Parome, Marijoy Aki L.

ABM 22

SOCRATES

“Remember how little you know, question everything, and keep your mind open to other
possibilities.”

-The Socratic method, on the other hand, is a way of thinking that allows individuals to define
their own purpose for learning and explore this purpose through open-minded questioning of
what they hold to be true.

-Entrepreneurs can find value in the Socratic method because they, too, are bombarded by
assumptions based on what others and they themselves believe to be the best plan of action for
pursuing a business idea.

1. The Socratic method provides focus through clarity of purpose.

Reich encourages his students to use the Socratic method “to examine [their] values, principles,
and beliefs”. In essence, this approach demands that you as an entrepreneur answer the
question, “Why are we here? Why do we exist as an organization?”

Founders who define values, goals, and concepts for their company set a clear direction for the
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. Organizations, then, are able to fully maximize
human capital when everyone’s desires are aligned and pointing to a shared vision of the future.
Like running a race, it makes sense for a company to first define its starting line in order to work
towards an intended finish line. Furthermore, given the myriad directions that outside forces
(markets, investors, competitors) can pull an organization, the Socratic principles of self-inquiry
can help you stay the course through the inevitable distractions.

When a company clearly defines and communicates its belief system, it attracts customers and
employees who share similar beliefs about the world. Apple is the most obvious and universally
recognizable example of a company who does this extremely well. Their rallying cry of “Think
Different” engenders fanatical loyalty and support for the Apple brand.

2. Use the Socratic method to develop and reinforce an entrepreneurial mindset.

Reich states that the “Socratic method is better used to demonstrate complexity, difficulty, and
uncertainty than at eliciting facts about the world”. Note the keywords: complexity, difficulty,
uncertainty. These words paint a realistic picture of day-to-day life at the beginning of a
venture, and in so doing present an opportunity to learn.
Parome, Marijoy Aki L. ABM 22

Most people view this set of words as negative. An entrepreneurial mindset involves
interpreting complexity, difficulty, and uncertainty as an opportunity to test assumptions, run
experiments, and create knowledge from these activities.

Entrepreneurs start testing assumptions by defining current beliefs based on past observations
or intuition. They then ask themselves or are asked by outsiders (investors, mentors, etc.)
questions that serve as the basis for setting up experiments. Whether in the form of
interviewing customers, doing competitor analysis, or conducting A/B testing, experimentation
essentially tests what entrepreneurs hold to be true against reality.

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.

Source: https://3daystartup.wordpress.com/2014/09/04/what-entrepreneurs-can-learn-from-
socrates/

Socratic Questioning

 Conceptual clarification: What does that mean…why do you think that?

 Probing assumptions: What are you assuming…what happens if those assumptions
change?
 Probing evidence: Is your explanation the only explanation…is the evidence enough for
proof?
 Questioning perspectives: Why would you think that…who benefits from thinking that?
 Probing consequences: What would that mean, if true…what happens if it changes?
 Questions about the question: Why does it matter…what happens if you change the
question?

Source: https://study.com/academy/lesson/socratic-questioning-definition-use-in-
business.html

PLATO

Critique on Plato's Philosophy

Plato'a principle of idealism focuses on the idea that there is evil in the world because the
soul is imprisoned in the body of the person. This principle is geared towards perfection of the
soul. But because people are not perfectly created, they commit immoral acts. But the soul can
be perfected by knowing what is needed to maintain a healthy soul, by doing what is moral and
right.
Parome, Marijoy Aki L. ABM 22

Business application:
Plato's ethical philosophy can be applied in business. For example, idealism is evident in
San Miguel Corporation. Eduarso Cojuangco Jr., the CEO of the company, has a visionfor SMC to
become a major player in the Asia Pacific Region. The company has acquired enough foreign
companies under its name. Ideally, the vision is becoming reality. But Danding's vision has been
connected with the moral responsibility of providing excellent quality of goods produced by its
subsidiaries and providing competitive and approproate salaries to SMC subsidiary employees.

Source: https://books.google.com.ph/books?id=SeBIFRqxrDAC&pg=RA1-PT29&lpg=RA1-
PT29&dq=plato+philosophy+business&source=bl&ots=4WAFVB8S7_&sig=B4b-i_u29KdYrgRR_f-
mTzzedOA&hl=en&sa=X&ved=0ahUKEwik7pjqqrjYAhVItpQKHSoJDCw4ChDoAQhNMAc#v=onep
age&q=plato%20philosophy%20business&f=false

ARISTOTLE

Aristotle: let people seek fulfillment

Aristotle was a great biologist as well as a great philosopher. He based his ethics on a
psychological theory of human nature, insisting that we are naturally virtuous, rational, social
and happiness-seeking. Governments and organisations need to build the best systems to let
humans fulfill their natural drives.

Aristotle's philosophy was an influence on Edward Deci and Richard Ryan's Self-Determination
Theory, which suggests that employees will work harder for you, and perform better, if you give
them tasks they find meaningful and morally worthwhile.

Humans want to believe in something and to serve it. Appeal to your employees' best nature
and they will answer that call.

Your employees will also be more motivated if you give them the opportunity to feed their
natural curiosity through learning opportunities. That could be vocational training, but it could
also simply be learning about the world, ideas, culture. Does your company have an evening or
lunch-time lecture series, such as Google Talks? Could it give credits for evening adult learning
classes, as companies such as Cadbury and Ford once did?

https://www.business2community.com/business-intelligence/5-greek-philosophers-can-teach-
us-business-01202336
Parome, Marijoy Aki L. ABM 22

Critique on Aristotle's Philosophy

His idea gives a person a sense of responsibility not only to himself but also to his
surroundings - the environment and people. Too much emphasis, however, on the middle
ground could lead to mediocrity and lack of desire to achieve greater and loftier goals.

Business Applications:
a. The principle of Aristotle has many applications in business decisions. For example, in
production planning and inventory control - finished goods and raw materials must be carefully
controlled so that the company will not incur too much cost. If there is too much finished goods
or raw materials, inventory and warehouse costs are high while lack of finished goods or raw
materials would entail a high opportunity loss and delay in manufacturing.
b. The Principle of Moderation can also be used in determining and planning for profit in
business, e.g., too much profit results to bankruptcy.
c. Virtuous conduct is important not just in decision-making but also in maintaining moral
ascendancy and integrity.
d. Success in business is not only measured in terms of profit but also by the company's
moral integrity and credibility.

Source: https://books.google.com.ph/books?id=SeBIFRqxrDAC&pg=RA1-PT29&lpg=RA1-
PT29&dq=plato+philosophy+business&source=bl&ots=4WAFVB8S7_&sig=B4b-i_u29KdYrgRR_f-
mTzzedOA&hl=en&sa=X&ved=0ahUKEwik7pjqqrjYAhVItpQKHSoJDCw4ChDoAQhNMAc#v=onep
age&q=plato%20philosophy%20business&f=false

IMMANUEL KANT

The German philosopher Immanuel Kant believed that morality in all spheres of human life
should be grounded in reason. His renowned "categorical imperative" held that: (1) people
should act only according to maxims that they would be willing to see become universal norms
(i.e., the Golden Rule); and (2) people should never treat another human as a means to an end.
The categorical imperative is easily demonstrated: It would be unethical for a person to break
into a long line at a theater, because if everyone did the same thing anarchy would result.
Similarly, it would be immoral for a person to have a friend buy him or her a ticket under the
agreement that he or she would reimburse the friend, but then fail to pay the friend back.
Kant's theory implied the necessity of trust, adherence to rules, and keeping promises (e.g.,
contracts). When people elect to deviate from the categorical imperative, they risk being
punished by the business community or by government enforcement of laws. More importantly,
Kant suggested that certain moral norms that are ingrained in humans allow them to rise above
purely animalistic behavior. People have the capacity to forgo personal gain when it is achieved
at the expense of others, and they can make a choice as to whether they will or will not follow
universal norms. Read more: http://www.referenceforbusiness.com/encyclopedia/Bre-
Cap/Business-Ethics.html#ixzz530HbXqnj
Parome, Marijoy Aki L. ABM 22

JEREMY BENTHAM AND JOHN STUART MILL

Utilitarianism may be employed in any business decision-making process that seeks to maximize
positive effects (especially morally, but perhaps also financially and so forth) and minimize
negative outcomes. As with Bentham's formulation, utilitarianism in business ethics is primarily
concerned with outcomes rather than processes. If the outcome leads to the greatest good (or
the least harm) for the greatest number of people, then it is assumed the end justifies the
means.
Just as John Stuart Mill objected to the coldest, most basic version of the theory, modem
business ethicists decry utilitarianism's limits as an instructive ethical analysis. For example,
Reitz, Wall, and Love argued that utilitarianism isn't an appropriate tool when outcomes affect a
large number of separate parties with different needs or in complex processes whose outcomes
and side effects can't be readily foreseen, e.g., implementing new technology.
There are a number of alternative ethical philosophies to utilitarianism also used in business.
Formalism, associated with the philosopher Immanuel Kant (1724-1804), is a rule-based system
of ethical principles that are applied to each step of the process leading up to—and including—
the outcome. In other words, the end is only just if the means are as well. This is sometimes also
termed universalism, since the method attempts to apply universal ethical standards
consistently across business practices, as contrasted with the relativism of utilitarian ethics.
Although scholars disagree about its exact relation to utilitarianism (some argue they may
coexist), formalism is frequently cited as the opposite of utilitarianism. Under formalism, a
business action that passes the ethical tests at every stage is considered ethical; if the rules or
principles are violated along the way, the action is unethical regardless of the outcome.

Read more: http://www.referenceforbusiness.com/encyclopedia/Thir-

Val/Utilitarianism.html#ixzz530UviNCY

An ethical philosophy in which the happiness of the greatest number of people in the society is
considered the greatest good. According to this philosophy, an action is morally right if its
consequences lead to happiness (absence of pain), and wrong if it ends in unhappiness (pain).
Since the link between actions and their happy or unhappy outcomes depends on the
circumstances, no moral principle is absolute or necessary in itself under utilitarianism.
Proposed by the English philosopher-reformer Jeremy Bentham (1748-1832) in his 1789 book
Principles Of Morals And Legislation it was developed by the English philosopher-economist
John Stuart Mill (1806-73) in his 1863 book Utilitarianism.

Read more: http://www.businessdictionary.com/definition/utilitarianism.html

Parome, Marijoy Aki L. ABM 22

Applying Utilitarianism in Business

Utilitarianism moral theory helps individuals to assess the wrongness or rightness of an

action. The theory evaluates the wrongness or rightness of an action depending on its
consequences. People who ascribe to the utilitarian school of thought consider an action to be
right if it maximizes the overall wellbeing of society and wrong if it does not maximize the
overall wellness of society. The theory supports an action if it brings the greatest good or utility
for the greatest number of people. This school of thought characteristically encourages
individuals to act in whatever ways as long as their actions lead to the greatest levels of
wellness. This theory associates wellbeing or wellness to happiness. Therefore, an action is
considered good if it brings happiness to the greatest number of people in society and vice
versa.
The theory of utilitarianism can be applied in business in many ways. To apply this theory
in business, businesspersons must understand and bring together the four aspects of the
theory. Businesses can apply utilitarianism in negative or positive ways. The first element that
business people should understand is consequentialism. The theory of utilitarianism is
significantly based on the aspect of consequentialism. Consequentialism is the understanding
that the wrongness or rightness of actions is entirely determined by the outcomes or results of
these actions (Mack 64; Suikkanen 1). Businesses can apply the aspect of consequentialism in
their operations. However, applying this element may contradict the moral and ethical systems
in place. For instance, businesses that commit themselves to the principle of consequentialism
may encourage their employees to take whatever actions as long as they bring profits to the
organization. The primary quest to increase profits for the organizations may lead to immoral,
unethical, or illegal activities in the business. For example, a business may manufacture and sell
substandard and unsafe products for the sake of earning profits.
The second element that businesses require to apply utilitarianism is welfarism.
According to Eggleston (453), welfarism is the understanding that the wrongness or rightness of
operations depends on society’s conceptions of welfare or wellbeing. This aspect of
utilitarianism suggests that actions are good if they improve the welfare or wellbeing of society
or people. According to Sen (471), welfarism aims at maximizing every individual’s utilities. In
business, the management may decide to increase the wages and benefits of their employees if
it improves the wellbeing or welfare of their employees. In this regard, the business will be
applying utilitarianism in a positive way.
The third element that businesses need to understand to apply utilitarianism in business
is individualism. The individualism principle of utilitarianism holds that every individual pursues
happiness, thus, will engage in actions that bring them happiness. In this regard, businesses will
take actions that bring them happiness. Happiness for businesses may include increased profits,
increased customer satisfaction levels, superior reputation, and improved employee satisfaction
levels, among others. The fourth element required to apply utilitarianism in business is
aggregation. Aggregation is the notion that the wrongness or rightness of actions depends on
their ability to average the values brought to all individuals. Bentham’s utilitarianism suggests
that the badness or goodness of an action should bring happiness not only to individuals but
Parome, Marijoy Aki L. ABM 22

also the community (121-123). A business applying this element will engage in activities that
increase its profits while at the same time serve the best interests of its customers, community,
and the government. For example, by selling quality and safe products, a business will be
increasing its profit base while meeting the needs of their customers at the same time.
Source: https://www.academicwritersbureau.com/samples/219-applying-utilitarianism-in-
business

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