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BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

FILIPINO VALUE SYSTEM AND THEIR INFLUENCE IN BUSINESS PRACTICES


QUARTER 3 MODULE 6

Filipino value system is characterized as an effect of one's own culture by the way people live their
lives. This refers to the collection of values or the structure of values that majority of Filipinos have
traditionally kept in their lives as important as: common beliefs, moral principles, ethical standards,
etiquette, and cultural and personal values that their society encouraged them to have. Here are some
Filipino values that we live by:

1. Bahala na
There is no exact English translation for Bahala Na. However, there are several interpretations for
this. The first one is that Bahala was derived from the word Bathala, who was worshipped by the Filipinos
during the Pre -Spanish period. This belief in putting life in the hands of God may be a symbol of how
devout Filipinos can be. They just leave everything to God, including their problems and their sufferings.
They are fatalistic, putting their lives in the hands of fate.

On the other hand, according to Lagmay (1977, as cited in Pe-Pua et al., 2000), Bahala Na is
determination and risk-taking. He said that when Filipinos say “bahala na”, they are ready to face every
difficult situation and are determined to achieve their goals or objectives. When they mention those words,
it is like they are getting courage or strength into their system, and they will not surrender.

In business, you cannot just put its life in the hands of fate. Everything has to be carefully studied or
planned; otherwise, all of your efforts will go down the drain.

2. Utang na loob
Gratitude or utang na loob is typically embedded in the Filipino culture. One should not forget to
consider the good acts others may have done particularly in times of great need. Many times, this debt of
appreciation is violated by others who have served us good. With this system, people are forced to do
something in exchange for favors that others did. Business is affected by this so-called utang na loob
especially if the businessman has faced ethical issues.

3. Ningas-cogon
Ningas is a noun that means flame, burning, or fire, while cogon is a plant that can be quickly burnt
with its presence. Ningas cogon means the swift burning of cogon, which connotes the eagerness of the
Filipinos just at the beginning, but then rapidly lose interest shortly after it begins, or lack of follow-up.

Same thing could happen in business. The enthusiasm is there at the start of the venture but since
it is not one’s inclination, then he/she gradually loses his/her interest.

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4. Padrino system (palakasan/patronage system)
Padrino system, or patronage in Filipino culture and politics, is the system of value in which one
gets support, endorsement, or political appointment through family affiliation (nepotism) or friendship
(cronyism), as opposed to one's worth. Meaning, the owner or manager hires friends or relatives regardless
of their qualifications. This could cause conflict inside the enterprise and eventually could also be the
reason for losing the more qualified employees or workers. This system in the Philippines is the root cause
of numerous scandals and corruption.

Businessmen can quickly get business deals using padrino system if the padrino poses as go-between
presenting and vouching his character to close the deal.

5. Amor propio / self-respect


Amor propio is a Spanish term meaning caring for oneself, or self-love. It is a feeling of self-esteem
or self-respect that prevents a person from swallowing his or her pride. Sensitivity to personal insult or
offending situation is included.

In business, Filipino customers are normally sensitive to hear a No for an answer, hence, one will
get a Yes, but might be disappointed afterwards.

6. Mañana habit
The Spanish word mañana means tomorrow or the future. It is also known in English as
procrastination and as mamaya na in Filipino. It might just as well mean putting off something until another
time. This habit has made Filipinos less efficient and less energetic in doing the task.

In business, mañana habit could lead to less efficient workforce. It could also lead to losing
customers in case one is into delivery business. When he/she always postpones doing something, his/her
loads of work could pile up and that could give him/her (and his/her co-workers) too much stress.

7. Delicadeza
Delicadeza is a Spanish term which when translated into English means
daintiness. It is defined as acting in a manner which is refined or being delicate in taste. Often, it may mean
good decorum or absolute obedience to what is right, legal, or ethical. Perhaps it can be better understood
by saying walang delicadeza or makapal ang mukha (thick-faced) for those who do not have it.

In business, it is best to do what is right, what is legal, and what is ethical. After all, goodwill attracts
good vibes!
8. Hiya
Shame or hiya is a common Filipino value. This is a sense of social propriety
and it conforms with established cultural standards. Filipinos feel they ought to live up to agreed moral
expectations and if they fail to do so, they add dishonor not just to themselves, but also to their families. If
anyone is publicly humiliated, insulted or fails to meet standards, they may feel ashamed and they lose
their self-esteem.

Shame or hiya also happens in business. For example, one is selling rice and other consumables.
Now here comes his/her close friend requesting for one sack of rice to be paid at the end of that month. On
the due date, it is the seller who is even ashamed to remind his/her close friend of the latter’s obligation.
9. Pakikisama/pakikipagkapwa-tao
Another Filipino characteristic is loyalty, or pakikisama. That is a shared understanding of the other
person's personality and consciousness. It is treating others as equal, and with respect and integrity.

This is simply a realistic translation of the pakikipagkapwa-tao in industry since the aim is to deliver
useful products and services to others so that their standard of living would get better.

In business, for example, Pedro is a sole proprietor. His cousin approached him and was trying to
borrow P5,000 for an emergency reason. Because he had no personal cash that time, out of pakikisama,
he got the amount of P5,000 from his business collection and lent it to his cousin.

10. Family orientation


Philippines is recognized as a family-centered country. The Filipinos consider their family as an
important social structure which they have to look after. They put premium on their family's safety and unity.
The practice of nepotism is evident (members of the same family employed in the same enterprise). It is the
closeness of the Filipino families that makes them the model of most business organizations.

However, in business, it is said that it is not advantageous to hire relatives because one cannot just
easily fire them even though he/she is dissatisfied with their work performance.

11. Suki system


Suki is a Tagalog term which means loyal customers. Here, there is a customer-supplier
relationship that is built. Normally, the supplier would give discounts, good quality products or service, or
even “credit line” once the trust is earned.

12. Bayanihan/team spirit


The bayanihan is a Filipino term which originated from the word bayan meaning town or community.
Later on, bayanihan meant "being a bayan" and is being used to refer to a spirit of unity within a group, or
individual cooperation and joint efforts.

The adage "no man is an island" is even more true, and even critical in business world – where
interactions and the willingness (or unwillingness) to collaborate with others will make or break a business.
It is in bayanihan where one's local environment is a vital tool. And that it will help his/her people and
his/her company get ahead by harnessing the strength of his/her own people.

13. Palabra De Honor


Palabra de Honor is a Spanish word meaning "Word of Honor". This is an individual's unwritten
promise to someone to do or not to do something.

Palabra de honor needs a sense of truthfulness and honesty in every Filipino. We have to respect
our words by upholding our promises, even without any legal document.

In business, for example, when one promised his/her employees of a salary increase after six
months of working in his/her enterprise, then he/she should really give them an increase when they have
reached six months.
14. Lakas ng loob
Courage or lakas ng loob, is the strength of mind or spirit that enables a person to meet challenges,
situations, or pain bravely or without fear.

For example, in one’s desire to expand his/her business, he/she got a loan from a commercial bank
payable in five years.

15. Pakikipagsapalaran
Pakikipagsapalaran or being venturous is the ability of a person to take risks, even if they are prone
to a potential loss. For example, even without an experience in selling, one ventured into an online
business this time of pandemic by just following some ideas coming from his/her friends.

16. Frugality/pagtitipid
This is known as economical management of resources, being careful in spending, and avoiding
unnecessary expenses.
For a small business, frugality is really important. One will save his/her money effectively by living
frugally and by managing his/her spending. When business starts to succeed, there is a tendency to
overspend so it is an advantage if he/she knows how to control his/her expenses.

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