Learning Activity Sheets

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Business Ethics and Social Responsibility
Quarter 4

The Business Responsibilities and Accountabilities

Lesson 1. The Responsibilities and Accountabilities of Entrepreneurs
According to Investopedia there are a lot of responsibilities of an entrepreneur to his employees. Among of
these are the following:
1. Sensible and Attractive Salary – the company should have attractive compensation packages to attract
more potential talents to join the organization who can be of help in the achievement of the long-term goals
of the company. This can be also a source of motivation for employees to do the job well assigned to them
according to the plans of the organization.
2. Assignment of Right Jobs
Taking into consideration the technical and the educational background of the employees in assigning them
to the job where they are good at. No mismatching of jobs with employees’ qualification.
3. Provide Security of Employment
The entrepreneur should give their employees job security in the organizationso that these employees will
be motivated to work with utmost dedication and commitment. Employees will no longer have fear to lose
the job and thus, develops higher degree of faith with their employer.
4. Provide Best Working Environments
Making sure that the physical environment of the workers are well taken-cared of by providing good
lighting, proper temperature and workable space for the employees is an accountability by the
entrepreneur. This will make the workers comfortable working in their own department.
5. Assumption of Welfare Arrangements
Entrepreneurs are also responsible in the welfare of their employees. It is their accountability to provide
financial support during sickness, old age, accidents and even death. Even at the time of health crisis
where there are unemployment, employers should also provide financial assistance.
6. Humane Behavior towards employees
Employees should be treated compassionately by allowing them to practice their rights and enjoy being
workers of the company. Entrepreneur should create humane workplace necessary for the workers to do
the things that they are tasked to do.
7. Formation of Small Business Relations
Establishment of good relationship with the employees to protect the interests of everyone. An organization
with good industrial relations may have effective communication lines which is very important in any
organization.
8. Participation in Profits and Management
There are instances when employers share their profits to the employees. This is based on the principle
that profit of the organization is not of the owner alone but also for the rest of the employees of the
organization. This can be one of the responsibilities of the entrepreneur.
9. Definite Service Surroundings
The employees should also have full knowledge of all these service conditions that may cover promotions,
appointment, penalties, suspensions and dismissals as well as retirements, service period. There must be
clear and well-defined structure of these areas of employment.
10.Espouse Incentives Wages Structure
One way of inspiring employees to aspire for higher quality of work is to give them incentives and salaries.
These provisions will be beneficial to both the workers and the enterprise.
On the other hand, entrepreneurs also have responsibilities to their suppliers and creditors. Entrepreneurs
are accountable of the following:
1. Pay Fair Prices of Goods at a reasonable time – Entrepreneurs have the responsibility to pay for the
agreed prices with the suppliers. This helps in the establishment of good relationship with the suppliers. On
the other hand, it is also the responsibility of the entrepreneurs to pay their creditors at an agreed term.
2. Inform about Changes in Market – Information on the Changes in the market should be provided by
the entrepreneur to his supplier especially on the demands of the commodities.
3. Give Guarantee of Minimum Price - The entrepreneurs should give the assurance of lowest prices to
the suppliers so that the certainty of the price will be sustained.
4. Provide Technical Advice -The entrepreneur has the responsibility to provide procedural assistance his
suppliers for the creation of new and replaced supplies.
5. Inform Suppliers of Future Developments – Provision of information on future growths to the suppliers
so that suppliers will be aware of these circumstances and that they will develop themselves in line with the
changes of the business environment.
6. Promote Healthy Competition – Any unhealthy and hostile competitions among suppliers should not be
allowed by the entrepreneur. This is one of the accountabilities of an entrepreneur to his creditors and
suppliers.
Finally, entrepreneurs also have responsibilities and accountabilities to their clients. Customers are the
most important factors of the business. Thus, it is only important that entrepreneurs should take care of
them. The following are the responsibilities of the entrepreneurs to the customers.
1. Determination of Fair Prices – Entrepreneurs should identify just process for the goods and services so
that customers will develop trust on the product and in the long run, they also develop loyalty to the
business as well as to the product.
2. To Render Good and Economic Services – Good customer service is very important in a business. It
is the responsibility of the entrepreneurs to provide good and cheaper services to the customers.
3. Standardization of Goods – The entrepreneurs should make sure that the product or the goods bought
by the customers are in good condition so that it will not provide danger to the customers when they use it.
Goods and services should pass the quality standards set by the company as well as the government.
4. Best and Economic Packing of Products – Packaging is an important marketing strategy. The goods
and services should be packed well to prevent damage of the product.
5. Right and Truthful Advertising – Truthful and honest in advertising are very essential in marketing the
product. It is a moral and a social responsibility of the entrepreneurs.
6. To Avoid Adulteration, Low Weight and Measurement of Products – Products should be produced
following the specific designs set by the quality standards of the company. Tarnishing of live-saving goods
such as medicines are harmful to life.
There are also responsibilities and accountabilities of entrepreneurs to the government.
1. Compliance of Government Rules – The entrepreneur should be law abiding. Whatever will be
required by the government, the entrepreneur should comply with it in accordance with the law.
The entrepreneur should comply with the laws concerning attainment of licenses for a particular business,
running of the business, price identification and even production of goods and services.
2. Payment of Taxes – Any business is taxed by the government. The entrepreneur should follow the
imposition of taxes such as income tax and sales tax. There should be honest declaration of income so that
it will be taxed accordingly.
3. Not to Seek Political Patronage by Unfair Means – It is the responsibility of the entrepreneur not to
seek for any political support through provision of unnecessary economic help to any political party or
politicians especially during elections.
4. Work together with Government for Commercial Development
The entrepreneur should cooperate to the government by appropriate application of existing resources in
harmony with the government objectives. For example, the Philippine government aims to increase
employment for retrenched employees during the health crisis. Therefore, the entrepreneur should help the
government achieve its aims.

Lesson 2. Major Ethical Issues in Entrepreneurship

The following are the most common ethical issues encountered by entrepreneurs:
Favouritism/Partiality
Entrepreneurs should not be biased when it comes to hiring employees and in making decisions in other
aspects. You don’t hire a less qualified job candidate because he is related to you or because he is your
favorite. It is not only unethical but you are also hiring someone who is not best for the position.
Copyright Violation
The mistake of infringing copyrights of other businesses is an abuse of the law. It is important that you
should ask permission from the rightful owner before you use their own creations for business.
Overworking Your Staff
Entrepreneurs asking too much work from their employees without even understanding their situations is
unethical. Entrepreneurs should know their limit in assigning workloads to their employees.
Tax Accounting and Dishonesty of Expenses
Dishonesty in declaration of assets and income just to get lower tax is unethical. It is important that the
entrepreneur should not mix personal and business expenses. Not doing it right mind end up in trouble with
the law.
Claiming Income
Hiding income generated and not declaring it may hamper the business because it will deprive the
government from collecting from these entrepreneurs. This qualifies as unethical because there is
dishonesty in this situation.
Hiding Blemishes During Fundraising
It can be very tempting to slightly exaggerate things while on the hunt for investment and it is a very
slippery slope with no real upside. You either lose credibility/trust later on or commit yourself to an
unrealistic timeline that will only frustrate those who have bought into your dream. Be optimistic but realistic
with where challenges might occur. Openness and honesty help ensure a good fit.
Merging Personal and Business Accounts
Never merge personal income with business income. Entrepreneurs should be sensible with their
expenses. Proper payroll or paying quarterly taxes should be observed.
Hiring someone to write fake reviews
Hiring people to write fake reviews about the company is unethical. There also companies being paid just
create fake survey results just like TV ratings. This action is not ethical because these businessmen are
giving fake information about their company just to appear positive online.

Lesson 3. Models and Framework of Social Responsibility in the Practice of Sound Business
The four Models and Frameworks of Social Responsibility of Kimberly Leonard (2019) are the following:
1. Economic Model – this model is followed by entrepreneurs on the purpose to increase the profit of the
company. This is otherwise known as the profit-based social responsibility of the business. A business is an
organization that produces goods and services. In this connection, the society and the community benefits
from it because jobs are created and wealth is collected.
2. Philanthropic Model – The entrepreneur, just like any other individuals, is free to contribute to social
causes in form of philanthropic action. Although corporations and businesses have no obligations to
contribute to social causes, it may be contributory to its good reputation. Businesses are encouraged to do
charitable works because it does not only help the community but it also helps the company to have good
public relations, tax deductions and good will.
3. Social Web Model (Ethical) - It projects business as a citizen of the society in which it functions as
such. Just like all members of a society business must obey to the normal ethical duties that every citizen
of the community faces. It is the duty of the corporation to comply with the law of the community.
4. Integrative Model –There is combination of social goals with economic objectives of the organization.
Most of the successful corporations have recognized that some for-profit organizations also have social
goals as a fundamental part of the organizational strategy.
Carroll's pyramid model of corporate social responsibility (Carroll, 1991).
Activity 5. Case Analysis
Name: __________________________________
Grade and Section: ________________________
Entrepreneur Angel Press is looking for contractors to work on their new building in preparation for her
company’s expansion this 2021. She assigned her resident engineer Gomer Imar to facilitate the invitation
to bid for the project. There were five bidders sent letters of intention. Two days before the final evaluation
of bids, one of the bidders Willy Loyola gave the engineer five gift certificates worth P10,000 each.
Engineer Imar gladly accepted the gift certificates.
1. Was Engineer Imar right in accepting the gift certificates? Why? Or Why not?
2. If you were Engineer Imar, would you do the same? Why? Or why not?
3. In case you were Angel Press and you knew about it; how will you handle the situation?
Activity 6.
Name: __________________________________
Grade and Section: ________________________
Suppose you are going to open an online business just in time for the health crisis. What are your
considerations to new normal condition with its strategy considering its social responsibility?

Consideration Strategy

Answer the following:

1. Discuss the proposed framework above and explain its significance to the practice of sound
business.
2. How does your proposed framework contribute in uplifting the situation of the community being hit
by COVID-19?