SAINT ANTHONY ACADEMY OF GONZAGA SY 2020-2021

SUBJECT: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY ABM 12

LESSONS: The Business Responsibilities and Accountabilities
PREPARD BY: KELVIN JAY S. SAPLA Email: saplakelvinjay@gmail.com

PART I. INTRODUCTION
Module three offers lessons that will help the leaners to understand deeply the social responsibilities and
accountabilities of an entrepreneur.
This module consists of the following lesson:
 Lesson 3.1 – Discuss the responsibilities and accountabilities of entrepreneurship to employees; government;
creditors; suppliers; consumers; general public and other stakeholders.
 Lesson 3.2 – Formulate a morally defensible position on ethical issues in entrepreneurship like basic
fairness, personal customer relations distribution dilemmas, fraud, unfair competition, unfair communication,
none respect or agreements and environment degradation
 Lesson 3.3 – Describe the different model and frameworks of social responsibility
 Lesson 3.4 – Formulate a framework of social responsibility that reflects the practice of sound business
PART II. STANDARDS
CONTENT:
1. the responsibilities and accountabilities of entrepreneurs and accountabilities of entrepreneurs toward the employees,
government, creditors, suppliers, consumers, general public, and other stakeholders; major ethical issues in
entrepreneurship (basic fairness, personnel and customer relations distribution dilemmas, fraud, unfair competition, unfair
communication, no respect of agreements, environmental degradation, etc.)
2. Models and frameworks of social responsibility in the practice of sound business
PERFORMANCE
1. Identify responsibilities to the business organization he/she belongs to
2. Explain the different models and frameworks of social responsibility
LEARNING COMPETENCIES:
The learners:
3.1 suggest ways to enhance employer-employee relationship and encourage just and fair business policies and practices
such as recruitment, promotion, retention, marketing and advertising, intellectual property rights, sources and uses of
funds, and the like
3.2 advocate honest policies and practices in all aspects of business operations
3.3 observes and promote policies and practices in environmental management
3.4 cite examples of companies that practice social responsibility in the conduct of their business
3.5 provide evidence that ethical/social responsibility is profitable, i.e., makes good business sense
PART III. TRANSFER
PERFORMANCE:
The learners shall be able to:
1. identify the classical philosophies and their implication for business principles and practices
2. describe various belief systems, and their similarities and differences in relation to the business setting
3. describe how the Filipino value system affects the attitudes of business constituents
PART VI. DISCUSSION/ SUMMARY
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 organization so 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.
Remember these key points:
Responsibilities of an entrepreneurs to his employees:
 Sensible and attractive salary
 Assignment of right jobs
 Provide security of employment
 Provide best working environments
 Assumption of welfare arrangements
 Humane behavior towards employees
 Formation of small business relation
 Participation in profits management
 Definite service
 Espouse incentives wages structure
Responsibilities of an entrepreneurs to their suppliers and creditors:
  Pay fair prices of goods at a reasonable time
 Inform about changes in marker
 Give guarantee of minimum price
 Provide technical advice
 Inform suppliers of future developments
 Promote healthy competition
Responsibilities and accountabilities of an entrepreneurs to their clients:
 Determination of fair prices
 To render good and economic services
 Standardization of goods
 Best and economic packing of products
 Right and truthful advertisements
 To avoid adulteration, low weight and measurement of products
Responsibilities and accountabilities of an entrepreneurs to the government:
 Compliance of government rule
 Pay of taxes
 Not to seek political patronage by unfair means
 Work together with government of commercial development
Lesson 2: Major Ethical Issues in Entrepreneurship
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.

ACTIVITY
Case Analysis:
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?
4. Write a situation in your life where you also encountered the similar situation with
Engineer Imar. How did you handle the situation?
5.
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 (2009) 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)

EVALUATION:
Direction. Answer the 10-item Simple Recall Test and write your answers on the blank provided before the number.
______ 1. Caroll’s Pyramid model of Social Responsibility includes the following except:
a. Economic b. Ethical c. Philanthropic d. Subliminal
______ 2. 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.
a. Determination of Fair Prices b.Not to Seek Political Patronage by Unfair Means
c Formation of Small Business Relations d. Right and True Advertising
______ 3. 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.
a. Formation of Small Business Relations b Right and True Advertising
c Not to Seek Political Patronage by Unfair Means d A and B are correct
______ 4. Establishment of good relationship with the employees to protect the interests of everyone
a. Formation of Small Business Relations b. Right and True Advertising
C Not to Seek Political Patronage by Unfair Means d A and C are correct
______ 5. Making sure that the physical environment of the workers is well taken-cared of by providing good
lighting, proper temperature and workable space for the employees is a responsibility by the entrepreneur
a. Sensible and Attractive Salary b Pay Fair Prices of Goods at a reasonable time
C Provide Best Working Environments d Assumption of Welfare Arrangements
______ 6. Truthful and honest in promotions are very crucial in marketing the merchandise.
a. Right and True Advertising b Assumption of Welfare Arrangements
C Promote Healthy Competition d Pay Fair Prices of Goods at a reasonable time
______ 7. Any unhealthy and hostile rivalries among dealers should not be permitted by the entrepreneur.
a. Provide Best Working Environments b Assumption of Welfare Arrangements
C Pay Fair Prices of Goods at a reasonable time d Promote Healthy Competition
______ 8. The businesspersons should give the guarantee of lowest prices to the suppliers so that the confidence
of the price will be continued.
a. Pay Fair Prices of Goods at a reasonable time b. Humane Behavior towards employees
C Give Guarantee of Minimum Price d. Sensible and Attractive Salary
______ 9. Workers should be treated empathetically by letting them to exercise their rights and appreciate being
workers of the corporation
a. Give Guarantee of Minimum Price b. Sensible and Attractive Salary
C Humane Behavior towards employees d. Pay Fair Prices of Goods at a reasonable time
______ 10. Entrepreneurs have the accountability to remunerate for the established amounts with the suppliers.
a. Give Guarantee of Minimum Price b. Pay Fair Prices of Goods at a reasonable time
C Sensible and Attractive Salary d. Humane Behavior towards employees
References
https://www.researchgate.net/figure/Carrolls-pyramid-model-of-corporate-social-responsibility-Carroll-
1991_fig1_308937632
https://hbr.org/2020/04/coronavirus-is-putting-corporate-social-responsibility-to-the-test
https://www.googlesir.com/responsibility-of-entrepreneur-towards-suppliers-creditors-and-depositor/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-employees/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-government-institutions/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-customers/
https://images.app.goo.gl/aNyzzqNVfAXo3hRU7