Business Ethics and Social Responsibility

Self-Learning Kit on Business Ethics and Social Responsibility

• Purpose: Designed to help students understand classical philosophies' application to modern business practices, and how those philosophies explain entrepreneurial learning.
• Alignment: Aligns with Department of Education's Most Essential Learning Competencies (MELCs).
• Structure: The kit has sections for pre-activities, discussion, evaluation, and post-test.
  • Pre-activities: Review prior knowledge, previous discussion, and pre-test.
  • Discussion: Illustrates different philosophies (e.g., Confucianism, Socratic method) and their application to business.
  • Evaluation: Exercises to assess comprehension, skills, and areas for improvement.
• Target Audience: Students.
• Focus: Applying classical philosophies (Confucius, Socrates, Plato, Aristotle, Utilitarianism) to business ethics and social responsibility.

Confucianism and Business

• Core Values: Personal and governmental morality, social relationships, justice, kindness, and sincerity. Strong family loyalty, ancestor veneration, respect for elders and husbands by wives.
• Golden Rule: "Do not do unto others what you do not want done to yourself."
• Relevance to Entrepreneurship: Confucian values, including obedience and respect for authority, can contribute positively to entrepreneurial success, especially in China.
• Application in Business: Trustworthiness, compassion, etiquette, harmony, tolerance, long-term orientation, resistance to corruption, and building relationships (guanxi) are important for business success.
• Leader Expectations: Leaders should govern justly and morally to create ethical business practices.

Socratic Method and Virtue Ethics

• Philosophy: Socrates focused on critical questioning to seek truth. An unexamined life has little worth. Plato used Socratic Method.
• Theory of Forms: Plato's Theory of Forms differentiates abstract thought from the sensory world.
• Education in the State: Plato emphasized the importance of education as a way to improve the community, starting from prenatal exercises. He believed it was critical to guide a child's intellect and morals to ensure a virtuous life.
• Application in Business: Emphasis on continuous inquiry and critical thinking. Businesses should develop a process for ethical considerations, similar to the Socratic method, and be open to the evaluation for their practices.

Aristotle's Virtue Ethics

• Happiness (Eudaimonia): Aristotle viewed happiness as the ultimate goal, achieved by flourishing in a virtuous life. Moral education is not merely knowledge but practice.
• Virtue and Happiness: Happiness is not merely pleasure; but flourishing.
• Moral Education: Virtue is cultivated, not taught.
• Ethical Questions: Aristotle's focus on virtue provides a framework for ethical decision-making in business, involving self-reflection and consideration of the well-being of stakeholders.
  • Example Questions: behaving virtuously, treating others justly, building beneficial social structures

Utilitarianism and Business

• Philosophy: Utilitarianism focuses on maximizing overall happiness, the "greatest good for the greatest number".
• Types: Act and Rule utilitarianism
• Application in Business: Applying utilitarianism in business means considering the potential outcomes for all impacted parties, regardless of fairness or justice.
• Responsibilities in Business: Business choices should be based on calculating the net benefits of different actions, even if they involve lying, manipulation or coercion, to maximize for all.

Other Philosophies and Insights

• Confucian Entrepreneurs: Confucian values can promote ethical leadership and success in business worldwide. Key values like trustworthiness, respect for others, and a long-term perspective, among others, can help create positive business practices.
• Ethics and Business: A complete framework, not a singular philosophical leaning, is key for decision-making, balancing perspectives to resolve conflicts (e.g. insider trading).