Republic of the Philippines

Department of Education
Region VIII
Division of Northern Samar
Eladio T. Balite Memorial School of Fisheries
Bobon Northern Samar

LEARNING ACTIVITY GUIDE (LAG)

BUSINESS ETHICS & SOCIAL RESPONSIBILITIES
Senior High School (ABM)
4th Quarter (2nd sem)
Week 1
IMPORTANT: Use a separate sheet of yellow ruled pad paper for your
answers

Most Essential Learning Competency:

● Discuss the responsibilities and accountabilities of entrepreneurs to
employees, creditors, consumers and other stakeholders (ABM_ESR12-IVi-l-3.1);

Specific objectives: The learner will be able to:

1. identify the responsibility and accountability of entrepreneurs to employees, government,
creditors and suppliers;
2. decide which are the responsibilities and accountabilities of entrepreneurs to employees,
government, creditors and suppliers; and
3. appreciate the importance of the responsibilities of entrepreneurs to employees, government,
creditors and suppliers.

Background Information for Learners:

This learning activity guide focuses on the responsibilities and accountabilities of

entrepreneurs towards to consumers, general public, and other stakeholders. An enterprise
must earn profits for its own survival, for expansion, for bearing the risks and finally for the
prestige of its management. But profit cannot be the sole objective of the entrepreneur. It is a
means and not an end. No enterprise can last long unless along with earning profits, it continues
to fulfill its obligations to the society. The ultimate objective of every enterprise has to be the
good of the people. Business must be run by the people through the people and for the people.

I- Activity:
Directions: Read and analyze each statement below and choose the letter that corresponds the
correct answer.
1. What refers to the duty or obligation to satisfactorily perform or complete a task (assigned by
someone, or created by one’s own circumstances) that one must fulfill, and which has a
consequent penalty for failure?
A. Responsibility B. Accountability C. Transparency D. Fairness

2. What responsibility of an entrepreneur which makes sure that the physical environment of the
workers is well taken-cared of by providing a well illuminated and ventilated workable space for
the employees?
A. Pay wages/salaries and taxes B. Assignment of right jobs
C. Create and maintain an ergonomic workplace D. None of the above

3. Businesses must treat their injured employee with respect and file the claim without attempting to
cause a delay in processing or attempt to deter the worker from filing a claim at all.
A. Facilitate employees’ compensation insurance B. Support career development
C. Train and educate employees D. Enforce anti-discrimination law

4. The entrepreneur should provide employment security to the employees of his organization, which
will cause the sense of satisfaction among them and they will work with full interest, dedication, and
commitment and will feel free from the apprehensions of losing a job and will have the higher degree of
faith in the employer.
A. Respect human rights B. Give rewards and Benefits
C. Give security and employment D. All of the above

5. The following are responsibilities of an entrepreneur to the government EXCEPT for:

A. Compliance of government rules B. Payment of taxes
C. Give rewards and benefits D. None of these

II - Analysis:
1. Based on the activity, have you ever consider your responsibility as a consumer?
2. What do you think is your responsibility as a consumer?

III - Abstraction:
A - Let’s Unlock Some Difficulties:
Responsibility – refers to the duty or obligation to satisfactorily perform or complete a task
(assigned by someone, or created by one’s own circumstances) that one must fulfill, and which has a
consequent penalty for failure.
Accountability – is the obligation to demonstrate that work has been conducted in compliance
with agreed rules and standards or to report fairly and accurately on performance results vis-à-vis
mandated roles and/or plans.

B - Let’s Discuss
RESPONSIBILITIES and ACCOUNTABILITIES of ENTREPRENEURS
To Employees, Government, Creditors and Suppliers
An entrepreneur is one who organizes, manages and assumes the risk of an enterprise. An
entrepreneur should be aware of the ethics and social standard follow them.
A - EMPLOYEE
Employees are the true assets of an organization. They are the ones who contribute effectively
towards the success of every business so, in return entrepreneur has responsibilities and accountabilities
to fulfill for the safety and welfare of their employees. The following are the responsibilities and
accountabilities of an entrepreneur to his/her employees.
1-Pay Wages/Salaries and Taxes
The company should have an attractive compensation packages to attract more
potential talents who can be a help in achieving organization’s long-term goals.
Entrepreneurs have the responsibility to pay their employees of their business at least
the minimum hourly wage in their locality. Wages/salaries should always be on time and without delay so
as the employees can meet their individual obligations thus, motivates them to stay and do well in the
business.
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 or aligned with their skills and abilities.
Mismatching of jobs with employee’s qualification is discouraged.

3-Create and Maintain an Ergonomic Workplace

 Entrepreneurs must also make employees aware of areas in their business that have a
high risk for injury and train their employees in safety procedures to minimize the risk of injury. Working
environment that are properly ventilated and illuminated improve employee’s performance, their health
and well-being.

4-Facilitate Employees’ Compensation Insurance

When injuries occur through no fault of their employees, it’s their responsibility to file a
claim with their employees’ insurance provider. Businesses must treat their injured employee with
respect and file the claim without attempting to cause a delay in processing or attempt to deter the
worker from filing a claim at all.

5-Support Career Development

Career development is providing support and encouragement for employees to enhance
their skills and capabilities as an employee. Provide a human resources development system that
supports the careers of employees, a self-development support program, and transfer opportunities for
willing employees.

6-Train and Educate Employees

Acquisition of new knowledge and skills through the professional and personal
development of employees is a pre-requisite and a guarantee of business’s success. Professional
development also includes dialogues with colleagues, peer mentoring and peer collaboration for
achieving business goals.
Every individual wants to develop. So, the responsibility of the entrepreneur is that he
should make all possible efforts for the individual development of the employees and may impartially
provide them equal opportunities for that. These opportunities include imparting education and training,
give timely promotions, transfers at the right time and their participation in the management of the
business, etc.

7-Enforce Anti-Discrimination Law

Employees cannot be disadvantaged, dismissed, or not given employment for any
reasons mentioned. Any problems or issues that arise with guests or colleagues from overseas may
require involvement of embassies, government agencies, local cultural groups, or diplomatic services to
help resolve them.

8. Respect Human Rights

Business operations are interrelated with a wide range of people and societies throughout
the world, and implements and enforces a code of conduct that fosters respect for human rights.

9. Give rewards and Benefits

Reward employees fairly and attractively, in line with the prevailing conditions on the local
market. Gather data from the labor market on a regular basis, ensuring that reward structures remain
competitive. Employees are more likely to strive in their work if there is anticipated reward, they’ve value,
such as salary increase, bonus, and promotion, rather than if there is none.
It is also mandated in the Labor Code of the Philippines that entrepreneur should pay
fringe benefits such as PhilHealth, Social Security, PAG-IBIG, taxes out of employees’ wages/salaries for
each employee working in their business.
Recognition boosts esteem and morale in which employees feel important, satisfied, and
inspired. Recognizing employees for accomplishments can be an important reason for employees to
stay.
Providing these benefits motivate many employees to stay and do well in the business.

10. Give security of Employment

The entrepreneur should provide employment security to the employees of his organization,
which will cause the sense of satisfaction among them and they will work with full interest, dedication,
and commitment and will feel free from the apprehensions of losing a job and will have the higher degree
of faith in the employer.
B. GOVERNMENT
 In Business, the responsibilities of entrepreneurs towards the government, professional
institutes, and other business institutions are very essential. The government sets the targets for the
balanced and rapid economic development of the country.
Responsibilities and accountabilities of entrepreneurs to the government are:
1-Compliance of government rules
The rules framed by the government for business should be fully complied with. The
entrepreneur should follow the laws regarding obtaining licenses for a specific business, the operation of
the business determination and production and etc.

2-Payment of Taxes
The government imposes various types of taxes, like, income Taxes, sales tax, excise tax,
tariff duties and wealth tax on the entrepreneur and business, for raising financial resources.
Entrepreneurs should honestly pay these taxes.

3-Not to correct the Government Machinery

The government appoints the officers to implement its policies. The social responsibility of
the entrepreneur is that he may not correct the government officers and employees for getting wrong
favors or some Anti-Social purposes.

4-Not to Seek Political Patronage by Unfair Means

The responsibility of the entrepreneurs is that they do not seek political patronage by
providing undue economic help to any political party or politicians during elections. By giving anti-social
activities with political patronage hits the democratic values.

5-Cooperate with Government for Economic Development

The government sets the targets for the balanced and rapid economic development of the
country. For that, the entrepreneur should provide cooperation to the government by proper utilization of
available resources in accordance with the government targets.

C. CREDITORS
A creditor is an entity (person or institution) that extends credit by giving another entity
permission to borrow money intended to be repaid in the future.
Various plans are prepared for development and expansion of the business and for that
various projects are also formulated. For their completion, capital is the foremost requirement, which is
fulfilled through loans from the individuals, Financial Institutions and Banks.
Responsibilities and accountabilities of Entrepreneur towards creditors
are:
1-Obtain Loans on Reasonable Conditions
Some certain conditions are required to be fulfilled to obtain any type of loan. These
conditions should be reasonable, both for the creditors and the business organization.
2-Follow Mortgage Rules
The creditors provide loans in secured and unsecured forms. If the creditor has provided the
secured loan on the mortgaged property, the entrepreneur should follow the rules of mortgaged property.
3-Follow Business Ethics
Both the entrepreneurs and creditors should follow the business ethics in providing loans
and in repayment of loans. The loan procedures should be honestly complied with.
4-Proper Utilization of Debt Capital
Loans are obtained for particular objectives. Hence, entrepreneurs should utilize the loan
amount only for the desired objectives. The loan amount should not be utilized by small entrepreneurs for
unproductive activities. Not only that, but loan capital should also be invested only for objectives and
projects specified for the loans. Loan capital should be utilized with the utmost economy.
5-Regular Payment of Installment and Interest
The entrepreneurs should pay loan installments and interest regularly, according to
repayment conditions. If installments and interests are not paid timely, the loan burden goes on
increasing and it also has an adverse effect on the reputation of the business organization.

D. SUPPLIERS
 The services of the suppliers are also important for any business because they supply raw
materials, machinery, labor, and other materials. Without hem, the smooth operation of the business is
quite difficult.
Entrepreneurs’ responsibilities and accountabilities towards their suppliers are the following:
1-Pay fair prices of goods at a reasonable time
The entrepreneurs should pay reasonable prices for the materials purchased from the
suppliers. Often, the farmers provide cotton, sugarcane, and jute etc. to various industries, for use as raw
materials. However, the Industrialists pay them very low prices for these commodities.
Entrepreneurs should pay reasonable prices for this type of raw material. The responsibility
of the entrepreneurs is that payment to the suppliers may be made in time so that they may not have to
face financial difficulties and may carry out their operations efficiently and smoothly.

2-Inform about Changes in Market

The entrepreneurs have the responsibility to provide regular information to the suppliers
regarding changes happening in the demand of the commodities in domestic or in foreign markets. So
that the suppliers may make necessary changes in their manufacturing projects, according to the
requirements.

3-Give guarantee of Minimum Price

The entrepreneurs should give the guarantee of minimum prices to the suppliers so that
they may feel assured about the certainty of the price and may continue to maintain their will power.

4-Provide technical Advice

The entrepreneur has the responsibility to provide technical assistance to the suppliers for
the production of a new and substitute or replaces supplies/commodities. The entrepreneurial
organizations and Institutions and suppliers together should short research projects.

5-Inform Suppliers of Future Developments

The Entrepreneur should provide information about possible future development to the
suppliers so that they will be aware of these circumstances, thus, develop and become capable of
increasing their resources so as to meet the increasing demand in the future.

6-Promote Healthy Competition

The entrepreneur should not encourage unhealthily and hostile competitions among the
suppliers, for the sake of obtaining goods from them at the minimum price, only healthy competition
should be encouraged. Besides, encouragement should be provided to individual suppliers and
institutional suppliers.

C. LET’S SUM UP
A. Responsibilities of an Entrepreneurs to his/her Employees:
• Pay wages/salaries and taxes
• Assignment of right jobs
• Create and maintain an ergonomic workplace
• Facilitate employees’ compensation insurance
• Support career development
• Train and educate employees
• Enforce anti-discrimination law
• Respect human rights
• Give rewards and Benefits
• Give security of employment
B. Responsibilities of an Entrepreneurs to the Government:
• Compliance of government rules
• Payment of Taxes
• Not to correct the government machinery
• Not to seek political patronage by unfair means
• Cooperate with government for economic development
 C. Responsibilities of an Entrepreneurs to their creditors:
• Obtain loans on reasonable conditions
• Follow mortgage rules
• Follow business ethics
• Proper utilization of debt capital
• Regular Payment of Instalment and Interest
D. Responsibilities and Accountabilities of an Entrepreneur to their Suppliers:
• Pay fair prices of goods at a reasonable time
• Inform about changes in market
• Give guarantee of minimum price
• Provide technical advice
• Inform suppliers of future developments
• Promote healthy competition

IV – Application:
A – Multiple choice: Read and decide from each statement below which of the letter
corresponds to the given Statement
1. It refers to the obligation to demonstrate that work has been conducted in compliance with agreed
rules and standards or to report fairly and accurately on performance results vis-à-vis mandated roles
and/or plans. of an individual or an organization to account for its activities, accepts responsibility for
them, and to disclose the results in a transparent manner.

A. Responsibility B. Accountability C. Transparency D. Fairness

2. What responsibility of an entrepreneur to pay their employees of their business at least the minimum
hourly wage in their locality?

A. Pay wages/salaries and taxes B. Assignment of right jobs

C. Create and maintain an ergonomic workplace D. None of the above

3. What responsibility of an entrepreneur in which employees cannot be disadvantaged, dismissed, or

not given employment for any mentioned.
A. Facilitate employees’ compensation insurance B. Support career development
C. Train and educate employees D. Enforce anti-discrimination law

4. Reward employees fairly and attractively is one of the responsibilities of an entrepreneur to his/her
employees.
A. Respect human rights B. Give rewards and Benefits
C. To give security and employment D. All of the above

5. The following are responsibilities of an entrepreneur to the government EXCEPT for:

A. Compliance of government Rules B. Payment of taxes
C. Assumption of welfare arrangements D. None of these

6. What responsibility of the entrepreneurs which is not to seek political patronage by providing undue
economic help to any political party or politicians during elections?
A. Payment of taxes
B. Not to seek political patronage by unfair means
C. To cooperate with government for economic development
D. None of these

7. Loans should always be paid in on the maturity date, which facilitates regular capital flow in the
business society and also saves the Banks and Financial Institutions from adverse effects.
A. Obtain loans on reasonable conditions B. Follow mortgage rules
C. Repayment of loan D. Poor utilization of debt capital
8. The entrepreneurs have the responsibility to provide regular information to the suppliers regarding
changes happening in the demand of the commodities in domestic or in foreign markets.
A. Pay fair prices of Goods at a reasonable time B. Inform about Changes in Market
C. Give guarantee of Minimum Price D. Motivate Indigenous Supplies

9. Any unhealthy and hostile rivalries among dealers should not be permitted by the entrepreneur.
A. Motivate Indigenous Supplies B. Provide technical Advice
C. Inform Suppliers of Future Developments D. Promote Healthy Competition

10. What is your analysis of the given statements below?

Statement 1: The Entrepreneur should not provide information about possible future development
to the suppliers, in time, so that they mold themselves according to the changing circumstances.
Statement II: Entrepreneur should provide cooperation to the government by proper utilization of
available resources in accordance with the government targets.
A. Both Statements are true B. Only Statement 1 is true
C. Only Statement II is true D. Both Statements are false

References: 2018. Understanding Business Culture in the Philippines. Retrieved from https://emerhub.com/philippines/understanding-
business-culture-in-thephilippines
Bondoc, Lorey. Social Responsibility of Entrepreneur. Pp 1-4. https://www.academia.edu/36905141/Social_Responsibility_of_Entrepre neurs

Prepared by: Checked by:

ROBERTO G. LIM LINA L. MERINO, EdD

SHS Teacher II Master Teacher I

Recommending Approval: Approved by:

MYLA P. ADIATON, PhD MARIFE B. BULAWAN

Head Teacher III School Principal IV