Project in

Business Ethics

Leona Marie A. Francia

12 ABM E
 What are the effects of Filipino Value System
 Utang na Loob / Debt of Gratitude

Obligation and responsibility are often viewed in terms of reciprocity ( utang na loob),
comprised of debts ( utang), and inner-self-free will ( na-loob). The process begins with
an unsolicited gift and continues going often into to the next generation.

Effects:

Utang na Loob may be good or bad for business depending on a lot of

considerations, but it affects the way business is conducted especially when the
business person is confronted with ethical issue.

 Filial Piety

Filial piety is a virtue of respect for one’s parents, elders, and ancestors. Filial piety
is an important concept in Filipino culture. It is understood as essential to maintain the
collective face of the family and to avoid experiencing hiya.

Effects:

The Filipino family is so intact that it is common for members of the same family
work for the same company.

 Padrino / Patronage

Padrino System, or patronage in the Filipino culture and politics is the value system
where one gains favor, promotion, or political appointment through family affiliation
(nepotism) or friendship (cronyism), as opposed to one's merit.

Effects:

Nepotism is the practice of hiring family members regardless of their qualifications.

In some cases, a relative of a company executive may be qualified to perform the job for
which she is hired. The fact that she is an executive's relative gives her an advantage
over the other applicants. But when the employee is not qualified to perform the job,
then nepotism becomes counter-productive. Your executive staff begins hiring family
members because they need jobs, But the family members' lack of qualifications and
ability can affect your company's profitability.
 Cronyism is the other side of nepotism. It is the act of hiring friends regardless of
qualifications. One of the main problems with cronyism, which you also find in nepotism,
is the feeling of entitlement that employees hired under these circumstances feel.
Because they know or are related to an executive with the company, they feel they
deserve raises and promotions that should be reserved for more qualified staff
members. This creates conflict in the workplace and can result in losing qualified
personnel.

 Suki / Loyal Customer

“Suki” is a Filipino term which means “loyal customers.” According to Ronald (1991),
"in the commercial context, suki relationships (market- exchange partnerships) may
develop between two people who agree to become regular customer and supplier. In
the marketplace, Filipinos will regularly buy from certain specific suppliers who will give
them, in return, reduced prices, good quality, and, often, credit." “Suki” is a distinct
Filipino value system which is rooted primarily in personal alliance systems based on
commercial relationships.

Effects:

Though a suki relationship usually takes time and many business transactions to be
solidified, suggesting a suki like relationship and backing it up with concessions could
be used as a measure to build trust and at the