CHAPTER 1

Business activity that is part and parcel of human

society; complex enterprise that involves major
activities like purchasing, manufacturing, marketing,
advertising, selling and accounting
Fundamental reason for examining the
activities of business from the moral point of
view
- Promotion of the common good
- Protection of the individuals interest
- Preservation of human society
The Businessmans Myths about Business
Ethics
1. Ethics is a personal affair and not a public
debatable matter
2. Ethics and business do not mix
3. Ethics and business is relative
4. Good business means good Ethics
5. Business is a war
Peter Ducker argues that the business enterprise
is an organ of society and its actions have a decisive
impact on the social scene.
Moral reasoning process in which ethical issues
and problems are benchmarked against a moral
standard so that a moral judgment is made possible
Characteristics of a Good Moral Standard
1. One that looks at the issue as something that is
very serious
2. Must be grounded on good moral argument
3. Should be objective and not subjective
4. When violated, brings about feeling of guilt, shame
and remorse of conscience
Requirements for a Good Moral Judgment
1. Must be logical
2. Must be based on facts and solid evidence
3. Must be based on sound and defensible moral
principles
Profit form anticipated reward or compensation for
the efforts spend, skills apply and returns for capital
invested in putting up and organizing the business
Milton Friedman only responsibility of business is
to make profit so long as one stays within the rules of
the game and engages in open and free competition
without deception or fraud.
Peter Drucker the primary responsibility of
business is to look for customers and satisfy their
needs and wants.
Moral Responsibility holding to people morally
accountable for some past action or actions; means
care, welfare or treatment of others as derived from
the specific social role one plays in the society; ones
capacity for making moral or rational decisions on his
own.

Business Ethics study of what is right and wrong

human behavior and conduct in business; study of
perceptions of people about morality, moral norms,
moral rules and ethical principles as they apply to
people and institutions in business; study,
evaluation, analysis and questioning of ethical
standards, policies, moral, norms and ethical theories
that managers and decision makers use in resolving
moral issues and ethical dilemmas affecting business
CHAPTER 2
Philosophy came from two Greek words philos
meaning love and sophia meaning wisdom (love of
wisdom); metaphysical science which deals with
abstractions
*Greek thinkers called themselves wise men
Pythagoras wanted to call himself simply a lover
of wisdom or philosopher
To philosophize means to wonder about life, to
question reality and to find sense in what we do as
human beings
Other definitions of Philosophy
1. For Plato highest form of inquiry
2. For William James a collective name for
questions that have not been answered to the
satisfaction of the one asking the question
3. For some world view of the person
(weltanshauung, in German) in relation to the
purpose of actions and events
4. For others conceptual analysis or thinking
about thinking or simply reflecting on the contents of
our thoughts
5. Primarily concerned with finding the meaning and
worth of reality including human experiences
6. Science that studies the ultimate cause or
explanation of things attained by the use of human
reason alone
Divisions of Philosophy
1. Theoretical or Speculative Philosophy
studies the truth to be known
a. Cosmology studies the origin and destiny of
the universe, evolution and the ultimate fate of
the entire unverse
came from the Greek word kosmos meaning
universe
b. Ontology deals with the nature of existence
of things and status of reality
from Greek onta meaning being
c. Metaphysics came from the Greek words
meta (beyond) and physikon (nature)
studies the nature of the mind, the self and
the consciousness

d. Psychology came from the Greek words

psyche (soul) and logos (science or study)
science that studies human and animal
behavior
e. Theodicy (Rational Theology) from the Greek
words theos (God) and dike (justice)
investigates the nature, being and the
attributes of God not based on the bible and
divine revelation but by logical abstractions
and reasoning
f. Epistemology from the word episteme
(knowledge)
addresses the philosophical problems
surrounding the theory of knowledge
2. Practical Philosophy studies truth to be acted
upon
a. Semantics from the Greek words sema (sign
or mark) and semantikos (significant)
studies the meaning of words and its linguistic
forms, their functions and their relationship to
other words
b. Axiology from the Greek words axios
(worthy) and logos (discourse or study)
study of the system of value judgments or
worthiness
c. Aesthetics from the Greek word
aesthethikos meaning one perceptive of
things through his sensations, feelings and
intuitions
study of beauty and art
d. Logic deals with the nature of thinking and
reasoning using empirical support to establish
the truth
Logical validity characteristic of an
argument that if the premises are true then
the conclusion must necessarily be true
Deductive Reasoning from universal truth
to particular
Inductive Reasoning - from particular to
universal or general principles
e. Ethics - from the Greek word ethos meaning
characteristic way of acting
studies the morality of human acts
Morality refers to the quality of goodness or
badness in a human act; means conformity to the
rules of right conduct
Categories of General Ethics
1. Descriptive Ethics consists of studying and
describing the morality of people, culture or society
- makes comparison and contrasts on the different
values, principles, code of ethics, beliefs and
practices of people, culture or society

Psychological Egoism study of human

motivation
Cultural Relativism describes how people,
when grouped and observed in their own
cultural realities, actually differ in their behavior

2. Normative Ethics involves moral judgment

based on ethical norm or theory
3. Metaethics concerned with the analysis of the
meaning of words and the logic of moral reasoning
Ethical Relativism claims that when any two
cultures or any people hold different moral values of
an action, both can be right; emphasizes differences
of moral beliefs and practices from the point of view
of culture
Situational Ethics (moral subjectivism)
emphasizes moral differences based on personal
beliefs and convictions
Approaches to Moral Differences
a. There is no moral truth believes that there is
no ultimate right or wrong

Moral Nihilism holds that we cannot know

whether or not there are moral truths
Moral subjectivism holds that moral views
differ from one person to another

b. There is no universal moral truth each

culture has its own set of rules that are valid for that
culture (ethical relativism)
c. Deep down, we can find the basic moral truth
believes that despite differences, people of
different cultures can still agree on certain moral
basics

Soft universalism people find some

common ground on basic moral principles

d. There is one universal moral truth

Hard universalism (moral absolutism)

maintains that there is only one universal moral
code that everybody must follow

Deontological Ethics (non-consequentialist

approach) measures and evaluates the nature of
moral act based on the validity of the motive of an
act; if the motive or intention is good, regardless of
the consequence, the whole action is good

Kantian Ethics or Kantianism one should

always base his actions on maxims or rules that
are believed to be universal
Divine Command Theory holds that the
standard right and wrong is the will or law of
God

Teleological Ethics (consequentialist theory) from

the Greek word tele (far or remote); measures the
morality of an action based on its consequences and
not on the motive or intention of the actor

Hedonism the view that pleasure (regardless

whether the pleasure is mental or physical, but
mostly sensual) is only good as an end

Utilitarianism maintains that the greatest

good is the greatest happiness or pleasure of
the greatest number; if the action can provide
the greatest happiness to the greatest number
of people, then the action is considered to be
morally good

Traditional Ethics believes that man has a natural

insight to morality, this being a gift of the creator
who gave man a moral sense

2. Conventional generally found in an ideal

civilized society, hence, the name conventional

Thomas Aquinas (1225-1274) sometimes called

prince of Scholastics
The Synderesis of Man according to St. Thomas
Aquinas

1. Man is able to distinguish or to know what is good

and what is bad.
2. Man is always obliged to do good and avoid evil.
3. Man knows that he is accountable for his actions
good or bad.
*the synderesis is the starting point of mans moral
reasoning which takes place when a person reaches
the age of reason.*

Sigismund Schlomo Freud (1856-1938) founding

father of the Psychoanalysis Theory, where the
approach is to understand human behavior which
views men and women as constantly torn between
internal unconscious forces and external social forces

2. Man must achieve fulfillment in ways that are

harmonious with others.
Superego (will) reflects social rules and values of
the society that govern our behavior (Freud equates
superego with conscience)
Ego (reason) rational self or the conscious self;
reality-principle; part reason but also part willpower
Id (desire for pleasure) the irrational part of us or
the unconscious instinct; pleasure-principle
Lawrence Kohlberg believed that people
progressed in their moral reasoning through a series
of stages
Kolhbergs Classification of the Persons Moral
Development
1. Pre-conventional generally found in young
children and older children

Stage 1 Obedience and Punishment

explains the concept of being good by following

Stage 3 Good Boy/Girl Image characterized

by an attitude which seeks to do what will gain
the approval of others (putting oneself in the
other persons shoes)
Stage 4 Law and Order one is oriented to
abiding by the law and responding to the
obligations of duty; individuals adopt social
rules without considering the underlying ethical
principles involved

3. Post-Conventional influenced by personal

ethical principles of what is right; one that Kohlberg
felt is not reached by the majority of adults

Key Points of Psychoanalytic Theory

1. Man must learn to control his inborn desires.

commands and authority and avoiding being

punished
Stage 2 Individualism, Instrumentalism
and Exchange fair deals for concrete
exchanges (Ill scratch your back and you
scratch my back type of mentality)

Stage 5 Social Contract/Rights stage of

understanding of rights and values; gives the
person a sense of democracy but relativity to
rules; means that people at this stage realize
that there are fundamental concepts but the
application of which is confined to their own
culture and environment
Stage 6 Principled Conscience (Stage of
Universal Ethic Principles) based on respect
for universal principles and the demands of
individual conscience; people do good and
avoid evil because they are convinced that
there are universal ethical principles that
govern and justify their actions
Transcendental Morality Kohlberg believes
that people can transcend their concepts of
good and evil by integrating them with their
religious convictions

Two Ethical Systems

1. Atheistic Ethics assumes that only matter
exists and man is responsible only to himself since
there is no God who creates and rules the universe
2. Theistic Ethics assumes that God is Supreme
Lawgiver. Everything must conform to Gods eternal
plan of creation; man is accountable for his actions
and deserves either a reward or punishment in this
life or in the next
CHAPTER 4
Human Acts actions that proceed from the
deliberate free will of a man; actions are done with
knowledge and consent and willfully carried out by
the person
Acts of Man refer to certain types of actions that
are naturally exhibited by man and as such they are

morally indifferent (or neutral); natural acts that we

perform by virtue of our nature as animal beings
Two Categories of Acts of Man
Natural Involuntary Actions actions of man
that are performed intuitively or involuntarily
Natural Voluntary Actions actions within the
control of mans will but only for some period of
time
Human Acts in Relation to Reason
Good Acts done by man in harmony with the
dictates of right reason
Evil Acts done by man in contradiction to the
dictates of right reason
Indifferent Acts acts that are neither good nor
evil

The Voluntariness of the Human Acts

*only voluntary acts have moral bearing*

Perfect Voluntariness actions performed

with full knowledge and with full consent
Imperfect Voluntariness actions that occur
when there is no perfect knowledge or consent
(when both knowledge or consent is partial)
Direct Voluntary actions that are intended
for its own sake, either as a means or an end
Indirect Voluntary actions that are not
intended for its own sake but which merely
follows as a regrettable consequence of an
action

Causa causae est etiam causa causati

meaning the cause of the cause is also the cause of
the thing caused
Determinants of Morality factors that link
human acts with their norms; serve as the measure
of the goodness and the evilness of human act
1. The End of the Action refers to the
natural purpose of the act or that in which the
act in its very nature terminates or results
2. The End of the Actor refers to the
intention or the motive of the doer of the act
3. Circumstances of the Act refer to the
conditions that affect the human act by
increasing or decreasing the responsibility of
the actor
Who refers to the person or the one to
whom the act is ascribed
What refers to the quality or the
quantity of the object of the act
Where refers to the place where the act
is performed
How refers to the manner or mode by
which the act is performed
By what means refers to the means
employed by the actor
When refers to the circumstance of time

Why refers to the circumstances of end

or intention of the act

Principles Involved in the Circumstances of the

Action
(Paul Glenn 1968)
1. An indifferent act can become good or evil through
circumstances
2. A good act can become evil through circumstances
3. An intrinsically good act can become better or an
intrinsically evil act can become worse through
circumstances
4. An evil act can never become good through
circumstance
5. A good act done with evil means destroys the
entire objective goodness of the act
CHAPTER 6
Sexual Harassment an issue in the corporate
world that must be looked into because it can create
a hostile and unhealthy workplace for employees
Congress of the Philippines enacted Anti-sexual
act of 1995 or R.A. 7877
Civil Rights Act of 1964 defines sexual
harassment as unwelcome sexual advances, request
for sexual favors, and other verbal or physical
conduct of a sexual nature
R.A. No. 7877 defines sexual harassment as an
employer, employee, manager, agent, supervisor,
teacher, instructor, and any other person who,
having authority, influence moral; ascendancy over
another in a work or training or education
environment demands, requests, or otherwise
requires any sexual factor from the other
Male to female real or imagined loss of power
Female to male expression of retaliation or flexing
of the new power
2 types of sexual harassment
a. Quid Pro Quo Harassment this for
that, or something for something, defined
as requiring a sexual favor as condition for
employment
b. A harassment that creates a hostile
environment abuses that include
verbal, physical and visual conducts that
create an intimidating, offensive, or hostile
environment
Legal Penalties of R.A. 7877
a. Imprisonment of not less than one month,
but not more than six months

b. Fine of not less than 10,000 but not more

than 20,000
Work for the purpose of obtaining economic gain
for the laborer and directed to promotion of life
Justice should be a substance of compensation
Just wage legitimate fruit of labor
Teachings of Catholic Church on Wages
a. Rerum Novarum
- Also known as capital and labor by Pope
Leo XIII
- Most impassioned treatises
- Called Magna Carta for Social
Reconstruction by Pope John XXIII
b. Quadragesimo Anno
- On the Reconstruction of the Social
Order by Pope Pius XI
- Encyclical advocated minimum wage
- Developed concept of family wage as
one sufficient wage earner to support his
family
c. Mater et Magistra
- Mother and teacher, church teachings on
economic justice by Popes John XXIII and Paul
VI
d. Laborem Exercens
- On Human Work by Pope John Paul II
- Encyclical letter that discussed modern
perspectives of human work and duties
of church
e. Centesimus Annus
- Pope John Paul II stated that Society
and State must ensure wages level
adequate for maintenance of his
worker and his family, including a
certain amount of savings
Section of Article XIII stated that workers are
entitled to a living wage
R.A. 6727 Wage Rationalization Act which declared
the policy of the state to rationalize the fixing of
minimum wages
Factors to be considered in formulating wage
a. External market factors supply and
demand for labor, economic conditions,
and underemployment
b. Laws and regulation requires that
employers pay at least the minimum wage
c. Cost of living relates to basic
maintenance needs, and it must be
seriously considered; ignoring this means
jeopardizing the welfare of workers
d. Prevailing industry rate paying the
workers the average of same companies in
the same job
e. Organizational factors assessment of
what type of industry the organization
operates
f. Job factors nature of the job itself

g. Individual performance one who

performs well deserve to receive a
proportionate increase in pay
Gift giving act of extending goodwill to an
individual in an effort to share something with them
Bribery practice of giving remuneration for
performance of an act inconsistent with the work
contract or the nature of work one has been hired to
perform
Advertising plays a very significant role in
marketing goods and services
Philip Kotler said that advertising is any paid form
of non-personal presentation and promotion of ideas,
goods, or services by an identified sponsor
Burnett and Moriarty advertising is a paid nonpersonal communication form an identified sponsor
using mass media to persuade
Economic system characterized by degrees of
business competition
Lying immoral
Falsehood not necessarily immoral
Issues related to moral dimension of
advertising
a. Misleading advertisements do not
misinterpret, do not make false claims, but
person comes with wrong conclusion
b. Deceptive advertisements false
statements or misrepresents products
c. Manipulative or coercive
advertisements manipulative uses
trickery or by devious or insidious means;
coercive involves threat or force, either
physical or psychological
Some issues in advertising
a. Deceptive advertising either makes
false statements and a lie, or which
represent the product without statement;
semantics in advertising is allowed to
allow certain leeway in products
b. Use of weasel words ambiguity;
weasel words are used to avoid or recoil
from direct and straightforward statement
c. Exaggeration occurs when
advertisements tend to make false claims
of benefits of goods and services; goes
with concealed information
d. Psychological appeals advertisers play
on several different tactics to get people
interested in their product
- A visual or aural influence on
subconscious mind and emotions by
Richard F. Taflinger

e. Ads directed at children children are

special group of consumers who do not
regard reasons
Consumer Act of the Philippines also called R.A.
7394
Article 108 declares the state shall protect
consumers
DTI responsible for enforcing provisions of act
DOH oversees food, drugs, cosmetics, devices, and
hazardous substance

Trade secret legal term for confidential business

information; it is an information, including a formula
or pattern, compilation, program device, method,
technique that derives independent economic value
or potential from an being generally known to, and
not readily ascertainable by proper means
Uniform trade secrets act drafted by National
Conference of Commissioners on Uniform State Law
in 1970 and amended in 1985
Trade Secrets Act prevents wrongful taking of
confidential or secret information

Article 110 it is unlawful to disseminate false or

misleading advertisement

Reverse engineering determination of someone

elses trade secret information via examination and
testing publicly available information

Philippine Association of National Advertisers

engaged in continuing campaign to regulate abuses
committed by untruthful advertisers

Contracts can also provide rights that exceed the

bounds of trade secret law

Workplace romance relationship between two

people employed in the same organization

Stockholders require information on the

management of corporation

Price measure of value in exchange

Board of directors has the right to independent

access to information they desire

Natural price price that covers costs of producing

commodity by Adam Smith

Workers have the right to know conditions of work

Price Theories

Government has the right to know that

corporations are complying with the law

a. The cost theory of prices value in

exchange is a function of the cost of the
efficient production or acquisition of the
object of exchange and required return
b. The market theory of prices value is
a function of utility and scarcity
Fair acceptable and just
Acceptable fair price is satisfactory
Just judgment that the price has been justified
Ethical issues in fair price
a. True cost of the products is concealed
companies dont show the real cost
b. Suggested Retail Price one that is
open to lot of interpretations
c. Use of electronic scanners subject to
manipulation and system failure
d. Promotional pricing odd price policy
deals with both price and advertising that
use odd numbers
e. Follow the leader pricing done to
make buyers believe that what is being
sold is same as well-known brands
f. Price fixing also called collusion, uses
power of the retailer among the producers
to control price
Suki system compromises fair price for regular
customers
Theory of justice treats equal equally

Suppliers and agents need information that will

make the contracts between them fair
Consumers should be informed of the dangers
posed by the use of product they purchase
Misrepresentation observed when there is a
transformation of information to misinformation
Intentional misrepresentation person is fully
aware, commonly known as lying
Unintentional misrepresentation person is not
aware
Lying act of making others believe something that
they, themselves, do not believe in
Types of lying
a. Use of ambiguous terms using vague
terms or open ended statements
b. Use of false statements making
statements in which false conclusions may
be drawn
c. Lying through action person gets
caught in the act of wrongdoing
d. Suppression of correct information
hiding of correct information
Direct misrepresentation actively
misrepresenting something about product or service

a. Deceptive packaging create

impression wherein buyers will see
improvement without any change in price
b. Adulteration unethical practice of
corrupting a genuine commodity by
imitating or by adding something to
increase its bulk or volume
c. Misbranding or mislabeling act of
copying products design to the closest
possible way
d. Short weighing most common type of
direct misrepresentation
e. Shortchanging seller gives the
customer less than the change he should
get
f. Short measuring observed in product
that depends on length or volume
g. Short numbering seller gives
consumer quantity by piece of the product
less than the number he has paid for
h. Misleading advertisements false
means representation inconsistent with
facts. Misleading means representation
that would cause significant number of
public to misunderstand or make incorrect
decisions
Indirect misrepresentation omitting adverse
information about a product
a. Caveat emptor let the buyer beware
b. Deliberately withholding information
c. Business ignorance - form of passive
deception because the businessman is
unable to provide the customer with the
complete information he needs to make
fair decisions
Strike collective action undertaken by groups of
workers in a form of refusal to perform work
Article 244 coverage and employees right to selforganization
Types of strike
a. Sit down workers show up to work but
refuse to work
b. General affecting all areas of labor force
across many industries
c. Sympathy initiated by workers in one
industry supported by workers in different
but related industry
d. Unfair labor practice action taken by
employer that is believed to be inimical to
the interest of organization
e. Jurisdictional concerted refusal to work
undertaken by a union
f. Economic based on demand for better
wages
g. Wildcat against the will of leadership of
the union, or without a union
h. Slow down work stoppage in which
employees deliberately reduce production

i.

Recognition forcing employers to

recognize and deal with them

Whistleblowing disclosure by an employee of

confidential information which relates to some
danger, fraud or other illegal and unethical conduct

Types of whistleblowing
a.
b.
c.
d.
e.
f.

Internal - within organization

External outside organization
Current blowing on present employers
Alumni blowing on former employers
Open whistleblower discloses identity
Anonymous whistleblower does not
disclose identity

Multilevel marketing system of selling in which

one signs up other people to assist him and in turn
recruit others to help them
Pyramid scheme participants attempt to make
money solely by recruiting new participants in the
program
Article 53 of R.A. 7394 Consumer Act of the
Philippines states that chain distribution plans shall
not be employed in the sale of consumer products
R.A. 3883 Business Name Law empowers DTI to
cancel license of any business which does not
conform to registered business name or style
R.A. 8293 also known as Intellectual Property Code
of the Philippines which aims to provide intellectual
property and industrial property system which will
enhance the development of domestic and creative
activity, facilitate transfer of technology, and attract
foreign investments
Money laundering said to originate from Mafia
ownership of Laundromats in the US which is the
process of disguising illegally obtained money so that
the funds appear to come from legitimate sources of
activities
Criminal Justice Act 1993 makes the laundering
of the proceeds of non-drug trafficking crimes and
offence for the first time
Money laundering process
a. Placement physically placing bulk cash
proceeds
b. Layering separating the proceeds from
criminal activity from their origins through
layers of complex financial transaction
c. Integration providing apparently
legitimate information
Smurfing most commonly used money laundering
method
Financial Action Task Force multidisciplinary
body that brings together the policy making power of

legal, financial, law enforcement experts from its

members

Agree sequitur esse everything has been created

with specific purpose

40 Recommendations comprehensive blueprint

against money laundering

Ecclesia in Asia duty to preserve environment

reiterated by Catholic Church (Pope John Paul II)

Conflict of Interest a person acts in a way that is

to his advantage at the expense of employing
organization

Jose Mario B. Maximiano three factors must be

considered to be socially responsible for the
environment

Commercial extortion occurs when an employee

demands consideration from a person outside the
firm as a condition to intervene in favor of that
person when a transaction occurs

Valdez Principles list of principles that explains

how we should deal with the environment issues.
This list is like 10 commandment of environmental
protection

Types of conflict of interest

a.
b.
c.
d.

Self-dealing
Accepting benefits
Influence peddling
Using employers property for selfusage
e. Outside employment or moonlighting
f. Post-employment
Insider trading significant facts that have not yet
made public and are likely to affect stock prices
Tax evasion intentional negligence to pay correct
taxes
Tax avoidance taxpayers exploit legally
permissible alternative methods of assessing taxable
property or income to avoid or reduce tax liability
CHAPTER 7
Dimensions of Ecological problem by Fr. Moga, S.J
(book: Toward Authentic Morality)
1. Population explosion is a problem that
humanity has to deal with squarely because
the earth and its resources are limited
2. Depletion of Natural Resources due to
business activities
3. Pollution of the Environment the wastes
of our increased population and fro our
modern industrial lifestyle
4. Destruction of the Earth soil erosion that
can no longer support cultivation, farming and
gardening

CHAPTER 8
Business community confronted with great deal
of challenges and opportunities
Social responsibility is a moral obligation of each
individual, institution, business and organization
since they all compose the society
Bauer CSR means seriously considering the impact
of the companys action on society
Davis and Blomstrom CSR as the obligation of
decision makers to take actions which protect and
improve the welfare of the society as a whole along
with their own interests
McGuire the idea of social responsibility supposes
that the corporation has not only economic and legal
obligations but also certain responsibilities to society
which extend beyond these obligations
Epstein relates primarily to achieving outcomes
from org. decision concerning specific issues which
have beneficial rather than adverse effect upon
pertinent corporate stockholders
Keith Davis response of the corporation to issues
beyond its narrow economic, technical and legal
requirements

Business contributed greatly to the destruction of

the earth and environment

Peter Drucker one of the responsibilities of the

business in the society is to operate at profit but
must consider action on society

Man has privileged to live in a decent environment

so man has a paramount duty to preserve Mother
Earth

CSR means extending beyond the business

compliance with laws and other legal requirements

Ramon Agapay his book Ethics and Filipino

Environmental Ethics study of mans moral
obligation to preserve the environment and the
natural order of things

Ancient and Medieval should do business as part

of the public or social service. Criticism against evil
came far and wide when Catholic Church became the
most powerful institution in Europe

Plato follower of Socrates, form of dramatic

dialogues
St. Thomas Aquinas business could exist as long
as it was used for the good of community
Compensatory wages prices and wages should
be equal
Period of Mercantilism the power of Catholic
Church as the most influential institution in Europe;
Galleon trade is an example
Max Weber Protestant ethics and the spirit of
Capitalism encouraged thrift, industry and
materialism making Protestant more progressive
than Catholic Church
John Calvin- one of the proponents of the Protestant
Work Ethics
Harmony Interest of Theory business should act
in accordance with national interest because the
state supported it
Industrial Revolution machines were introduced

Pyramid of Social Responsibilities by Archie B.

Caroll
1. Philanthropic Responsibilities- DESIRED of
business by society
2. Ethical Responsibilities- EXPECRED of
business by society
3. Legal Responsibilities REQUIRED of
business by society
4. Economic Responsibilities- REQUIRED of
business by society
Consumers most important stakeholders of biz
besides its own employees
CHAPTER 9
Persons attitude determines the success or
failure of ones biz or personal enterprise
Work both personal and social activity; is the
legitimate use of our mental and physical powers for
economic gain or profit; a task to be done
Personal activity aimed at developing a person

Karl Marx and Robert Owen social reformists

Social activity its purpose is the preservation of

human society

After the period of Depression the government

protected the welfare of the public against abuses of
businesses

Summa Theological theological meaning of work

According to St Thomas Aquinas
St. Thomas man is called to serve God through
his work

Historical phases of CSR by Robert Hay and Ed

Gray
Phase 1: Profit Maximizing Management
Maximixe profit dont care about social issues
Phase 2: Trusteeship Management aside from
profit max management is concern also to maintain a
fair balance in the interest of community
Phase 3: Quality of Life Management Business is
to contribute to the improvement of quality of life
Classical View profit maximization, satisfy
stockholders, supported by Milton Friedman
(advocates economic freedom and free enterprise)
Managerial View not emphasize profit max, to
balance interest of employees, customer, suppliers
and community
Public View includes the needs and interest of the
whole society, establishes harmony with both
business and public interest
Christian View excess wealth should be given to
less fortunate, based on the teachings of Jesus Christ
Business resources manpower, funds, materials,
management skills and technology

Worker the human person

Martin Luther started reformation during
renaissance
Max Weber Developed further the Protestant Work
Ethic
Predestination the belief that God has chosen the
elect (persons chosen by God to inherit eternal life)
Protestant for them working hard is a mark of
commitment to their religion
CHAPTER 10
Values objects of human desire and striving; are
our belief; also refer to things, person, ideas or goals
which are important to life
Intrinsic values considered as the values in
themselves
Instrumental values considered good because of
their worth to us and to others
Accidental values subject to variability,
temporality, and impermanence
Natural values permanent in human nature

Primary values values that are chosen, acted

upon and are necessary for human development
Secondary Values obligatory in nature
Religious Values values enable us to encounter
God whom we believe to be the absolute God
Cultural values values embrace poetry, painting,
music architecture and literature
Social values patriotism, freedom of press,
fraternity, productivity and politics
Moral values quantities of an act performed by
man freely and knowingly
Virtues good habits that can make a person
perform well
Vices bad habits
Intellectual values:
1. Understanding forms in early childhood,
knowledge of the first principle
2. Science- relationship between cause and
effect and develop until it becomes scientific;
an intellectual value.
3. Wisdom knowledge of the ultimate or first
causes
4. Art when a person dos something well
because of hardwork and practice
5. Prudence virtue of knowing what to do
under peculiar circumstances; a practical
intellect
Moral or Cardinal virtue:
1. Justice giving everyone his due, resided
in the will
2. Temperance cubing the sensitive
appetites.
3. Fortitude- staying resolute in the face of
overwhelming odds

Theological virtues:
1. Faith believing in God without seeing it
2. Hope trusting the Divine Providence
3. Charity loving God and his creation
Seven capital vices:
1.
2.
3.
4.

Pride overestimation of the self

Gluttony excess of temperance
Luxury immoderate love of riches
Avarice inordinate desire for material goods
in the form of possessions
5. Sloth deficiency of fortitude
6. Envy exaggerated justice in favor of oneself
7. Anger excess temperance
Professor E. Quito Ethics sees the importance
of nurturing moral habits to enable the human
being to facilitate the task of Natural Moral Law
Virtuous action source of our human act
which is done with right knowledge and proper
exercise of freedom
Aristotle said vice is easy and virtue is difficult