BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

THE FILIPINO VALUE SYSTEM AND BUSINESS ETHICS CHALLENGES

The Term “Business Ethics” in the Philippine Context

The semantics of the term Business Ethics cannot help but reflect the ethno-linguistic and cultural
wealth, or complexity present in, the Philippines. Business ethics is largely understood in its American sense, as
what is right and wrong in the 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 the legality 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 very specific and defined field of human endeavor. For some, it is a 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 benefits 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).

Filipino business values are greatly affected by family-oriented laws prevailing in the country. The family
code of the Philippines (art.209) provides that “ the parents and those exercising parental authority shallhave
with respect to their unemancipated children or wards the following rights and duties.

1. To keep them 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 and inspire in them compliance with duties of citizenship.
4. To enhance, protect, preserve and maintain their physical and mental health at all times.
5. To furnish them with god and wholesome educational materials, supervise their activities, recreation and
association with others.
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
9. To perform such other duties as are imposed by law upon parents and guardians.

Subjective or emotionally Filipino values

1. Closeness and solidarity (Pagpapahalaga sa pamilya)
2. Politeness (use of po or ho or opo)
3. Hospitality (tuloy po kayo)
4. Gratitude (utang na loob)

Filipino Values based on Philosophical basis in man’s dynamic openness toward nature and the world.
1. Social Acceptance (pakikisama)
2. Amor propio (pagpapahalaga sa sarili)
3. Economic security (pagmamay ari)
4. Trust in God (pananalig sa Diyos, Bathala or may kapal)
5. Come what may (Bahala na)
6. Respect (paggalang)
7. Shy (hiya)
8. Equity (katarungan)
9. Love (pag-ibig)

Filipino Values based on God

1. Faith (Pananampalataya)
2. Prayer (panalangin)
3. Holiness (kabanalan)
Since there are lots of Chinese influence on Filipino culture because of the migration in the Philippines
of many Chinese since centuries ago, one needs to also mention the familiarity with Confucian ethics
and lesson derived from Confucius’ sagely wisdom. From Confucian ethics emanate the emphasis
on social obligation, ethical decision-making, positive business dealings and harmonious
relationships within the organization, and the value of learning and education. In Confucian ethics,
the practice of the Tao-“the way of life’ or the ultimate purpose and enlightenment in life-is very
important

Common Confucian Values

1. Filial piety
2. Brotherhood, peer-ship, and equality
3. Loyalty and fidelity
4. Trustworthiness
5. Courtesy and politeness
6. Righteousness, right conduct and courage
7. Uprightness, honor, integrity and character
8. Humility and shame

The ultimate basic of the Filipino psyche for its judgments in the realm of the business ethics rests,
however, on the concept of sin (kasalanan) and virtuous action (mabuting gawa) which are clearly of
a religious extraction.

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 prohibited or illegal (bawal) in trade or business
(pangangalakal). What is good in the business is what is profitable and brings prosperity; whereas
what is bad is what constitutes a losing proposition.

Filipinos also happen to be non-litigious and avoid bringing their conflicts, business-related or
otherwise, to the court of justice. Instead, they prefer to have recourse to arbitration procedures
brokered by neutral third parties, such as elders, in order not to upset the much-prized pakikisama or
smooth interpersonal relationships. Furthermore, influenced perhaps by Chinese, Filipinos have
developed a very high regard for luck (buenas or swerte).