Managing ethical ways is not merely about avoiding bad outcomes.

There are many

arguments for bringing ethics to bear on business decision-making. Recently, finance
ethicist have begun emphasizing that the focus should be on virtues and the qualities
of the practitioner. Rather, one should consider whether an actions is consistent with
being a virtuous person. This view argues that personal happiness flowed from being
virtuous and not merely from comfort (utility) or observance (duty). It acknowledge that
vices are corrupting, whereas virtue leads to eudaimonia or human flourishing (Bruner,
Eades, and Schill, 2009).
The “virtue” in virtue ethics is defined as some desirable character trait, such as
courage which lies between two extreme, such as in the case of rashness and
cowardice. Such an agent does not apply any specific rules in making decision but
rather attempts to make decisions that are consistent with the pursuit of a particular
kind of excellent that, in turn, entails exercising sound moral judgement guided by
such virtues as courage, wisdom, temperance, fairness, integrity, and consistency
(Dobson, 1997).
 Lessson objective
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 challenges flowing

from these filipino business values.
The semantics of the term business ethics cannot help reflect the ethno-linguistic and
cultural wealth of, or the complexity present, in the philippines. 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 eith 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 ethics” therefore refers to sone
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.2009) provides that “the parents and those exercising parental authority shall have
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 fof their upbringing in keeping with
their means;
2.To give them love and affection, advice and counsel, companionship,
understanding;
3. To provide them with moral and spritual guidance, inculcate in them integrity,
self-discipline, self-reliance, industry and thrift, stimulate their 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
and times;
5. To furnish them with good and wholesome educational material, supervise their
activities, recreation and association with others, protects them from company,
and prevent them from acquiring habits destrimental to their studies and morals;
6. To represent them in all matters affecting their interest;
7. To demand from them respect and obedience;
8. To impose discipline on them as may be required under the circumtances; and
9. To perform such other duties as are imposed by law upon parents and gurdian.
A Filipino experiences family closeness and solidarity (pagpapahalaga sa
pamilya) politeness (use of po or opo), hospitality (tuloy po kayo), gratitude
(utang na loob) within, thaat is, subjectively and emotionally, etc. Such
filipino values as social acceptance (pakikisama, amor propio, economic
security, pagmamay-ari) and trust in god (pananalangin sa diyos, Bathala or
Maykapal, and Bahala na) find their philosophical basis in man’s dyanamic
openness toward nature and the world (e.g.., value of hanapbuhay ng
magsasaka), fellowmen (the values of paggalang, hiya katarungan, pag-
ibig), and God (the value pananampalataya, panalangin, kabanalan)
(Gorospe, 1994).
Since there lots of Chinese influence on Filipino culture because of the
migrate to the Philippines of many chinese since centuries, ago, one needs
to also mention familiarity with Confucian ethics and business lesson derived
from Confuciu’s wisdom. In confucian ethics, the practice of the Tao- the way
of life’’ or the ultimate purpose and enlightenment in life- is vey important.
 Along with this , we also recognized other common confucian
values:(a)Filial piety ;(b) brotherhood ,peership, and equality ;(c) loyalty and
fidility trustworthiness;(e) courtesy and politeness ;(f) righteousness , right
conduct , and courage (g)uprightness ,honor, integrity and character ,anf
(h)humility and shame. Where Confucian ethics has influenced business
peoplr would establish relationship amongst one other, and thus more
people would be encourage topractice similar good habit or virtues .
 The ultimate basis of the filipino psyche for its judgement in the realm of
business ethics ,rests, however , on the concept of sin ( kasalanan) and
vituous action ( mabuting gawa) which are clearly of religious
extraction.About 90 percent of the population adherer.
 Business ethics correspond to a wide range of concept pairs in Filipino .
On the immediate level, business ethics imples what is right or correct
(tama) and what is wrong (mali), what is allowed or legal ( pwde or hindi
bawal) and what is prohibited or legal (bawal) in trade of business
(pangangalakal) .On another level ,theres are reference to what is good
(mabuti) and what is bad (masama),although in a highly utilitarian and
instrument rather than in an absolute moral sense.
 That is so say ,what is good in business is what is profitableand bring
prosperity ; whereas what is bad is what constitutes a losing proposition
.Ofcourse ,there are also is a term for what is just (makatarungan ), but
hardly does this bear on the ordinary conduct of business. The appeal to
justice seem to be restricted either to legislation or the courts, which is an
arena different from that of business.Aside from being non-confrontational
in manner,Filipino also happen to non-litigious and avoid bringing their
conflict ,business related or otherwise ,to the couer of justice .Istead they
prefer to have recourse to arbitrational procedured brokered by neutral third
parties ,such as elders, in order not to upset the much-prized (pakikisama)
or smooth interpersonal relationship .Furthermore , influenced perhaps by
their chinese neighbors ,Filipino have developed a very high regards foe
luck (buenas or swerte ), considering it to be a much sought after though
not always morally deserved good in business (Sison and palma-
Angeles,1997).
 Business Ethics Challeges in the Philippines

Basic education usual approach to ethics teaching in the Philippines has

been generally pedantic.Teaching and parents repeatedly admonish us
about inherited do’s and don’ts perhaps thinking that the repetition would
drive us ethical ,In a country where much is needed to combat what critics
call endemic corruption ,moral numbness has cript in . Along with moral
nubmness ,an underdeveloped capability formoral reasoning and the lack of
moral courage make business ethics learning particularly challengeing in the
Philippines. Undeniably ,it is an increasingly morally numb and indifferent
culture. Like a highly resistant disease, corruption in the Philippines seem to
refuse to go away despite highly publicized criticisms from local and
international media , multilateral fundings agencies , and prominents local
academics . The truth is the average Filipino has become immuneto
unethical behavior among high-ranking business and goverments official
because may publicized cases have gone unresolved; few leaders have
been sanctioned and imprisoned.The issued get burried;
THE SOCIAL RESPONSIBILITY OF BUSINESS

The Johnson & Johnson Tylenol Crisis

In 1982 may person died after consuming johnson and johnson’s Tylenol
capsules contimanated which cyanide (a poison).As a dealt with a sensitive
issue and the protection of the public was must , the manager recall all
capsule from all places worldwide .This crisis incident worked as a catalyst
the boosted J & J’s image in the eyes of costumers worldwide.One sees that
an ethical commitment to health of safety of costumers is deeply rooted in
Johnson & Johnson.
 Introduction
 In the last few years,the corporate world his come increasing presure
to behave in a ethically responsibility manner. In particular ,recent
accountability failures have led to bankcruptcies and restatement of
financial statement that have harmed countless shareholders, employess,
pensioners and other stakeholders .
 Whitout a doubt,of of the causes such accountability failures is the failure
to practice genuine corporate social responsibility ,which is understood to
mean atlest two things : (1)that profit maximization is not the sole purpose
of the firm , and (2) that a firm’s shareholders are not only stakeholders
group from whom manager bear some responsibility (Davidson 2009).The
economic system seem to be in urgent need of a ‘ moral compass’, that is
say ,value other than than the ubiquitous profit margin need to inform
business practice.This concept is language of Socially Responsible
Investment (SRI) anf Corporate Social Performance ( CSP) ,has come to
be subsumed within the term ‘sustatainabledevelopment’ which is
“development that meets the needs of the present without sacrificing the
right of future generations to fulfill their needs”
 (World Commission on Environment and Development
,1987:43).Achieving sustainability has become a central issue of our
time.In building sustainable communities, just as in the challenge of
poverty alleviation or eradication , the field of business and economic is
called the account: a call for a re-thinking of the role of business is society
,especially in the design and implementation of sustaintability practices
seem to be in order. The “Responsibility” become all the keener in Asia
most especially in the so-called “Bottom-of-the-pyramid”(BOP) countries
,where people living under $2 per capita income per day can hardly get
hold of even the barest necessities (Racelis,20120.

 Learning Outcomes
 1. To undrstand more fully the concept of corporate social responsibility
(CSR)
 2.To be able debate (for or against ) the staement ,”The only social
responsibility of business isto earn profits.”
 3.To be familiar with the history of CSR(the concept itself and the
 emergence of many CSR initiatives )
 4.To be familiar with the history of and important example of CSR (the
concept itself and the emergence of many CSR initiatives).
 5.To be prepared to generate ideas for CSR project in one’s own company
in the future.
Lesson 9: The Concept of Corporate Social Responsibility

Lesson objectives
At the end of this lesson ,,the should be able to:
1. Define corporate social responsibility (CSR)
2. Distinguish between CSR and business ethics;
3. Explain the business case for CSR

* Corporate Social Responsibility (CSR) and Its Different from

Business Ethics

Business ethics is sometimes confused with corporate social

responsibility or SCR. The phrase ‘corporate social responsibility’ refers to a
corporation’s responsibilities or obligation toward society .CSR, as defined
by the world Business Council for sustainable Development (WBCSD) ,is “a
continuing ommunity by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce
and their families, the local community , and social at large.”
 At one extreme is the view of the late economist Milton Friedman,basing
himself on assumption of private property and the free market, famously said
that the only social responsibility of business is to incresse it’s profits.
 According to Friedman’s shareholders view of corporate social
responsibility ,a manager has no right to give company money to social
causes when doing so will reduce shareholder’s profit because that money
does not belong to the manager but to the shareholders.Friedman argues
that the exercise of social responsibility by a corporate executive is:( 1)
unfair, because is constitute taxation without representation;
(2)undemocratic, because it invest governmental power in a person who has
general mandate to govern;(3) unwise ,because there are no check and
balances in the broad range of governmental power thereby turned over to
his discretion;(4) a violation of trust, because the executive is employed by
the owners as an agent serving the interest of his principal;(5) futile, both
because the exscutive is unlikely to be able to anticipate to the social
consequences of his acton and because,
 as he imposes cost of his stockholders ,costumers , or employees , he is
likely to lose their support and thereby lose his power
(Mulligan,1986).Sometimes competitive forces faail to steer companies in
a socially beneficialway and, instead ,lead them to act in a socially harmful
manner.
 The Valdez Principles
The Coalition for Environmentally Responsible Economics (CERES) in
Boston, USA drafted in 1990 a Guide to the Principles. This is a list of
principles that explains how to deal with environmental issues. From the
business and management points of views, this list is like the ten
commandments of environment protection.
The Valdez Principles were formulated after a major oil spill from an
Exxon tanker-the Exxon Valdez which ran around mear Valdez, Alaska, on
March 24, 1989 and spilled 240,000 barrels-11 million gallons of crude oil
which eventually covered 2,600 square miles of Prince William Sound and
the Gulf of Alaska. Although the Exxon spill was not the largest ever, it was
one of the worst in terms of environmental damage and long-term effects.
The ten valdez Principles that ask companies to agree with include the
foollowing action;
1. protection of the biosphere
2. Sustainable use of natural resources
3. Reduction and disposal of waste
4. Wise use of energy
5. Risk reduction
6. Marketing of safe products and services
7. Damage compensation
8. Disclosure
9. Environmental directions and managers
10. Assesment directions and managers

Lesson Objectives
At the end of this lessons, the students should be able to;
1. provide a brief hostirical background on corporate social responsibility
(CSR);
2. describe CSR in the philippines;
3. highlight specific Philippines case studies;
4. explain the emergence of social enterprise; and
5. explain the potential of social enterprise for poverty alleviation.
 Organizations are being called upon to take responsibility for the ways their
operations impact societies and the natural environment. A firm must now
focus its attention on both increasing its bottom line and being a good
corporate citizen (D’Amato et al..,2009). The field the social responsibility of
business has grown significantly and today contains a great proliferation of
theories, approaches, and terminologies. Recently, renewed interest in the
social responsibility of business and new alternative concepts have surged,
including corporate citizenship and corporate sustainability (Garriga and
Mele, 2004). In Europe, the demand for socially responsible actions has
been around since before the industrial Revolution and companies have
responded to them, although the content of corporate social responsibility
(CSR) have evolved over time, depending on historical, cultural, political,
and socio-economic drivers and particular conditions in different countries
and also at differents points in time (Choi, et al..,2010; Argandona and Von
WeltzieHoivik, 2009)
 Doubtless, we are witnessing today a remarkable growth in the so-called
“third sector”(i,.e, in the socio-economic initiatives which belong neither to
the traditional private for profit sector not to the public sector). These
intiatives generally derive their from voluntary organizations and operate
under a wide variety of legal structures. Notwithstanding and the surge in the
creation and growth of “the sector enterprise’’ one could say that descriptive
researches on the succcesses and challenges of such enterprise as well as
the factors accounting for the effectiveness and sustainability of those
organization seem wanting. As an examples, largely lacking in the social
enterprise literature are explanations of what the regional differences are
among the various social enterprise across the globe, the whether and how
socioeconomic context may play a role in these variations (Kerlin, 2010).
Reporters:

Ereka Gubgoban
Zeana Pinon