help bridge economic, cultural, knowledge and language gaps
(Monet, 2016)

3. Benefits of Protocol
 Business protocol helps present a uniform, professional face to the public, to partners and to
donors.
 Business protocol may unite employees under common goals and ensure that tasks are
executed to the preferences of the company’s owner.
 Employees who are presented with a business’s protocol and etiquette up front will be able
to make informed decisions about whether the company is right for them (Monet, 2016)

4. International Business Protocol

 The culture and traditions of each country make people behave differently and if
international managers do not know how to adapt to business culture differences, they can
cause rejection in the other party and even jeopardize the success of the negotiations.

Some aspects related to international business protocol are:

 Greetings and Introductions
 Names and Titles
 Organizing Meetings
 Punctuality and Time
 Business Cards
 Preliminary Conversations
 Verbal Communication
 Non-Verbal Communication
 Business Meals
 Gift Giving
 Tipping Tips
 Business Attire

5. Examples of protocols in Philippine Business

 Philippines society remains very attached to traditional Asian Values.
 The importance of the network system means that the person who exerts the most influence,
the boss of the network, is not necessarily in charge of meetings, but rather prefers to let
technical experts negotiate details. Sometimes you have to be prepared to deal with both
levels.
 Filipino Family-Modeled Businesses—the different working relationships and the roles of
individual employees often resemble the structure of a Filipino family. The Boss plays a
paternalistic role and heads a hierarchical management. In this type of business world ,
which is prevalent in most Southeast Asian countries, a high status, mutual respect, and a
good reputation are essential to success. Therefore, age and status demand high levels of
respect.
 Business is Personal—the Philippine business environment is highly personalized and it is
good to deal with business matters on a face-to-face basis.
 Status-consciousness—Filipinos are very status-conscious, and the use of formal titles is an
important way of showing respect to your business partners and colleagues
 Politeness and Ambiguity—for Filipinos, the word “no” is almost non-existent. In a western
setting, it’s usually pretty clear when the other party isn’t interested in your proposal,
whatever it might be. The responsible executive simply looks you in the eye and says:
“Sorry, but I’m afraid the answer no.” if you ask why, he or she probably tell you the
reasons for the negative decisions

C. Policies
 Business policy defines the scope or spheres within which decisions can be taken by the
subordinates in an organization.
 Business policies are the guidelines developed by an organization to govern its actions.
1. Features of Business Policy
 SPECIFIC: policy should be specific/definite. If it is uncertain, then the implementation will
become difficult.
 CLEAR: policy must be unambiguous. It should avoid the use of jargons and connotations.
There should be no misunderstandings in following the policy.
 RELIABLE/UNIFORM: policy must be uniform enough so that it can be efficiently
followed by the subordinates.
 APPROPRIATE: policy should be appropriate to the present organizational goal.
 SIMPLE: A policy should be simple and easily understood by all in the organization.
 INCLUSIVE/COMPREHENSIVE: in order to have a wide scope, a policy must be
comprehensive.
 FLEXIBLE: policy should be flexible in operation/application. This does not imply that a
policy should be altered always, but it should be wide in scope so as ensure that the line
managers use them in repetitive/routine scenario.
 STABLE: policy should be stable else it will lead to indecisiveness and uncertainty in
minds of those who look into it for guidance.

2. Difference between Policy and Strategy

 The term “policy” should not be considered as synonymous with the term “strategy.” the
difference between policy and strategy can be summarized as follows:
POLICY is a blueprint of the organizational activities which are repetitive/routine in nature.
While STRATEGY is concerned with those organizational decisions which have not been
dealt/faced before in the same form.
POLICY formulation is the responsibility of top level management. While STRATEGY
formulation is basically done by middle-level management.
POLICY is concerned with both thought and actions. While STRATEGY is concerned mostly
with action.

D. Advertising
 Is how a company encourages people to buy their products, services, or ideas.
 An advertisement is anything that draws good attention toward these things.
 It is usually designed by an advertising agency for an identified sponsor, and performed
through a variety of media.
 Advertisers use methods that attract attention.

E. Marketing
 The term marketing refers to the process of product development as well as sales,
promotion, and distribution. It is often confused with promotion or advertising.
 The whole concept of marketing revolves around the costumer.

F. Bookkeeping
 Accounting, simply put, is keeping track of money.
 Bookkeeping is the process of recording all financial transactions to keep track of the cash
flow.

Chapter 5 — The Classical Philosophies and the Implication on Business Principles and Practices

Socrates: The Gad-fly at the Marketplace

 “The unexamined life is not worth living.”

 Is one of the few individuals whom one could say has so shaped the cultural and intellectual
development of the world that, without him, history would be profoundly different.
 He is best known for his Socratic method of question and answer, his claim that he was
ignorant, and his claim that the unexamined life is not worth living, for human beings.

The Socratic method and entrepreneurial learning

 The Socratic Method provides focus through clarity of purpose.

Founders who define values, goals and concepts for their company set a clear direction for an
organization. By constantly questioning our belief system, we reach clarity of purpose. Clarity of
purpose leads to a shared sense of accountability, keeping team members on the same page and
in pursuit of the exact same outcomes.

Sample Socratic Logic Questions

 What is that always coming but never arrives?

“TOMORROW”

 What is at the end of the RAINBOW?

“Letter W”

 What can you catch but never throw?

“A Cold”

 What invention lets you see through a wall?

“A Window”

 Use the Socratic Method to develop and reinforce an entrepreneurial mindset.

The Socratic principles of defining current beliefs, developing a question and setting up
experiments to discover new insights are the core building blocks of entrepreneurial learning.
The Socratic Method is a powerful, world-changing idea for a reason, and entrepreneurs, whether
consciously or unconsciously, follow a Socratic path as they grow their ventures.

Dare to Disagree
 Socrates insisted on our right to think for ourselves. Too often, he warned, humans
sleepwalk through life, simply going along with the crowd. This is dangerous in questions
of morality, and particularly in corporate governance. When corruption is uncovered, too
often people say “everyone else was doing it.” but our characters are our responsibility.
(Evans, 2016)

Plato: The Philosopher-King

 “Good people do need laws to tell them to act responsibly, while bad people will find a way
around the laws.”
 Plato is one of the world’s best known and most widely read and studied philosophers. He
was the student of Socrates and teacher of Aristotle, and he wrote in the middle of the
fourth century B.C.E. in ancient Greece.
 Combating the relativism of the Sophists
Plato considers the sophists to be one of the primary enemies of virtue, and he is merciless in his
attacks on them. Sophists, who were relatively new in Plato’s day, were a class of itinerant
teachers who instructed young statesmen in the arts of rhetoric and debate for a fee. They taught
that values are relative, so that the only measure of who is right is who comes out on top.

 The Theory Of forms

In essence, the Theory of Forms represents Plato’s attempt to cultivate our capacity for abstract
thought. Philosophy was a relatively new invention in Plato’s day, and it competed with
mythology, tragedy, and epic poetry as the primary means by which people could make sense of
their place in the world.

 The Theory of The Tripartite Soul

In the republic and the Phaedrus , Plato describes the soul as divided into three parts, labeled
appetitive, spirited, and rational. He offers this division partly as a way of explaining our
psychological complexity and partly to provide a justification for soul-the rational part.
TRIPARTITE SOUL

 Education for the Health of the State

In both the Republic and the Laws, Plato identifies education as one of the most important
aspects of a healthy state. He lays out detailed education programs that start with exercises
pregnant women should perform to ensure the health of the fetus, and he goes on to explain not
only what children should study but also what values they should be exposed to and what kinds
of art and physical exercise they should engage in.

Aristotle: All or nothing

 “Happiness is the meaning and the purpose of life, the whole aim and the end of human
existence”

 Is a towering figure in ancient Greek philosophy, making contributions to logic,

metaphysics, mathematics, physics, biology, botany, ethics, politics, agriculture, medicine,
dance and theater. He was a student of Plato who in turn studied under Socrates. He was
more empirically minded than Plato or Socrates and is famous for rejecting Plato’s theory
of forms.

 As a prolific and polymath, Aristotle radically transformed most, if not all, areas of
knowledge he touched. It is no wonder that Aquinas referred to him simply as “The
Philosopher

 Virtue and Happiness

The word happiness in the Ethics is a translation of the Greek term eudaimonia, which carries
connotations of success and fulfillment. For Aristotle, this happiness is our highest goal.

 Moral Education
A question of high importance in any investigation of ethics is how we can teach people to be
good. Aristotle is quite clear that he does not think virtue can be taught in a classroom or by
means of argument. His ethics, then, is not designed to make people good, but rather to explain
what is good, why is it good, and how we might set about building societies and institutions that
might inculcate this goodness(SparkNotes Editors, 2016).

 The Doctrine of the Mean

One of the most famous aspects of the ethics is Aristotle’s doctrine that virtue exists as a mean
state between the vicious extremes of excess and deficiency. For example, the virtues mean of
courage stands between the vices of rashness and cowardice, which represent excess and
deficiency respectively (SparkNote Editors, 2016)

 The Unity of the Virtues

For Aristotle, virtue is an all-or-nothing affair. We cannot pick and choose our virtues: we cannot
decide that we will be courageous and temperate but choose not to be magnificent. Nor can we
call people properly virtuous if they fail to exhibit all of the virtues (SparkNotes Editors, 2016).

 The life of Contemplation

Aristotle ultimately concludes that contemplation is the highest human activity. This is largely a
consequence of his teleological view of nature, according to which the telos, or goal, of human
life, is the exercise of our rational powers.

 Implications to Business
“Aristotle’s general framework is a very compelling one”, says University of Geulph-Humber
Assistant Vice-Provost and Program Head of Business, George Bragues.
“It’s one that involves looking at character and virtues, and so can provide important moral
guidelines for distinguishing right from wrong in the world of business .”

Aristotle is viewed as the intellectual godfather of the virtue Theory of the ethics. This facet of
business ethics is a person rather than action based; meaning, it asks more about a person’s
character in making ethical business decisions.

Immanuel Kant: Duty-Based Ethics

 “ Act only according to that maxim by which you can at the same time will that it should
become a universal law”.

 Is one of the most influential philosophers in the history of Western philosophy. His
contributions to metaphysics, epistemology, ethics, and aesthetics have had a profound
impact on almost every philosophical movement that followed him.

 Was a German philosopher who advanced the theory of deontology or deontological ethics-
the theory of duty and obligation.

 Deontology Process that ethical behavior is simply doing God’s will.

 Deontology is a moral theory that is dependent on the scriptures-which may refer to rules,
morals laws, and intuition. It is based on the Greek words “deon” and “logos,” meaning the
“study of duty.” It centers on the principles of 18th-century philosopher Immanuel Kant.

 The Categorical Imperative

Along with the concept of good will goes a concept of duty to keep one’s promises which is
known as Kant’s categorical imperative- an absolute and universally binding moral law.

There are two types of duty; hypothetical and categorical imperatives:

1) The hypothetical imperative is when an individual will perform a certain action in order to
achieve the desired end result(Bowie, 1999)
2) The categorical imperative involves an individual performing a certain action as
compulsory regardless of the end result or away from any personal influence (Bowie 1999).

Jeremy Bentham and John Stuart Mill: Utilitarianism

 “the end justifies the means.”-Niccolo Machiavelli

 “The said 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

 John Stuart Mill(1806-1873) profoundly influenced the shape of nineteenth-century British

thought and political discourse. His substantial corpus of work includes texts in logic,
epistemology, economics, social and political philosophy, ethics, ,metaphysics, religion,
and current affairs.

 Jeremy Bentham(1748-1832) was an English philosopher and political radical. He is

primarily known today for his philosophy, especially his principle of utilitarianism, which
evaluates actions based upon their consequences.

 Utilitarianism
Revolves around the concept of “the end justifies the means.” It is the brainchild of philosophers
John Stuart Mill and Jeremy Bentham.

It believes that outcomes as a result of an action have a greater value compared to the latter. It
also states that the most ethical thing to do is to take advantage of happiness for the good of the
society.

Types of Utilitarianism
a) Rule utilitarianism is put in place to benefit the most people by using the fairest methods
possible.
b) Act utilitarianism makes the most ethical actions possible for the benefit of the people.

Epicurus
 Epicurus, the Philosopher of Happiness

 It is impossible to live a pleasant life without living wisely and well and justly. And it is
impossible to live wisely and well and justly without living a pleasant life.

 These are words of Epicurus, a Greek philosopher who was born in 341 BCE His doctrines
on happiness are still valuable. Let's take a closer look at his ethical theory, beliefs and
writings.

 Epicurus thought that the worlds of commerce and politics “constrained the mind, limiting
it to the conventional, acceptable thought”. Leaving those worlds mean that you can begin
to think of more general, and arguably more important, matters.

Epicurus, the Man

Epicurus was born on the island of Samos. His name, in Greek, means 'ally, comrade', which is
fitting, as friendship and camaraderie were central throughout his life. He studied philosophy
from a very young age and then traveled to Lesbos and Lampsacus where he taught.

Philosophy
The philosophy of Epicurus can be divided into three blocks: the Canon, Physics and Ethics.

Canon, What Can We Know?

In the Canon Epicurus studies how we can know the world. That is, how is it possible to know
what is true and what is false. Epicurus said that we know the world through sensations, the
response of our body to objects.

 If we touch ice, we feel very cold. If the sensations are repeated, we create general ideas in
our mind. Thus, after several times of touching the ice, our mind enunciates a general
principle: ice is very cold. From here, we do not need to touch all the blocks of ice that we
find to suppose that they are cold.

Physics, How Matter Is Formed

 For Epicurus all things, living beings or inert objects, are formed by two elements: atoms
and void. Atoms are tiny particles, invisible to the human eye, which have weight and
volume. These particles move in a vacuum that Epicurus called 'void', and from the
innumerable combinations of atoms and emptiness all things that we know emerge.

Ethics, How to Achieve Happiness

 Ethics is the most important part of the Epicurus philosophy. Philosophy, says Epicurus, has
to help man find happiness. And happiness is based on two principles,
the autarky (autonomy), and the ataraxia, the tranquility of the spirit.

 To achieve happiness, we must avoid certain behaviors and perform others.

What to Look For?

 All men seek pleasure, but it is necessary to be very clear what pleasure is. Epicurus says
that there are different types:

 Natural, necessary pleasures, like eating when we are hungry. These are to be satisfied.
 Natural, unnecessary pleasures, like eating lavish foods or eating beyond what is necessary.
These are to be reduced.
 Unnatural, unnecessary pleasures, like desiring riches. These are to be eliminated.

Epictetus
 “How long are you going to wait before you demand the best for yourself.”

 “If you didn’t learn these things in order to demonstrate them in practice, what did you learn
them for?”

 “A person is not going to undertake to learn anything that they think they already know.”

 Epictetus argues that it is rational to confine 'good' and 'evil' to the things which are
essentially and always in our power: choice, refusal, desire, aversion and assent. These
decisions are evaluative judgments of the prohairesis (the true self or 'moral purpose').

 Was concerned with ethics and moral authority. He emphasized practice, not
theorizing. Discourses is rooted in common experience and common sense, which helps
explain, though teachings from nearly two millennia ago, they continue to inform and shape
the lives of present-day readers.

KEY TAKEAWAYS:
1) First distinguish between what you can control and what you can’t control. Second concern
yourself only with what is in your control.
2) Rethink challenges as not something inflicted upon you or an unfair setback, but as an
opportunity to prove your capabilities.
3) Education is useless if you do not apply it to your daily life.
4) Living a life of virtue and dignity is not an easy process so do whatever you have to protect
your progress.
5) Freedom is determined by your mind, not by the body, bank account or possessions.