Classical Philosophy in Business

Classical Philosophers and Their Business Implications

• Socrates (469-399 BCE) is known as "The Gadfly at the Marketplace"

Socratic Method

• A way of questioning to stimulate critical thinking
• Encouraged questioning, debate, and self-examination
• Innovation: Challenge existing norms to improve business
• Ethical Decision-Making: Questioning motives ensures accountability
• Open Dialogue: Encouraging employees to share ideas
• Change and Growth: Criticism leads to positive transformation
• Plato (427-347 BCE) is known as "The Philosopher-King"

Philosopher-King

• The ideal leader rules with wisdom and justice
• A just ruler should prioritize the common good over personal interests
• Ethical Leadership: Rulers (leaders) must act for the people's benefit
• Justice in Business: Fair treatment of employees and stakeholders
• Wisdom in Decision-Making: Leaders should be well-educated and rational
• Aristotle (384-322 BCE) is known as "Eudaimonia" (Human Flourishing)

Virtue Ethics

• Focus on character and moral excellence
• Happiness is achieved through ethical behavior and moral virtues
• Corporate Responsibility: Business should benefit employees and society
• Virtue in Leadership: Leaders should exhibit honesty, integrity, and fairness
• Long-Term Success: Ethical businesses thrive better in the long run

Modern Philosophical Theories in Business Ethics

• Immanuel Kant (1724-1804) is known for "Duty-Based Ethics" (Deontology)

Categorical Imperative

• A universal moral law applies to everyone
• Ethics is about duty and doing what is right, regardless of consequences
• Moral Responsibility: Follow ethical guidelines (e.g., fairness, transparency)
• Respect for Individuals: Employees and customers should not be treated as mere tools
• Corporate Social Responsibility (CSR): Companies should benefit society, not just shareholders
• Challenge: Conflicting Duties: Ethical rules sometimes contradict (e.g., loyalty vs. honesty)
• "Formula of Universal Law" encourages businesses to consider the broader implications of their actions
• Many companies, such as Unilever, integrate CSR into their business models
• Companies like Google have established whistleblower policies that encourage employees to report unethical behavior
• Kant's duty-based ethics can sometimes lead to conflicts when multiple duties come into play
• Jeremy Bentham & John Stuart Mill are known for "Utilitarianism"

Greatest Happiness Principle

• The best action is the one that benefits the most people
• The morality of an action is determined by its consequences
• Public Health Measures: Vaccination programs benefit society
• Sustainability & Environment: Eco-friendly policies protect future generations
• Cost-Benefit Analysis: Companies should weigh the good and harm of decisions
• Utilitarianism was developed by philosophers like Jeremy Bentham and John Stuart Mill
• "Act Utilitarianism" focuses on the consequences of individual actions
• Utilitarian principles influence political and social policies to maximize well-being for all
• One criticism of utilitarianism is its potential to justify immoral actions

Religion and Business Ethics

• Christianity

Golden Rule

• "Do unto others as you would have them do unto you."
• Values include integrity, stewardship, and helping the less fortunate
• Impact on Business includes ethical work practices, honesty, and corporate social responsibility
• Islam

Zakat

• Charitable giving and financial responsibility
• Values include honesty, fairness, and prohibition of exploitative business practices
• Impact on Business includes ethical financial practices (no interest) and fair trade policies
• Buddhism

Ahimsa

• Non-violence and compassion
• Values include mindfulness, ethical work environment, and sustainability
• Impact on Business includes eco-friendly companies and harmonious workplaces
• Judaism

Tzedakah

• Charity and social justice
• Values include honesty, fair wages, and ethical contracts
• Impact on Business includes business contributing to social welfare and respecting workers
• Hinduism

Dharma

• Duty and responsibility
• Values include accountability (karma), ethical leadership, and family-oriented business
• Impact on Business includes family-run businesses with emphasis on long-term relationships

Filipino Values in Business

• Reciprocity (Utang na Loob)

Meaning

• A deep sense of gratitude and obligation to return favors

Example

• A businessman helps a struggling supplier during a crisis; the supplier later offers exclusive discounts as gratitude
• Filial Piety
• Filial piety is a virtue of reverence for parents, elders, and ancestors of one another
• Padrino System & Cronyism

Meaning

• Using personal connections to gain advantages in business or employment

Example

• A company hires an applicant based on family connections rather than qualifications
• Cronyism is a counterpart of Nepotism
• Suki System:

Meaning

• A strong business relationship between sellers and loyal customers

Example

• A vendor gives discounts and special treatment to loyal customers who regularly buy from them
• Bahala Na Si Batman

Meaning

• A mindset of taking risks and leaving things to fate

Example

• An entrepreneur opens a business without proper planning, believing that things will work out on their own
• Delicadeza

Meaning

• A sense of propriety and avoiding dishonorable actions

Example

• A public official refuses a business bribe to maintain honesty and integrity
• Manana Habit

Meaning

• Means "Tomorrow" or "unspecified future period"
• Amor Propio

Meaning

• Means Self Love self Esteem or self Respect