PHILOSOPHY OF BUSINESS

Learning Objectives

• Understand philosophy as it is applied in business.

• Know the importance of moral and ethical standards in business.

• Learn the rules and principles of business.

• Recognize business as a social institution.

Great things in business are never done by one person. They’re done by a team of people.”

- Steve Jobs

Philosophy – according to Webster’s Dictionary, is a system of fundamental or motivating

principles, the basis of action or belief.

How can we connect or make relevant this characterization of philosophy in relation to

business?

Having a comprehensive and sensible business philosophy is the foundation of winning

business.

Which is which….

a. Philosophy of Business or

b. Business Philosophy

Are they one and the same?

Philosophy of Business as cornerstone of a triumphant business:

The practice of comprehending, appreciating, and improving a business philosophy, could be

the foundation that could bind the organization as it hurdles risks, challenges, and crisis.

SCOPE AND COVERAGE OF BUSINESS PHILOSOPHY

1. A set of beliefs and principles that the organization endeavours and strongly holds.
This is often referred to as the mission/vision statement. In the grand scheme of
things, this is actually the “Operational Blueprint.”

2. The goals, objectives, and purpose of doing business.

3. This silhouettes of the values that are deemed important as it mirrors what kind of
management or leaders the business has.
Once the business philosophy has been established, it must be conveyed and practiced by
every member of the organization. Otherwise, it would just be a worthless declaration.

THE REAL OBJECT OF PHILOSOPHY OF BUSINESS

• Generating more profit should never be the only goal of any industry. Research and
numerous studies have proven that business tend to prosper and withstand the test of
time, including competitors, as long as they exhibit and practice interest and
responsibility towards the general public.

Global Positioning System or GPS – modernization and technology are responsible for this
state-of-the art mechanism which allows people to navigate with ease and precision.

The same analogy may be applied in business philosophy . Without the mission/vision
statement, goals, objectives, purpose, and other related parameters, one could easily get lost
amidst the surge of pressures, challenges, setbacks, and other business-related problems.

The philosophy of business on the other hand , is like the GPS – it guides us in the right
direction. It tells us where we are, where we are going, and the right direction to get there.

Looking at another angle, you may view it as the “commandments” that are expected to be
religiously respected, followed, and adhered at all times. Going against such principles is non-
conforming and may lead to problems such as damaged reputation, loss of trust, broken
relationships between and among management, subordinates, and/or consumer in general.

Therefore, Philosophy of business is like the heart and conscience of the firm. By setting up a
mission, and formulating its vision, many Untoward incidence may avoided and, in the
process, generating a harmonious working environment.

MORAL AND ETHICAL BASIS OF BUSINESS

ETHICS
- is an established set of rubrics or guidelines that identify conduct and define what is
right and wrong demeanour.

- Not limited on a personal level. Even businesses espouse ethics. They have moral
obligations to fulfil.

* Though ethics in business is not in all instances written in black and white, common sense
would tell us that such unwritten codes of values and principles govern our decision-making
within the realms of the industry. Standards are usually grounded on the organization’s
culture and this sets apart in terms of behavior as to what is acceptable or otherwise.
THREE MODELS OF MANAGEMENT ETHICS
1. Moral – conforms to high standards of ethical behavior.
2. Amoral
a. Intentional – does not consider ethical factors.

b. Unintentional – casual or careless about ethical considerations in business.

3. Immoral – a style lacking ethical principles and dynamic antagonism to what is

ethical.

Why do people behave ethically?

 Most of us behave ethically….

1. To evade punishment.

2. To get some “reward” for being “good”.

 Many of us behave ethically….

1. To be agreeable and acceptable to family, friends, and superiors.

2. To be a “good citizen”.

 Few of us behave ethically….

1. To do what is right.

* What considered proper for some does not equate to be the same for all. It all depends on
the following: The person, the perspective, and the recipient – as to how one would view and
accept the said conduct.

SHAREHOLDER – owns part of a company through shares of stock, making them

stockholders.

STAKEHOLDER – has an interest and/or concern in the operation as well as the

performance of a company.

Stakeholders are divided into two:

a. Internal Stakeholders

b. External Stakeholders
The Four-Fold Test in Decision-making Evaluation
1. Truthfulness - How honest and accurate is my decision?

2. Fairness - Am I being just and reasonable to everyone concerned?

3. Goodwill - will it build goodwill and positive image to the organization?

4. Beneficial - Will it be favorable to all parties who have vested interest in the outcome?

Rules and Underlying Principles of Business

• Basic Principles
1. Rules are subject to change

2. There is no such thing as absolute business rule in any business model.

3. There are no business rules until you say there are.

4. A business rule should always be feasible

 Diana Jane O. Cuñas BSBM 202 C
Ms. Maggie Mae Macaranas BMGT 28

ACTIVITY 2
Comparison of the Three Power of the State
Point of Difference Taxation Police Power Eminent Domain
Government and
Exercising Authority Government Government
private utilities
For the support of To promote the For public use as
the government to public good or the state enables to
protect the people and welfare by forcibly acquire the
extend them benefit in restraining and private property in
Purpose
the form of public regulating the use of exchange for
projects and services. both liberty and appropriate
property of all compensation.
people.
Community or class Community or An individual,
Persons affected of individuals class of individual Owner of a
particular property
No Limit due to the Limited to the cost No amount
government needs. of the license and imposition, the
Amount of the necessary owner is paid the
Imposition expenses of police fair market value of
surveillance and his or her property.
regulation.
Most Important as it Most Superior as it It is Important as it
become part of public impose to ensure permits federal,
funds where citizens' compliance state, county, or city
governments collect with the law and governments in each
this money and use it maintain order in a state to take
to finance social community. In ownership of private
projects. Without maintaining law and property for it to be
taxes, government order, the police can used for general
Importance
contributions to the use specific means, public use, with
health sector would be including force, to general public
impossible. Taxes go make that happen. purpose meaning the
to funding health Police powers land is intended for
services such as social ensure that a state wide use by the
healthcare, medical can provide for and general public.
research, and social protect its citizens
security.
Inferior to the clause Superior to the Superior and may
of “ Non-Impairment clause of “Non- override the clause
Relationship with the
Clause” of the Impairment Clause” of “Non-Impairment
Constitution
Constitution of the Constitution. Clause” of the
Constitution.
Limitation Legal, Constitutional Public interest and For public use and
and Inherent due process purpose and
limitations appropriate
 compensation.
Danna Laine B. Diaz BSBM 202 C
BMGT 28

ACTIVITY 2
Comparison of the Three Power of the State
Point of Difference Taxation Police Power Eminent Domain
Government and
Exercising Authority Government Government
private utilities
It's the law of
Purpose For their safety Public Use
government
Maintain order in a Rights of the
Persons affected Personal Income
community Property
Tax is a vital source
Limited to the cost There is no
Amount of Imposition of revenue (no limit
of regulation imposition
to the amount of tax)
(most important) (most superior) to (important) land is
collecting money ensure and maintain intended for wide
Importance
and use it to finance order in a used by the general
social projects community public.
For public use so
Shall evolve a Improve or protect
Relationship with the long as the
progressive system the general public
Constitution government pays
of taxation. lives
'just compensation"
Non-Impairment of
Limited by specific Public purpose and
Limitation obligation and
rights guaranteed its compensation.
contract
 Republic of the Philippines
CAVITE STATE UNIVERSITY
CCAT Campus
Rosario, Cavite
 (046) 437-9505 /  (046) 437-6659
cvsurosario@cvsu.edu.ph
www.cvsu-rosario.edu.ph

BMGT 28
Activity 2
GONZALES, Alyssa Mae A.
BSBM 202-C

Point of Difference Taxation Police Power Eminent Domain

Exercising Congress President of the Government and
Authority Philippines, private utilities
administrative boards
and local
governments under
the general welfare
clause
Purpose To fund To ensure citizens’ To take private
government compliance with the property for public use
expenditures. law and maintain
order in a
community.
Persons affected Community or Community or class Owner of the property
class of of individuals
individuals
Amount of No limit to the Limited to the cost of No imposition, the
Imposition amount of tax that regulation, issuance owner is paid the fair
may be imposed. of the license and/or market value of his
surveillance. property.
Importance Government Ensure that a state To forcibly acquire the
collect this money can provide for and needed property for
and use it to protect its citizens public use
finance social
projects.
Relationship with Inferior to the Superior to the “Non- Superior to the “Non-
the Constitution “Non-impairment impairment Clause” impairment Clause” of
Clause” of the of the Constitution the Constitution
Constitution
Limitation Inherent, direct Public Interest and Public purpose and
constitutional and due process just compensation
indirect
constitutional