Grade

12

BUSINESS ETHICS AND SOCIAL

REPONSIBILITY
QUARTER 3 – MODULE 5

Belief Systems and

Their Inluence on
Business Practices

.
Lesson
Belief Systems and Their
5 Influence on Business Practices
Objectives:
After going through this module, you are expected to explain how the belief systems
influence business practices

Judaism
Judaism, a monotheistic religion developed among the ancient Hebrews, has greatly
influenced business ethics. The Torah or Pentateuch, the first section in the Hebrew Bible
which includes the five books of Moses, is filled with precepts, most of which deal with
business. These precepts are said to be the foundations of Jewish law and serve as a
constitution cited by rabbinical authorities up to the present. The Talmud, a Jewish oral
tradition, further bolsters the importance given by Judaism to business ethics because it
states that on the Day of Judgment the question to be asked would be: “Were you honest in
your business dealings?.”
Jewish business ethics believes that business people should follow “the way of the
pious” and lead lives that go beyond the letter of the law. It also stresses honesty in the
marketplace, good treatment of employers to their employees, social responsibility, and
responsibility to the environment. Not wasting time at work is also one of the teachings of
Jewish business ethics.
In an article by Green (2015) the following are cited as the six most important guiding
principles of classical Jewish business ethics:
• legitimacy of business activity and profit;
• divine origin and ordination of wealth (and hence the limits and obligations of human
ownership);
• preeminent position in decision making given to the protection and preservation
(sanctity) of human life;
• protection of consumers from commercial harm;
• avoidance of fraud and misrepresentation in sales transactions; and
• moral requirement to go beyond the letter of the law.

Christianity
Stewardship
From the Christian perspective, it is believed that businesspersons are called by God
to conduct their business according to a sacred standard that transcends business ethics.
Just as how God entrusted the earth to humankind after its creation, Christian business
professionals act as stewards to whom God entrusted His resources, both physical and
financial. It is therefore important conduct one’s business according to God’s principles as
doing so means honoring Him.

Trust
This means entrusting one’s personal and professional lives to the Lord. Christian
business professionals consider Lord’s guidance for their business and pursue His blessing,
through prayers, for every business undertaking.
 Justice
It is based on the biblical principle that the Lord delights in justice. Everyone must
conduct business fairly. Any unfair treatment to employees or attempt to cheat customers for
profit must be avoided. Everything should be done in accordance with God’s law.

Diligence.
As resources are given by the Lord, it is important to use them productively and
wisely no matter how big or small they are. Laziness is strongly discouraged because hard
work is essential to a profitable business.

Generosity
Like God who is generous particularly to the needy, Christian business professionals
lend their hands to the least of society such as helping calamity victims, donating to
charitable institutions, etc.

Islam

The Prophet emphasized that honesty and kind dealings with customers are the
secrets of success in business. He said, “The truthful and honest merchant is associated
with the Prophets, the upright and the martyrs” (Al-Tirmidhi ). “God shows mercy to a person
who is kindly when he sells, when he buys and when he makes a claim” (Al-Bukhari).
Prophet Muhammad gave many teachings on business and economic issues. He covered
almost every aspect of business and economics. Here are only a few major principles of fair
business dealings according to Islam.

• No fraud or deceit, the Prophet (peace and blessings be upon him) is

reported to have said,” When a sale is held, say, “There’s no cheating” (Al-
Bukhari).
• Sellers must avoid making too many oaths when selling merchandise. The
Prophet (peace and blessings be upon him) is reported to have said, “Be
careful of excessive oaths in a sale. Though it finds markets, it reduces
abundance” (Muslim).
• Mutual consent is necessary. The Prophet (peace and blessings be upon
him) is reported to have said, “The sale is complete when the two involved
depart with mutual consent” (Al-Bukhari).
• Be strict in regard to weights and measures. The Prophet (peace and
blessings be upon him) is reported to have said, “When people cheat in
weight and measures, their provision is cut off from them” (Al-Muwatta ‘). He
told the owners of measures and weights, “You have been entrusted with
affairs over which some nations before you were destroyed” (Al-Tirmidhi ).
• The Prophet forbade monopolies. “Whoever monopolizes is a sinner” (Abu
Dawud).
• Free enterprise, the price of the commodities should not be fixed unless there
is a situation of crisis or extreme necessity.

Hinduism
Hinduism, practiced mainly in India, is considered the oldest and third largest religion
in the world, behind Christianity and Islam. It is known for its ethical principles like ahimsa
(non-violence), detachment (abandonment of the fruits of the action), satya (truthfulness),
asteya (non-stealing), self-control, discipline, appropriate words and thoughts, and
motivation to achieve the goal.
Karma (action) is one of the salient features of Hinduism and the teaching of Gita,
thus, a person has the right to do his karma but not to think of its fruits.
 The Tata Group with 80 companies operating in the sectors of Services, Materials,
Engineering, Energy, Consumer Products, Chemicals, Communication and Information
Systems, it is the most respected business house in India.
Having created institutes of excellence both in the Indian industry and the social
world, this group symbolizes the true essence of Indian ethics. To begin with, 63 percent of
the capital of parent firm, Tata Sons Limited, is held by Tata (Philanthropic) Trusts, which
has sponsored and promoted a variety of public institutions of excellence including hospitals,
education and research centers, and scientific and cultural establishments. The five core
Tata values that underpin the way they describe their business processes include:

• Integrity: To conduct business fairly, with honesty and transparency such that
everything done stands the test of public scrutiny.
• Understanding: To be caring, show respect, compassion, and humanity for
colleagues and customers around the world and always work for the benefit of India.
• Excellence: To constantly strive to achieve the highest possible standards in their
day-to-day work and in the quality of goods and services they provide.
• Unity: To work cohesively with colleagues across the group and with customers and
partners around the world, building strong relationships based on tolerance,
understanding, and mutual cooperation.
• Responsibility: To continue to be responsible, sensitive to the countries,
communities, and environments in which they work, always ensuring that what
comes from the people goes back to the people many times over.

Buddhism
Buddhism is an ancient philosophical system that follows the teachings of the Buddha.
Among the important influences of Buddhism in business ethics are the following:
• Work Hard, No Excuses. Opportunity is said to favor the hard worker and that
those with poor work ethic always find excuse.
• Work Hard but Rest Well. It is important to work hard. However, toil without rest
denies one the joy that comes from the fruit of labor.
• Be Mindful. The Sutta Nipata that in business one will always be getting praise and
blame but one should not let these affect the poise of the mind. Instead, it instructs
the mind and heart to be balanced, objective and mindful of the fog of pride.
• Follow the Eightfold Path. The Eightfold Path is the fourth of Buddha’s Four Noble
Truths and a key component of behavioral practices that are crucial to Buddhist life.
While you may not be looking for a new faith system, these eight signposts could
prove helpful for your business dealings.
-Prajña Ditthi – seeing reality unfiltered, and as it actually exists.
-Prajña Sankappa – the purifying wisdom and intention of harmlessness
-Sila Vaca – saying the truth, practicing non-harm in your speech patterns
-Sila Kammata – non-harmful action (this applies to self and others)
-Sila Ajiva – commitment to a non-harming life
-Samadhi Vayama – seeking the mindful discipline to improve oneself
constantly and over time
-Samadhi Sati – awareness of reality and freedom from temptations, cravings,
and distractions
-Samadhi Samadhi – proper concentration and meditation
• Discover your World. One’s work is a journey to self-discovery so one must give
himself/herself to it.
• Serve others. Work becomes valuable if it renders service to other people.
• Be at present. When at work, it pays to concentrate on the moment and leave every
distraction behind.
 • Embrace change. As change is constant, one needs be adaptive and flexible.
According to Buddha, these are important to happiness and avoidance of
disappointment and suffering.
• Take one step at a time. Things happen step by step and, that methodological
piecemeal work is often superior to big splashes.

Confucianism
It is based on the teachings of the Chinese thinker, Confucius. Confucian ethics is
described as humanistic. It is also characterized by the promotion of virtues, encompassed
by the Five Constants: Ren (benevolence, humanness, Yi (righteousness or justice), Li
(proper rite), Zhi (knowledge) and Xin (integrity).
Confucianism, the most profound and dynamic thought system in traditional Chinese
culture has for centuries exerted great influences on China’s economy, politics and culture.
Below are some of its influences in Chinese business culture.
Humanness
Ren is the Confucian virtue denoting the good feeling a virtuous human experiences
when being altruistic. It is considered the essence of the human being endowed by Heaven
and at the same time the means by which man can act according to the principle of Heaven
and become one with it.
The ethical principles could provide a set of useful rules and guidelines for the business
activities. The central doctrine of Confucianism, Ren, which means goodness, benevolence,
humanity, and kind-heartedness, occupied a prominent role in balancing ethics with the
pursuit of profits.
Rite and Right
Li means rite, reason, ratio. It also means custom, mores, rules, propriety, and
ceremonies. Li exerted great influences on business activities. It was helpful in setting ethical
principles that guide interpersonal relationship in a hierarchical society.
Li was helpful in keeping the paternal feudal system alive and was also important in
directing people to behave ethically and politely. It has played an indispensable role even in
modern business activities where quality services and politeness to customers are priorities.
Integrity
In addition to Ren and Li, Xin another virtue meaning integrity, honesty, and
trustworthiness, was also important in directing business activities. Only when ethical
integrity was highlighted could justice be practiced and harmony is achieved in the business
community.
The idea that honesty and trustworthiness could lead to a harmonious and benign
society found lots of followers among overseas Chinese business people.
Loyalty
Confucius himself did not propose that “might makes right” but rather that a superior
should be obeyed because of his moral rectitude. In addition, loyalty does not mean
subservience to authority. This is because reciprocity is demanded from the superior as well.
As Confucius stated “a prince should employ his minister according to the rules of propriety;
ministers should serve their prince with faithfulness”
Filial piety
In Confucian philosophy, filial piety is a virtue of respect for one’s parents and
ancestors. Filial piety is central to Confucian ethics.
Respect
The Chinese business mentality is very much one of “You scratch my back, I’ll
scratch yours.” In essence, this translates to exchanging favors, which is expected to be
done regularly and voluntarily. What underpins this ideology is the concept of respect within
a business context. Respect between all with whom you conduct business with should be
something we imitate from the Chinese business culture, as Confucius said; without feelings
of respect, what is there to distinguish men from beasts?
Taoism: Action without Action
Taoism or Daoism is a spiritual, philosophical, and religious tradition of Chinese
origin that emphasizes living in harmony with the Tao. The term Tao means “way,” “path” or
“principle,” and can also be found in Chinese philosophies and religions other than Taoism.
The “Way”
In Taoism, it is “the One, which is natural, spontaneous, eternal, nameless and
indescribable. It is at one the beginning of all things and him way in which all things pursue
their course.” It has variously been denoted as the “flow of the universe,” a “conceptually
necessary ontological ground,” or a demonstration of nature. The Tao also is something that
individuals can find immanent in themselves.
Good Behavior
Taoists believe such good behavior is an essential part not only of self-improvement
but of improving the world as a whole.
-Cultivate the Tao within oneself, and one’s virtue will be perfected.
-Cultivate it within the household, and one’s virtue will be abundant.
-Cultivate it within the neighborhood, and one’s virtue will be enduring.
-Cultivate it within the nation, and one’s virtue will be overflowing.
-Cultivate it within the entire world, and one’s virtue will be universal.
Leadership by Example
Taoist texts suggest that the ideal way for a leader to run their country is by example
and with minimal intervention:
-I take no action and the people are of themselves transformed.
-I love tranquility and the people are of themselves rectified.
-I do not engage in affairs and the people of themselves become rich.
-I have no desires and the people of themselves become simple.
So a good leader is one that the people respect and whose instructions are willingly
followed. The good leader achieves this by living virtuously in private and living publicly so
as to influence his people for the good.

Shintoism: The Way of the Gods

Shinto (way of the gods) also called kami-no-michi is an ethnic religion of the people
of Japan. The word Shinto (way of the gods) comes from “shin” meaning “spirit” and “to”
meaning “a philosophical path or study”. Shin or kami refers to the divinity, or sacred
essence, that manifests in multiple forms: rocks, trees, rivers, animals, places, and even
people can be said to possess the nature of kami.
Everything has a Soul
The Japanese religions Confucianism, Shintoism, and Buddhism are transcendental
in nature. This means that each believes that every single thing, including people, has its
own soul or spirit, or numen as the Japanese call it. Work is understood to be a self-
expression of the great life force, and Japanese people unconsciously and sometimes
consciously, try to unify themselves with the great life force by concentrating on their own
work.
Superiority of Groups
The second aspect of transcendentalism that affects Japanese working practices,
and therefore ethics, is the emphasis on groups. In the group environment, a group is
considered to be superior to its ordinary members mainly because, while the group is
expected to be able to connect with the numen of the universe in a direct way, the members
of the group individually are not related to the force in the same way. The only way for the
members to connect with the life force is through the activities of their group.
Four Circles of Business Relationships
Groups exist on all levels, but in Japan, there four concentric rings that encompass
them all. These rings from inner to outer, are family, fellows, Japan, and the world. Japanese
people and organizations are likely to attribute different ethics or moral practices to each
circle.
 The business also uses the four rings to delineate the nature of their business
dealings. The family circle consists of closely-related business partners, while the fellow
circle is made up of cross-shareholding corporations, steady customers, banks fellow traders
and the like. The third is the Japan circle. In this circle, fellow circle ethics are substantially
replaced by the principle of free competition. Competitors, unrelated corporations, ordinary
stockholders and so forth all fall within this circle. The last circle is all other competitors
around the world.

Perception of Work
“Ask most Japanese about what they do and they will answer, “I am a company
employee” and add, “I work for Toshiba.” They give their company’s name. Few people
answer with a job title such as accountant or salesman.” For Japanese, the company name
is more important than the job title, for Japanese people the community they belong to is
much more important than what they do.

Activity 1. Complete the table below by listing down the belief systems in the first
column and their influence/s on business practice in the second column.

Belief Systems Influence/s in business Practice/s

1.
2.
3.
4.
5.
6.
7.
8.

Activity 2. Select two from the eight belief systems discussed in class. Then, compare and
contrast them based on their influence on business practices using the Venn Diagram below.

_______________ _______________
Belief System1 Belief System 2
Answer Key
(Module)
Activity 1. Answers vary.
Activity 2. Answers vary

References
• https://www.history.com/topics/religion/hinduism
• https://theislamicworkplace.com/2009/03/03/some-key-business-ethics-principles-in-
islam/
• https://aish-international.com/impact-jewish-values-marketing-business-practices/
• https://www.cambridge.org/core/journals/business-ethics-
quarterly/article/abs/guiding-principles-of-jewish-business-
ethics/BE75A6208A417DACD56D7AD7F382B913
• https://www.britannica.com/topic/Judaism
• https://www.bbc.co.uk/religion/religions/judaism/texts/torah.shtml
• https://www.academia.edu/36905140/Foundations_of_the_Principles_of_Business_E
thics
• STI Handouts on the Foundations of the principles of Business Ethics
Name:__________________________________ Date: _____________
Grade/Section:________________ Score :____________

SUBJECT: Business Ethics and Social Responsibility

QUARTER 3
Worksheet No. 5

Most Essential Learning Competency: Explain how the belief systems

influence business practices
• K to 12 BEC CG: ABM_ESR12-IIIe-h-2.1

PART 1. Directions: Select from the box the belief system reflected in each
statement. Write your answer on the given space.

Judaism Christianity Islam Hinduism

Buddhism Confucianism Taoism Shintoism

____________1. Employees should not waste their time at work.

____________2. Golden rule is one of the crucial principles of one’s business.

____________3. Fairness should be observed in the conduct of business.

____________4. Price of commodities should be flexible except during critical times.

____________5. Opportunity comes with hard work.

____________6. It is important to take one step at a time.

____________7. A leader is most effective if he/she leads by example.

____________8. Organizations believe in the mentality “You scratch my back, I’ll

scratch yours.”
____________9. Business uses the “four rings” as a guide in business transactions.

____________10. Employees put more value on the company name than the job
title.

____________11. Business ethics is based on the five constants Ren, Yi, Li. Zhi and
Xin.
____________12. The value of one’s work depends on how it serves or helps
others.

PART II. Performance Task. : Form a virtual group of three. Then, prepare a
flyer about one of the belief systems discussed in class. Include in the flyer
the core principles of the belief system and examples of its practical
applications in business. Note: Flyer may or may not be computerized.
Rubric for the Flyer
Criteria 1 2 3 4 5 Sco
re
Informati The flyer Few Some Most parts of All parts of the
ve barely parts of parts of the flyer give flyer give
Content discusse the flyer the flyer informative and informative and
s or give give clearly clearly
gives informati informati discussed discussed
informati ve ve content about content about
ve content content the given topic. the given topic.
content about about
about the the the
given given given
topic topic. topic.
Creativity Creativity Flyer is Flyer is Flyer is mostly Flyer is creative
and and good creative creative creative. while
Visual visual in few in some Information and information and
Presentat presentat parts. parts. supporting supporting
ion ion are Informat Informat images are images are
barely ion and ion and neatly neatly
reflected supporti supporti organized/pres organized/pres
in the ng ng ented in most ented in all
flyer. images images parts. parts.
are are
organize neatly
d in few present
parts. ed in
some
parts.
Answer Key
(Worksheet)
Part 1.

1. Judaism 7. Taoism

2. Christianity, Confucianism 8. Confucianism

3. Christianity 9. Shitoism

4. Islam 10. Shintoism

5. Buddhism 11. Confucianism

6. Confucianism 12. Buddhism

Part 2.
Performance task is graded based on the rubrics.