Course Subject : ETHICS FOR BUSINESS Module : 01 General Instructions 1. Read and do your best to gain and learn from the lectures. 2. Deepening activities and cases are given at the end of every chapter. Carefully read and answer them with your best ability. CHAPTER 1 - ETHICS AND BUSINESS “There are two educations. One snould teach us how to make a living and the other how to live." - John T Adams Introduction Business is part of human society. And since it is part of the complex web of interaction among institutions and people, its activities must be viewed and examined from the perspective of morality. Business without ethics threatens the survival of human society Objectives : At the end of this chapter, the students are expected to 1. Gain understanding on the nature of business from the moral perspective 2. Rationalize the importance of ethics in business 3. Apply the dynamics of moral reasoning as a framework for making ethical decisions in business 4. Examine the morality of profit-motive in business 5. Justify the need for ethical propriety in business and the corporate world Lesson 1. The Nature of Business Business is as old as human civilization. In the beginning of human existence, men took care of their own needs and wants. They hunted animals and cultivated the land for food and clothing and people simply provided for their own. As time went on, some people became more proficient in doing one type of work or in producing one or several types of goods. In doing so, other people sought their products and services so that they need not spend more time, money and effort to acquire these goods that they need. The and in some cases, destroys the fiduciary relationships of people. The study of Business Ethics paves the way for our common understanding of the fundamental concepts of what is right and wrong in our human conduct and its implications to business as an important human activity. "manufacturer then found out that he could continue supplying the products or services to people if he had enough funds or goods to barter with. He also learned that he could expand his trades if he was able to acquire more capital needed to continue his entrepreneurial activities. The more he acquired funds, the more he was able to supply goods and services to his customers. The requirement therefore is for him to earn profit in order to stay in business and provide the goods and services needed by the customers. For as long as people have needs and wants, there will always be business. Those who have capital will continue to produce and sell goods and services that will satisfy the needs and wants of customers. Business is an activity that is part and parcel of human society. Society will not exist without business. Since business is an integral part of society, its activities must be examined from the ethical perspective, in the same way that society examines politics, economics, government, culture and religion from the moral point of view. The fundamental reason for examining the activities of business from the moral perspective is for 1 the promotion of the common good, protection of the individual's interests and the preservation of the human society in general. Without ethics, business will be a chaotic human activity because there will be no common understanding and agreement about what is the right and wrong human conduct. Business is also a complex enterprise that involves major activities like purchasing.manufacturing, marketing, advertising, selling and accounting. Businessmen deal with suppliers, customers, workers, employees and even competitors. Ironically, it is within this structure of interaction of people that a lot of questionable practices occur-misrepresentation, questionable pricing policies, false advertising, misbranding, lying, adulteration, unfair competition, and local price-cutting, among others. The bottom line is, somewhere, somehow people's rights are being violated, their values disrespected and the interest of the common good disregarded. Business is a good human activity. However, it is the selfish motive and personal interests of unscrupulous businessmen that make business bad and in some instances, unproductive Lesson 2. The Importance of Ethics in Business The study of Business Ethics paves the way for a common ground in our understanding of the fundamental idea of what is good and what is bad in our human conduct. Without ethics, people, especially businessmen, will set their own moral standards, moral rules and moral principles. This would result in a kind of subjective morality, in which case, what is good for one may be bad for another and vice versa. With this subjective ethical paradigm, business people will consider some of their actions good but unacceptable to others, e.g., cheating the customers to gain profit may be acceptable to some businessmen but bad for others. Abortion may be correct for one person but evil for another person. Ethics as a science does not only evaluate the morality of our human conduct but also provides us with a common understanding of the universal, objective and irreversible moral principles that should govern our human behavior and guide our moral decisions. Another important aspect in business that needs profound examination is the manner in which business leaders and managers confront ethical issues and problems affecting the flow and dynamism of business activities. One amazing thing that is happening to business enterprises today is the use of quantitative techniques to measure the viability and profitability of business. Because of this trend, business corporations nowadays evaluate, measure and predict the outcome tneir business plans and decisions in terms of profitability and quantity of goods sold. Thus, business firms today are capable of predicting the supply and demand of commodities, make annual budgets, determine the costs and benefits of their decisions and calculate monthly and yearly revenues and profits. Certainly, there is nothing wrong with this approach of managing business organizations except that the quantitative approach is not applicable when managers talk about moral issues and ethical problems of people. The resolution of some ethical issues like sexual harassment, bribery, misrepresentation, theft, insider trading, conflict of interest and job discrimination, among others, cannot be resolved by quantitative approach alone but also by philosophical analysis and moral reasoning Business Ethics opens a novel way of resolving moral problems and ethical dilemmas affecting business transactions and the interactions of people in the corporate world. The study of Business Ethics will also enhance the human and interpersonal skills of managers so they can be more effective in managing the human side of the organization. Lesson 2. The Businessman's Myths about Business Ethics Businessmen are not immoral. And it would be disastrous to judge and conclude that business people commit unethical acts in doing business. Business, certainly, is a good and productive human activity. However, it is the businessman's wrong perception about the role that ethics plays in the world of business that affects his moral judgment and decision making. Here are 2 some myths that businessmen have about Business Ethics (De George, 1982). Myth # 1: Ethics Is a Personal Affair and Not a Public Debatable Matter Some businessmen claim that ethics is a private issue and not a public matter. In one sense, this is true because one's concept of morality is a result of the environmental Tactors like religion, culture and family values that have had a great impact on the development of the ethical person. On the other hand, man is also a social being, which means he is always a being in relation with other men. To say, therefore, that ethics is a very subjective matter is a myopic view of our human nature. If ethics is a subjective thing, then it will make morality very personal and relative, therefore, what is good To one person may be bad for another. And what is bad for one person may be good for another person. If one believes that lying is good, it does not necessarily mean that it is also good for others. If morality is subjective, people will make their own moral laws and principles and could be worse if they begin to impose these personal norms on others. People are entitled to their own values and religious beliefs but in the exercise of these value systems, they must also consider the values and religious orientations of others. Certainly, our personal rights are always limited by the rights of others. The individual's moral values may be very subjective but in the exercise of this value system, he must also consider the impact and gravity of this actions on others. Thus, ethics is not a personal affair but a public debatable matter. Myth # 2: Ethics and Business Do Not Mix Some businessmen claim that Ethics has no place at all in business. This view is most likely grounded on the assumption that business is an autonomous human activity where ethical standards do not exist and that businessmen are free to do what they want. To claim that business is an activity which is independent of morality is again a shortsighted view of the relationship between ethics and business. Since business is part of human society and its activities operate within the structure of beliefs and value systems of people, it must also be viewed and examined from thee perspective of ethics. Any business activity that is devoid of morality will bring more harm than good to people in particular, and the society in general.Furthermore, the belief that ethics does not mix with business will only justify illegal activities and will most likely promote questionable practices in business activities. Certainly, Ethics has an important place in business. Myth # 3: Ethics in Business Is Relative A kin to the view that ethics is a private and subjective matter is the claim that morality depends on the person himself and his environment. This is another wrong perception on the role that ethics plays in the world of business. Some businessmen claim that morality is relative, which means, the fundamental concepts of right and wrong depend on cultural and religious values of people. This implies further that what may be considered a right action in one country may be unacceptable in another cOuntry. Abortion may be legal in Japan but certainly not in the Philippines. If morality is relative then what is good in one place may be evil in other places, and vice versa. And if morality is Viewed this way, then who's going to tell us which actions are good and which actions are bad objectively? The fruth of the matter is, there are universal moral principles that people share and agree upon regardless of religious orientations, cultural expressions and value systems. And so, all peoples around the world believe that murder is always wrong, that stealing is always a bad action and bribery is always unacceptable. The study of Ethics paves the way for our common understanding of the fundamental principles of right and wrong as reflected in our nature and conduct as human beings. Myth # 4: Good Business Means Good Ethics Some businessmen claim that good business means good ethics. This certainly is a myth. A business may be profitable but the means of acquiring profits may be questionable. Drug-trafficking is a profitable business and so is human smuggling and the like, 3 but they certainly violate some rules and values of people. The study of Ethics in business encourages businessmen and managers to look closely into the end and the means of doing business. Profit maximization is a good end in business but the means of getting those profits must also be examined. The end doesn't justify the means. Myth # 5: Business Is a War Some business leaders and businessmen believe that business is a war. For them, the market is an arena of gladiators trying to fight for survival and vying for the number one position. Because of this belief, businessmen often resort to using predatory tactics to destroy the competitors in order to emerge as the market leader. Business is a good human activity. And as an integral part of the society, it must promote healthy competition and not destroy the competitors. Lesson 4. The Relationship Between Ethics and Business Ethics plays an important role in business. Without morality, business will be a chaotic human activity. Ethics is not a study of positive laws intended to govern and regulate the actions of people doing business. The concern of ethics as philosophical science is to discover that there are unwritten laws, written in the hearts of men that should govern our numan conduct where positive laws may be absent, and in Some cases, not very clear. The following arguments justify the significant role that ethics plays in the world of business. 4.1 Business is an integral part of human society. Therefore, the actions of individuals and institutions in business must be subjected to moral rules and moral evaluation. 4.2 In business, as in any other human endeavor, what Is legal may not necessarily be moral. People tend to confuse legality with morality. An action may be legal but not necessarily moral, e.g, capital punishment (death by lethal injection). For some, this is legal but in truth, this is immoral. Ethics provides us with a clear distinction between morality and legality. 4.3 Laws are insufficient. They cannot cover all aspects of our human behavior. Laws are sometimes absent or unclear in some areas of our human conduct. Ethics is the unwritten law, written in the hearts of men. In the absence of the law, Ethics will help us discern the correct conduct to follow based on the dictates of conscience and reason. 4.4 In today's technocrat-oriented business education, the trend is to train managers to maximize profits by quantifying the operations of business. Certainly, the operations or business must be aided by quantitative instruments to measure and predict expected outcomes. However, this is only one side of managing the enterprise. Managers and business leaders must also be prepared to respond to complex situations bearing ethical consequences. 4.5 Peter Drucker argues that "the business enterprise is an organ of soCiety and Its actions have a decisive impact on the social scene. Drucker simply reminds us that a business corporation is not just created to make profits but also to consider its moral and social obligations to its stakeholders. Business organizations should not just look after their own interests but also the interest of the common good. Lesson 5. Moral Reasoning in Business The essence of studying Business Ethics is to provide the manager as a decision maker with a framework for the resolution of moral issues and problems affecting business activities and the organization itself. Moral reasoning is a process in which ethical issues and problems are benchmarked against a moral standard so that a moral judgment is made possible. Since managers are tasked to solve problems of the organization and its related activities, it is also the responsibility of managers to help in the resolution, if not the prevention, of moral issues that may have adverse effects to the operations of the business. Characteristics of a Good Moral Standard (Shaw, 1999): 1. A good moral standard is one that looks at the issue as something that is very serious, e.g, murde, graft and corruption, stealing. 4 2. A good standard must be grounded on good mora argument. A good argument is an argument that always tells the truth. A solid moral argument leaves no room for loopholes and counter arguments. 3. A good standard should be objective and not subjective. It should be universally accepted and should apply to all. What is good for one person should be at the same time good for everybody. A good standard, when violated, brings about feelings of guilt, shame and remorse of conscience. Requirements for a Good Moral Judgment 1. A good moral judgment must be logical. This means that the decision maker must arrive at an informed resolution of the issue based on logical reasoning. 2. A good moral judgment must be based on facts and solid evidence. The information used in the process of moral reasoning must not come from weak sources like hearsay, rumors and grapevine 3. A good moral judgment must be based on sound and defensible moral principles. A weak ethical principle is open to a lot of criticisms. Lesson 6. The Morality of Profit-Motive People go into business for a number of reasons. Some go into business for personal satisfaction. Others are in business to earn a livelihood. Still others are in business because they want to serve the society through the goods and services they offer to the customers. But the most common, if not the most dominant reason why people go into business, is to make a profit. Business as an activity is unthinkable without profit as motive. Businessmen consider profit as a form of anticipated reward or a compensation for the efforts they spend, skills they apply and returns for the capital they invested in putting up and organizing the business. Traditionally, businesspeople have looked at the profit-motive as the most important aspect of business. The view of Milton Friedman, a noted economist, reflects this sentiment. He says that the "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 reception or fraud." Peter Drucker, an equally tamous management guru on the other hand, disagrees with this view and says that, "the primary responsibility of business is to look for customers and satisty their needs and wants. Following this line of thinking, Drucker is simply hinting that, albeit, profit is an impotant aspect of business, there are other factors that the businessman must also consider in doing business such as customer satisfaction, quality products, after sales policies, fair and reasonable pricing, among others. Because of these differences of opinions, the issue of profit-motive is a subject matter that needs to be carefully considered in the study of Business Ethics. Is profit-motive in business good or bad? Is it moral or immoral? 6.1 The Assumptions of Profit-Motive: Understanding the nature and morality of profit-motive starts with the examination of some given factors and assumptions in which the idea of profit-motive operates. These factors are the following: 1. Profit-motive in business is an ethical issue. Since business is an integral part of society, its activities, including profit-making, must be examined from the perspective of morality. However, in business, the concept of what is a reasonable profit is still a subject of endless debates. 2. Profit-motive as an ethical issue operates within the two important aspects of our human conduct freedom and the structure of business. The element of freedom implies that businessmen have the right to decide on the amount of profit they want to earn in the process of selling goods and services to customers. The structure of business, on the other hand, is a tacit guideline that governs business activities including profit-making nus, any business activity is aimed at a monetary gain because that is part of the structure of Dusine5S. The ultimate the criterion therefore of gauging the Success or failure of business is its ability to generate profits. 6.2 The Good and the Bad Sides of Profit-Motive: 5 Just like any other ethical issue, profit-motive has two sides-the good and the bad, Fr. Moga, S.J. (2004), describes vividly the positive and negative implications of profit-motive: A. The Good Side of Profit-Motive: 1. Profit-motive motivates people to do something meaningful, e.g., it gives human life a goal to pursue and something to live for. 2. Profit-motive promotes ingenuity and cleverness in running a business, e.g., business leaders and entrepreneurs have to struggle hard to overcome obstacles in order to achieve success. 3. Profit-motive makes people productive. Because of their desire for money, businessmen have become productive and some of their products have been useful and have enhanced the quality of human life. 4. Profit-motive generates potential capital for. The business. Profit is potential capital, something that can be invested to establish new businesses. In this way, profit also results in more jobs and more goods and services for the public. The society as a whole thus benefits from the profits earned by a profit- oriented capitalist. B. The Bad Side of Profit-Motive: 1. Profit-motive promotes rivalry among competitors. Sometimes the competition becomes so stiff that it results into a "dog-eat-dog'' world of business where success is achieved by competing with others and pushing them down in order that one's own business might succeed. This certainly dehumanizes business as an important human activity. 2.Profit-motive makes people focus only on making money, that is, to sell as many goods as possible without considering whether or not these products satisfy the needs and wants of consumers and endusers. 3. Profit-motive turns the businessman from being a refective and a questioning person because he focuses his attention only on the practical activity or making money. Thus, a life centered on profit only results into a narrow view of existence, deficient in many important dimensions of human life. 4. Profit-motive promotes self-interest rather than the common good. It has, to some extent, benefited some businessmen but it has also created some social costs that many people, if not the majority, have to bear, e.g., depletion of the natural resources, toxic wastes being thrown into the rivers, pollution of the environment and disregard for the next generations to come. 6.3 Ethical Considerations of Profit-Motive in Business: 1. Earning profit is a good and valid activity in business. Commercial activities will be absurd without the profit-motive. However, in the process of generating profit, an ethical discernment is required for the businessman: Is my profit fair enough for me and my customers? Did I consider important factors and parameters, goods sold, overhead, mark-ups, profit margins, and the like? 2. Making profit such as the costs of Making excessive profits is totally wrong. It leads to greed, avarice and manipulation of the customers. 3.Profit is not the "be-all and the end-all" of doing business. Certainly, there are other factors to be considered in business such as, customers' satisfaction, respect for the environment, enhancement of the quality of life and the preservation of the society. 4. The teachings of the Catholic Church do not totally condemn profit as part of business activity. Pope Pius XI, in Quadragesimo Anno (1931). does not prohibit the producer from enriching himself provided "one respects the laws of God, does not prejudice the rights of others, and works according to faith and right reason." (QA #136) Lesson 7 The Concept of Moral Responsibility In the story of creation, as recounted in the third chapter of the book of Genesis (Gen. 3: 1-13), the first man and woman committed an infraction against God's commandments. As told in this particular story, Adam and Eve violated God's commandment by eating the fruit of the Tree of Knowledge. As a result of this infraction, both Adam and Eve tried to run away and hide themselves from God. When confronted about their disobedience, they tried to blame one another and eventually also blamed the serpent. This short metaphorical story reflects man's propensity to avoid 6 accountability and responsibility for his bad or evil actions. However, man is by nature a being and a creature who is Supposed to be responsible and accountable for his actions. The reason for thiş is twofold: 1) Man is a rational being. This means he is capable of moral judgment. Further, this also means that man is a thinking being, thus, he is aware of his intentions as well as the consequences of his actions. Man therefore, knows what he is doing because he is a rational and a thinking creature. 2) Man is a free being. This means that he has the capacity to exercise his choices. This assumes that man is capable of choosing what is a good and a bad action for him. These two assumptions provide the bases or giving praise, blame, reward and punishment for his actions. These assumptions likewise provide the reasons why we are held responsible for our actions. These assumptions, e.g., that we are a thinking and a free being, imply that we are capable of assuming responsibility for our actions. 3. Moral Responsibility likewise refers to one's capacity for making moral or rational decisions on his own. According to Shaw, if a person is not morally responsible in this third sense, he or she cannot be considered morally responsible in either of the other senses. Lesson 8. Business Ethics Defined 8.1 Business Ethics is the study of what is the right and wrong human behavior and conduct in business. 8.2 Business Ethics is a study of the perceptions of people about morality, moral norms, moral rules and ethical principles as they apply to people and institutions in Business. 8.3 Business Ethics is the 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. The author WilliamH. Shaw, in his book Business Ethics (1999, pp.163-165), came up with three meanings of moral responsibility: 1. Moral Responsibility refers to holding to people morally accountable for some past acton or actions. This simply means assigning to people blame or praise for particular actions that they have performed. 2. Moral Responsibility also means care, welfare or treatment of others as derived from the specific social role that one plays in the society. Thus, parents are responsible for taking care of their children in the family, teachers are responsible for what occurs in their classrooms and doctors are responsible for the treatments of their hospital patients. In this second sense, moral responsibility implies a duty to be performed by a person depending on his role in the society. 7 ACTIVITY 1.Discuss why ethics is important in business. 2. Refute the businessman's myth that "ethics has no place at all in business." 3. Explain the phrase: "Not all that is legal is moral, but what is moral is worth legalizing. 4. Define Business Ethics. What is your own personal definition of Business Ethics? 5.Explain the phrase: "Ethics is the unwritten law written in the hearts of men. 6 What is your personal view on profit-motive? 7.Do you agree with Milton Friedman that the only responsibility of business is to maximize profits? Why or why not? Discussyour answer. 8. What is the Catholic Church's stand on profit-motive? 9 What is your concept of reasonable profit? Cases for Analysis Case 1: Ethies vs. Profit A large American company participates in highly competitive industry. To meet the competition and achieve profit goals ompany has chosen the decentralized form of organization. Each manager of a decentralized center is measured on the basis or contribution, market penetration, and return on investment. Fan to meet the objectives established by corporate management to these measures is not accepted and usually results in demotion or dismissal of a center manager. An anonymous survey of managers in the company revenue that they felt pressured to compromise their personal etnica standards to achieve the corporate objectives. For example, certain plant locations felt the pressure to reduce quality control to a level that could not ensure that all unsafe products would be rejected. Also, sales personnel were encouraged to use questionable sales tactics to obtain orders, including offering gifts and other incentives to purchasing agents. The chief executive officer is disturbed by the survey findings. In his opinion, the company cannot condone such behavior. He concludes that the company should do something about this problem. Questions: 1. What are the ethical problems mentioned in this particular case and what are the probable causes of these problems? 2. Is it all right to do something illegal or unethical to maintain the company's image and profitability? 3. If you are the CEO of the company, what would you do and why? Case 2: Friendship in Business Asia Pacific Sugar and Sweets Manufacturing Company ordered molasses from Philippine-Hawalian International Sugarcane incorporated on November 5, 2000. When the time for payment came, Asia Pacific Sugar and Sweets Manufacturing Company was not ready to pay due to tight financial crisis it was experiencing. Mr. Rolando Gutierrez, the manager of the said company is a friend of Mr. Frederick Dy, the owner of Philippine Hawaiian International Sugarcane Incorporated. He talked with Mr. Dy and asked him if it was all right for the payment to be delayed. For friendship's sake, Mr. Dy agreed. It was only 20 days afterwards that the buyer offered to pay. The seller accepted the overdue account and started delivering the molasses. Upon receiving the second shipment, the production manager of Asia Pacific Sugar and Sweets Manufacturing Company reported to Mr. Gutierrez that the molasses did not meet the indicated quality in the invoice. Mr. Gutierrez ordered the molasses to be returned. Enclosed in the invoice was a memorandum citing the reasons why it was returned. This action enraged Mr. Dy. Immediately, he canceled the contract and argued that the delay of payment was a form of "breach of contract. Questions: 1. Was the action of Mr. Dy to cancel the contract legally correct and morally justified? 2. Is it appropriate to extend friendship in business transactions? Why or why not? Discuss your answer. 8 CHAPTER 2 - THE PHILOSOPHICAL BACKGROUND OF BUSINESS ETHICS Without moral perception, man is only an animal Without morality man as a rational being is a failure. Ramon B. Agapay INTRODUCTION Business Ethics as an applied branch of General Ethics must be studied from the perspective of philosophy. This is because ethics is part of philosophy, and it is unthinkable to discuss ethical concepts and moral principles without being philosophical. Secondly, the process of moral reasoning involves the use of metaphysical terminologies and concepts that is best understood only in the light of philosophical abstractions. OBJECTIVES: At the end of this chapter, the students are expected to: 1. Compare and contrast ethics and philosophy 2. Evaluate the nature of the human act from the ethical perspective 3. Analyze critically the various approaches of evaluating the morality of the human conduct 4. Understand man's nature as a moral being 5. Differentiate ethics from morality Lesson 1. Ethics and Philosophy What Is Philosophy Philosophy, etymologically, came from two Greek words philos, which means love, and "sophia," which means wisdom. Philosophy means "Tove of wisdom. "Ancient tradition tells us that the early Greek thinkers called themselves wise men," and that out of humility, Pythagoras (570-490 B.C.E.) wanted to call himself simply a "lover of wisdom or "philosopher." Hence, a philosopher is one who literally loves wisdom. As a science, philosophy is interested with the meaning of reality including our human experiences. It is a science that seeks to explain the ultimate cause of everything by the use of human reason alone. To philosophize means to wonder about life, to question reality and to find sense in what we do as human beings. Philosophy as a science therefore gives theone philosophizing an opportunity not just to reflect and think but also to analyze the contents of his thoughts. In this case,philosophy is not actually an abstract or speculative science,as some people think, but a subject that is directed towards meaningful activity as a result of profound reflection and analysis. Other definitions of philosophy 1. Philosophy, according to Plato, is the highest form of inquiry. 2. For William James, philosophy is a collective name for questions that have not been answered to the satisfaction of the one asking the question. (Questions like: Who am 1? How do I live? Where am I going? are queries that have no concrete answers.) 3.For some, philosophy is the worldview of the person (weltanschauung, in German) or the person's philosophic view of the universe or reality in relation to the purpose of actions and events. (Peter Parker, a.k.a. Spiderman has his own personal philosophy-with great power comes great responsibility.") 4. For others, philosophy is a conceptual analysis or thinking about thinking or simply reflecting on the contents of our thoughts. 5. Still for others, philosophy is primarily concerned with finding the meaning and worth of reality including our human experiences. 6. Philosophy is also defined as the science that studies the ultimate causes or explanation of things attained by the use of human reason alone. These different definitions of philosophy only affim that it is a metaphysical science which basically deals with abstractions. It is from this perspective that Business Ethics, as an applied branch of philosophy, must be discussed since it involves investigating the human values which are basically metaphysical in nature and which are operative in fiduciary relationships both in business transactions and in the interactions of 9 people in business organizations and in the corporate world. Lesson 2. Divisions of Philosophy 1. Theoretical or Speculative Philosophy-studies the truth to be known, e.g., God, immortality of the soul, origin of the universe, among others. 2. Practical Philosophy studies truths to be acted upon, e.g,ethics.axiology, semantics, and the like. Under Theoretical or Speculative Philosophy Are the following: a) Cosmology Cosmology is a subject that studies the origin and destiny of the universe, evolution and the ultimate fate of the universe. The word universe" comes from the Greek word Kosmos. The first philosophers were actually "cosmologists Since they dealt with the questions regarding the origin of the universe in a scientific and philosophical manner. b) Ontology Ontology deals with the nature of existence of things and the status of reality. The word "onta" is a Greek word which means being. "Ontology is also referred as the theory of being. What does to exist mean?" or "What is the nature of being are some of the questions often asked in Ontology. Ontology is actually a branch of Metaphysics. c) Metaphysics Metaphysics came from the Greek words-meta(beyond) and physikon (nature). As a branch of philosophy, metaphysics studies the nature of the mind, the self and consciousness. It also investigates the nature of religion, existence of God, the concepts of time, space, cause and chance. The word metaphysics is said to originate from the mere fact that the corresponding part of Aristotle's work was positioned right after the part called physics. But it is not unlikely that the term won a ready acceptance as denoting this part of philosophy because it conveyed the purpose of metaphysics, which is to reach beyond nature (physis) as we perceive it, and to discover the true nature" of things, their ultmate essence and the reason for being. d) Psychology Psychology for the Greeks was basically a study about the nature of the soul of the person and other entities. It was the philosopher Aristotle who coined the word Psychology which came from the Greek words-psyche meaning soul and logos meaning science or study. Today. Psychology is defined as a science that studies human and animal behavior. e) Theodicy Theodicy is also known as Rational Theology. Etymologically, Theodicy came from the Greek words-theos meaning God and dike meaning justice. As a branch in philosophy, Theodicy 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 Epistemology comes from the word episteme meaning knowledge. It is a branch of philosophy that addresses the philosophical problems surrounding the theory of knowledge. Epistemology is concerned with the definition of knowledge and related concepts, the sources and criteria of knowledge, the kinds of knowledge possible, the degree of its veracity and the exact relation between the one who knows and the object known. Under Practical Philosophy Are the Following: a) Semantics Semantics came from the Greek words sema meaning sign or mark and semantikos meaning significant. This practical branch of philosophy studies the meaning of words and its linguistic forms, their functions and their relationship to other words. b) Axiology The word Axiology is from the Greek words axios meaning worthy, and logos, meaning discourse or study. Axiology is thus the discourse or study of the philosophy or system of value Judgments or worthiness. Axiology studies values, its origin, types and characteristics. c) Aesthetics Aesthetics is the branch of philosophy that aims to establish the general principles of art and beauty. It is the 10 study of beauty and art. It can be divided into the philosophy of art and the philosophy of beauty. It is a relatively new branch of philosophy that emerged in the early 18th century (eariy 1700s) in England and Germany, more than 2000 years after the emergence of the other branches of Western philosophy (which began earlier in Greece, around 600 B.C.E.). Aesthetics came from the Greek word aisthetikos which means one is perceptive of things through his sensations, feelings and intuitions. d) Logic Logic deals with the nature of thinking and reasoning using empirical support to establish the truth. It is the study aimed at determining the conditions under which one is justified in passing from given statements, called premises, to a conclusion that is claimed to follow from them. Logical validity is the characteristic of an argument that guarantees that if the premises of the argument are true then the conclusion must necessarily be true. ☻Deductive Reasoning - reasoning from universal truth to particular. ☻Inductive Reasoning reasoning from particular to universal or general principles. e) Ethics The term Ethics is derived from the Greek word ethos which means "characteristic way of acting" which is proper to man as a rational being. The Latin word for ethos is mos (or mores). Hence, we understand why Ethics is sometimes called a Moral Science or Moral Philosophy. The goal of Ethics as a science is to investigate the nature of the human act or human conduct. But the formal object of Ethics, meaning its point of view in studying human conduct, is the right morality or rectitude of human acts. Ethics is a philosophical science that studies the morality of human acts. As a science, ethics is concerned with the analysis of the nature of human conduct from the point of view of morality. Many of us hold, whether one knows it or not, that there are two distinct and contradictory principles that operate within the structure of our human behavior. First, man believes that there are certain things that he should not do to anyone or to others. For example, stealing or harming our bodies. Second, man believes that values are "subjective and incapable of being disputed between different individuals. These claims are contradictory since claiming that it is wrong to steal from you is in fact a value judgment. But if the second claim that value judgments are subjective is true, then how can the first claim be true as well? The claim that stealing is wrong is merely man's 'subjective opinion', and therefore man has no grounds on which to claim that another has really been wrong. This problem is one (but not the only) way to begin to look at the study of Ethics. From the very beginning of philosophy, philosophers have attempted to answer the question: How should we act? They take it as a given that there is a difference between living rightly or well and living wrongly or badly. Ethics provides us with an answer to one of our basic social needs by defining the behaviors we expect and will accept from one another. ideally, ethics allows us to live together, productively and in harmony with one another. Lesson 3. Definitions of Ethics [Cf. Felix Montemayor. (1994). Ethics: The Philosophy of Life. Mandaluyong City: National Book Store, pp. 8-9] ☻Ethics is the practical science of the morality of human acts. ☻Ethics is the study of human conduct from the standpoint of morality. ☻Ethics is a normative science based on reason which studies human conduct and provide norms for its natural integrity and honesty. ☻Ethics is a practical science that guides us in our actions that we may live rightly and well. ☻Ethics is the science which lays down the principles of right living ☻Ethics is the science of human acts with reference to right and wrong. ☻Ethics is the scientific inquiry into the principles of morality. 11 Lesson 4. Ethics and Morality The terms ethics and morality are often used interchangeably. Indeed, these terms usually can mean the same thing, and in casual conversation there isn't a problem with switching between one and the other. However, there is a distinction between them in philosophy. Morality refers to the quality of goodness or badness in a human act. Good is described as moral and bad as immoral. It means conformity to the rules of right conduct. It implies judgment and refers to what we would call moral standards and moral conduct while ethics is used to refer to the formal study of those standards and conduct. For this reason, Ethics is also often called moral philosophy. Ethics, on the other hand, involves the study of those standards and judgments which people create. Ethics assumes that the standards exist and seeks to describe them, to evaluate them, or to evaluate the premises upon which those standards exist. Ethics basically investigates the nature of moral principles, ethical systems and moral norms that people use to justify their moral judgments. E. Babor (2004) argues that while ethics provides principles or bases for right or wrong and good or bad actions, morality actualizes the theory. Ethics in this case outlines the theories of right or wrong. good or bad actions. Morality, however, translates these theories into actions. Thus, according to Babor, moralíity is nothing else but a doing of ethics. Lesson 5. Ethics as a Normative Science Ethics is a branch of philosophy and is considered a ormative science because it is concerned with the systematic study of the norms of human conduct, as distinguished from formal sciences such as Mathematics, physical sciences such as Chemistry and Physics, and empirical sciences such as Economics and Psychology. As a science, however, ethics must follow the same rigors of logical reasoning as the other Sciences. Ethics is a normative science because it involve systematic search for moral principles and norms that are used to justify our moral judgments. The formation of a sound moral judgment presupposes a profound analysis and justification of n ethical principle or theory. There are three categories of General Ethics: 1) Descriptive Ethics-consists of studying and describing the morality of a people, culture, or society. It also makes comparisons and contrasts on the different values, principles, code of ethics, beliefs, and practices of people. It serves as the foundation of Normative Ethics and provides a standard of the morality of a people, culture or society. This is closely related to Anthropology, Sociology and Psychology as these disciplines aim to discover the moral beliefs held by a given society, group or organization. it does not prescribe or attempt to assess the moral soundness of any ethical system but only to describe objectively the values and beliefs of people. Examples: Psychological Egoism - a concrete example of Descriptive Ethics is the study of human motivation. It says nothing about what is good or bad or right or wrong rather it simply declares results based on various scientific studies. Cultural Relativism-does not prescribe how people should act, rather it describes how people, when grouped and observed in their own cultural realities, actually differ in their behavior. What is good or bad, moral or immoral according to this theory is relative to the people's own culture or sets of cultural beliefs and practices. In other words, Descriptive Ethics is very objective in studying human behavior but it does not provide a clear standard of morality. It simply describes how people act and does not prescribe how people should act. 2) Normative Ethics involves moral judgment based on ethical norm or theory. This consists both of the basic moral principles and values and the particular moral rules that govern people's behavior, which is right or moral and wrong or immoral. The three tasks of Normative Ethics are the following: 12 a. To form into a related whole the various norms, rules and values of a society's morality. b. To find the basic principle from which the particular norm can be derived. c. To justify an ethical norm or moral principle. 3) Metaethics is a branch of Normative Ethics. In some other ways, both Normative and Descriptive Ethics involve some metaethical activity. Metaethics is concerned with analysis of the meaning of words and the logic of moral reasoning, e.g.. it analyzes moral terms like, "good, "bad, "moral," "immoral," "moral obligation," and the like. Metaethics does not describe moral beliefs of people, does not evaluate the process of moral reasoning but simply analyzes the usage and meaning of words. Lesson 6. The Problem of Ethical Relativism and Situation Ethics Ethical Relativism Ethical relativism claims that when any two cultures or any people hold different moral values of an action, both can be right. An action may be right for one person or society and the same action taken in the same way may be wrong for another reason, and yet, both persons are equally correct. While ethical relativism emphasizes the differences of moral beliefs and practices from the point of view of culture, situational ethics (or moral subjectivism) emphasizes moral differences based on personal beliefs and convictions. Approaches to Moral Differences There are four approaches in dealing with moral differences, which can be found in the following diagram: [cf. Nina Rosenstand. (2003). The Moral of the Story. New York: McGraw-Hill, Inc. pp. 88-90] a) There Is No Moral Truth This philosophical perspective believes that there is no ultimate right or wrong. This view is called moral nihilism. Moral Nihilism is akin to moral skepticism which holds that we cannot know whether or not there are moral truths. Moral subjectivism, on the other hand, holds that moral views differ from one person to another. This results to a subjective morality, in which case, what is good for one person may be bad for another. b) There Is No Universal Moral Truth Each culture has its own set of rules that are valid for that culture, and we have no right to interfere, just as they have no right to interfere with our rules. This view is known as ethical relativism. This ethical paradigm maintains that there are moral truths that exist but these truths are relative and dependent on cultures and beliefs of people c) Deep Down, We Can Find Basic Moral Truths This philosophical perspective believes that despite differences, people of different cultures can still agree on certain moral basics. People find some common ground on basic moral principles. This is called soft universalism. d) There Is One Universal Moral Truth This view is also known as hard universalism or moral absolutism. This moral paradigm maintains that there is only one universal moral code that everybody must follow. Because this moral code is universal and objective, moral problems and moral conflicts can be solved through proper moral reasoning. Lesson 7. Deontological vs. Teleological Approaches to Ethical Evaluation of the Human Conduct Deontological Ethics Deontological Ethics or non-consequentialist approach is a body of ethical theories that measures and evaluates the nature of a moral act based on the validity of the motive of an act. This means that if the motive or intention of the act is good, then regardless of the consequences, the whole action is good. Examples of Deontological Ethics: Kantian Ethics or Kantianism this is also known as the categorical imperative approach, the idea that one should always base his actions on maxims or rules that are believed to be universal. For Kant, the moral goodness or badness of the act does not depend on the 13 consequences of the act but on the motive or intention of the actor, e.g., the motive is good if it is an expression of the person's sense of duty. For instance, the unconditional duty of a nanny to enter into a burning house to save a baby. The mental process for the nanny would be a series of questions. Are all paid nannies obligated to rescue babies from danger? Is the duty unconditional? Does the particular situation require such action of the nanny? If the nanny's answers to the three questions are yes, then she has a binding moral duty to act. Divine Command Theory is another example of non consequentialist ethics. This ethical theory holds that the standard of right and wrong is the will or law of God. The Christian Ethics is an example of an ethical system that uses the deontological approach in evaluating the morality of human conduct, e.g., the will of God is expressed in the Bible and in the traditions of the Roman Catholic Church. If an act violates these sacred sources of morality, then the act is unethical regardless of its perceived or actual consequences. Teleological Ethics The word teleology came from the Greek word tele which means far or remote. Teleological Ethics or the consequentialist theory measures the morality of an action based on its consequences and not on the motive or intention of the actor. if the consequence of the act is good, regardless of the motive, then the act is always morally good. Examples of Teleological Ethics: Hedonism or the view that pleasure (regardless whether the pleasure is mental or physical, but mostly sensual) is the only good as an end. For instance, drinking till the last drop, eating until you cannot swallow are some examples of a good action that should be pursued. Utilitarianism is another example of a consequentialist theory. This school of thought maintains that "the greatest good is the greatest happiness or pleasure of the greatest number." This means that if the action can provide the greatest happiness to the greatest number of people who are affected by the action, then the action is considered to be morally good. For instance, if stealing will enable me to help many poor people, then stealing becomes good. Implications of Deontological and Teleological Ethics to Decision Making These two approaches to the ethical evaluation of the human conduct are also used by managers in the decision making process. Some managers decide on the basis of their personal principles and convictions. In this regard, managers are said to be biased towards deontological perspective because of their principle-oriented decision making process. On the other hand, some managers could be result-oriented in terms of decision making. In this regard, they favor the perspective of Teleological Ethics because they focus on the consequence or the result of the action regardless of the intention or the motive of the one performing the action. Lesson 8. The Moral Sense" in Us One of the basic questions in ethics is to determine how people develop their fundamental concepts of good and evil. Traditional ethics believes that man has a natural insight to morality, this being a gift of the Creator who gave man a "moral sense." This moral sense is native in all persons regardless of race, religion, culture, education and creed. Man, therefore, is a moral being. He knows the fundamental distinction between what is good and bad, what is moral or immoral. This basic knowledge of right and wrong is what differentiates man from animals. The next three theories, namely, that of Aquinas, Kohlberg, and Freud attempt to explain the fundamental question of how people develop their concept of morality. 1. The Synderesis of Man According to St. Thomas Aquinas 14 Thomas Aquinas (1225-1274). This theologian andpriest is sometimes called the Prince of Scholastics. He wrote 25 books including Summa Theologica and Summa Contra Gentiles and developed a systematic Christian theology in response to the problem of the dichotomy of faith and reason during the Medieval period. He was invited by Pope Gregory X to attend a General Council in Rome in 1274 but died on the way to the Vatican. He died at the young age of 49 years old. And 49 years later, he was canonized as St. Thomas Aquinas, the Angelic Doctor of Italian philosopher the Church. According to Aquinas, the moral sense in man is manifested and expressed in three different ways: 1) Man is able to distinguish or to know what is good and what is bad. Of all creatures, only man has the capacity to know the difference between a good and a bad action. 2) Man is always obligated to do good and avoid evil. In any given circumstance, man is the only creature who feels this primary duty to do what is good and avoid what is evil. 3) Man knows that he is accountable for his actions good or bad. Of all creatures, only man realizes that the performance of an action entails rewards and punishments. If he does a good action he expects rewards. If he does an evil action he expects punishment. For Thomas Aquinas and the scholastics, this "synderesis" IS the starting point of man's moral reasoning which takes place when a person reaches the "age of reason." At this point, man acquires the basic moral principles that teach him the fundamental difference between right and wrong9. 2. Freud's Theory of the ld, Ego, and the Superego Sigismund Schlomo Freud (1856-1938). Freud was born on May 6, 1856, at Freiburg (now Pribor), a rural town in Moravia, which was then part of the Austro-Hungarian Empire (now part of Czechoslovakia). He is the founding father of Psychoanalysis, which is a major school of Psychology. Freud believes that the human mind has three important components, that of the preconscious conscious and unconscious. No other psychologist except Freud has studied the unconscious part of the human mind. His theory about sexuality being the center of psychopathology as well as the major drive of all individual developments has made him one of the most controversial yet most influential scientists of the 20h century. Freud founded the Psychoanalysis Theory (Theory of the Psyche) where the approach is to understand human behavior which views men and women as constantly torn between internal unconscious forces and external social forces. The key points of psychoanalytic theory are the following: 1) Man must learn to control his inborn desires. 2) Man must achieve fulfillment in ways that are harmonious with others. Superego in Freud's theory is the spirited or the will in Plato's theory. For Freud, the Superego basically reflects social rules and values of the society that govern our behavior. This also includes the codes and rules that we have been taught. The superego has elements in common with both reason and willpower. Freud equates superego with conscience. Ego is the rational self or the conscious self. In Freud's theory it is also known as the "reality-principle." It is part reason (intellect) but also part willpower. The ego is under constant pressure to fight off the pleasure-seeking desires of the id and at the same time, the ego is pressured by the reality forces of the environment and the moral dictates of one's upbringing-the superego. ld is the irrational part in us or the unconscious instincts. According to Freud, we are born with the id which is also known as the "pleasure-principle" in each of us. The id, being irrational does not know the meaning of postponement. When the id wants something, it craves for instant satisfaction. For Freud, a healthy personality is manifested by a person who has an ego that does an effective job of coping with the urges of the id and at the same time, is not pressured by the restrictions of the superego. Business Application A businessman may be tempted to cheat his customer in the process of selling (id). He realizes however, that to give in to this enticement would be a violation of the 15 Code of Ethics for Businessmen and other positive laws, like the Consumer Act of the Philippines (superego). He therefore discerns well and begins to rationalize that it is better not to fool or cheat the customer (ego). In this case, the perceived good action, e:g.. not fooling the customer is a decision made by the ego as a result of its interaction with the enticement of the id and the pressure of the superego. 3. Kohlberg's Theory of Moral Development Lawrence Kohlberg was born in Bronxville, New York on October 25, 1927. After high school, he enlisted and became an engineer on a freighter. He taught at the University of Chicago in 1962 then moved to Harvard University as professor of Education and Social Psychology in 1968. He contracted a tropical disease in 1971 that bothered him until his death. He is rumored to have committed suicide at the Boston Harbor on January 19, 1987. He is well known for his Theory of Moral Development. Through his research which was conducted at Harvard's Center for Moral Education in the 1950s, Kohlberg believed that people progressed in their moral reasoning through a series of stages. His theory of moral development was based on the earlier works of the Swiss psychologist Jean Piaget. Kohlberg helped to clarify the general cognitive developmental approach of Jean Piaget, through his analysis of the changes in moral reasoning or extending the approaches into a series of stages. 1) Pre-conventional. This behavior is generally found in young children and older children. There are two stages in this level: 1) reaction to punishment, and 2) the desire for the right behavior that will satisfy the person's self-interest. Stage 1 explains the concept of being good by following commands and authority and avoiding being punished. Stage 2 is a stage of lIndividual Instrumental Purpose and Exchange. This means fair deals for concrete exchanges. This is characterized by a view that right behavior means acting in one's own best interests. Stage 2 also promotes the "Tll scratch your back and you scratch my back'" type of mentality. Business and Organizational Application: Some individuals do the right thing only to avoid punishment or to obtain approval, e.g., an employee who thinks that the only reason not to steal money from the employer Is the certainty of getting caught and then fired. The person at this stage has little sense of the needs of others. At the second stage, the person becomes aware that others have their needs also and begins to defer to them to get what the individual wants. 2) Conventional. This level is generally found in an ideal civilized society, hence, the name "conventional." The first stage of this level (Stage 3) is the Stage of Mutual Interpersonal Expectations, Relationships and Conformity. This is characterized by an attitude which seeks to do what will gain the approval of others, commonly referred to as "Puting oneself in the other person's shoes." Stage 3 is also known as the 'good boy and good girl" orientation stage. This implies that a good or bad behavior of the person depends on his/her conformity or non-conformity with the norms of his/her immediate community or environment. Stage 4 on the other hand, is the Stage of Social System and Conscience Maintenance wherein one is oriented to abiding by the law and responding to the obligations of duty. Individuals adopt social rules without considering the underiying ethical principles involved. It emphasizes only obedience to the laws, respect to authority and performing one's duties so that social order is maintained. In this context, the good or the bad behavior is dependent on the person's conformity or non-conformity with the laws created by the state or government. A person is considered a law abiding citizen when he or she follows the laws of society but will be considered a deviant when the same person violates the same laws. Business and Organizational Applications: Stage3 of this second level describes that right behavior is one that conforms to conventional expectations, e.g.,an employee considers the importance of being a loyal folower and avoids conflicts. Stage 4 on the other 16 hand, explains that the right behavior consists of performance of duty, respect for authority and maintaining social order, e.g., an employee adheres to the organizational rules and policies and obeys orders from the superiors. 3) Post-Conventional. This third level of moral thinking is one that Kohlberg felt is not reached by the majority of adults. Stage 5 is the Stage of Prior Rights and Social Contract or Utility. It is the stage of understanding of rights and values. It gives the person a sense of democracy but relativity of rules. This means that people at this stage realize that there are fundamental concepts of right and Wrong but the application of which is confined to their own culture and environment. Each person's moral rights however, must be protected. The last stage (Stage 6) is the Stage of Universal Ethical Principles. It is based on respect for universal principles and the demands of individual conscience. Action is controlled by internalized ideals that demand pressure to act accordingly regardless of the reaction of others in the immediate environment. At this stage Kohlberg believed that people do good and avoid evil because they are convinced that there are universal ethical principles that govern and justify their actions. Business and Organizational Applications: Stage 5 maintains that the laws may be important and must be followed but they are not absolute, e.g, they can be changed if necessary. Stage 6 maintains that people cOuld act in accordance with their cornice and based on universal ethical principles, e.g, when an employee discovers that formal rules and laws are at odds with these principles, the individual is likely to act in accordance with these principles rather than with the rules. Kohlberg believed that individuals could only progress through these stages one stage at a time, without skipping a stage or reversing their order and that not all people progress through all six stages classified into three levels. Thus, according to Kohlberg, it is important to present them with moral dilemmas for discussion, which would help them to see the reasonableness of a "higher stage" morality and encourage their development in that direction. Kohlberg as well as Piaget, believed that most moral developments occur through social interaction. The last stage of Kohlberg's stages of moral development is called Transcendental Morality. At this stage, Kohlberg believes that people can transcend their concepts of good and evil by integrating them with their religious convictions. Thus, murder is evil because it is against the divine law, e.g., The 10 Commandments. Lesson 9. Two Ethical Systems There are two general categories under which ethical theories are classified: (R. Agapay, 1991) 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. Atheistic theories propose the following principles: •Matter is the only reality. Man is matter and does not have spiritual dimension. •Man is free and must exercise his freedom to promote the welfare of society. •There is no life after death. •Man is accountable only to the State. 2) Theistic Ethics assumes that God is the Supreme Lawgiver. Everything must conform to God's eternal plan of creation. Man is accountable for his actions and deserves either a reward or punishment in this life or in the next. Theistic theories postulate the following truths: •God is the Supreme Creator and Lawgiver. •Man is free and must use his freedom to promote his personal and social interests along with his fellowmen. •Man has an immortal soul which cannot die. •Man is accountable for his actions, both good and evil. 17 ACTIVITY 1. What is Philosophy? Do you have a personal philosophy in life? If so, what is your personal philosophy? 2. Differentiate ethics from morality. 3. Why is ethics called a normative science? Differentiate philosophy, art and science. Cite their similarities and striking differences. 4. Is ethics a one-sized shoe that fits all or a customized outfit? Explain your answer. 5. Explain why the Kantian ethics is considered a "Non- Consequentialist" Ethics. 6. What is the difference between Theistic and Atheistic Ethics? 7. Do you believe that morality is relative, e.g., the goodness or badness of one's action depends on the culture, laws and beliefs of a society or community? Why or why not? Explain your answer. 8. Why is it difficult for people to reach Level 3 Stages 5 and 6 according to Kohlberg? with IT rival, Sampo Computer, also based in Laguna. It might have ended there. But when Pantaleon’s new employer began taking away IT’s market share, its top management started to be alarmed. After some checking, IT learned that Pantaleon was using its inside knowledge of its customers list to make sales.Company officialsalso suspected he might be relying in IT’s customer specifications and repair manuals. Questions: 1. IS keeping trade secrets still an ethical issue in the age of globalization and advance communications technology? 2. Is Pantaleon’s action unethical, e.g., using the customer list of his previous company for his new company? Why or why not? Discuss your answer. Cases for Analysis Case 1. Mang Toot’s fast-food chain has been known in business not just only for its great tasting food and excellent service but also for it cleanly prepared dishes. One day, Emong, a service crew of Mang Toot’s Makati branch, was preparing the gravy. He was unaware that the starch he used was already expired. He only noticed it after some time and the gravy had already been served to some customers, he immediately told BArtolome, the branch manager, about it. Bartolome told Emong not to tell anyone about it, besides, no one is complaining. Questions: 1. What is moral in the issue? 2. If you were Bartolome, what are you going to do? Case 2. Shared IT Secrets. When employee Eric Pantaleon quits job in 1995, IT systems, his company, paid little attention. Pantaleon was one of the several customer-service representatives of the Laguna, Philippine-based computer company, and the turn over of responsibilities in the department wasn’t smooth. Following an uneventful exit interview with human resources officials, Pantaleon left the company to start a job 18 CIIAPTER 3 THE RELATIONSHr OF ETHIcs WITH OTHER SCIENCES AND OTHER PHASES OF HUMAN LIFE The unexamined liffe is not worth living. - Socrates Introduction Ethics is a branch of philosophy that studies the nature and the morality of human conduct. To some extent, Ethics is related to other sciences because it also deals with the investigation of the nature of man as a rational being and a being in relation with other beings. But unlike other sciences, the focus and the locus of Ethics is to study man's nature and his behavior from the standpoint of morality. The material object of Ethics is the human conduct and the formal object is morality. Objectives: At the end of this chapter, the students are expected to: 1. Gain understanding of the scope of ethicS as a science that investigates the nature of the human conduct 2. Distinguish ethics from other sciences that study man's nature and behavior 3. Differentiate ethics from etiquette and the professional codes of conduct. Lesson 1. Relationship of Ethics with Other Sciences (cf. Felix M. Montemayor, 1994. Ethics the Philosophy of Life Mandaluyong City: National Book Store, Inc., pPp. 8-12 and Ramon B. Agapay, 1991. Ethics and the Filipino. Mandaluyong City: National Book Store, Inc. pp. 4-6.) The following discussion is focused on how Ethics, as a science which studies the nature of man and the human conduct, is especially related to other sciences which likewise deal with the study of human nature and human conduct. 1. Ethics and Logic Ethics is the study of correct action or doing, while Logic studies the process of correct and organized thinking. Doing follows thinking. Logic therefore is aimed at the right thinking and Ethics is aimed at the right acting or right doing and behavior. Based on perceiving information, Ethics focuses first and foremost on the demands of the subjective human world, or world of people and relationships. Incommunication, ethics focuses and studies people's feelings and emotional states based on nonverbal information and how things are said. Logic is focused on the demands of the material, nonhuman world, or world of "things" in one's environment. In communication, Logic focuses on and studies what is done and said, or the content of one's speech. On intellectual qualities, Ethics is people-oriented while Logic is task-oriented. Ethics is focused on enhancing relationships, modifying content and forms of speech to match or contradict what others expect to hear Logic is focused on not misleading a person and giving him correct information. Lastly, on behavioral relationships, Ethics shows people's feelings for their partners directly through emotions; while Logic shows their feelings for their partners by doing things for them. 2. Ethics and Psychology Both Ethics and Psychology deal with the study of man and his behavior. However, Psychology studies how man behaves, while Ethics studies how man ought to behave. Psychology is not interested in the morality of human behavior, while Ethics is concerned with man's moral obligation or the result of his behavior. Ethics is the study of human behavior from the perspective of morality. Psychology, on the other hand, is the scientific study of mental and behavioral 19 characteristics, associated with aparticular kind of behavior. Lesson 2. Relationship of Ethics' with Other Phases of Human Life 3. Ethics and Sociology Sociology deals with the study of the social order while Ethics deals with the study of moral order in the society. There is no social order if there is no moral order. Therefore, the foundation of any society depends on the moral values of people and their perspective on the concept of what is good and bad in human relationships. Society depends on Ethics for its underlying principles. Sociology deals with human relations in a society, but human relations are based on proper order and proper order comes only with the proper observance of moral laws and principles which regulate the actions of men and women in a community. The study of Ethics crosses religious and cultural boundaries and is directed at the question of how critical decisions are to be made so that an organization may work best together, to build a community and social relationships in a positive and productive way. How we live ethically becomes more important as we are required to make complex decisions concerning customer relations, employer-employee relationship and other business issues. 4. Ethics and Economics Man supports himself by earning a living. Earning a Living to support his expenses makes a man an economic being. Economics as a science deals with the study of wages, labor, production and distribution of wealth. The study of these issues also involves relationships among individuals. For example, wages: between employer and employee production: between seller and customer. These fiduciary relationships must be governed by human values that can only be understood in the light of moral principles and the nature of values themselves. At the heart of these relationships are moral norms and moral rules that should guide people's behavior as they relate with others. Without these moral norms and moral values, harmonious relationships between and among parties cannot exist. According to Charles K. Wilber (1986), there are three ways in which Ethics enters economics. First, economists have ethical values that help shape the way they do economics. This builds into the core of economic theory a particular view of how the economy does work and how it should work. Second, economic actors (consumers, workers, business owners) have ethical values that help shape their behavior. Third, economic institutions and policies impact people differentially and thus, ethical evaluations, in addition to economic evaluations, are important. 5. Ethics and Law Ethics and law are closely related. Ethics deals with morality, and when we speak of morality, we mean primarily the moral law. Law may be defined as crystallized ethics. Law and morality presuppose the concepts of right and wrong. good and bad, even the rules of conduct. However, there is a difference between what is oral and what is legal. Laws are intended to regulate the external actions of man while ethics investigates and probes the internal disposition of man, such as his motivations and his thoughts. Though law often embodies ethical principles, law and ethics are far from co-extensive. Many acts that would be widely condemned as unethical are not prohibited by law lying or betraying the confidence of a friend, for example. A man can also commit a thousand adulteries in his mind, yet that same person cannot be legally or criminally be guilty because this exercise is innate and private to the person himself. Though he may not be legally or criminally liable for entertaining adultery in his thoughts, that same person can be morally responsible for entertaining adulterous intents and motives in his thoughts. Law therefore is focused on external regulations of man's actions while ethics is concerned with the investigation of the internal disposition of man from the moral perspective. 6. Ethics and Religion Ethics is a discipline or set of moral principles and values governing an individual or institutional behavior. Religion generally refers to the service and worship of God (or some other object) and is typically expressed as a personal or 20 institutional set of beliefs, attitudes, and practices. Ethics evaluates the behavior of man against his values regardless of the source of those values. While religion certainly can create an impact on individuals and may actually include mandates for ethical behavior, it is a distinct concept from ethics. It is however, in the practice of religion that ethics and religion may overlap. Religion and ethics are two phases of human activity which are closely related. Both ethics and religion are based on the same postulates, e.g, they both suggest and assume the existence of God who created everything, man's freewill and the immortality of the soul. Moreover, ethics and religion have the same end or purpose-that is, the attainment of man's happiness in this life and beyond. Lastly, ethics and religion prescribe right living as the means of attaining the goal of man in this world. Authentic ethics cannot be separated from the existence of God. If there is morality, there must be a moral law; and if there is a moral law, there must be a lawgiver, and this ultimate lawgiver can only be God Himself. Ethics and religion likewise presuppose the concept of the immortality of man's existence, e.g., that there is life after death. For this reason, we believe that the soul of the person which continues to exist even after physical death, is a soul that is immortal. Lastly, ethics and religion both seek the absolute truth. Ethics seeks the absolute truth by using human reason alone, while religion tries to understand this same absolute truth by virtue of one's faith and his adherence to divine revelation. In this case, faith is our response to God's disclosure to us. 7. Ethics and the Professional Codes of Conduct The era of globalization has created a need for specialized skills and knowledge. This is brought about by paradigm shifts in almost all facets of human activities that have resulted into a more complex society that we have today. Full automation has almost taken over a lot of jobs done by an unskilled labor force that in turn, creates a demand for workers with special skills. The need for specialized skills and knowledge in business has created a trend which prods people and organizations to be identified with a particular profession basically because it brings with it prestige, a sense of respect, personal esteem and status symbol. Based on the Webster's Dictionary, the meaning of professional is relating to or characteristic of a profession; engaged in one of the professions; participating for gain in an activity not engaged in by amateurs. Professionalism on the other hand is the conduct that characterizes a profession or a professional person; or it can also be the pursuit of a profession for gain or livelihood, e.g., as a manager, engineer or as a lawyer. The words "profession" and "professional" imply a public declaration with the force of a promise. Professions are groups which declare in a public manner that their members will act in certain ways according to their profession and that the same group and in some instances, the society may discipline those who fail to conform to its prescribed ways. The traditional professions include medicine, law, education and clergy. Carpenters, plumbers, barbers, athletes, gardeners, beauticians and even soldiers may be considered professionals because they have extensive knowledge and training of their crafts and they are also paid forthe practice of it. These "professionals," however, may undergo extensive training but what they do can't be classified as a profession. Membership of a profession requires sophisticated skills and extensive training as well as advanced education so that they become competent in their line of work. The medical and legal professions fit the description of the word profession because the skills of lawyers and doctors cannot be mechanized and require good judgment to apply the appropriate treatment/advice to their patients/clients. There is also the trust or secrecy that is shared by the doctor/lawyer with their patients/clients that is not observed with other professionals. What makes the job of the medical and legal professions important is that they are expected to 21 serve the good of the public or society. This is also the main reason that constitutes their being in the group of professionals. Members of the profession create their own set of rules; set standards for practice of the profession, and at the same time discipline their own members. This set of standards of the profession is reflected in their own professional codes of conduct. A professional code of ethics is a set of behavioral guidelines that members of a professions are required by their association to observe in the course of their professional practice. These guidelines, in general terms, prescribe responsibilities that members must adhere to and questionable situations in which they must not be involved. In some cases, members must be sanctioned for violation of the code. These sanctions may include the following: •Payment of a fine; •Payment of the cost of any investigation •Reprimand; •Imposition of conditions on membership; •Suspension from membership; and •Expulsion from membership. 8. Ethics and Etiquette The word etiquette came from a French word which means ticket. During the medieval times, when people visit the palace of their king, they were required to follow in-house instructions that were posted (ticket) in the different areas of the palace. Hence, the word etiquette practically means rules and conduct of behavior that are supposed to be followed in special situations and circumstances, including one's visit to the palace of theking. Today, the word etiquette refers to a special code of behavior or courtesy, like saying "thank you," "you are welcome, and saying "congratulations to the groom and "best wishes" the bride, and the like. Although the rules of etiquette are generally non-moral in character, the violation of these rules of etiquette however may have moral implications. For example, a boss and his secretary develop a special friendship in the workplace and the boss, because of this closeness to the secretary now fondly calls the same secretary as"sweetheart." This scenario in the workplace may have tacit moral implications if, for example, the wife of the boss may drop by one day at her husband's office and discovers that her husband calls his secretary "sweetheart." This definitely will create a suspicion on the part of the wife. However, the scrupulous observance of the rules of etiquette will not makea person moral. In fact, it can even hide or camouflage important moral issues. For instance the Civil Rights issue of racial discrimination in the U.S. in the late 1950s and 1960s when the white Americans claimed superiority over the African Americans and other minorities. During this time, the Americans were taught, as part of their etiquette, that when a white man enters a bus with no available seat for him, it was imperative for the black person or the minority to offer his seat to the white man because people thought it was the proper thing to do during those times. The black Americans and the other minorities were made to believe it was the proper etiquette. The real moral issue, however, was racial discrimination. 9. Ethics and Education Education is defined as an instruction or training by which people learn to develop and use their mental, moral and physical powers and abilities. It is also one way of gaining experience about human life. Since man however, is primarily a rational moral being, the purpOse of education is to perfect the moral character in man. A great educator once said "education is co- extensive with life." Hence, we can say that ethics is life because it is the one that gives life its direction, purpose, and meaning. 10. Ethics and Art Art is concerned with the use of imagination to make things of aesthetic significance. Ethics is aimed at conforming to an accepted standard of good behavior. Ethics also stands for moral goodness, art, and beauty. It may be difficult to ascertain whether a piece of art which is offensive to morals can be considered beautiful. Both true art and true ethics have the same aim: That IS, to arouse and to inspire the noble emotions of man, thereby creating no conflict at all. Consequently, an art which arouses the lower impulses of man defeats the very purpose of art. 22 Activity 1. Differentiate ethics from law. Point out their similarities and striking differences. 2. How is ethics different from religion? 3. Differentiate ethics from etiquette. 4. Explain the phrase: The rules of etiquette are nonmoral in 5. character but the violations of these rules on etiquette can have moral implications." Cite a concrete example. 6. What is the difference between ethics and morality? 7. How is ethics related to economics? 8. What is the difference between Ethics and the Professional Code of Conduct? Cases For Analysis Case 1: The Confused Accountant Yvonne Pillar is a young accountant who came from a poor family. She was recently hired by a big company called Chameleon Co. When it was time to audit the accounting books of the company, Yvonne was instructed by her boss to manipulate the numbers in order to reduce the taxes the company will have to pay the government. The company official said that if she would not heed the command, she would be terminated. The employment condition at that time was really tight and the chance of finding another job was very minimal. Questions: 1. If you were Yvonne Pillar, will you obey your boss? Why or why not? 2 Are you morally obligated to follow an order that is filegal? 3.Explain the moral implications of the military slogan: Obey first before you complain." Case 2: The Immoral Video Shop. Mr. Jun Quesadilla owns a video shop in Manila. His store has a wide variety of original VCDs and DVDs which he gets froma legal source and approved by the Videogram Regulatory Board. He has all the legal papers and permits to operate this type of business. However, Mr. Jun Quesadilla has a secret room in his store which he uses to avoid the authorities. The room contains all the latest titles of pirated VCDs and DVDs, including rated tapes. He also uses another selling strategy to make more money by telling customers that the VCDs and DVDs they want to rent are "reserved and he would only give this to them if they would rent them for a higher price. Questions 1. Is it right to sell pirated VCDs, DVDs and X-rated tapes in the shadow of a certified video shop? Briefly explain why. 2. In your own opinion, would you patronize pirated CDs and DVDs which are cheaper than the original ones because they are more economical? Why or why not? 23 Rubrics for Rating We will be using the rubrics below fto rate your answers: a. For essays the following shall be used: 3pts Content - Addresses each question and all its parts thoroughly; incorporates relevant course content into responses; uses specificinfomration from case in response Application - Demonstrates deep understanding of course theories and ideas applied to analysis of situations Original thinking - demonstrated original thinking that adds insight to analysis of case; meaningful elaboration beyond text and notes in strategy development Structure- response to each question is well organized, clearly written; 2pts Grammar and mechanics- response is free of mechanical and grammatical writing errors. Content - Addresses each question and all its parts ; incorporates a fair count of relevant course content into responses; uses few data from cases in response Application - Demonstrates a fair understanding of course theories and ideas applied to analysis of situations Original thinking - demonstrate logical thinking that may insight to analysis of case; elaborates with fair grasps of context and few notes in strategy development Structure- response to each question resembles a fair organization, clearly written; Grammar and mechanics- response has few mechanical and grammatical writing errors. 1pt Content - Addresses few questions and all its part; incorporates few relevant course content into responses; uses specific infomration from case in response Application - Demonstrates an understanding, but not fully, of course theories and ideas applied to analysis of situations Original thinking - demonstrates slightly obvious logical thinking that may add insight to analysis of case; elaboration is on plain context and does not go beyond notes in strategy development Structure- response to questions show struggle in organization, and is unfairly written; Grammar and mechanics- response is full of mechanical and grammatical writing errors. b. For other types of questions such as identification, matching type, enumeration and the like, will be rated at one point per correct answer. 24 References Agapay, Ramon. (1991). Ethics and the Filipino. Manila: National Book Store. Blaug, Mark. (1992). The Methodology of Economics: or How Economics Explain. Cambridge: Cambridge University Press. Montemayor, Felix. (1994). Ethics : The Philosophy of Life, Mandaluyong CIty: National Book Store. Piderit, John. (1993). The Ethical Foundations of Economics. Washington D.C.: Georgetown University Press. Wilber, Charles. (1986). Ethical Values and Economics Theory. Chicago: Chicago University Press. Online Resources www.ergan.com/ethical_tradition.htm http.eduserve.hscer.wasingtonn.edu/bioethics/topics/profes.html http://www.eadkin.edu.au/scitech/a+b/courses/675topic01.pdf#search=’Professionalism %20and%the%20Profession’ 25