Business Environmental Analysis of The Philippines

Abstract

This paper will introduce the reader to the history of the Philippines and its origins as a country and examine how the Philippines interacts with the rest of the global community today. In addition to its history, this paper hopes to elaborate the very aspects, which make up the country’s international business to include: international trading activities, natural resources and environmental sustainability, political forces, legal forces, economic and socioeconomic forces, and its financial forces. This paper will also discuss some of the implications that Christian managers face when dealing with foreign companies, cultures, and religious beliefs while conducting business overseas as well as in the United States. But, will also attempt to explain how faith can be integrated into the overall business environment.

Business Environmental Analysis Report: The Philippines

This is an introduction regarding as well as a brief history of the Philippines. The country is considered an archipelago (a group of islands or many islands) and made up of over seven-thousand islands. The Philippines is in Southeast Asia and touches the China Sea as well as the Pacific Ocean.” More than four hundred years ago, the Philippine Island of Mactan the European explorer Ferdinand Magellan was killed by a tribal chieftain Lapu-Lapu. A few decades after Magellan’s death, Spanish conquers returned in force colonized the Philippine archipelago” (Shimer & Shalom, 1987). Although the people of the Philippines were ruled multiple times, they still managed to gain their independence in “The Filipino people have had the misfortune of being “liberated” four times during their history” (Constantino & Constantino, 1975) but gained their independence in 1946 after World War II.  Since the Philippines were last owned by the United States, this explains why the country is considered a Republic and their governmental structure closely follows that of the United States.

The Philippines were first ruled by Spain for over four-hundred years, which is why most if not all Filipinos have Spanish surnames. While under Spanish rule, the Philippines adopted Catholicism as their own and have been ever since.  Although Catholicism is the primary sect of Christianity in the Philippines, other religions are also practiced around the country. After they were ruled by the Spaniards all that time, “next came the Americans who “liberated them from the Spanish oppression, then the Japanese who “liberated” them from the American imperialism, then the Americans again who “liberated” them from the Japanese fascists” (Constantino & Constantino, 1975).

Today, visitors to the Philippines can see influences from many other cultures such as Spanish, Malaysian, Chinese, as well as American. When visiting the Philippines, tourists will find the native Filipino to be warm, kind, and friendly. Many Filipinos speak the Native language of Tagalog, but also speak English which is considered their second language. The people of the Philippines are considered some of the nicest people around the world. When visiting the Philippines, one will see the rich history of the country as well as learn about the local communities, customs and culture.

International Trade Activities

Like most other countries, the Philippines trade with other nations to obtain the raw materials needed for their economy. The Philippines engages in the global marketplace in relation to trade, they not only import and export raw materials to other countries, but also human capital in the form of Overseas Filipino Workers (OFW) “On average, 3,400 Filipinos leave daily for work abroad, over a million per year, to join the nearly ten million Filipinos (out of 90 million) already out of the Philippines, scattered around the world” (San Juan, n.d.).

Any country who trades with other nationals usually understands, that the international environment usually consists of the following: “the interactions between the domestic environmental forces and the foreign environmental forces, as well as interactions between the foreign environmental forces of two countries, such as when an affiliate in one country does business with customers in another” (Geringer, McNett, Minor, & Ball, 2016).

While this is nothing new to the Philippines, it is noteworthy to mention this in terms of global perspectives “It is the largest global diaspora of migrant labor next to Mexico, the highest per capita exporter of labor in Southeast Asia” (San Juan, n.d.). In terms of trade, the Philippines are just a handful of nations that export human capital as well as raw materials, “Exporting is the transportation of any domestic good or service to a destination outside a country or region” (Geringer et al., 2016).  One of the raw materials that the Philippines imports is rice, the reason being is “The Philippines imports rice because it is a nation of islands without any major river deltas like those in Thailand and Vietnam” (Dawe, Moya, & Casiwan, 2006).

Foreign Direct Investment (FDI) for the Philippines has increase over the years with not only its human capital such as the OFW but also in regards Filipino corporations finding new markets to grow their businesses within the United States. This is in relation to the large number of Filipinos living in the United States. Regarding the OFW, the Philippines would appear to possess a competitive advantage in the sector of exporting human capital “Porter’s theory of national competitive advantage is based upon an analysis of the characteristics of the national environment which identifies four sets of variables which influence firm’s ability to establish and sustain competitive advantage within international markets” (Grant, 1991).

For a country to grow its Gross Domestic Product (GDP), it must trade with other nations as well as engage in Foreign Direct Investment (FDI), this can be said for the Philippines which trades with countries around the world, not only in FDI, consumer goods, but as well as human capital as previously mentioned in this paper “Giddens suggests, in fact, that globalization is about “action at a distance”: the increasing interpenetration of individual lives and global futures” (Kettl, 2000).

Although a country engages in international trade through various strategies, it is attempting to increase its gross domestic product if it wants to see real growth in the economy “In discussing trade strategies, perhaps the hypothesis of widest interest is that growth in real exports tends to cause growth in real GNP” (Jung & Marshall, 1985).

Most often, countries will use multiple strategies regarding the growth of gross domestic product through various means, such as data gathering “In the first place, it seems more appropriate to use gross data because we are interested in the effects of foreign direct investment in the host country via transfer of knowledge and other spillover effects” (Borensztein, De Gregorio, & Lee, 1998).

Just as with other nations, the Philippines tends to have a certain competitive advantage over other nations. Although other Asian nations produce foods such as rice, electronics, vehicles, etc., the Philippines main advantage comes in the way of human capital (OFW).  This is an important aspect for the country as noted earlier. Filipino’s are well known for their hospitality, dedication to their employer, and their friendliness makes them a huge asset “The main contribution of the Competitive Advantage of Nations is in extending the theories of international trade and international direct investment to explain more effectively observed patterns of trade and investment between the developed countries” (Grant, 1991).

• Factor Conditions – This stage analyzes in great detail the characteristics of factors of production, the processes by which they are created, and their relationship to firm’s competitiveness.
• Demand Conditions – It is essential the understand the features of the national environment which are conducive to such investment. Porter places a lot of emphasis on the role of home demand in providing the impetus for upgrading competitive advantage.
• Related and Supporting Industries – Economies which are external to individual firms and industries are internalized within the industry cluster.
• Firm Strategy, Structure, and Rivalry – This includes strategies, structures, goals, managerial practices, individual attitudes, and intensity for rivalry within the business sector (Grant, 1991).

The Philippines, like other nations are trying to increase its economic growth, which in turn helps the citizens of the country. “The principle economic goal for every nation, according to Porter, “is to produce a high and rising standard of living” (Porter 1990).

International Institution Activities

International institutions such as the United Nations (UN) assist in one of several capacities around the globe helping nations either settle disputes, re-enforce sanctions or attempt to control against behavioral challenges from any given nation. The United Nations can be called upon to intervene when necessary through the use of international laws. The following are two types of institutions that will be discussed, where every country follows using one of the following:

“Formal institutions operate through laws and regulations to influence behavior. Any organization that uses the threat of force to achieve compliance is formal, such as a government, the police, and even a club that threatens sanctions if members fail to observe club rules. Informal institutions use norms, values, customs, and ideologies to mold behavior, rather than laws.⁷ Much of our social behavior is the result of norms and customs” (Geringer et al., 2016).

Although the United Nations is just one example of an institution that can be used to assist, when needed. The United Nations also incorporates The United Nations Economic and Social Council (ECOSOC) which have been used for economic development, social welfare, trade, illegal drugs, as well as other aspects. Other institutions that can assist either a underdeveloped nations, developed nations, or third-world nations are: The Organization for Economic Co-Operation and Development (OECD), The World Trade Organization (WTO), The International Monetary Fund, and The World Bank “Governments increasingly find it difficult to implement worthy policies concerning economic activity because such activity often crosses boarders in ways that escape the reach of much national government control” (Jackson, 1997).

Each nation and the Philippines are not alone, experience both internal and external challenges “Rather, it is the assumption that such constraints are absolute rather than relative, and that they represent ‘the end of state history’ rather than an evolving history of state adaptation to both external and internal challenges” (Weiss, 1997).  When experiencing an external challenge (Such as trade disputes) the Filipino government can call upon one of the international institutions previously mentioned to assist. “Promoting fair competition. Although many describe the WTO as a “free trade” organization, and it certainly does work toward trade liberalization, the WTO also recognizes that trade relationships among nations can be exceedingly complex”” (Dollar, 2016).

The association that these countries are a member are: “the Association of Southeast Asian Nations (ASEAN, which includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam), Mercosur in South America (comprised of Argentina, Bolivia, Brazil, Paraguay, Uruguay, and Venezuela), and the 28-nation European Union” (Geringer et al., 2016). Globalization is redefining how a state behaves and tends to correct when a state does not fall in-line with the rest of the global community “States are now virtually powerless to make real policy choices; transnational markets and footloose corporations have so narrowly constrained policy options that more and more states are being forced to adopt similar fiscal, economic and social policy regimes” (Weiss, 1997).

The Philippines are great trading partners with many countries around the world. Although they are located in Asia, doesn’t mean they only trade with other Asian countries. “In the economic sphere, governments have moved towards greater openness in matters of trade, investment and finance” (Weiss, 1997). Although this may be true, governments still have a need to protect their national interest, thus placing a limit on certain imports they deem to potentially harmful. Is this a method that the Philippines should implement, or allow the status quo to continue? The Philippines is part of a region that has developed a trade association where they will trade various products within the region “Regions such as Asia have developed regional trade associations and agreements (Geringer et al., 2016).

“However, because informal institutions are generally not written down, there is a risk that the concept can become tautological and can become a residual category to explain empirical regularities not otherwise accounted for” (Stiglitz, 2000).

Regarding informal institutions, although they use norms, values, and ideologies to influence behavior of society, the authors of the determinants of Chinese outward foreign direct investment as noted by Buckley et al (2007) state the following: “The challenge is in theorizing the distinction between mere behavioral regularities (which might not be rules) and informal rules (which make up informal institutions)” (Buckley et al, 2007).

If the Philippines have put together strategies in way of tourism that will lure visitors from all over the world to visit, but also to invest in their luxury apartments, condos, as well as resorts. This strategy places the Philippines on the map of destinations for not only individuals to visit and invest, but multi-nationals such as high-end retail chains, restaurants, as well as hotel developers will have property within one of the major resort cities or the capital region known as Manila. The United States government has an embassy located within the city of Manila “A brilliant strategy may put you on the competitive map. But only solid execution keeps you there. Unfortunately, most companies struggle with implementation. That’s because they overrely on structural changes, such as reorganization, to execute their strategy” (Neilson, Martin, & Powers, 2008).

Natural Resources and Environmental Sustainability

Regarding the sustainability of the Philippines, “Deforestation is making large numbers of Filipinos even poorer and forcing them to migrate to Manila, adding already to its sprawling population” (Broad and Cavanaugh 1993).  The Philippines is made up of plenty of natural resources including rice, corn, sugarcane, abaca, and tobacco. The Filipino government prefers to export all of these items with the exception of rice and corn, used for local consumption “Countries like the Philippines are generally primary producers, with large subsistence sectors totally dependent upon natural resources” (Shandra, London, & Williamson, 2003, p. 312).

The one other natural resource the Philippines boasts plenty of are forests throughout the multiple provinces the country has, which many of the citizens in the rural provinces rely on for their livelihoods, “In the rural provinces of this country, most people depend directly on forests for their livelihoods” (Shandra et al, 2003).

According to the authors, the forests located in these rural areas are not the only natural resource people rely on “To live, people eat and sell the fish they catch or crops they grow­-and typically, these people exist at the margin” (Shandra et al, 2003).

Just about every nation have policies and strategies in place regarding their environmental sustainability as part of their global responsibility, the Philippines is not any different.  An article by Pollnac & Pomeroy (2005) stated project were conducted in the Philippines as well as Indonesia regarding their Integrated coastal management (ICM) “A review of ICM projects in the Philippines identified over 100 projects implemented from the early 1980s to the present. It was not possible with the resources available in this project to study all of these ICM projects” (Pollnac & Pomeroy, 2005).

The authors stated the findings of these projects within these two nations “The findings indicate that perceptions of benefits as well as initial benefits influence early involvement and participation in the ICM projects evaluated in the Philippines and Indonesia” (Pollnac & Pomeroy, 2005).  A majority of nations as well as companies around the world are all aware of going green with their recyclable materials.

The government of the Philippines understands that limiting waste is an important factor and should be a way of life for most of its citizens, but still there are areas around the country that still need to be addressed “Systems are established to continuously and cost-effectively recover these materials from end-of-life products and then safely biodegrade them or recycle them (McDonough & Braungart, 2010).

Political Forces

Some of the political forces that may be in play within the Philippines just may come from within their very own government.  Now, the Philippines isn’t without any national issues. During the 1970’s and the early 1980’s, the Philippines saw eight years martial law under President Ferdinand Marcos “The eight years of martial law from September 1972 to January 1981 radically transformed the Philippine political system” (Villacorta, 1983).

The system of government has of course changed since then, incorporating various checks and balances, which are in place to monitor the political system. The Philippines uses the Presidential system rather than the Parliamentary. The political system within the Philippines has been viewed to be corrupt for years by those not only living in the country but also by those outside of the boarders. Now, is it fair to say that they are any less or more corrupt than other governments around the globe, the answer can be a resounding yes but also a resounding no.  Only time will tell if one or the other will come true.

It is certain that there are internal challenges “Country risks are often political, including wars, revolutions, and coups. The company’s home country may be a factor: Does the host country bear a friendly attitude toward it or not? “(Geringer, McNett, Minor, & Ball, 2016).  When it comes to trading with other countries, will the political machine of the Philippines accept the opportunity or oppose it? If and when the Philippines encounters difficulties with partnering neighbors regarding trade, the United Nations has an agency known as the Organization for Economic Cooperation and Development. This agency has the ability to step in as the “middle man” to resolve any potential conflicts “The OECD provides a forum for negotiation amongst leading players in key policy areas. Cohn (2002) has exhaustively documented the part played by the OECD in facilitating negotiations in the global trading regime” (Woodward, 2009).

 Legal Forces

Regarding the legal factors that can play a major part in any country, but following the rule of law, which is regarded at the rule of the land “Countries that follow the rule of law also tend to protect the human rights of local peoples, an increasing concern of global companies” (Geringer et al., 2016). Most people in just about every country, often tend to follow the local laws that govern a particular city, province, or country. The Philippines have a standard set of laws for various issues. It is safe to say that although there are laws in place, will everyone follow them, but laws are not made so that can be broken, although some individuals will tend to believe this myth.

Just because laws on put on the books to keep citizens safe, wither in commerce, legal and civil matters to name a few “In general, commercial laws come from two broad traditions: common law and civil law, Legal rules of civil law countries are derived from Roman Law, and “are conceived as rules of conduct intimately linked to ideas of justice and morality” (David and Brierley 1985, p. 22; Porta, Lopez-de-Silanes, Shleifer, & Vishny, 1998).

Does the law apply to everyone who visit the Philippines or should they be ignored? When visiting a foreign country, it is expected that tourists as well as business people follow the local rules and laws. Laws are in place to be followed, but is every law in the Philippines going to apply in these cases? Laws may be written for a country’s citizens and visitors alike. On occasion, laws can be written or enacted depending on a particular circumstance, “Our starting point is the recognition that laws in different countries are typically not written from scratch, but rather transplanted — voluntarily or otherwise — from a few legal families or traditions” (Watson 1974; Porta et al, 1998).

What if a person who is in the Philippines on business raises a dispute with a particular manufacturer, should he or she use the laws of the United States or the local laws of the Philippines in order to move forward. Businesses as well as countries can use arbitration to settle a dispute between them. The business person who may be from the United States may want to choose U.S. law instead of litigation within the host country. Litigation by design is an “agreement, binding, while one country’s court decisions are difficult to enforce on a nonresident. “For these reasons, international businesspeople often agree by stipulating in their contract that any disputes will be resolved by arbitration rather than by litigation” (Geringer et al, 2016).

Many attempts have been made to standardize laws among various countries. The advantage of standardization is that business flows much better when there is a uniform set of rules. Worldwide agreement on a body of laws, known as harmonization, is progressing slowly, though, in most areas. For now, businesspeople must confront the reality of at times widely differing legal standards.

The history of international business is filled with examples of companies whose managers decided they understood a foreign market well enough so that they didn’t need local legal help, only to encounter an expensive learning experiences. For example, Disney’s lack of local legal representation resulted in violations of local employment law and unenforceable construction contracts in Disneyland Paris. Local counsel may be expensive, but not having counsel is far more expensive. We begin with the way competition is treated legally, comparing the EU and the United States.

Economic and Socioeconomic Forces

Some of the economic and socioeconomic forces in play for the Philippines is the Overseas Filipino Worker (OFW) who will remit a great portion of their earned income back to the Philippines to assist their family with the daily living expenses, Yang (2008) stated the following in relation to the average Filipino worker who by remitting their wages is contributing to the welfare of their families back home “overseas Filipinos work in dozens of foreign countries, many of which experienced sudden changes in exchange rates due to the 1997 Asian financial crisis. Crucially for the analysis, the changes were unexpected and varied in magnitude across overseas Filipinos locations” (Yang, 2008).

This as a whole not only helps the families of these OFW’s, but also helps the economic activity of the country “In global capitalism, economic activity is not only international in scope, it is also global in organization. ‘Internationalization’ refers to the geographic spread of economic activities across national boundaries” (Gereffi, 1999).

TOTAL POPULATION

Total population, the most general indicator of potential market size, is the first characteristic of the population that analysts examine. Population sizes vary immensely. Figure 7.5 identifies the 10 countries projected to have the largest populations in 2050, as well as their current population as of 2014, to help indicate both size and extent of growth in each. (Geringer, McNett, Minor, & Ball, 2016).

To estimate the potential of a market and provide input to the other functional areas of the firm, managers require data on a number of socioeconomic factors in addition to the economic factors discussed above. For example, an area must have sufficient people with the means to buy the firm’s products. Socioeconomic data provide information about the number of people, and the economic dimensions tell us whether they have purchasing power. We begin this section with an analysis of total population.

“The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of live which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations” (Smith, 1778).

“gross national income (GNI), the total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad” (Geringer et al., 2016).

“Mean living standard, as proxied by per capita consumption–expenditure (adjusted for cost-of-living differences), varies substantially across regions of the country. Metro Manila, which accounts for about 14 per cent of the population, has the highest mean expenditure” (Balisacan, 2000)

“Governments increasingly find it difficult to implement worthy policies concerning economic activity because such activity often crosses boarders in ways that escape the reach of much national government control” (Jackson, 1997).

Financial Forces

The economic and socioeconomic forces can contribute to the financial forces a country can experience to this.

Converting GNI to a Common Currency and Purchasing Power Parity

Another problem with GNI estimates is that to compare them, we must convert them to a common currency—conventionally the dollar—by using an exchange rate. If the relative values of the two currencies, their market exchange rates, were to accurately reflect their consumer purchasing power in each nation, this simple conversion would be acceptable. However, that is not usually the case.¹⁰ Often, in the developing economy the consumer’s market prices for goods are lower than in the developed markets. The United Nations International Comparison Program (ICP) has developed a method of comparing GNIs based on purchasing power parity rather than on the international demand for currency (market currency exchange rates). Purchasing power parity (PPP) is a means of adjusting the exchange rates for two currencies so the currencies have equivalent purchasing power. Here is how purchasing power parity rates are calculated.

“It asserts (in the most common form) that the exchange rate change between two currencies over any period of time is determined by the change in the two countries’ relative price levels” (Dornbusch, 1985).

Dornbusch (1985) states it this way: “Purchasing Power Parity (PPP) is a theory of exchange rate determination” (Dornbusch, 1985).

Dornbusch, R. (1985). Purchasing power parity.

“It asserts (in the most common form) that the exchange rate change between two currencies over any period of time is determined by the change in the two countries’ relative price levels” (Dornbusch, 1985).

Check Chapter 8 in Textbook

Implications for US Managers

What can managers from the United States (U.S) find when they conduct business in the Philippines, and what are the implications of doing business in this country? Most managers will often find that when Filipinos they deal with Filipino business people, that they do speak and conduct business in English. Although the national language of the Philippines is Tagalog, the countries second language is English.

Section 9 of your paper will come directly from your own research of scholarly articles or journals, as well as information gleaned from your textbook.

Integration of Faith and Learning

In section 10 you must identify as well as elaborate on 5 important aspects a Christian manager must consider when negotiating a business deal with a foreign culture and 5 things to avoid when negotiating a business deal with a foreign culture. The use of biblical references is required.

Must Consider

1. He suggests three core values that are starting points for formulating and evaluating standards of ethical conduct at home and abroad. These values are: respect for human dignity, respect for basic rights and good citizenship. The Caux Round Table (see Solomon, 1996) specifies several general principles for enhancing global business ethical conduct
   1. Thou shalt have no other gods before me Unity of command; respect for authority; strong commitment to brand names
   2. Thou shalt not make unto thee any graven Loyalty to authority and emphasis on image, or any likeness of anything that is appearance and the value of good impressions in heaven above, or that is in the water under the earth:
   3. Thou shalt not take the name of the Lord Emphasis on literal meaning, on contractual thy God in vain; for the Lord will not hold agreement and on the role of promotion and him guiltless that taketh his name in vain advertising in enhancing product differentiation and competitive position
   4. Remember the Sabbath day, to keep it holy. Specific time is set for work; active promotion Six days shalt thou labour and do all thy and stimulation are encouraged during work work: But the seventh day is the Sabbath of days; various programs and activities are the Lord thy God: in it thou shalt not do any pursued just before the Sabbath work, thou, nor thy son, nor thy daughter, thy manservant, nor thy maidservant, nor thy cattle, nor thy stranger that is within thy gates:
   5. Honor thy father and thy mother Design products that appeal to parents; seniority is respected in an organization
   6. Thou shalt not kill Business relationships should be based on agreed on principles; violence is not the right means to solve conflict
   7. Thou shalt not commit adultery Clarity in business dealing; commitment to agreed on contracts is essential
   8. Thou shalt not steal Honesty is a virtue; matters of conflict should be dealt with in a frank and businesslike environment
   9. Thou shalt not bear false witness against Partnership is necessary for business growth; thy neighbor observance of duties toward customers, suppliers and partners; engage in activities that strengthen community link
   10. Thou shalt not covet thy neighbor’s wife, Avoid acting on desires that may negatively nor his manservant, nor his maidservant, impact others; treat employees with nor his ox, nor his ass, nor anything that respect and dignity is thy neighbor’s

Must Avoid

International Journal of Social Economics 25,10 1560 TCs Implications of business 1 Ye have heard that it was said by them of Negotiated settlements for solving business old time, Thou shalt not kill; and whosoever problems is a virtue; compromise, listening shall kill shall be in danger of the judgment: and understanding partners’ views facilitate But I say unto you, That whosoever is angry business relations with his brother without a cause shall be in danger of the judgment 2 Ye have heard that it was said by them of Understanding motives and needs will lead old time, Thou shalt not commit adultery: to long-term business relationships. Sincere But I say unto you, That whosoever looketh relationships are vital for any business on a woman to lust after her hath committed endeavor adultery with her already in his heart 3 It hath been said, Whosoever shall put away Contracts and agreements among partners his wife, let him give her a writing of shall be observed and shall not be nullified divorcement: But I say unto you, That except by mutual agreement; violation of an whosoever shall put away his wife, saving agreement is a sin and causes an unhealthy for the cause of fornication, causeth her to business environment commit adultery: and whosoever shall marry her that is divorced committeth adultery 4 Swear not at all; neither by heaven; for it is Confidence in and trust of others facilitate God’s throne business relations 5 Ye have heard that it hath been said, an eye Avoid business and work conflicts; for an eye and a tooth for a tooth: But I say compromise and understanding improve work unto you, That ye resist not evil: but conditions and enhance organizational whosoever shall smite thee on thy right survival cheek turn to him the other also 6 Ye have heard that it hath been said, Thou Rely on sound judgment and personal shalt love thy neighbor and hate thine enemy. sympathy; avoid conflict with those But I say unto you, Love your enemies, bless who are in power and tolerate their them that curse you, do good to them that aggressiveness hate you and pray for them which despitefully use you and persecute you 7 That ye may be the children of your Father Organizations should be committed to which is in heaven: for he maketh his sun the welfare of their employees regardless of to rise on the evil and on the good and send their ethnicity, religion, etc.; organizations the rain on the just and on the unjust and their members should benefit their communities; one should not abuse power and pass judgment on others 8 For if ye love them which love you, what Fairness and due process are expected; reward have ye? Do not even the publicans tolerance for the autocratic style is essential the same? for the continuity of an organization; conflict may have negative consequences; evolution rather than revolution is the right path for survival and growth (Continued) Table III. The TCs in Christianity: business implications The Ten Commandment perspective 1561 Islam Islamic TCs have a central place in Islamic teaching and were often emphasized in the Prophet Mohammed’s sayings. The most significant part of the Islamic TCs, that set them apart from the other TCs, is the emphasis on business conduct and day-to-day dealing. The TCs in Islam appear to focus on the pragmatic aspects of life while asserting the humanistic and spiritual needs. The focus on business conduct and proper relationships may indicate a commitment to the centrality of work in one’s life and the necessity of establishing an equilibrium in life between “work” and “spiritual” needs. Prohibition of monopoly and “secret” business dealings while asserting accurate “measurement” and fairness in conduct give the TCs a new meaning that is not previously found. Similar to the TCs in Christianity, the TCs in Islam may convey different messages. This is specifically related to the last commandment. People may believe that it means God has already determined their future. This understanding may give rise to predestination (Jabria) thinking. Predestination asserts that man is not responsible for his/her actions and that tradition must take precedence over the power of choice (Ali, 1990). Others may understand it to mean that God gives you the right to choose; man is at liberty to commit a good or bad deed, pain or joy and that he/she is responsible for his/her action. Among the several implications that are identified in Table IV, the following are relevant: unity of direction; differentiating products and services are essential for business conduct; a respect for competent and accepted authority; senior employees should be treated with dignity; subsidiaries should observe the parent company instructions; spin offs should be done in a way that does not cause chaos; business should not engage in price wars to drive others out of business; employee layoffs and downsizing should be considered as a last resort to maintain business survival and should not be done for the purpose of increasing profit; codes of ethics and moral standards in corporations should be applicable to everyone; promotional materials that are indecent and may inflict emotional distress on people should be avoided; respect for human dignity in the workplace; treat employees grievances seriously and fairly; and justices and equity are virtuous. TCs Implications of business 9 And if ye salute your brethren only, what Friendly environment and harmonious do ye more than others? Do not even the relations in the workplace are essential for publicans so? organizational existence and development 10 Be ye therefore perfect, even as your Father Employees should not strive to work hard which is in heaven is perfect or to change work environmenta; or employees should be insp

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