TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
Business Ethics and Corporate Social Responsibility
Mr. Dominick Discarga
The Filipino Value System and Its Effects on
Business
The Filipino value system or Filipino values refer to the
set of values or the value system that a majority of the
Filipinos have historically held important in their lives.
Filipino Cultural Values
Utang Na Loob (Reciprocity)
• 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.
• The essence of utang na loob is an obligation
to appropriately repay a person who has done
one a favor. The favors which elicit the
Filipino's sense of utang na loob are typically
those whose value is impossible to quantify,
or, if there is a quantifiable value involved,
involves a deeply personal internal
dimension. This internal dimension, loob,
differentiates Utang na Loob from an ordinary
debt("utang"); being an internal phenomenon,
utang na loob thus goes much deeper than
ordinary debt or even the western concept of
owing a favor.
In business:
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
In business:
The Filipino family is so intact that it is
common for members of the same family
work for the same company.
Padrino System (Palakasan, Patronage)
• Padrino System, or patronage in the Filipino
culture and politics is the value system where
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one gains favor, promotion, or political
appointment through family affiliation
(nepotism) or friendship (cronyism), as
opposed to one's merit.
In business:
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 System
• “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
In business:
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
 TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
Business Ethics and Corporate Social Responsibility
Mr. Dominick Discarga

very least hasten the development of a suki
like arrangement.
Bahala Na
• The word Bahala is actually a derivative of
the word Bathala, which refers to the ancient
Supreme Being worshiped by Filipinos
during the pre-Spanish Period. It can be said
that the proper use of this phrase should be
in the context of leaving things in the hands
of the Divine Being. Simply put, “Bahala na”
can be the equivalent of the Islamic term
Inshallah, which means “God willing” or “if
Allah wills.”
Amor Propio
• Bahala Na has been loosely translated as
“come what may.” Hence, it is referred to as
the Filipino version of fatalism, that is, leaving
everything in the hands of fate
• Bahala Na is an attitidue of just letting things
happen instead of doing something to make
things happen is not a genuine “Bahala Na”
value
• Bahala Na is a distinct Filipino value system
which is rooted primarily in personal alliance
systems based on religion
• The use of the phrase “Bahala na” in the
second context somewhat manifests the
tendency of Filipinos to humbly submit
everything to the Higher Being during tough
times
• Filipinos usually say “Bahala na” when they
are unable to decide their next course of
action or when they have no idea what will
happen next. They say this phrase as if all
they want is to go with the flow, not minding
what the outcome might be
• Damaged reputation – if it gets to the
point where the effects of procrastination
affects what and when you deliver to
customers you are obviously in trouble
and it may cause a reputation for
tardiness
• Missed opportunities – if you’re on top of
your workload you’ll also be a much
better position to take advantage of new
opportunities
• Roadblocks/Bottlenecks – When you
start avoiding things it can interrupt the
workflow in your business. Then, an
accumulation of things that haven’t been
done leads stress for you and frustration
for other team members
• Amor propio best translates as “self-love.”
• “Amor propio” is a Spanish word which means
self –love; a sense of self-esteem or self-
respect that prevents a person from
swallowing his pride
• Amor propio is part of the Filipino culture. The
Filipino people are super sensitive to the
emotional imperatives that guide asal or
conduct (behavior). "Delicadeza and Amor
Propio” are the two damdamin (emotional)
norms which govern our sense of propriety
and self-esteem
• Extra sensitivity or “Balat Sibuyas”
In business:
Filipinos are not overly fond of saying “no” and
therefore a “yes” you received earlier in the
day might not actually pan out

Mañana Habit (Procrastination)

• Mañana Habit comes from the Spanish word

"Mañana" which literally means "tomorrow” or
"an unspecified future time." Hence, Mañana
Habit, refers to procrastination, or putting off
for tomorrow what can be done today

• The ‘Mañana habit,’ synonymous to the

Filipino expression “Mamaya na,” is just
another term for procrastination

In business
• Reduced efficiency
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