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Business Ethics and
Social Responsibility
Quarter 3 – Module 2
Foundations of the Principles of
Business Ethics
 Department of Education • Republic of the Philippines
Business Ethics and Social Responsibility – Grade 11/12
Alternative Delivery Mode
Quarter 3 – Module 2: Foundations of the Principles of Business Ethics
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this book are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to
use these materials from their respective copyright owners. The publisher and
authors do not represent nor claim ownership over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones, PhD
Undersecretary: Diosdado M. San Antonio, PhD
Assistant Secretary: Alma Ruby C. Torio, PhD

Development Team of the Module

Author: Lovella D. Tompong

Printed in the Philippines by: _______________________________________
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Content Editors: Cherry Breza S. Costanilla
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SENIOR HIGH SCHOOL

Business Ethics and

Social Responsibility
Quarter 3 – Module 2
Foundations of the Principles
of Business Ethics

This instructional material is collaboratively developed and reviewed

by educators from public and private schools, colleges, and/or universities.
We encourage teachers and other education stakeholders to email their
feedback, comments, and recommendation to the Department of Education
at action@deped.gov.ph

We value your feedback and recommendations.

 Department of Education • Republic of the Philippines
Table of Contents

Introduction ------------------------------------------------------------------------------------------ 2

Pre-test ------------------------------------------------------------------------------------------------ 4

Lesson 1 ---------------------------------------------------------------------------------------------- 6

Lesson 2 ---------------------------------------------------------------------------------------------- 12

Lesson 3 ---------------------------------------------------------------------------------------------- 21

Assessment ------------------------------------------------------------------------------------------ 32

Answer Key ------------------------------------------------------------------------------------------ 34

References ------------------------------------------------------------------------------------------- 35
 INTRODUCTION

Hello dear learners! Welcome to this module on Business Ethics and Social
Responsibility. The course deals with the fundamental concepts, principles, and
practices of ethical standards in the business environment. It combines the
theoretical foundations of setting up business enterprises with the conduct of
entrepreneurial activities in the context of one’s accountability and social
responsibility. This module Foundations of the Principles of Business Ethics will help
you understand the classical philosophies specifically, virtue ethics, the impact of
belief systems, and the Filipino Value System. The module is self – instructional and
allows you to learn in your own space, at your own pace. So, relax and enjoy
learning.

To the teacher:

This lesson assumes that the teacher has already introduced to his/ her
learners’ knowledge about business ethics and its importance as discipline and a
means of understanding life.

The primary goal of this module is to help learners identify the classical
philosophies and their implication for business principles and practices, describe
various belief systems, their similarities and differences in relation to the business
setting, and how the Filipino value system affects the attitudes of business
constituents.

To the Learners:

At the end of this module,

In order to achieve the objectives of this module, it is necessary to have

completed all the module for you to fully understand the activities and discussions.

Specifically, this module consists of the following lessons:

 Lesson 2.1- Illustrate how these philosophies are reflected into

business practices

 Lesson 2.2- Explain how the belief systems influence business

practices

 Lesson 2.3- Infer how Filipino value systems influence business

practices

 Lesson 2.4- Generate ways to improve business practices guided by

the philosophies, belief systems or Filipino values

2
 GENERAL INSTRUCTIONS

For the learners: To be guided For the teacher: To facilitate and

in achieving the objectives of this ensure the students’ learning
What I Know
module, do the following: from this module, you are
Read and follow instructions encouraged to do the following
carefully. (you may edit this part):
Clearly communicate learning
Write all your ANSWERS in your competencies and objectives
ACTIVITY NOTEBOOK.
Motivate through applications and
Answer the pretest before going connections to real life.
through the lessons.
Give applications of the theory
Take note and record points for
clarification. Discuss worked-out examples
Compare your answers against Give time for hands-on unguided
the key to answers found at the classroom work and discovery
end of the module.
Use formative assessment to give
Do the activities and fully feedback
understand each lesson.
Introduce extensions or
Answer the self-check to monitor generalizations of concepts
what you learned in each lesson.
Engage in reflection questions
Answer the posttest after you
Encourage analysis through
have gone over all the lessons.
higher order thinking prompts
Provide alternative formats for
student work
Remind learners to write their
answers in their Philosophy
Activity Notebook

3
Before heading on to our lesson, let us first check what you already know.

Direction: Read each statement below and evaluate which of the choices is being
described by the statement. Write your answers on your activity notebook.

______ 1. A form of applied ethics or professional ethics, that examines ethical

principles and moral or ethical problems that can arise in a business
environment
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 2. A branch of Philosophy that "involves systematizing, defending, and

recommending concepts of right and wrong behavior.
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 3. A set of principles or tenets which together form the basis of a religion,
philosophy, or moral code.
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 4. Defined as a set of beliefs concerning the cause, nature, and purpose
of the universe, especially when considered as the creation of a superhuman
agency or agencies, usually involving devotional and ritual observances, and
often containing a moral code governing the conduct of human affairs.
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 5. He is best known for the Socratic method of question and answer. He
is known for his classic philosophy, “HAVE THE COURAGE TO DISAGREE.”
a. Socrates c. Aristotle
b. Confucius d. Plato

______ 6. His prime belief was that a person must study themselves in
order to find out their level of character. His classic philosophy is “THE
POWER TO RULE.”
a. Socrates c. Aristotle
b. Confucius d. Plato
______ 7.Fill in the blank: In ___________, the Jewish business ethics is
illustrated by the widely quoted Talmudic tradition. Thus, in the treatment of
workers, the Jews are obliged to pay their workers on time, pay their workers
a living wage and treat their workers with dignity and respect. On the side of
the workers, it is important not to steal company time.
a. Christianity c. Muslim and non-Muslim

4
 b. Judaism d. Islam

______ 8.Fill in the blank: In Islam, Prophet Muhammad’s on honesty and kind
dealings with customers are the secrets of success in business. It also
requires being honest in dealings with ______________ alike.
a. Christianity c. Muslim and non-Muslim
b. Judaism d. Islam

______ 9. A mother offers her daughter’s friend food to eat and a room to spend
the night.
a. Utang na loob c. Hard work
b. Hospitality d. Padrino

______ 10. Mario’s driver’s license is processed immediately by his godfather,

an LTO personnel.
a. Utang na loob c. Hard work
b. Hospitality d. Padrino

Great job!
Later we will see if your answers are correct by reading the rest of this module.

Lesson Illustrate how these philosophies are

1 reflected into business practices

5
 Ethics or moral philosophy is a branch of Philosophy that "involves systematizing,
defending, and recommending concepts of right and wrong behavior.

Business ethics (also known as corporate ethics) is a form of applied

ethics or professional ethics, that examines ethical principles and moral or ethical problems
that can arise in a business environment. It applies to all aspects of business conduct and is
relevant to the conduct of individuals and entire organizations. As an applied branch of
General Ethics, it must be studied from the perspective of Philosophy. This is because
Ethics is a part of moral principles.

Ethics is more concerned with standards of conduct acceptable to a group, a

profession, or members of an organization.

What I Need To Know

Objectives: After going through this module, you are expected to be able to:

 Illustrate how these philosophies are reflected into business practices

ABM_ESR12-IIIe-h-2.1

 Explain how the belief systems influence business practices

ABM_ESR12-IIIe-h-2.2

 Infer how Filipino value system influence business practices

ABM_ESR12-IIIe-h-2.3

 Generate ways to improve business practices guided by the philosophies,

belief system or Filipino values ABM_ESR12-IIIe-h-2.4

What’s In

The philosophies of these Classical Philosophers have great implications on

business and are the foundations of the principles of the business ethics.

6
Socrates
He is known for his classic philosophy, “HAVE THE COURAGE TO DISAGREE.” He
is best known for the Socratic method of question and answer. The Socratic method
is a way of thinking that allows individuals to define their own purpose for learning. In
business, administrators ought not to sleepwalk or basically oblige the group.  

Plato’s classic philosophy

THE POWER TO RULE. His prime belief was that a person must study themselves
in order to find out their level of character. He is acclaimed for his choices regarding
the matter of the real world. In business, it is constantly vital to know the qualities
and shortcomings of everybody.  

Aristotle’s classic philosophy

LET PEOPLE SEEK FULFILLMENT. He was the most practical and business
oriented of all philosophers. In business, the association must give and condition that
is conducive to human development and satisfaction.  

Confucius
The most famous for his golden rule: DO NOT DO UNTO OTHERS WHAT YOU DO
NOT WANT OTHERS DO UNTO YOU, and his famous classic philosophy is LIVE A
CONTENTED, MORAL AND HAPPY LIFE. Confucian values can aid in the creation
of business leaders who are true leaders of the society.

Plutarch
The ancient Greek historian and educator, understood that humans are incredibly
social creatures, who constantly observe the people around them and imitate them.
He is famous in his philosophy, “BE A GOOD ROLE MODEL.” In organizational
terms, it means, what you say to your employees is less important than what you do.
They will watch how you behave, how you treat others, how you cope with pressure
and whether you follow through on your promises, and they will imitate you, they will
follow your lead.

Epicurus
THE ART OF HAPPINESS. Epicurus was a fourth century Greek philosopher who
taught, rather scandalously, that the aim of life was simply to be as happy as
possible here on Earth. He warned that humans are very bad at being happy, and
very good at inventing reasons to be miserable. Today, some companies are
embracing Epicurus' philosophy, and trying to teach their employees the art of
happiness.

Immanuel Kant
One of the most influential philosophers in the history of Western philosophy. He
advances the theory of
deontology or deontological
ethics, the theory of duty and
obligation.

7
 What’s New

Activity

Direction. Identify the following. Write your answers on your activity notebook.

Confucius Epicurus Aristotle

Plato Plutarch Socrates

__________________ 1. He was the most practical and business oriented of all

philosophers. His classic philosophy is “LET PEOPLE SEEK FULFILLMENT.”

__________________ 2. He is best known for the Socratic method of question

and answer. He is known for his classic philosophy, “HAVE THE COURAGE
TO DISAGREE.”

__________________ 3. He was a fourth century Greek philosopher who taught

that the aim of life was simply to be as happy as possible here on Earth. He is
very famous for his “ART OF HAPPINESS.”

__________________ 4. His prime belief was that a person must study

themselves in order to find out their level of character. His classic philosophy
is “THE POWER TO RULE.”

__________________ 5. He is famous for his golden rule and his famous classic
philosophy is “LIVE A CONTENTED, MORAL AND HAPPY LIFE.”

What Is It?

8
 Plato said that the moral values are objective, absolute, or eternal. They never
change. They are universal as they apply to all rational creatures around the world
and throughout the time. Aristotle on the other hand philosophized that virtues are
good habits that acquire which regulate our emotions. Kantian ethics emphasize a
single principle of duty, that we have moral duties to one self and others.

Since ethics is universal and the same for all, companies should obey the
same ethical rules wherever they operate. It usually starts on those basic ethical
norms on which all or the majority of people agree. Thus, the history of ethics in
business makes evident that ethical doctrines have influenced ones thinking on the
morality of businesses.

Various moral philosophers’ views get applied in day-to-day business

situations. Since the time of Socrates in the West and Confucius in the East,
philosophers have sought the basis for right conduct in human reason.

The theories of the three major Greek philosophers, Socrates, Plato, and
Aristotle shaped western thoughts in areas such as persuasion and negotiation, the
structure of political society, and virtue ethics. Their philosophical principles can be
applied in management and leadership.

Socrates dialectic method of inquiry used to draw the truth out of the
individual. Managers needed to involve and guide their team while engaging them to
action through the use of questions in a process of clarity. Using the principles of the
Socratic method, managers can draw out the best in individuals while helping their
goals and share their vision for mutual benefits.

Plato’s thought suggests that the right people be in the right position and in
what ways his thought can inform leadership.

Illustration I. Here are the names and lifespans of some of those figures: 

https://opentextbc.ca/businessethicsopenstax/back-matter/the-lives-of-ethical-philosophers/

The Ethics of Aristotle: Virtue Theory

Virtue Theory doesn't judge actions as right or wrong but rather the character of the
person doing the actions. It puts emphasis on the development of human values and
moral character. His virtue theory turns out to be the most promising representative
of the pre-modern category of moral theory. Instead of trying to form specific rules
for everyone to follow, it proposes to build a virtuous character. In a sense, we all

9
know what it means to have a virtuous character, we all know who can be counted
upon to do the right thing. In this classic virtue theory, four virtues stand out,
courage, moderation, justice, and prudence. Virtues matter in management and
finance.

The Ethics of Bentham and Mill: Utilitarianism

Jeremy Bentham, was a lawyer and a consultant to the British Parliament in the late-
eighteenth century. Bentham had a ready supporter and lieutenant in James Mill
(1773–1836), a Scottish lawyer who came to assist them in championing
utilitarianism as a political philosophy. Utilitarian ethical theories are based on one’s
ability to predict the consequences of an action. When making moral decisions, we
are advised to select that action which produces the greatest amount of good for the
greatest number of people. If the balance of good or happiness or usefulness
outweighs evil, harm, or unhappiness, then the choice is a moral one. Due to this
emphasis on the outcome of ethical decisions, utilitarianism is classified as a
consequentialist theory.

The Ethics of Kant: Deontology

The term deontology stems from the Greek deon—duty, obligation, or command.

The deontological class of ethical theories states that people should adhere to their
obligations and duties when engaged in decision making when ethics are in play.
Kant argued that there is more foundational principle of duty. He calls it categorical
imperative, it simply mandates an action, irrespective of one’s personal desires. For
Kant, we should treat people as an end, and never as a means to an end. That is
why we should always treat people with dignity, and never use them as mere
instruments.

The Ethics of John Rawls: Justice Theory

Rawls is a uniquely American political philosopher, and this can be seen from his
emphasis on political liberty. He labeled his ethics as “justice as fairness,” and he
developed it over nearly a lifetime. In Western thought, Rights theories, a right refers
to a person’s just claim or entitlement. Justice theories define justice as the ideal,
morally correct state of things and persons.

Self-Check!

Great job! You have completed Lesson 1 successfully! Before going to the
next lesson, check the icon that best shows your learning experience.

10
I have understood the lesson well and I can even teach
what I learned to others.
 need to review and relearn.

I need to do additional work to be able to master the

lesson. I need help in some tasks.
If you checked the first icon, you are ready for lesson 2. If you have checked
the second icon, you need to review the things that you need to relearn. If you have
checked the third icon, it would be best if you read more and ask help from your
teacher, parents or peers in clarifying the lessons that you find difficult. Be honest so
that you will truly improve.

Additional Activity

After doing the activities:

I noticed
___________________________________________________

A question I have is
___________________________________________________

I’m not sure

___________________________________________________

I realized
___________________________________________________

Lesson Explain how the belief systems

2 influence business practices

A belief system is a set of principles or tenets which together form the basis of
a religion, philosophy, or moral code.

Historically, since the dawn of civilization, religious beliefs have been some of
the most powerful influences on human behavior. This lesson defines religion and
explores its impact on business practices.

Religion is defined as a set of beliefs concerning the cause, nature, and

purpose of the universe, especially when considered as the creation of a

11
superhuman agency or agencies, usually involving devotional and ritual
observances, and often containing a moral code governing the conduct of human
affairs. It is a systematic set of beliefs that influences human behaviour.

What I Know

Activity 1

Direction: Read the paragraph below. Give a brief answer to the following question.
Write your answer on your activity notebook.

Falsifying Attendance
(Case prepared by Gov. Jose B. Fernandez Jr. Ethics Center, Ateneo de Manila, Philippines)

Mr. A, an employee, timed in 4 minutes and 27 seconds late for work this
morning. While he won’t get fired for it, being late this once means that he will not
receive the perfect attendance incentive which he needs to make ends meet, given
his daughter’s recent series of hospitalizations. He actually arrived in the office five
minutes early but was unable to clock in immediately because his direct superior, Mr.
B, asked him for an informal project progress report as soon as he walked in the
door. As a Junior System Administrator, Mr. A has access and the capability to edit
the company’s attendance records. He figures that since he was unable to punch in
only because of his boss, it wouldn’t hurt to edit the timestamp on his attendance for
today.

12
 __________________________________________________________
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__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________

Has Mr. A done anything wrong? Discuss your answer.

What’s In 13
 There are 8 major religions in the world, namely, Judaism, Christianity,
Islam, Hinduism, Buddhism, Confucianism, Taoism, and Shintoism. Each of
these religions has its own organized system of beliefs, ceremonies, and worship.
Each religion offers positive endeavor in both lives and in business. In a global
sense, business means dealing with people of different religions.

Judaism
The Jewish business ethics is illustrated by the widely quoted Talmudic tradition that
in one’s judgment in the next world the first question asked is: “Were you honest in
business?” Thus, in the treatment of workers, the Jews are obliged to pay their
workers on time, pay their workers a living wage and treat their workers with dignity
and respect. On the side of the workers, it is important not to steal company time.

Christianity
Christian businessmen and women follow the stewardship doctrine. Accordingly, as
God appointed mankind as the stewards of the earth, the Lord entrusted them all his
resources to manage them with care and skill. Christian business professionals
depend on the Lord’s leadership for their business by asking blessings through
prayer to provide strategic direction, resources, earnings, etc. Christian business
professionals also believed that the Lord delight in justice. Therefore, in conducting a
business transaction, they must be fair, like paying the workers with fair wages and
appropriate work conditions. Thus, it is not only biblical but most likely it improves
business since employees will tend to work more and be productive and happy in
their work. Being productive means, we use our knowledge and resources that the
Lord has given to us. In the life of Christian business professionals, hard work is
essential in conducting business profitably.

Islam
Prophet Muhammad’s doctrine on honesty and kind dealings with customers are the
secrets of success in business. According to Islam, no fraud or deceit, sellers must
avoid making many oaths when selling merchandise. Mutual consent is necessary.
They are also strict when it comes to weights and measures. The prophet also
forbade monopolies and a free enterprise is encouraged. Hoarding merchandise to
increase the price is forbidden. Islam also requires being honest in dealings with
Muslim and non-Muslim alike.

Hinduism
The third religion in the world by a number of believers mainly in India. The Tata
Group is the most respected business house in India. The five core Tata values
describe their business processes. 1.) Integrity is to conduct business fairly with
honesty and transparency. 2.) Understanding is to care, show respect, compassion
and humanity for colleagues. 3.) Excellence is to constantly strive to achieve the
highest possible standards of work in the quality of goods and services. 4.) Unity is
to work with colleagues and 5.) building a strong relationship across the group, and

14
with customers and partners around the world, based on tolerance, understanding,
and mutual cooperation and to continue to be responsible.

Buddhism
Work hard, no excuses, to those who do not want to work, they let their chance pass
by. A good work ethics and a great attitude, very little will stand in your way. If you
work hard, rest well, is one of the values of practicing Buddhism is a focus on
centering and balance. The Buddhist practice of mindfulness can be a key to good
business. Remember to be calm, and not to obsess too much about positive or
negative feedback.

Confucianism
Confucian ethics are described as humanistic. Confucianism is the most profound
and dynamic thought system in traditional Chinese culture. It is not surprising that
traditional Chinese business culture was deeply associated with Confucianism.

Taoism
Taoists believe such good behavior is an essential part not only of self-improvement
but of improving the world as a whole. Taoism suggests that the ideal way for a
leader to run their country is by example. A good leader is one that the people
respects and whose instructions are willingly followed.

Shintoism
Work is understood to be a self-expression of the great life force, Japanese people
try to unify themselves with the great life force by concentrating on their own work.
For Japanese, the company name is more important than the job title, the community
they belong to is much more important than what they do.

What’s New

Activity 2

15
Direction: Read the paragraph below. Give a brief answer to the following questions
in your activity notebook.

Rumors
(Case prepared by Gov. Jose B. Fernandez Jr. Ethics Center, Ateneo de Manila, Philippines)

A few months ago, Ms. A, Head of the Sales and Marketing Department of B
Company, formally announced to her staff that she will be leaving the company in
order to be able to concentrate on her family. Since she will be leaving, there is room
for a promotion and that she would nominate their two top performers, Ms. C and
Ms. D, to the HRMD.

In an effort to give herself an upper hand, Ms. C closes deals with three big
clients two days right after Ms. A’s announcement. Two weeks after Ms. A’s
announcement, stories about Ms. C begin to make their rounds and quickly become
the mainstay headlines of office gossip. The most scandalous rumor is that Ms. C
offers sexual services to her clients – both male and female – in order to close her
sales. In the face of all these rumors, Ms. C continues to deliver excellent work. The
time has come to promote the candidates. Based on performance, Ms. C is the
better candidate but both could do the job. If you are the Manager, should you
consider the rumors? What should you do?

_______________________________________________________________________________
Discuss your answer.
______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
What Is It?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

While there are few common religious practices that may affect the business
practices include - prayer breaks for the Muslim employees, however, there are a
few practices where people follow religious guidelines to go ahead and help people
out of their way, to forgive, follow healthy lifestyles like no smoking and no alcohol,
etc.

16
 Religion and business have throughout history interacted in ways that relate
to and affected one another, as well as influenced sociocultural evolution, political
geographies, and labor laws. As businesses expand globally, they seek a new
market which leads to expanding their corporation’s norms and rules to encompass
the new locations norms which most often involve religious rules and terms.

2018 Masterpiece Cakeshop Ltd v. Colorado Civil Rights Commission (7-2):

Masterpiece Cake Shop refused to make a cake for a wedding between two
gay men due to the businesses religious standing. The Colorado Civil rights
Commission sided with the customers on the basis of discrimination on sexual
orientation. The U.S Supreme Court reversed the Colorado Civil rights Commission's
decision stating that they violated the business owner of Masterpiece Cake Shop’s
right to their free exercise of religion.

What’s More
Activity 3. True or False

Direction: Write TRUE if the statement is correct otherwise choose FALSE. Write
your answers on your activity notebook.

______________1. Virtue Theory doesn't judge actions as right or wrong but rather
the character of the person doing the actions. It puts emphasis
on the development of human values and moral character.

______________2. Utilitarian ethical theories are based on one’s ability to predict

the consequences of an action. Due to this emphasis on the
outcome of ethical decisions, utilitarianism is classified as a
consequentialist theory.

______________3. For philosopher Immanuel Kant, we should treat people as an

end, and never as a means to an end. That is why we should
always treat people with dignity, and never use them as mere
instruments.

______________4. Confucian ethics are described as humanistic. Confucianism is

the most profound and dynamic thought system in traditional
Japanese culture.

17
______________5. In Shintoism, work is understood to be a self-expression of the
great life force. For Chinese, the company name is more
important than the job title, the community they belong to is
much more important than what they do.

What I have Learned?

Activity 4

Direction: Fill in the blanks. Write your answers on your activity notebook.

Business ethics Muslim and non-Muslim Japanese

belief system Ethics or moral philosophy Judaism

__________________ 1. A branch of philosophy that "involves systematizing, defending,

and recommending concepts of right and wrong behavior

__________________ 2. Also known as corporate ethics or a form of applied ethics or

professional ethics that examines ethical principles and moral or ethical problems
that can arise in a business environment.

__________________ 3. A set of principles or tenets which together form the basis of a

religion, philosophy, or moral code.

__________________ 4. The Jewish business ethics is illustrated by the widely quoted

Talmudic tradition. Thus, in the treatment of workers, the Jews are obliged to pay
their workers on time, pay their workers a living wage and treat their workers with
dignity and respect. On the side of the workers, it is important not to steal company
time.
__________________ 5. In Islam, Prophet Muhammad’s on honesty and kind dealings
with customers are the secrets of success in business. It also requires being honest
in dealings with _________________________________ alike.

18
Remember these key points:
 Ethics
 Business Ethics
 Classical Philosophers:
o Socrates
o Plato
o Aristotle
o Confucius
o Plutarch
o Epicurus
o Immanuel Kant
 Three major Greek Philosophers
o Socrates
o Plato
o Aristotle
 Belief System
 Religion
 Eight major religions in the world
o Judaism
o Christianity
o Islam
o Hinduism
o Buddhism
o Confucianism
o Taoism
o Shintoism

Self-Check!

Great job! You have completed Lesson 2 successfully! Before going to the
next lesson, check the icon that best shows your learning experience.

I have understood the lesson well and I can even teach

what I learned to others.

I have understood the lesson but there are still other things
that I need to review and relearn.
19

I need to do additional work to be able to master the

lesson. I need help in some tasks.
 If you checked the first icon, you are ready for lesson 3. If you have checked
the second icon, you need to review the things that you need to relearn. If you have
checked the third icon, it would be best if you read more and ask help from your
teacher, parents or peers in clarifying the lessons that you find difficult. Be honest so
that you will truly improve.

Additional Activity

After doing the activities:

I noticed
___________________________________________________

A question I have is
___________________________________________________

I’m not sure

___________________________________________________

I realized
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Lesson Filipino Values that Influence

3 Business Practices

Learning Objectives:

At the end of the week, it is expected that the learners must be able to:

1. Enumerate the various Filipino system that influence business practices

2. Explain the importance of Filipino values in terms of business practices
3. Make ways to improve business practices guided by philosophies,
beliefs and Filipino values

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 What’s In

Activity 1. Review

Direction: Answer the following questions. Write your answers on your activity
notebook.

1. List down at least three (3) beliefs that you have learned from the previous
lesson.

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2. Does beliefs correspond an appropriate Filipino values? If yes, what are those
values? If no, why?

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 3. What Filipino values does your family have?

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4. How do those Filipino values help the society, specifically for the
entrepreneurs in fighting against the COVID19 pandemic crisis?

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What Is It?
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Most Filipinos are connected together with their beliefs, culture, tradition,
characters, traits and common values. Values are first taught at home and are
adapted and implemented in the society. It plays a vital role on the way we live,
decide, choose and interprets our daily activities in life. In ethics, values denote the
degree of importance of something or action, with the aim in determining what
actions are best to do or what way is best to live, or to describe the significance of
different actions.

Filipino values refer to the set of values that are significant and inclined with
one’s culture. Like family, relatives, ancestors or friends. It preserves social harmony
that promotes connection, unity and may understand set of people. It includes the
inimitable collection of dependable philosophies, moral codes, ethical practices,
etiquette, cultural and personal values encouraged by the family or the society they
belong.

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 The management and sustainability of the business depends on the values
and beliefs of the proprietor. In the Philippines, Filipino entrepreneurs may
implement rules, practices and principles based on their values they had grown up
with their family, learnt and adapted.

The most popular Filipino values that influence business practices are the
following:

Pakikisama (Fellowship)
The word “pakikisama” (fellowship) comes from the word “sama” and prefix “paki”,
and literally means to accompany someone. Fellowship is used to maintain good
relations with others, and the fellowship is associated with adaptation, dealings and
harmony. In business practices, the proprietor must establish “pakikisama” to their
employees, suppliers and customers because it implies closeness to the others that
would create a sustainable growth relationship.

Hospitality
Is the relationship between a guest and a host, wherein the host receives the guest
with goodwill, including the reception and entertainment of guests, visitors, or
strangers. Entrepreneurs should master on how to treat and provide excellent
services on welcoming their suppliers and customers to create a good reputation and
relationship since hospitality plays the fundamental role to increase or decrease the
volume of sales, popularity and production growth in a business.

Family Orientation
It refers to the family in which a person is raised. It includes one’s parents and
siblings. It may also include grandparents or other relatives. It is a primary platform
for which one encounters early socialization experiences. Values and beliefs can be
learned from the family that will inculcate to a child as he/she matures into an adult.
The Filipino valued their family and being closed to one another until the last of their
generation. Most of the successful entrepreneurs acquired and gained this ample
knowledge in dealing with their business from their family. Consequently, they
become well trained to manage their family business. Others inherit the skills not
only from their family business but also the values and beliefs in managing and
operating their business.

Joy and Humor

Business operates and grow not only by means of profit and management. An
entrepreneur operates business to find joy and happiness in his life. Helping people
by promoting employment and providing quality product and services to their clients
create a joyful feeling. Filipino values always find reason to feel joy and has a sense
of humor to establish camaraderie to others. It sheds light on the optimism and
positivity of Filipinos in whatever situation they are in. It serves as a coping technique
to remain determined in every struggles or challenges in life and in business.

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Ability to Survive
A Filipino has a sense of resourcefulness or the ability to survive with whatever
situation or challenges they have. They have an extraordinary ability to create
something out of almost nothing. If a Filipino is trapped in an uninhabited island, he
would still be able to find a safe area to stay, provide materials to build a house, find
foods to eat and create different tools to survive. In business, if it is needed to
promote and increase the volume of sales, a Filipino has always the ability to find
different techniques, marketing strategies and ideas to perform and create a product
in order for the business to survive.

Hard work and Industriousness

Filipinos are determined and persistent to accomplish whatever they have set in their
minds. In business, hard work and industriousness play a vital role to establish and
develop business progress. They need employees who are willing to work overtime,
with minimal supervision and resourcefulness comes with a hard work to serve the
business.

Flexibility, Adaptability and Creativity

A Filipino has an ability to adapt, adopt and adept in any changes and challenges in
life either in spiritual, social, emotional and physical aspect. In business, unplanned
and anticipated events in market would not disturb the flexibility and adaptability
values of Filipino entrepreneurs. They could easily produce creative strategy,
technique and style to adjust to challenges and compete with others.

Utang na Loob (Debt of Gratitude)

It shows duties and responsibility to pay the debts (utang) and return it with inner-
self-free will (na-loob) the unsolicited gift or good treatment received from other
people. An obligation to appropriately repay the good deeds which value is
impossible to quantify or if there is a quantifiable value it may involve deeply
personal internal dimension that will usually start from one generation and continue
to another generation. In business, there are plenty of reasons that may influence
the business practices, either positive or negative outcome that may vary with ethical
issues.

Filial Piety
To show respect, love, care and support to their elders, parents, relatives and
ancestors. It upholds the affection and display courtesy to the family that most cases
are likely working together in one company; living together in one house; paying the
house bills of their parents. It also takes good care of one’s parents and engage in
good conduct not just towards parents but also outside the home so as to bring a
good name to one’s parents and ancestors.

Padrino (Whom you know system)

It supports with the strong relationship of people. Most of the job seekers
automatically hired regardless of their qualifications and educational background

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through endorsements, political connections, family affiliations (nepotism) or
friendships (cronyism).

Suki
It shows loyalty and trust relationship between a customer and supplier. It usually
establishes at the market or business. If a buyer finds a trusted seller that offers a
quality product they need, the loyalty and commercial connection of a buyer will be
established to the seller and made several business transactions with their so called
“suki”.

Bahala Na
The Bahala Na Filipino value shows letting things happen beyond their control. It
shows an attitude of a person that is willing to submit everything to God or leaving
things to happen by fate. Some of investors operate business beyond their control.
They will only believe that the market will accept it if they will “do their best and let
God do the rest.”

Mañana
It comes from the Spanish word “Mañana” which literally means “tomorrow” or
“unspecified future time”. In business, the attitude that tends to delay the task,
putting off tomorrow what they can do for today or postpone on the things that should
be done right now may reduce volume of sales, loss customer trust and satisfaction,
waste opportunities and interrupt the work flow.

Amor Propio
Is a Spanish word which means “self – love”, a sense of self-esteem or self-respect
that prevents a person from swallowing his pride and concerned for one’s reputation.
It includes sensitivity to personal insult or affront.

What’s More

Activity 2. Test your knowledge

Direction: Read each statement carefully. Identify what is being described in each
statement. Write your answers on your activity notebook.

______ 1.A responsibility to repay the good deeds which value is impossible to
quantify or if there is a quantifiable value it may involve deeply personal
internal dimension that will usually start from one generation and continue to
another generation.
a. Utang na loob c. Pakikisama
b. Filipino Value System d. Suki

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______ 2.To maintain good relations with others, and the fellowship is associated
with adaptation, dealings and harmony.
a. Utang na loob c. Pakikisama
b. Filipino Value System d. Suki

______ 3.Refers to the set of values that are significant and inclined to one’s
culture by the influence of people connected with like family, relatives,
ancestors or friends.
a. Utang na loob c. Pakikisama
b. Filipino Value System d. Suki

______ 4.A commercial connection between a seller and a buyer.

a. Utang na loob c. Pakikisama
b. Filipino Value System d. Suki

______ 5.It shows an attitude of a person that is willing to submit everything by

fate or “come what may”.
a. Family orientation c. Amor Propio
b. Bahala na d. Joy and Humor

______ 6.Is a Spanish word which means “self – love”, a sense of self-esteem or
self-respect that prevents a person from swallowing his pride and concerned
for one’s reputation.
a. Family orientation c. Amor Propio
b. Bahala na d. Joy and Humor

______ 7.It is a primary platform for which one encounters early socialization
experiences.
a. Family orientation c. Amor Propio
b. Bahala na d. Joy and Humor

______ 8.It sheds light on the optimism and positivity of Filipinos in whatever
situation they are in. It serves as a coping technique to remain determined in
every struggles or challenges in life and in business.
a. Family orientation c. Amor Propio
b. Bahala na d. Joy and Humor

______ 9.It upholds the affection and display courtesy to the family that most
cases are like working together in one company; living together in one house;
paying the house bills of their parents.
a. Filial Piety c. Bahala na
b. Values d. Suki

______ 10. It denotes the degree of importance of something or action, with the
aim to determining what actions are best to do or what way is best to live, or
to describe the significance of different actions.
a. Filial Piety c. Bahala na
b. Values d. Suki

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 Activity 3. Evaluate

Complete the crossword puzzle below by identifying what Filipino value is being
described in the statement. Write your answers on your activity notebook.

1. A mother offers her daughter’s friend food to eat and a room to spend the
night.

2. Mario’s driver’s license is processed immediately by his godfather, an LTO

personnel.

3. A farmer works at his farm rain or shine just to earn a living and to support the
needs of his family.

4. Pedro decided to play online games first and postponed answering his
activities on Business Ethics modules.

5. Anna is a new investor on an online business, she has no knowledge and

idea how to deal with different clients, but she is able to cope with the
challenges and established marketing techniques and strategies on it.

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4 What I1have Learned?

Reflective Question

Draw inside in your activity notebook, what you have learned on Filipino value
system that influence business practices.

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 ______________________________________________________
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Explain what you have drawn above.

Remember these key points:

 Filipino value system that influence business practices:

 Pakikisama
 Hospitality
 Family orientation
 Joy and humor
 Ability to survive
 Had work and industrious
 Flexibility, adaptability and creativity
 Utang na loob
 Felial Piety
 Padrino
 Suki
 Bahala na
 Mañana

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  Amor Propio

What I can do?

Activity 4. It’s Your Turn

Based on your own understanding, what are the ways that you can do to improve
business practices guided by the philosophies, beliefs and Filipino values system?
Write your answers on your activity notebook.

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__________________________________________________________
Self-Check!

Great job! You have completed Lesson 3 successfully! Before going to the
next lesson, check the icon that best shows your learning experience.

I have understood the lesson well and I can even teach

what I learned to others.

I have understood the lesson but there are still other things that I
need to review and relearn.

I need to do additional work to be able to master the

lesson. I need help in some tasks.

If you checked the first icon, you are ready for the next module. If you
have checked the second icon, you need to review the things that you need to
relearn. If you have checked the third icon, it would be best if you read more
and ask help from your teacher, parents or peers in clarifying the lessons that
you find difficult. Be honest so that you will truly improve.

Additional Activity

After doing the activities:

I noticed
___________________________________________________

A question I have is
___________________________________________________

I’m not sure

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I realized
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 Assessment

Let check how much you learned from this module’s coverage

Direction. Answer the 10-item Simple Recall Test and write your answers on your
activity notebook.

______ 1.Defined as a set of beliefs concerning the cause, nature, and purpose
of the universe, especially when considered as the creation of a superhuman
agency or agencies, usually involving devotional and ritual observances, and
often containing a moral code governing the conduct of human affairs.
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 2.A form of applied ethics or professional ethics, that examines ethical
principles and moral or ethical problems that can arise in a business
environment
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 3.In Islam, Prophet Muhammad’s on honesty and kind dealings with
customers are the secrets of success in business. It also requires being
honest in dealings with _________________________________ alike.
a. Christianity c. Muslim and non-Muslim
b. Judaism d. Islam

______ 4.A branch of philosophy that "involves systematizing, defending, and

recommending concepts of right and wrong behavior.
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 5. Mario’s driver’s license is processed immediately by his godfather,

an LTO personnel.
a. Utang na loob c. Hard work
b. Hospitality d. Padrino

______ 6.A mother offers her daughter’s friend food to eat and a room to spend
the night.
a. Utang na loob c. Hard work

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 b. Hospitality d. Padrino
______ 7. His prime belief was that a person must study themselves in
order to find out their level of character. His classic philosophy is THE
POWER TO RULE.
a. Socrates c. Aristotle
b. Confucius d. Plato

______ 8.A set of principles or tenets which together form the basis of a religion,
philosophy, or moral code.
a. Business Ethics c. Religion
b. Ethics d. Belief System

______ 9.In _______________________ the Jewish business ethics is illustrated

by the widely quoted Talmudic tradition. Thus, in the treatment of workers, the
Jews are obliged to pay their workers on time, pay their workers a living wage
and treat their workers with dignity and respect. On the side of the workers, it
is important not to steal company time.
a. Christianity c. Muslim and non-Muslim
b. Judaism d. Islam

______ 10. He is best known for the Socratic method of question and answer. He
is known for his classic philosophy, HAVE THE COURAGE TO DISAGREE.
a. Socrates c. Aristotle
b. Confucius d. Plato

Congratulations!
You have completed your journey in this module. You
did a great job! It is now time to go on to the next
adventure…
Good luck!

Answer Key

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 References
What I know. Pre-assessment Test
1. A 5. A 9. B
2. B 6. D 10. D
3. D 7. B
4. C 8. B
Lesson 1. What’s New
1. Aristotle ` 4. Plato
2. Socrates 5. Confucius
3. Epicurus
Lesson 2. What I Know (Activity 1) – Answer may vary
What’s New (Activity 2) – Answer may vary
What’s More (Activity 3)
1. True 4. False
2. True 5. False
3. True
What I have Learned (Activity 4)
1. Ethics or moral philosophy 4. Judaism
2. Business Ethics 5. Muslim and non – Muslim
3. Belief System

Lesson 3. What’s In (Activity1. Review) – Answer may vary

What’s More (Activity 2. Test your knowledge)
1. A 6. C
2. C 7. A
3. B 8. D
4. D 9. A
5. B 10. B
Activity 3. Evaluate
1. Hospitality 4. Mañana
2. Padrino 5. Ability to survive
3. Hard wrok
Reflective Question (Score may vary based on rubrics)
Activity 4. It’s your turn – Answer may vary

Assessment Test
1. C 5. D 9. B
2. A 6. B 10. A
3. C 7. D
4. B 8. D

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https://brainly.in/question/7508715
https://www.academia.edu/36905140/Foundations_of_the_Principles_of_Business_Ethics
https://www.theguardian.com/sustainable-business/business-learn-from-ancient-
philosophers
https://en.wikipedia.org/wiki/Business_ethics
https://vsnhub.com/model-of-thinking/ancient-greek-philosophers-at-a-business-meeting/
https://opentextbc.ca/businessethicsopenstax/back-matter/the-lives-of-ethical-philosophers/
https://www.dsef.org/wp-content/uploads/2012/07/EthicalTheories.pdf
https://www.dictionary.com/browse/religion
https://www.jesuitdigitalnetwork.org/authoring/8730-short-business-ethics-cases-for-use-in-
class/view
https://www.weforum.org/agenda/2015/01/how-does-faith-impact-business-in-emerging-
markets/
https://prezi.com/p/ttvqiu5vn6j2/etech/
https://en.wikipedia.org/wiki/Religion_and_business
https://en.m.wikipedia.org/wiki/Filipino_values#:~:text=The%20Filipino%20value%20system
%20or,held%20important%20in%20their%20lives.&text=As%20with%20any%20society
%20though,religion%2C%20upbringing%20and%20other%20factors.
https://owlcation.com/social-sciences/Filipino-Traits-and-Characteristics
https://prezi.com/p/b4mzgtwgnmlw/filipino-value-systems-in-business/#:~:text=Filipino
%20value%20system%20is%20defined,an%20influence%20of%20one's
%20culture.&text=the%20Philippine%20value%20system%20includes,are%20encouraged
%20by%20their%20society.
https://tl.m.wiktionary.org/wiki/pakikisama
https://en.m.wikipedia.org/wiki/Hospitality#:~:text=Hospitality%20is%20the%20relationship
%20between,guests%2C%20visitors%2C%20or%20strangers.
https://onlinelibrary.wiley.com/doi/full/10.1002/9781119085621.wbefs468
https://www.scribd.com/document/380123998/The-Filipino-Value-System-and-Its-Effects-on-
Business
https://en.m.wikipedia.org/wiki/Filial_piety#:~:text=In%20more%20general%20terms%2C
%20filial,to%20ensure%20male%20heirs%2C%20uphold
https://en.m.wikipedia.org/wiki/Value_(ethics)#:~:text=In%20ethics%2C%20value
%20denotes%20the,the%20significance%20of%20different%20actions.
https://santandertrade.com/en/portal/establish-overseas/philippines/business-practices?
&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser
https://www.outsourceaccelerator.com/articles/filipino-traits-and-values/
https://sanamagan.wordpress.com/2010/05/23/is-assertiveness-valued-in-filipino-culture/
https://dictionary.cambridge.org/dictionary/spanish-english/amor-propio
https://images.app.goo.gl/aNyzzqNVfAXo3hRU7

35
36
For inquiries or feedback, please write or call:
Department of Education – Division of Misamis
Oriental
Don A. Velez St., Cagayan de Oro City
Contact No. (08822) – 724615 / (088) 856 – 4454
Email Address: misamis.oriental@deped.gov.ph
depedmor@gmail.com

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