MODULE V

ETHICS THROUGH THICK AND THIN,

! ETHICS AND RELIGION

!· Lesson 1 Globalization and

[ Pluralism
Lesson 2 Taxation
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Lesson 3 Philosophy of Value
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MODULE V

ETHICS THROUGH THICK AND THIN, ETHICS AND RELIGION

INTRODUCTION

Globalization is the word used to describe the growing

interdependence of the world's economies, cultures, and populations,
brought about by cross-border trade in goods and services, technology, and
flows of investment, people, and information. Countries have built
economic partnerships to facilitate these movements over many centuries.
But the term gained popularity after the Cold War in the early 1990s, as
these cooperative arrangements shaped modern everyday life.

The wide-ranging effects of globalization are complex and politically

charged. As with major technological advances, globalization benefits
society as a whole, while harming certain groups. Understanding the relative
costs and benefits can pave the way for alleviating problems while
sustaining the wider payoffs (PIIE, 2019).

OBJECTIVES

1. To identify the role of globalization in ethics;

2. To determine the ethical considerations of taxation in business
transactions; and
3. To know the underlying principle of values-formation.

DIRECTIONS/ MODULE ORGANIZER

There are three lessons in the module. Read each lesson carefully
then answer the exercises/activities to find out how much you have
benefited from it. Work on these exercises carefully and submit your output
to your tutor or to the DOUS office.

In case you encounter difficulty, discuss this with your tutor during
the face-to-face meeting. If not contact your tutor at the DOUS office.

Good luck and happy reading!!

GECC 104a - Ethics - Module V-

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Lesson 1

m GLOBALIZATION AND PLURALISM

Globalization

Globalization can be defined as the continuing world-wide economic

integration, recently facilitated by emerging information technologies, that
has also affected the environment, culture, and political of different groups
of people.

"Globalization is just a phenomenon and not just a passing trend. It is

the international system that replaced the Cold War system. Globalization is
the integration of capital, technology and information across national
borders, in a way that is creating a single global market and, to some
degree, a global village." - On Thomas Friedman's Lexus and the Olive Tree

For Friedman, the challenge of globalization for everyone is how to

come up with a creative response to the conflict between the Lexus and the
olive tree:
- Lexus (referring to the luxury line of Toyota), representing the
"drive for prosperity and development" brought about by
globalization
- Olive tree, representing the "identity and traditions" brought
by the "ancient forces of culture, geography, tradition, and
community"

Issues in Globalization

[_, "Globalization is deeply controversial, however, Proponents of

globalization argue that it allows poor countries and their citizens to
L develop economically and raise their standards of living, while opponents of
globalization claim that the creation of an unfettered international free
I market has benefited multinational corporations in the Western world at the
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L expense of local enterprises, local cultures, and common people. Resistance
globalization has therefore taken shape both at a popular and at a
L governmental level as people and governments try to manage the flow of
capital, labor, goods, and ideas that constitute the current wave of
globalization."
L from Globalization 101 (http://www.globalization101.org/what-is-
L globalization/)

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From Sylvain Ehrenfield ("Ethical Dilemmas of Globalization," in Ethical

Culture, http: I ethkalfocus. orgl ethical-dilemmas-of-globalization/):

• "Protectionism": a. k.a., "economic nationalism" - belief that

international institutions (e.g., WTO, IMF, WB) adversely affect
national interest, makes the country subservient to multinational
corporations
• "Anti-globalist": accuse international institutions for being
"undemocratic," ignoring environmental issues, promoting unjust
labor practices (e.g., child labor, workplace safety) , increasing
inequality and further impoverishing the poor.
• "There is much talk about free trade. We must remember that
every free trade agreement is a negotiated document. It involves all
kind of bargaining about different products and tariffs. For
-. example, for the North America Free Trade Agreement, NAFTA, the
I results were uneven. US corn producers benefited, while textile
workers have not. Mexican farmers were devastated by US corn
[. imports, and their textile workers lost out. Part of the reason is
textile products from China and US subsidies for agriculture. It is
estimated that the growth in Mexico and Latin America has
I benefited the upper 30% but the bottom gained little."
- Ehrenfield, "Ethical Dilemmas of Globalization"

[. Issues in Globalization: Ethics and Human Rights

l: • Particular moral codes (based on one's culture, religion, or other

social grouping) are absolute for member of the group
- Are they?
l. - Ex: the system of apartheid in South Africa (1948-1994)
- Legal codes and morality
l_ • Who defines "human rights"?
- The issue of China: Confucianism shaped China to value
l, individual's responsibility to community, to social harmony
("collectivism" vs. "individual rights"?)
- "Western" vs. "Eastern" values? Notions of "right"?
L Pluralism

L. • Can mean any of several things:

- (1) The bare fact that there are many sets of beliefs and
L practices

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- (2) The attitude that recognized (1) above, but on top of that
maintains an openness to the differences and a desire for
engagement and understanding across this diversity
For its followers, this is not reducible to relativism;
instead, it's a call to dialogue
• The current era: contact between multifarious cultural, political,
religious persuasions.
- The question is how to creatively and constructively respond to
such situations.

Ethical Theories and Different Cultures

• Ate the ethical theories we studied - all coming from "dead, white,
western males" - irrelevant to our own cultural contexts?
- What if you are alive, brown, eastern, female .... and lesbian
and poor, as well?!?
• Can we still learn anything from the "classic" (Western) ethical
theories?
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[ LEARNING ACTIVITY

1. What is globalization?
[. 2. What is the role of ethics in settling international issues such as
territorial dispute, human rights violations and war?
3. Give and discuss at least three principles of international law.

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Lesson 2

m TAXATION

General Principles
Definitions:

• "Taxes are the enforced proportional contribution, generally payable

in money, levied by the law-making body of the State by virtue of its
sovereignty upon the persons or property within its jurisdiction for
the support of the government and all public needs." (de Leon, p.1)
• "Taxation is the inherent power by which the sovereign state imposes
financial burden upon persons and property as a means of raising
revenue to defray the necessary expenses of the government." (Con
Untian, p.1)

Purpose of Taxation:

• Primary: to raise revenue to satisfy government needs

• "Aside from financing purely governmental operational expenditures,
taxation is also utilized as a tool to carry out the national objectives
of social and economic development." (de Leon, p.1)
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Thus, basis of taxation is two-fold:
a. Necessity: government cannot exist and function without means to
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b. Reciprocal duties of protection and support between the state and its
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i Two aspects of taxation:

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a. Levy: legislative act of imposing the tax, exercised by Congress
b. Collection: administrative act of collecting the tax, exercised by
Executive branch with:
1. Bureau of Internal Revenue - national taxes
2. Bureau of Customs - customs duties
3. Local Government Units - local taxes and real property taxes
4. Appropriate government agencies - fees & charges

Essential characteristics of a Tax:

L 1. Enforced contribution
2. Payable in the form of money

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3. Laid by the State which has jurisdiction or control over the subject to
be taxed
4. Levied on persons, property, acts, privileges or transactions
5. Levied by the State which has jurisdiction or control over the subject
to be taxed
6. Levied by law-making body of the State
7. Levied for public purpose

Basic Principles of a Sound tax System

1. Fiscal adequacy: the sources of revenue should be sufficient to meet

the demands of public expenditures
2. Equality of theoretical justice: the tax imposed should be
proportionate to the taxpayer's ability to pay
3. Administrative feasibility: "tax laws should be capable of convenient,
just, and effective administration." (de Leon, p4) "Tax must be plain
and clear to the taxpayer and should be capable of efficient
enforcement by government officials." (Co Untian, p.5)
)
Question: Does our income tax system meet these requirements?

l Nature of the power of taxation

1. "The power of taxation is inherent in sovereignty being essential to
the existence of every government."
l. 2. "It is essentially a legislative function."
3. "It is subject to constitutional and inherent limitations." (de Leon,
p.3)
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Three constitutional limitations:
l. 1. Due process clause: taxpayer may not be deprived of life, liberty or
property without due process of law.

l, 2. Equal protection clause: taxpayers shall be treated alike under

similar circumstances and conditions, both in privileges and liabilities
imposed.
L 3. Uniformity clause: taxable articles or property of the same class shall
be taxed at the same rate. No direct double taxation

l- • Direct double taxation: "Direct double taxation occurs when the

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same public authority imposes two or more taxes on the same
property for the same purpose during the same taxing period."
(Co Untian, p. 5)

l, Limitations implied form constitution:

e.g. public purpose and non-delegation of legislative power
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Other limitations from the nature of the taxing power:

e.g. territoriality, international comity, exemption of government entities
r- Classification of taxes:
1. As to subject matter or subject:
r a. Personal, poll, or capitation: fixed amount imposed on individuals
residing within a specified territory. E.g. community tax
b. Property, real or personal. E.g. real estate tax
r c. Excise: tax imposed upon performance of an act, the enjoyment
of privilege, engagement in an occupation. E.g. income tax, taxes
on privilege, (value-added tax, professional tax).

2. As to who bears the burden:

I a. Direct-Tax demanded form the person who is intended to pay it.
b. Indirect-tax demanded from one person in the expectation and
intention that he shall indemnity himself at the expense of
another. E.g. value added tax.

3. As to determination of amount:
a. Specific-tax of a fixed amount imposed by the head or number,
or by some standard of weight or measurement. E.g. excise taxes
on cigarettes, distilled spirits, and others.
b. Ad valorem-tax of fixed proportion of the amount (e.g. income
1. tax) or value of the property (e.g. real estate tax, excise tax on
cars & non-essential goods)

I (In Tax Code, 'excise taxes' refer to taxes applicable to specified

article manufactured in the country for domestic sale or
imported goods)
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4. As to purpose:

I. a. General, fiscal, or revenue-tax the general purposes of

government. E.g. income tax, taxes on business
b. Special or regulatory-tax for a special purpose e.g. tariffs on
/. imported goods

L 5. As to authority imposing the tax

a. National
b. Local or municipal
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6. As to gradation or rate:
a. Proportional-tax based on a fixed percentage of the amount of
L. the property, income or other basis to be taxed. E.g. real estate
taxes, value-added tax

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b. Progressive or graduated-tax the rate of which increases as the

tax base increases. E.g. income tax, donor's tax

Income tax
Definition:
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1. "Income tax is referred to as tax on all yearly profits arising from
property, professions, trades or offices, or as a tax on a person's
income, emoluments, profits and the like."
2. "Income tax is generally regarded as an excise tax. It is not levied
upon persons, property, funds or profits but upon the right of a
person to receive income or profits." (de Leon, p.8) (meaning, right
implies obligation)
Situs of taxation: place of taxation
1. Factors:
( . a. Nature of the tax and the subject matter thereof, a person,
I property, act, or activity
b. Possible protection and benefit that may accrue both to the
state and to taxpayer
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I c. Domicile or residence
d. Citizenship
e. Source of income
I Doctrine: State's taxing power does not extend beyond its
territorial limits
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2. Basis
a. The recipient of the income is a citizen or resident of the
country
b. The income is derived from sources within the country
I. "The income tax is founded on the protection afforded by the
State to the recipient of the income in his person, in his right to

l receive the income, and in his enjoyment of it when received."

(de Leon, p.8)

1. Question: Is the present income tax system JUST?

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itS LEARNING ACTIVITY

1. What are the essential characteristics of taxation? Discuss each.

2. Is the TRAIN Law a solution to poverty reduction?

3. Distinguish tax from license.

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Lesson 3

w PHILOSOPHY OF VALUE

Values are a particular class of ideal objects.

Objects of our feelings. Mind is blind to values just as eyes are blind to
sound and ears deaf to eolors.

Qualities, different from goods or carriers of value.

In essence, objective, eternal and immutable.

Independent of subject though related to it, and of social, historical,

contingent factors of situation. These can be carriers of values.

Independent of our striving, though they form the basis of our ends or
striving.

Values are given to us immediately in acts of preferring, the most

fundamental of which is love and hatred.

Preferring, not the same as choosing. Object of choosing is a good, already

I implying a value comprehension.
Love is an immediate attitude towards objects of value which encompasses

l- always whole complex grades of value.

Love not a state of feeling.

L HIERACHY OF VALUES

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L_. Hierarchy of values invariable, a priori, although rules for preferring one
value to another varies throughout history.
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Rank of values not mediated by intellect but known intuitively by logique
ducoeur.
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Two groups: positive and negative. Existence of positive value is positive

L value. Non-existence of positive value is negative value. Existence of

negative value is negative value, non-existence of negative value is positive
value.
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GECC 104a - Ethics - Module V-

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1 Holy/unholy

Spiritual

Vital

Sensory

1. Sensory Values: the pleasant and its negative, the unpleasant.

Objects of sensory feelings, and corresponding subjective states are

delight and pain.

We always prefer the pleasant, although carriers vary

Also technical values, values of civilization and luxury values.

2. Vital Values: the noble and the vulgar.

Values connected with general well-being.

Corresponding feeling-states are health, sickness, aging, exhaustion,

vitality, etc.

Feeling-toned responses: being pleased, anger, courage, anxiety, etc.

3. Spiritual Values: justice/injustice; truth, of which scientific and culture

values are derivative; aesthetic values of beautiful and ugly.

Feeling-states: joy, sorrow

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Feeling responses: delight, dislike, approval, disapproval, reverence,
contempt, retaliation, sympathy.

4. Values of the Holy and Unholy

Appear on objects given as "absolute objects".
L Derivative values: sacraments, forms of worship.
Feeling-states of bliss, despair
L Feeling-responses: belief, unbelief, awe, worship, etc.

Characteristics of higher values:

L. 1. Ability to endure
2. Indivisibility
3. Generates other values
L. 4. Gives deeper satisfaction
5. Independence of experiencing organism.
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MORAL VALUES

Positive: Good. Negative: Evil.

Good and evil "ride on the back of the deed"

r Not in front, this can be the end or the result. Not in the end for this would
bring us in circles. Not in the result for we would have to wait for the result
to happen before a deed can be good or evil.

Good is the realization of a higher value in place of a lower value or of a

positive value in place of a negative value.

Evil is the realization of a lower value in place of a higher value or of a

negative value in place of a positive value.

Moral values of good and evil are personal not only in the superficial sense
of coming from the person who acts but in deeper sense of contributing to
formation of our person.

Since higher values of holy and spiritual pertain to person, and lower values
of vital and sensory pertain to ego, moral values of good and evil form our
person hood.

Doing good makes us more of a person while doing evil makes us less of a
person.

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GECC 104a - Ethics - Module V -
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JiS LEARNING ACTIVITY

1. What is your philosophy in life as a student? Why?

2. What are the characteristics of values? Discuss each.
3. Distinguish the following: attitude, behaviour and values.

JiS SUMMATIVE TEST

Evaluate the impact of TRAIN Law in the Philippine Economic Development

using the Strength-Weaknesses-Opportunities-Threats (SWOT) Approach.
Consider ethical issues, moral deliberations and underlying philosophical
values.

l~W MODULE SUMMARY

Globalization can be defined as the continuing world-wide economic

integration, recently facilitated by emerging information technologies, that
has also affected the environment, culture, and political of different groups
of people.

Taxation is the inherent power by which the sovereign state imposes

financial burden upon persons and property as a means of raising revenue to
defray the necessary expenses of the government." (Con Untian, p.1)
l. Values are a particular class of ideal objects

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GECC 104a - Eth ks - Module V-
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