UNIT 4

THE FILIPINO VALUE SYSTEM

OF BUSINESS CONSTITUENTS

INTRODUCTION LEARNING
The Filipino value system arises from our culture or way of
OBJECTIVES
After reading and analyzing the
life, our distinctive way of becoming human in this particular unit, you should be able to:
place and time. We speak of Filipino values in a fourfold sense. 1. Define the Filipino values
and culture
2. Discuss on Filipino
culture

First, although mankind shares universal human values,

it is obvious that certain values take on for us a distinctively
Filipino flavor. The Greek ideal of moderation or meden agan,
the Roman in medio stat virtus, the Confucian and Buddhist
“doctrine of the Middle”, find their Filipino equivalent in hindi
labis, hindi kulang, katamtaman lamang.
Secondly, when we speak of Filipino values, we do not mean
that elements of these Filipino values are absent in the value
systems of other peoples and cultures. All people eat, talk and
sing, but they eat different foods, speak various languages and
 sing different songs. Thus, we easily recognize Filipino, American,
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Chinese, Japanese or any other foreign food, language or music. The

difference lies in the way these elements are ranked, combined or
emphasized so that they take on a distinctively Filipino slant or cast.
For instance, in China, honesty and hard work may rank highest;
Chinese and Japanese cultures give great value to politeness and
beauty; American culture to promptness and efficiency; and Filipino
culture to trust in God and family centeredness. In this sense of
value-ranking and priority of values, we can speak of dominant
Filipino values.

FILIPINO VALUE
LEARNING OBJECTIVE Philippine Values is defined by the way of people live their
Define the Filipino life as an influence of one’s culture. Philippines, having been
values an archipelago, have not become a hindrance towards having
a single values system throughout the country. In whatever part
of the country you may be, one will find the same hospitality that
the Filipinos are known for as well as many other values that have
originated from our forefathers.
The values of Filipinos have been looked upon by foreigners
as a weakness instead of strength due to the nature of how they
may be abused and manipulated due to these values. But values
are what make up a certain nation both in growth and unity. Some
KEY WORD may see that Filipino values as a hindrance to the growth of the
country and yet others may say that his is what makes our country
Ritual is a sequence powerful. In order to understand these concepts, let us look into the
of activities involving different values of the Filipinos and how they may be of influence
gestures, words, and
objects, performed in a
to a person’s growth.
sequestered place, and
performed according Family
to set sequence. Rituals
may be prescribed The Philippines is known to be a family centered nation. The Filipinos
by the traditions recognize their family as an important social structure that one
of a community, must take care of. They give importance to the safety and unity of
including a religious
one’s family. The Filipino family is so intact that it is common for
community. Rituals
are characterized members of the same family work for the same company. It is also
by formalism, common to find the whole clan living in the same area as that the
traditionalism, Filipinos are afraid to be too far from their own family.
invariance, rule-
governance, sacral
People get strength from their family, thus a child may have
symbolism, and several godparents to ensure his future in case his parents will not
performance. be there for him. They also do not let their elders live too far away
from them. The Filipinos take care of their elders by taking them
into their homes. Unlike the Westerners, the Filipinos do not send
their elders to nursing homes to be taken care of. They believe that
when their elders are unable to live alone, the time has come for
them to pay their respects and to be able to serve their parents just
as they were cared for when they were younger.

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Politeness
Filipinos are taught to become respectful
individuals. This is mainly due to the
influence of Christianity that tells us to honor
both our parents and our elders. The use
of ‘’po’’ and ‘’’opo’’’ when in conversation
with an elder or someone who is older is a
manifestation of how Filipinos respect their
elders.
Hospitality
The Filipinos are very hospitable when it
comes to their fellowmen. They will invite
their visitors to come into their homes and
offer them treats such as snacks and drinks
after a long journey. There are also instances
when the Filipinos will serve only the best
to their visitors even if at times they may
not be able to afford it. They also go the
extremes as to give up the comfort of their
own bedrooms for their guests and to the
point of sleeping on floor just to ensure that
their guests are comfortable.
Gratitude
Gratitude or ‘’’utang na loob’’’ is a very
popular Filipino characteristic. One does not
forget the good deeds that others may have
done to him or her especially at times of great
need. This debt of gratitude are sometimes
abused by those who have done well to others
as they may ask favors or things that may
either be unreasonable or beyond the means
of the one in debt.
Filipino Business Norms,
Etiquette and Style
The Philippines’ American and Spanish
heritage, it is easy to fall into the trap of
assuming that you can do business here in
standard Western mode. Manuel Quezon,
the first President of the Philippine
Commonwealth during the years before World
War II, once said: “The Filipinos are the most
occidental people of the Orient.” However, as
discussed in my case study column, there are
many subtleties and nuances that make the
business terrain here tricky for the newcomer.
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This column discusses a few things you
THE FILIPINO VALUE SYSTEM OF BUSINESS CONSTITUENTS
should bear in mind.
Business Etiquette: Start out by addressing
a new business acquaintance by his or her
family name. “Mister” is obviously proper
for men, while many married Filipinas prefer
“Mrs.”; use “Ms.” sparingly, or at least until
her preference is clear. Filipinos are status
conscious, so be quick to use formal titles:
Doctor Aquino, Attorney Rodriguez, Secretary
de Ocampo. Avoid using someone’s first
name until they’ve known you for a while,
or until they ask you to be more informal.
Many Filipinos have multiple names:
Enrique Ramon, Juan Jesus, and Maria
Teresita. Always ask what they prefer to be
called, and then make a note regarding both
formal names and nicknames (with proper
spelling). Nicknames, some of them seemingly
flippant, are common: Johnny boy, Peachy,
Babes, Junior, Booboy. In written form, the
nickname is often enclosed in quotations as a
middle name: Antonio “Tonyboy” Cojuangco,
Ferdinand “Bong Bong” Marcos.
The rules on handshakes are about the
same as in the West, although Filipinos may
use a little more contact (a pat on the side of
the arm as gesture of hospitality or friendship).
If there is a clear status differential, or you
are meeting a senior executive, it may be
best to let him/her offer the handshake first.
Filipinos have fascinating nonverbal
language, much of it involving facial
expressions. Lifting the eyebrows without
smiling means no -- but lifting the eyebrows
while smiling is used to greet a friend.
Filipinos often point by pursing their lips.
Pointing your finger is a definite no-no, and
you should avoid too-direct eye contact.
Time Orientation in General: Although there
is a tendency to think of the Philippines as a
place where it’s fine to be late, this is no longer
true. Business people have gradually come
to appreciate the important of punctuality,
and it’s best to arrive on time. It’s always a
good idea to call ahead to confirm a business
appointment, either earlier the same day or
the afternoon before the meeting.
For most social occasions, it is almost
rude to arrive at the stated time. Fashionably
late is the name of the game, by as much
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 as an hour. At a party, the more important the guest, the later he
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

or she arrives. More generally, expect slow and indifferent service

wherever you go. Integrate that concept and do not try to fight it,
as it will not do you any good to complain except on a situational
basis. Try to adapt a Zen frame of mind when shopping or dealing
with crowds rather than fuming or doing a slow burn. No point.
Time Orientation as Related to Business Deals: The pace of doing
business in the Philippines is casual and leisurely, to say the least.
Things usually unfold at a snail’s pace that can be downright
excruciating for the results-oriented Westerner. However, it has been
like that here for centuries and current trends toward Westernized
modes of business interaction have yet to make a significant dent
in long-established custom. If you are not a patient person, it might
be a good idea to practice deep breathing and mental imagery;
getting upset about it is probably going to be counterproductive.
The pace and content of meetings is different than Westerners
are used to. There may be several minutes of small talk before
getting down to business (about the stock market, basketball, and
the latest flap at Malacañang, whatever). People like to hang around
afterwards for more of the same, even if the meeting it has been
tense. It would be impolite to hop up and immediately take your
leave, even if you are running late for another meeting or you’ve
just lost a difficult negotiation. Mend fences, leave with a smile and
hearty farewell, and return to do battle another day.
Gandhi in the Philippines: Many Westerners are used to
organizational cultures in which confrontation is the norm. In
meetings, folks show their feelings, glare and gesticulate, criticize
and even yell one another. But -- hey, no hard feelings -- they
end up going out for a drink after work or watching a ball game
together that weekend.
Not in the Philippines: A raised voice, the wrong intonation, the
KEY WORD implication of incompetence, or excessive direct eye contact can
do major damage. Although Mahatma Gandhi invented passive
Trait is something resistance in the fight for Indian independence, one might think
about you that makes it’s actually an indigenous Philippine phenomenon. Once you are
you. When your perceived as arrogant and pushy, you are in interpersonal quicksand.
mother says that you
get all your best traits
Among the forms taken by passive resistance in this context: not
from her, she means returning phone calls, missing deadlines, misinterpreting instructions,
you have the same failure to follow through. Most of the time you will not even know
charming smile and what hit you until it’s too late.
the same brilliant
mind as she has. In The Philippine Business as Family: The family is always of vital
science, trait refers to importance in the Philippines; not surprisingly, most business
a characteristic that is organizations are modeled on the Filipino family. The boss and
caused by genetics. subordinate often exist in a bata relationship, basically like that
between parent and child (bata literally meaning “child”). As a
consequence, paternalistic management styles are the norm.

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 THE FILIPINO VALUE SYSTEM OF BUSINESS CONSTITUENTS
WHAT DO YOU ALREADY KNOW? Understand how much you already know about using appropriate of the Filipino
value system of business constituents.

Ethical Business Practices

1. Ethical business practices are actions performed and attitudes held by a
business and its employees that are considered professionally and morally
responsible. These types of practices typically seek to promote the goals
of the company without sacrificing the common good of its employees,
customers, and even competitors. This often includes programs to ensure
fair hiring and promotion within a company, treating customers fairly,
and being honest in regard to programs to increase sales. Ethical practices
are often initiated as a “top down” program, with corporate officers and
the heads of the company acting as role models of behavior for other
employees.
2. For many companies, ethical business practices do not have to disrupt
the pursuit of profits and professional growth. There is often an incorrect
assumption that a business should do anything to make money and get
ahead, but many companies have been successful while still acting in a
way that is ethical and serves the common good as well as the corporate
good. These sorts of business practices can begin with programs that
donate money to charities or other needy organizations, and extend to
how customers and employees are treated by a company.
3. Many ethical business practices are related to how employees within a
company are hired, treated, and promoted. This often includes policies that
discourage discrimination, attempt to avoid issues regarding fraternization
between different levels of employees, and seek to find fair ways to settle
conflict within the company. These practices also often include ensuring
employees are given reasonable working conditions, are treated with respect,
and have any investments toward retirement protected appropriately.
4. These practices often include treating customers with respect and honesty,
not using personal information provided by customers in unscrupulous
ways, and charging customers fairly for goods or services. When these
types of practices are not observed or are broken, many customers show
their dissatisfaction by no longer giving the company their business.
5. One of the best ways to implement and ensure the proper establishment
of ethical business practices is as a “top down” program. Those at the
top of a company are often seen as professional role models for other
employees, and if they are acting in a way that is unethical, many lower
level employees will follow suit. This can lead to additional costs to a
company due to theft, reduced productivity, and potential lawsuits. There
may also be negative consequences for the value of a publicly traded
company if the officers in charge of the company are unethical.

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 UNDERSTANDING THE FILIPINO
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

CULTURE
LEARNING OBJECTIVE To a person who is not familiar or aware of the Philippine
Discuss on Filipino culture, understanding Filipinos is like playing a game one
culture has never played before and of which the rules have not been
explained very well. Understanding the values of Filipinos pose a
challenge, to enjoy the game without missing the joys and fun of
like living in the Philippines.
A stranger or foreigner, who has a knowledge of or exposure to
the Filipino society’s customs, etiquette, and manners, is less likely
to experience intense culture shock.

The Filipino Profile

The Philippines is composed of 7,107 islands with a total land area
of 296,912 square kilometers (1.6 kilometers equal 1 mile). This
makes it a little larger than the British Isles and a little smaller than
Japan. Its land area is eight times larger than Taiwan, 2/3 the size
of either Thailand or Spain, but less than 1/30 of the size of the
United States or Mainland China.
The country is bounded on the west by the China Sea, on the
east by the Pacific Ocean, and on the south by the Celebes Sea. It
lies a little above the equator and is 965 kilometers (600 miles) off
the southeast coast of the Asian mainland. It is about 160 kilometers
(100 miles) below Taiwan, and 24 kilometers above Borneo. Just
being above the equator, puts the Philippines in the typhoon belt.
The two pronounced seasons in the Philippines are the rainy months
from June to October and the dry months from November to May.
In between these seasons come a number of typhoons that hit the
country yearly.

The Philippines has a population of more than 50 million. The

population of the country is rather unevenly distributed on the
larger islands due to livelihood opportunities, social and economic
organizations and historical factors. Its biggest islands in addition
to the three (3) main islands (Luzon, Visayas and Mindanao) are
Mindoro, Samar, Panay, Cebu, Palawan, Leyte, Bohol and Masbate.
Its largest cities are Manila, Quezon, Davao and Cebu.
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 The Philippine population is characterized
by an almost equal number of males and
females. 40% of Filipinos are below 15 years of
age. Literacy stands at 82.9%. The Philippines
has for its languages Pilipino, English and
Spanish; it has 87 different major dialects.
English is widely spoken; in fact, this country
is the third largest English-speaking nation in
the world. Philippines is the first democratic
country in Asia.
Filipino Culture
Welcome to the Philippines! Welcome to
this country of warm smiles and vivacious
people. Getting to know the Filipinos is easy
enough. If you speak English, you will find
that most of the Filipinos speak the language;
and whats more, they are only too happy
to make your acquaintance in English. Even
if you do not, the Filipino is so outgoing
by nature that making friends out of total
strangers or chance acquaintances is simply
being in character.
The Filipinos are a happy blend of
several races, basically Malay with Chinese,
Spanish, Indian and American admixtures.
Their values and ways of life were shaped
by several, sometimes conflicting cultures and
the resulting blend is what makes their own
uniquely Filipino. In their veins run the rich
Christian values of Europe, the pragmatic
and democratic values of America, and the
spiritual values of Asia.
The seven distinct elements in Filipino
culture are: values, basic personality, basic
social unit, politics, economics, technology
and ecology. Each of these aspects of the
Filipino culture has a body of ideas called
“content” which gives form and meaning
to each aspect. This form and meaning are
expressed through “structures” or institutions
which the Philippine society creates for the
orderly regulation of behavior in established
ways.
Filipino cultural values are widely
held beliefs which make some activities,
relationships, goals and feelings important
to the Filipino people’s identity. When
these Filipino values coalesce and mesh in
a mutually supportive system, it is called
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“Filipino value system.” The content of the
THE FILIPINO VALUE SYSTEM OF BUSINESS CONSTITUENTS
Filipino values are the Filipino myths and
religion while the structures are the Filipino
oral and written traditions, churches, sacred
places, temples and mosques. The Filipinos
internalize these values of their culture
and thus create for themselves a “world of
meanings.”
The Filipino basic personality is
determined by the Filipino culture because
of the selection of those congruent types that
are congruent with the culture. The content
of the Filipino basic personality is made up
of Filipino beliefs and knowledge while the
structure is formed by the Filipino initiation
and various rituals and formal and informal
education.
The Filipino basic social unit is the
family which contributes to and maintains
the Filipino values. The content of the
Filipino social unit is the family, groups and
community life while the structure is the
lineage, marriage descent, neighborhood, peer
group and villages.
The Filipino politics are the Filipino ideas
and structures related to the distribution
and channeling of power within the
Philippine society for its well-being, order
and regulation. The content of politics is
the Filipino traditional power units and
democracy while the structures are the law,
parliament, councils, elders and chiefs.
The Filipino economics are the ideas
which the Philippine society develops and
the structures which it creates for provision
of food, clothing and shelter for its members.
The content of Philippine economics is the
production by private enterprises while its
structure is capitalism and socialism.
Filipino technology includes all that the
Filipinos have invented to make their life
easier, less arduous, and shifted from the
brink of mere survival thus changing their
way of life and giving them more control
of their physical environment. Its contents
are communication and health while its
structure is composed of the various media,
professional organizations, medicine, hospitals
and laboratories.
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 Cultural Contrast
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
The Filipino, compared with Westerners,
prefers a “structured” way of life rather
than one in which he can be assertive of
his own individuality. Thus, a Westerner
will find the Filipino less autonomous and
more dependent. This is because of the
social concept of the Filipino self-esteem. His
concept of self is identified with his family.
Right from childhood he is made to believe
that he belongs to the family. Since childhood
a Filipino is encouraged to tell all of his
thoughts to his parents and submit to his
parents’ direction, counsel and advice. He is
admonished to be good because any disgrace
that he commits is a disgrace to the family.
In times of misfortune he is assured of his
family’s support, sympathy and love.
By western standards, the Filipino
parents can be considered overprotective
and sometimes intrusive. However, if one
understands this seemingly unreasonable
control in the context of the Philippine culture
wherein exists the belief in the primacy of the
extended family over that of the individual
and that the only source of emotional,
economic, and moral support is the family,
one will be more tolerant and respectful of
such actuation.
The Filipino Family and Kinship
The basic units of the Philippine social
organization are the elementary family which
includes the mother, father and children, and
the bilateral extended family which embraces
all relatives of the father and the mother. Of
special importance is the sibling group, the
unit formed by brothers and sisters. There are
no clans or similar unilateral kinship groups
in the Philippines. The elementary family and
the sibling group form the primary bases of
corporate action.
The Philippine society may be
characterized as familial. This means that
the influence of kinship, which centers on
the family, is far-reaching. The persuasive
influence of the family upon all segments of
Philippine social organization can be illustrated
in many ways. Religious responsibility, for
example, is familial rather than church-
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centered. Each home has a family shrine.
The influence of the family upon economic
and entrepreneurial business activities is also
great. The so-called “corporations” found in
urban areas are generally family holdings.
The prevailing family structure emphasizes
loyalty and support of the family, not of
any higher level of social organization. The
Filipino family is the nuclear unit around
which social activities are organized – it is the
basic unit of corporate action. The interests
of the individual in Philippine society are
secondary to those of the family.
Ethical and Normative Behavior
of Filipinos
Ethics bases itself on what is human. Not
everything is universal in human nature. As
Clyde Kluckholm and Henry A, Murray says
“Every man is in certain respects (a) like all
other men; (b) like some other men; (c) like
no other man.” It is within the context of
(b) that ethical and normative behavior of
people in the Philippines has its distinctive
characteristics.
The Filipino cultural orientation is
supported by shared values which function as
the basis of shared behavior common to most
Filipinos. Values have reference to standards
people use for evaluating what is right or
wrong, good or evil. Values are related to
norms which are rules of conduct specific to
given social situations.
The Filipinos have two sets of paradoxical
traits and patterns of relationship that are
imbued by his culture. The first set is the
highly structured and authoritarian familial
set-up where roles are prescribed especially
for younger members of the family. This is
characterized by autocratic leadership of the
elder-members, submitting one’s self to the
decision of the family elders, and almost one-
way communication in the pecking order.
The second set of social relationship that
the Filipino has, which ironically exists side
by side with the highly structured set-up,
is the strong communitarian practice called
“Bayanihan” which literally means “being a
hero.” This practice ignores social ranking,
structures, leadership roles and authority
relationships. The roles in the structured set-
up mentioned earlier cease to exist. Surprisingly, the Filipino is at

THE FILIPINO VALUE SYSTEM OF BUSINESS CONSTITUENTS

home with both cultural practices in his social life. It shifts from
one setting to another with unbelievable ease and grace. In the first
set up, there is no way that a child can lead the elders in any form
of decision-making. In the Bayanihan set-up, however, if a child
proves that he has the right qualification needed for the task, he
may lead the elders, not excluding his father and elder brother.
There are three main imperatives that underlie Filipino
value orientation: relational imperatives (actual person to person
encounters), emotional imperatives (emotionally laden norms), and
moral imperatives (Filipinos are more moralistic than ordinarily
perceived and that the most powerful moral imperative in
Filipino culture is “utang na loob” or debt of gratitude/loyalty or
commitment).

WHAT DO YOU NEED TO KNOW?

Read Information Sheet very well then find out how much you can
remember and how much you learned by doing self-check.

INFORMATION SHEET
Philippines. Experts in Filipino culture
If you come from a culture where you are accustomed to conducting
most of your important business by phone or email and making
decisions on the spot, you will need to apply the brakes if negotiations
take you to the Philippines. Experts in Filipino culture such as Maida
Pineda and Paul Rodell advise that business transactions -- as well
as interpersonal relationships -- move at a pace that is both formal
and leisurely. Filipinos place a high value on trust and ascribe to
the belief that good things come to those who practice patience.

Business Meetings
If you are scheduling a meeting with associates in the Philippines, it
is not uncommon to make arrangements as far as a month ahead of
time. As a professional courtesy, always confirm the date by phone
a few days prior and provide advance copies of whatever materials
are necessary to clarify and enhance the objectives of the meeting.
According to Asia type, Inc.’s “Doing Business in the Philippines
2008,” even if your company has had a longstanding relationship
with a Filipino business, you will be treated like a newcomer if it is
the first time they’ve met you in person. This occurs, for instance,
if you are replacing someone or have just been hired. Punctuality
is paramount in getting meetings underway even though actual
negotiations may move at a snail’s pace.

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 Introduction
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

If you are the visitor, it is customary to offer your business card

first. Be aware, however, that you may not get one in return if your
rank is not comparable to or higher than your Filipino recipient.
As with other Asian cultures, business cards are presented face
up with both hands. When you receive a card, take a thoughtful
moment to study it before pocketing it. Always greet the oldest or
highest-ranking person at the meeting first. Firm handshakes are
standard protocol in the Filipino community and individuals are
addressed by their titles and surnames until such time as familiarity
has been established.

Conversations
The strong emphasis in the Filipino culture on fostering warm
relationships with others often leads them to be overly inquisitive
when it comes to conversations with strangers. As travel experts
Alfredo and Grace Roces point out in their book, “Culture Shock!
KEY WORD Philippines: A Survival Guide to Customs and Etiquette,” your
Filipino colleagues and new acquaintances are not being aggressively
Etiquette refers to nosy when they ask you about your family history, your marital
conventional forms status, or the names of your children and how they are doing in
and usages: the school. They are simply inquiring about the same things that occupy
rules of etiquette. the center of their own universe. As Paul Rodell discusses in his
Decorum suggests
book, “Culture and Customs of the Philippines,” Filipinos are quite
dignity and a sense
of what is becoming well versed on American pop culture and it is not unusual for
or appropriate for business meetings to end with 15 to 20 minutes of social chatter
a person of good about what’s new. “Losing face” is shameful in Filipino society;
breeding: a fine sense accordingly, they do not like to show anger, raise their voices,
of decorum.
engage in debates or get pushed to make hasty decisions.

Eating
Light refreshments are often served at business meetings; never
offend your host by declining, even if you have just had a big
breakfast or lunch before you arrived. In restaurants as well as
private homes, always follow the lead of your host and wait to
be instructed where to sit and -- if it is a buffet -- when to start
helping yourself to the food. While many Asian cultures believe
that leaving a small portion of food on your plate at the end of
the meal is a show of respect, Filipinos really do not mind if you
show your appreciation by finishing every last bite. Always follow
up with a written thank-you for being invited.

Gifts
If you are going to give a gift to a Filipino colleague, keep in mind
that a lot of weight is given to how beautifully it is packaged.
This is a direct reflection of the amount of thought and time you

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have put into the gesture. In other words,

THE FILIPINO VALUE SYSTEM OF BUSINESS CONSTITUENTS

do not just stick your present in a paper bag
and say, “Here.” Because there are no color
prohibitions in terms of wrapping papers
and ribbons, the more festive the better.
Just do not be disappointed when your gift ►
is not unwrapped until after you have left.
Outside the family circle, Filipinos consider
gift-giving a private affair and do not want
to hurt the feelings of those present who are
not getting anything. Gifts such as books,
►
small electronics and items unique to your
own country are appropriate business gifts.
If you are invited to a colleague’s home,
flowers (with the exception of lilies and
chrysanthemums) are always appreciated.
As far as edible gifts, stick to candy. To bring ►
anything other than that will be construed as
an insult that you think the household is poor.

►
►

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