Business Entity – is an organization or an economic Josephson Institute – six pillars of character / a nonprofit organization

that develops and delivers services and materials to increase ethical

system that uses resources or inputs to provide products
commitment
that come in the form of goods and services in exchange
for money in order to continue and exist. Good Corporate Governance – is the practice of directing and
controlling the company through the relationship between
DIFFERENT FORMS OF BUSINESS ORGANIZATIONS management with its stakeholders, the board of directors governed by
a system of rules, practices and processes
1. Sole proprietorship – easiest to set-up / small capital / low
risk involved / one person / keeps all profit / unlimited control Fairness – concept of justice as the central pillar that creates a fair
2. Partnership – 2 or more persons / divide the profits among business environment
themselves
3. Corporations – separate legal personality from its owners / Distributive Treatment – resources of the company that should aligned
artificial person / has limited liability with the inputs of the individual as in the case of salary, bonus and
- Stockholders – owners benefits
- Limited Liability Company (LLCs) – form of business
considered as hybrids for they possess characteristics of Procedural Treatment – employee empowerment and allowing them
being a partnership business and a corporation for decision making
4. Cooperatives – owned by a group of individuals called
Interactional Treatment – appropriate and equitable treatment of
MEMBERS who operates the business for their mutual
employees and giving them the proper information especially in crucial
benefits
decisions involving them
- Ex: agricultural cooperatives, water and electricity coop,
banking, credit and savings union and housing cooperatives Accountability – obligation and responsibility to communicate and
inform the stakeholders the position, prospect and risks of the
TYPES OF BUSINESS
company
1. Service business – provides services also called intangible
Responsibility – this goes hand by hand with accountability / multi-
products
faceted
- Professional skills (law firms, accounting firms, schools)
Technical skills (repair shops and salon) Transparency – openness / provides the stakeholders and other
2. Merchandising business – “buy and sell” business. They buy stakeholders updated, clear and honest information
products at wholesale prices and gain their profit by selling
them on a retail basis with prices higher than their purchase Business Etiquette – glue that binds people and keeps them happy in
cost an otherwise stressed out job and market environment / includes good
- Grocery stores, convenience stores, distributors manners, respect and positive communication in all levels of the
3. Manufacturing business – buy raw materials and combine business organization
them with labor and transform into finished goods. They gain
profit by placing an additional cost on materials, labor and - Includes verbal and nonverbal that must be founded on trust,
factory overhead respect for the dignity of the person
4. Hybrid business – they combine being a manufacturer of a
goods and sell it either in a wholesale of retail basis. Business Decorum – language, actions, habits, behaviors and actions
done in the business setting.
PURPOSES OF BUSINESS
- Working professionally, engaging in proper manners with and
1. Social perspectives – efficient production of goods and among co-workers in a spirit of camaraderie and respect
services are meant to sustain society, environment through - Maintaining professionalism and proper conduct when
the economics of production, distribution and consumption communicating with people through virtual communication
of goods and services channels.
2. Individual perspectives – business exist to provide income, - EX: dress, attire of the employee, logos
satisfaction of needs and wants to provide power and - Latin term decorus “proper, becoming, handsome”
prestige to the person - From décor “beauty, grace”
- Corresponding adjective is decorous “well-behaved in a
SIX PILLARS OF CHARACTER particular situation”
- This means polite and proper behavior
1. Trustworthiness
2. Respect Virtual communication – indispensable in business relations like social
3. Responsibility media, email, online chats
4. Fairness
5. Caring
6. Citizenship
Business Protocol – guidelines, responsibilities and decorum each - Two key of elements are “market” and “social contract”
employee has to comply with upon being hired.
Aristotle’s book – politics explicitly points out that usury is an unethical
- Assurance that employees accept, understand and execute practice because the profit is derived from the currency itself not in the
their roles and responsibilities in the company from process of business through exchange of goods and services
appearance, attitudes, behaviors and role execution
- Justice must prevail by giving each individual his due, equal
Protocol – usually in form of employee contract indicating the job treatment must be observed with people in all business
description and job specifications dealing and fair transactions

Business Policy - a set of guidelines developed by an organization to Confucius – business are embodied on 5 principles
govern the actions of the organization
1. The way to perceive crisis
1. Specific and definite - Crisis – combination of danger and opportunity. A crisis
2. Clear and unambiguous avoiding jargons and connotations become opportunity if the danger is managed properly. The
3. Reliable and uniform so that it can be followed by business has to be prepared for any crisis to prevent failure.
subordinates 2. “Guanxi” (interpersonal relationship) / respect in the
4. Appropriate to the nature of the organization and its goals business context, with all the people whom one conducts
5. Simple as to be understood by all in the organization business with
6. Comprehensive and inclusive that it covers a wide scope 3. Gives importance on strategy and preparation as very
7. Flexible so that line managers can use it in repetition or in a important in business for sustainability
routine manner 4. Success in business does not mean amassing much profit
since righteousness outweighs profit
Business Marketing – practice of individuals, commercial businesses, 5. Moral teachings of humility
government and institution primarily deals with the practice of selling
or reselling their products PHILOSOPHERS BELIEVE THAT THE SOURCE OF ETHICS ARE:

PRINCIPLES OF ETHICAL MARKETING 1. God and religion

2. Human conscience and intuition
1. All marketing communications share the common standard 3. A rational moral cost-benefit analysis of actions and their
of truth effects
2. Marketing professionals abide by the highest standards of 4. The example of good human beings, simply means role
personal ethics modeling
3. Advertising is clearly distinguished from news and 5. A desire for the best for people in each unique situation
entertainment content 6. Political power
4. Marketers should be transparent about who they pay to
endorse their products Ethics – philosophical study of morality and encompasses it. It is the
5. Consumer should be treated fairly study of framework such as standards, rules or codes and traits for
6. The privacy of the consumer should never be compromised ensuring the right action, behavior and conduct
7. Marketers must comply with regulations and standards
8. Ethics should be discussed openly and honestly during all Morality – concerned with the understanding of what is right and
marketing decisions wrong behavior. It is conformance to recognized code, doctrine, or
system of rules.
Bookkeeping – it is a system of maintaining records and data within a
centralized book. Day to day techniques employed to expedite the Values – principles that guide a person’s behavior to fulfill oneself as
general record keeping process human being. They consist of fundamentals beliefs that help one
prefer, accept and choose one thing, action, belief or behavior or even
Ethics – division of philosophy that is derived from the Greek word person over another.
ethos (habit, custom, character of disposition).
Virtue – character of the person relating to moral excellence. Good
- It is a system of moral principles concerned with what is good habits of a person such as kindness, honesty, respect, wisdom and
for individuals and society propendorence on art and science.

ETHICS FROM THE PHILOSOPHERS Religion - is the shared set of beliefs, activities based on faith in
supernatural forces. (Russia and china has a strong growth in
According to Socrates – ethical conduct springs from knowledge popularity)
coupled with virtue. A person’s happiness depends on how he deals
with other people in a virtuous way Hinduism – oldest

Plato – virtue was sufficient for happiness, that there was no such thing Islam - youngest
as “moral luck” to grand rewards. Virtue is equated to human well-
being which is the highest aim of moral thought and conduct
8 MAJOR RELIGIONS - Qur’an (Koran) – it expresses the Islamic work ethics and the
rules that should guide Muslim’s as they encounter situations
1. Judaism in their daily lives
2. Christianity - Qu’ran is supportive of entrepreneurship and earning of
3. Islam profits through legitimate business activities. It allows
4. Hinduism accumulation and protection of private property.
5. Buddhism - Receiving or giving interest (RIba)
6. Confucianism - 21.01%
7. Taoism
8. Shinto Confucianism – one of the traditional religion in china that started
during the 5th and 6th century B.C
Judaism – 15 million adherents
- 5 million practices
- Started with the original covenant made between God and - Profit is acceptable as it is acquired with righteousness
Abraham around 1900 B.C
- Main source for understanding business ethics in Judaism is Taoism – seeks to promote the inner peace of individuals and harmony
the Torah with their surroundings. It co-exist with Confucianism in china.
- Work, including manual work is held in great esteem like a
sort of human partnership with the divine - “Tao” – “path” or “the way”
- Its like a force that flows through life and pervades all things
Buddhism – Siddharta Gautama, prince in Nepal - Encourages companies to nourish people, take care of them
just like family members
- Broad and multifaceted religious tradition that focuses - Tao Te Ching, chapter 9 “fill your bowl to the brim and it will
primarily on the reality of worldly suffering (4 noble of truths) spill... do your work, then step back
- No “self” and “I” that means selflessness
- Buddhists advocate for the right livelihood and are generally Shinto – derived from the Chinese word “Shin tao” mean the way of the
against companies that do not care for the environment or Gods started in 500 B.C
that abuse animals
- 5.84% - The focus is on the worship of the kami (a host of
supernatural and mysterious beings or deities)
Hinduism – oldest religion with no known founder. - Shintoists give special reverence on different forms of objects
of nature and abstract that serves as forces of nature
- Hinduism is a broad and inclusive term referring to those
individuals who mostly respect and accept the ancient FILIPINO VALUE SYSTEM
traditions in India.
- Caste System – ordering of Indian society based on four Cultural values – shared assumption of what is right, good or important
occupational groups. in a certain society
- The Bhagavad Gita – hindu scripture from the epic poem
Filipino value system – how Filipino live according to their ideologies,
Mahabharata
moral code, ethical principles, etiquette and cultural and personal
- Work is the action of man that has to be done with full
values
concentration combining pure and good motives with
knowledge.
1. Utang na loob – reciprocity of debt of gratitude to others
- Forgiveness, self-control, non-stealing, steadiness,
2. Filial Piety – one of the remarkable values of the Filipinos.
truthfulness, wisdom and learning
Roots from Confucianism. respect for ones parents, elders
- 13.26%
and ancestors / strong religious belief or behavior
3. Padrino System – patronage and cronyism.
Christianity – faith based on the life, teachings, death and resurrection
- Patronage – classified as nepotism, the practice of gaining
of Jesus / most practiced religion around the world.
favor, promotion or political appointment through family
- 2 billion adherents. 970 million roman catholic. 220 million affiliation
Eastern Orthodox. 385 million protestants. 275 million - Cronyism – based on friendship though ones qualification are
others. not based on merit / rampant among business people in the
- Jesus of Nazareth or Jesus Christ – central figure of allocation of government contracts, permits, grants and
Christianity born 2000 years ago. benefits
- 33.32% - Padrino system takes it roots from the two values of filial
piety and utang na loob
Islam – second largest religion with more than 1 billion adherents, in 4. Suki system – adopted years by years ago from Chinese
Africa, middle east, china, Malaysia and far east even European brothers in binondo. Loyalty and relationship bear more
countries. important in business than profit
5. Bahala na – cannot decide for their course of action / lack of
- Muhammad – born in Mecca around A.D 570. Muhammad planning and foresight / “bathala”
believed in one God, Allah
 6. Maῆana Habit – we have learned in Spaniards.
- “Maῆana” mean “Tomorrow” or specified future time
- Procrastination – action of delaying or postponing something
7. Amor Propio – self-love, self-worth, respect for one’s self or
even pride for one’s self. This feeling makes the Filipinos very
sensitive to criticisms and insults whether real or imagined.

Business Ethics – form of applied is the study of business situation,

activities, and decisions involving business issues related to how the
business is conducted and its social, financial and environmental
implications / provide guidelines for moral actions, right behaviors