BUSINESS ETHICS AND

SOCIAL RESPONSIBILITY
ALVIN R. LUMABAN, MBA
Alvin Reynoso Lumaban 2
Alvin Reynoso Lumaban 3
Class Rules

Alvin Reynoso Lumaban 4

Class Rules

Alvin Reynoso Lumaban 5

Class Rules

Alvin Reynoso Lumaban 6

At the end of the lesson the learners
shall be able to:
1.Distinguish the responsibilities and accountabilities
of a business.
2.Discuss the responsibilities and accountabilities of
entrepreneurs to employees, government,
creditors and suppliers.
3.Apply the importance of business responsibilities
and accountabilities in every business organization.
Review Time
1.What is Filipino Value System
2.What are the sample of Filipino Value
System
Identify The Picture
 Unlocking of Difficulties
The difference between the two terms is that
◦RESPONSIBILITY involves having authority over
one’s actions.
◦ACCOUNTABILITY means you are liable or
answerable for one’s actions. In order to be
responsible, you must be accountable and vice
versa.
RESPONSIBILITIES and ACCOUNTABILITIES of
ENTREPRENEURS to
◦ Employees
◦ Government
◦ Creditors and
◦ Suppliers
◦ Entrepreneur the person who do the initiative and
risks. Entrepreneur is someone who create the idea
and make an enterprise.
Responsibility and Accountability to
Employee
1.Payment of Taxes, Salaries and Wages→ The government
also requires entrepreneurs to pay Phil health, Social
Security, taxes out of employee wages for each employee
working their business.

An entrepreneurs are responsible to pay in their employees

with the minimum hourly wage set by the government
including overtime pay, sick leave and bonuses.
Responsibility and Accountability to
Employee
2.Provide Safe Working Environments→
Entrepreneurs is accountable for the safety of the
employees, so they ensure that the physical
environment is safe and well-maintained with good
lighting, proper temperature and enough space for
employees to perform their work.
Responsibility and Accountability to
Employee
3.Respect Humane Behavior towards Employees→
Employees should be treated with compassion by
allowing them to practice their rights and enjoy
being workers of the company.
Responsibility and Accountability to
Employee
4.Support Career Development→ Acquisition of new
knowledge and skills through the professional and
personal development of employee is a prerequisite
and guarantee success in business. Encouraging and
enabling our employees to attend seminars and
conferences for professional growth is a way to
support their career development.
Responsibility and Accountability to
Employee
5.Create a Small Business Relations→
Establishment a good relationship with the
employees protects the interests of everyone.
Effective communication lines is vital in establishing
and maintaining good relations.
Responsibility and Accountability to
Government
◦ Observe Law, Rules and Regulation→ Entrepreneurs
should follow the laws impose by the government
regarding obtaining of business licenses/permits, operation
of the business, price determination and production.
◦ Pay Taxes→ Businesses must pay taxes and fees to the
government in the course of carrying out their operation
which include taxes on revenue and tariffs on imported
products.
Responsibility and Accountability to
Government
◦Not to Seek Political Patronage by Unfair
Means→ Entrepreneurs should not seek political
patronage by providing undue economic help to
any political party or person during election.
◦Avoid Corruption→ The commercial organization
should not take any type of favor from government
officials.
Responsibility and Accountability to
Creditors
◦ Give Correct Information→ Entrepreneurs should be
provided with correct information about the company
to enable them to decide about further investment.
◦ Follow Mortgage Rules→ 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.
Responsibility and Accountability to
Creditors
◦ 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.
◦ Regular Payment of Installment and Interest→
Entrepreneurs should pay loan installments and interest
regularly, according to repayment conditions.
Responsibility and Accountability to
Suppliers
◦ Practice Fair Pricing and Licensing→ Companies must seek
fairness and truthfulness in all dealings with suppliers especially
pricing and licensing.
◦ Avoid Coercion and Litigation→ Companies should make
certain that any business transaction with suppliers must be free
from any form of coercion and unnecessary litigation.
◦ Maintain Stability→ Firms must promote long-term stability in
their relationship with the suppliers to pay back the goods value,
quality and reliability they granted.
Responsibility and Accountability to
Suppliers
◦ Inform about Changes in Market→ 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.
◦ 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.
 Let’s Practice: Activity 1
Directions: Read each item carefully. TRUE if the statement is true and FALSE if the
statement is false.
1. An entrepreneur must sell quality products at an unfair price.
2. The entrepreneurs should pay loan installments and interest regularly according
to repayment conditions.
3. Companies must not seek fairness and truthfulness in all dealings with suppliers
especially pricing and licensing.
4. In a company, one of the best ways to deal with suppliers is being responsible for
making timely payments according to their agreed terms and conditions of the
trade.
5. In a business organization towards their consumer is being honest in advertising
and marketing.
 Let’s Practice: Activity 2
Directions: Put yourself in a workplace either you are a housekeeper in a
beach resort, a service crew in a fast-food chain or any work you known.
Identify your responsibilities as an employee and the responsibilities of the
employer in this pandemic.

EMPLOYEE EMPLOYER
 Let’s Do More: Activity 3
Directions: List down the responsibilities and accountabilities of
Entrepreneurs to employee, creditors, government, suppliers and
environment.
APPLICATION
◦ What is the importance of these responsibilities and
accountabilities of the entrepreneurs especially that the
country is affected by a health crisis brought about by
COVID-19?

◦ Do you think our government should require

companies to undertake their social responsibilities?
Why or why not.
Let’s Sum It Up: Activity 4
Directions: Complete the sentences by filling the blanks with
the correct answer. Select the best answer from the box.

The difference between the two terms is that responsibility

involves having ______________ over one’s actions.
accountability means you are __________________ or
answerable for one’s actions. To be _____________________,
you must be __________________ and vice versa.
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the
correct answer.
What businesses must treat their injured employee with respect
and not cause delay on the processing and filing of claim?
A. Facilitate employees’ compensation insurance .
B.Support career development.
C.Train and educate employees.
D.Enforce anti-discrimination law.
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the correct
answer.
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. Acountability
B. Fairness
C. Responsibility
D. Transparency
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the correct answer.
The entrepreneur should provide employment security to the employees of
the organization. This will create a sense of satisfaction among employees,
and in return, they will work with full interest, dedication and
commitment, they will feel free from apprehensions of losing a job, and
they will have a higher degree of faith in the employer. What responsibility
and accountability of employees is referred to in this statement?
A. Give rewards and benefits
B. Give security and employment
C. Respect human rights
D. All of the above
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of
the correct answer.
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
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the
correct answer.
What responsibility of the entrepreneurs to paying taxes to
the government?
A. Payment of taxes
B. Not to seek political patronage by unfair means
C. Cooperate with government for economic development
D. None of the above
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the
correct answer.
What particular objectives. Hence, entrepreneurs should
utilize the loan amount only for the desired objectives.
A. Obtain loans on reasonable conditions
B. Follow mortgage rules
C. Follow business ethics
D. Poor utilization of debt capital
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the correct
answer.
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.
What responsibility of entrepreneurs is referred to?
A. Pay fair prices of Goods at a reasonable time.
B. Promote healthy competition.
C. Inform about changes in market.
D. None of the above
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the correct answer.
Analyze whether the following statements are correct or otherwise?
Statement 1: A supplier is an entity (person or institution) that extends credit
by giving
another entity permission to borrow money intended to be repaid in the future.
Statement II: Mismatching of jobs with employee’s qualification is encouraged.
A. Both Statements are true
B. Only Statement 1 is true
C. Only Statement II is true
D. Both Statements are false
 Directions: Read the questions
Let’s Assess carefully and encircle the letter
of the correct answer.
Directions: Read the questions carefully and encircle the letter of the correct
answer.
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. Paying wages/salaries and taxes
B. Assignment of right jobs
C. Creating and maintaining an ergonomic workplace
D. None of the above
ASSIGNMENT
◦Differentiate between the Ethical Issue and
Ethical Dilemma? Briefly explain your
answer.