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NORTHEASTERN CEBU COLLEGES, INC.

Senior High School Department
P.G. Almendras St., Danao City, Cebu
Tel #: 233 – 9660/ 233 – 9637

QUARTER 4

Module 1
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BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

UNIT II

FOUNDATIONS OF THE PRINCIPLES OF BUSINESS ETHICS

LESSON 8: The Filipino Value System and

Business Ethics Challenges

NAME: ______________________________________________________________
GRADE & SECTION: ___________________________________________________
DATE: ______________________________________________________________

PREPARED BY: RESHEAL MEDIO

Subject Teacher

UNIT II
_____________________________________________________________________________________

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Foundations of the Principles of Business Ethics

University Social Responsibility

In 2006, the administration of De La Salle University (DLSU) in Manila
renamed DLSU’s business school as the Ramon V. del Rosario Graduate School of
Business (RVR-GBSB). Del Rosario was an outstanding alumnus, entrepreneur,
business leader, and former ambassador to Canada, Germany, and Japan. He was
also vice – chairman of Caritas Manila, the social action of the Roman Catholic
Archdiocese of Manila. He remarked during the naming ceremony:” …Our
mission is not to produce MBAs (Masters in Business Administration) it is to
produce the managers and business leaders with the passion and commitment to
help millions of Filipinos out of Poverty into lives of dignity and well – being.”

INTRODUCTION
………………………………………………………………………………………………………

The unit’s opening story makes us realize that each of us has a social
responsibility toward our neighbor and society as a whole. In the book The End of
Poverty, author Jeffrey Sachs says: “This book is about ending poverty in our time.
It is not a forecast. I am not predicting what will happen, only explaining what can
happen. Currently, more than eight million people around the world die each year
because they are too poor to stay alive… Our generation can choose to end the
extreme poverty by the year 2005. You will see that all parts of the world have the
chance to join an age of unprecedented prosperity building on global science,
technology, and markets. But you will see that certain parts of the world are caught
in a downward spiral impoverishment, hunger, and, disease. It is no good to lecture
the dying that they should have done better with their lot in life. Rather, it is our
task to help them onto the ladder of development, at least to gain a foothold on the
bottom rung, from which they can then proceed to climb on their own.” Mr.
Ramon del Rosario Jr. has chosen to make it his business to take poverty
eradication or reduction seriously. Likewise, it is expected of you to seriously take
your social duties toward the society by learning about how to act well and do
good from the early classical philosophers.

Lesson 8: The Filipino Value System and Business Ethics

Challenges

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Lesson Objectives:

At the end of this lesson, the students should be able to:

1. Provide a historical background to business ethics in the
Philippines;
2. Explain the major Filipino values affecting business; and
3. Enumerate the various business ethics challenge flowing from
these Filipino business values..

I. Pre – Test

1. Explain the major Filipino values affecting business.

2. Enumerate the various business ethics challenges flowing from these

Filipino business values.

II. Discussion

The Term “Business Ethics” in the Philippine Context

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 The semantic term business ethics cannot help nut reflect the ethno –
linguistic and cultural wealth of, or the complexity present in, the Philippines. The
understanding of business ethics expresses the values both particular and peculiar
to each of the idioms currently used in the country. Business ethics is largely
understood in its American sense, as what is right and wrong in business.
“Business,” just like any sort of rule-guided activities, possesses its own list of do’s
and don’ts, or ethics. Ethics has got to do with rules, with what is legally allowed
or socially accepted, as opposed to what is frowned upon, prohibited, or penalized
in whatever form in business practice. Business, on the other hand, is a very
specific and defined field of human endeavor. For some, it is chosen occupation,
career, or profession which, due primarily to its economic consequences, has
become a focus of public concern. In other words, public concern over business
does not at all arise from any purportedly inherent value which such a class of
activities may have, but solely from their external effects of harm or benefit on the
general state of well – being of those concerned. “Business ethics” therefore refers
to some problem – solving techniques designed to help the practitioner when
confronted with dilemmas (Agapay, 2008; Roa, 2011).

One can say that Filipino business values are greatly affected by family –
oriented laws prevailing in the country. For example, The Family Code of the
Philippines (art. 209) provides that “the parent and those exercising parental
authority shall have with respect to their unemancipated children or wards the
following rights and duties;

1. to keep then in their company, to support, educate and instruct them by

right precept and good example, and to provide for their upbringing in keeping
with their means;
2. to give them love and affection, advice and counsel, companionship, and
understanding;
3. to provide them with moral and spiritual guidance, inculcate in them
honesty, integrity, self – discipline, self – reliance, industry and thrift, stimulate
their interest in civic affairs, and inspire in them compliance with the duties of
citizenship;
4. to enhance, protect, preserve and maintain their physical and mental
health at all times;
5. to furnish them with good and wholesome educational materials,
supervise their activities, recreation and association with others, protect them from
bad company, and prevent them from acquiring habits detrimental to their health,
studies and morals;
6. to represent them in all matters affecting their interests;
7. to demand from them respect and obedience;
8. to impose discipline on them as may be required under the circumstances;
and
9. to perform such other duties as are imposed by law upon parents and
guardians.”

A Filipino experiences family closeness and solidarity (pagpapahalaga sa

pamilya), politeness (use of po, ho or opo), hospitality (tuloy po kayo), gratitude
(utang na loob) from within, that is, subjectively and emotionally, etc. Such
Filipino values as social acceptance (pakikisama, amor propio, economic security,
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pagmamay - ari) and trust in Gid (pananalig sa Diyos, Bathala or Maykapal, and
Bahala na) find their philosophical basis in man’s dynamic openness toward nature
and the world (e.g., the value of hanapbuhay ng magsasaka), one’s fellowmen (the
values of paggalang, hiya, katarungan, pag – ibig), and God (the values of
pananampalataya, panalangin, kabanalan) (Gorospe, 1994).

Since there are lots of Chinese influence on Filipino culture because of the
migration to the Philippines of many Chinese since centuries ago, one needs to also
mention the familiarity with Confucian ethics and business lessons derived from
Confuciu’s sagely wisdom. From Confucian ethics emanate the emphasis on social
obligations, ethical decision-making, positive business dealings and harmonious
relationships within the organization, and the value of learning and education;
these bring attendant benefits and good practices including good business
management and labor practices. In Confucian ethics, the practice of the Tao –
“the way of life,” or the ultimate purpose and enlightenment in life – is very
important. Along with this, we also recognize other common Confucian Values:
a. Filial Piety
b. Brotherhood, peer-ship, and equality
c. Loyalty fidelity
d. Trustworthiness
e. Courtesy and politeness
f. Righteousness, right conduct, and courage
g. Uprightness, honor, integrity, and character
h. Humility and shame.

Wherever Confucian ethics has influenced business, the business people

would establish good relationships amongst one other, and thus more people would
be encouraged to practice good habits or virtues (Kim and Sik, 2013).

The ultimate basis of the Filipino psyche for its judgments in the realm of
business ethics rests, however, on the concepts of sin (kasalanan) and virtuous
action (mabuting gawa), which are clearly of a religious extraction. About 90
percent of the population adhere the Christian faith and therefore subscribes to the
mortality encapsulated in the Decalogue of special incidence to our case are the
seventh and the tenth commandments concerning respect for property, and to a
lesser degree, the eighth, referring to trustworthiness. A sin is something forbidden
on account of its being primarily an offense against God, a violation of his
manifest Will, and secondly an offense against one’s fellow or even against oneself
in his irrevocable dignity as a creature or a child of God. As such sin deserves to be
punished, either in one’s earthly existence or in the afterlife. On the other hand, a
virtuous action is a conscious and deliberated deed performed by man in
accordance with God’s will. For such an action one may reasonably expect a
reward, either in this life or in the next, from God. In addition, we must remember
an important feature of the Christian mindset: the absolute value of one’s future
immortality, and the relativeness of one’s present life (Sison and Palma – Angeles,
1997).

Business ethics corresponds to a wide range of concept pairs in Filipino. On

the immediate level, business ethics implies what is right or correct (tama) and
what is wrong (mali), what is allowed or legal (pwede or hindi bawal) and what is
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prohibited or illegal (bawal) in trade of business (pangangalakal). On another
level, there is a reference to what is good (mabuti) and what is bad (masama),
although in a highly utilitarian and instrumental rather than in an absolute moral
sense. That is to say, what is good in business is what profitable and brings
prosperity; whereas what is bad is what constitutes a losing proposition. Of course,
there also is a term for what is just (makatarungan), but hardly does this bear on
the ordinary conduct of business. The appeal to justice seems to be restricted either
to legislation or to the courts, which is an arena different from that of business.
Aside from being non-confrontational in manner, Filipinos also happen to be non –
litigious and avoid bringing their conflict, business-related or otherwise, to the
courts of justice. Instead, they prefer to have recourse to arbitration procedures
brokered by neutral third parties, as such as elders, in order not to upset the much –
prized pakikisama or smooth interpersonal relationships. Furthermore, influenced
perhaps by their Chinese neighbors, Filipinos have developed a very high regard
for luck (buenas or swerte), considering it to be a much sought after though not
always morally deserved good in business (Sision and Palma – Angeles, 1997).

Business Ethics Challenges in the Philippines

Basic education’s usual approach to ethics teaching in the Philippines has
been generally pedantic. Teachers and parents repeatedly admonish us about
inherited do’s and don’ts, perhaps thinking that the repletion would drive us
ethical. In a country where much is needed to combat what critics call endemic
corruption, moral numbness has crept in. along with moral numbness, an
underdeveloped capability for moral reasoning and the lack of moral courage make
business ethics learning particularly challenging in the Philippines. Undeniably, it
is an increasingly morally numb and indifferent culture. Like a highly publicized
criticisms from local and international media, multilateral funding agencies and
prominent local academics. The truth is the average Filipino has become immune
to unethical behavior among high – ranking business and government officials
because many publicized cases have gone unresolved; few leaders have been
sanctioned and imprisoned. The issues get buried; the unethical business and
government leaders go scot – free and are promptly forgotten. The long-term result
is that future generations of officials never learn the lesson that their power and
offices are not their personal entitlement but a duty to communities. Even more
unfortunate is the fact that sometimes these misbehaving role models are admired
despite the source of their money. They are emulated. Without moral indignation
and vigilance, one of the most effective corrective to ethical wrongdoing among
leaders is gone, and unethical behavior perpetuates (Palma – Angeles, 2013).

CASE STUDY

Grace to Be Born Maternity Home and Nursery

Grace to Be Born was established in 2008 by Bo Sanchez, Rey Ortega, and

Betty Roxas – Chua. The couple Basti and Betty renovated their Pasig building and
lent it rent – free to Grace to Be Born.

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 The place serves as a temporary shelter for unwed pregnant mothers and an
orphanage for the children born there. With no questions asked, no deposit
required for board and lodging, and no social standing asked for, Grace to be Born
has become a haven for the young ones to be born in, and a place where their
mothers have a chance for emotional and spiritual rebirth.

Vision:
A Catholic Community upholding the sanctity of the human life
through defending protecting and nurturing the unborn babies from the moment of
conception until birth.

Mission:
Our mission is to express the infinite compassion of God, the Author
of life, by bringing girls and women in crisis pregnancy to experience a taste of
God’s loving care by providing them with confidential and holistic services to be
able to bring their unborn babies to birth successfully, joyfully and lovingly.

Guide Questions:

1. Through some research, describe briefly the situation unwed pregnant

mothers in the Philippines.

2. What do you think made Mr. Rey Ortega, founder and director of grace to
Be Born, create and sustain the initiative?

3. Which Filipino values are at play in the continued operations of grace To

be Born?

4. Mr. Rey Ortega’s Foundations continue to appeal for help, in this way:
“The homes need your love and outmost support to continue their service.” If these
homes knock at the door of your heart, what service can and will you offer?

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