LESSON 8 – 

THE RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

V. PRACTICE
Answer the following questions:
1. Enumerate and explain the different social responsibility of an Entrepreneur?
- Beyond their business endeavors, entrepreneurs have a significant role to play in society.
They have an obligation to uplift the neighborhood and deal with a range of societal
problems. Entrepreneurs are held accountable for more than just their commercial
success. Entrepreneurs can have a beneficial impact on society and improve their
communities by taking into account these various facets of social responsibility.

VI. ENRICHMENT
Answer the following questions:

1. What new ideas have you gained about the need of ethics for entrepreneur?
- I discover that ethical entrepreneurs establish an atmosphere at work where respect,
fairness, and moral judgment are valued. Employees are more motivated, engaged, and
satisfied in their work when they observe their leaders acting ethically. Higher
productivity, fewer turnover rates, and a favorable company culture follow from this.

VII. EVALUATION

A. Identify the term being described. Write your answers on the space provided before the
number.

PUBLIC IMAGE 1. The activities of an entrepreneur towards the welfare of the society earn
goodwill and reputation for the business.
ETHICAL LEADERSHIP 2. It is the belief that what entrepreneur does has a strong influence on
employees. If manager cheats, Lies, steals or manipulates, then they are sending wrong signals
to employees.
ENVIRONMENTAL MANAGEMENT 3. Managers and Organizations can do many things to protect
and preserve the natural environment.
SOCIAL RESPONSIBILITY 4. means eliminating corrupt, irresponsible or unethical behavior which
might harm to the community, its people and the environment.
SOCIAL ENTREPRENEUR 5. is an individual or organization who seeks out opportunities to improve
society by using practical, innovative and substantial approaches

B. Enumerate and give examples of social responsibility of an entrepreneur towards different

sections of the society.
 1. Responsibility Towards Employees:
a. Retirement benefits and pension schemes
b. Adequate Basic Facilities like safe drinking water, electricity, canteen, hygienic toilets.
c. Fair wages and salaries
2. Responsibility Towards Shareholders:
a. A fair return on investment.
b. Regular and complete information about the performance and progress of the
company.
c. Safety of invested capital.
3. Responsibility Towards Public in General:
a. Help the weaker section of the society.
b. To make best use of society’s resources for their welfare.
c. Building of basic infrastructure like roads, sewerage.
4. Responsibility towards Government:
a. Payment of corporate tax in correct amount with no manipulation of profit figures.
b. To avoid monopoly practices.
c. To avoid corrupting public servants by offering bribe.
5. Responsibility Towards Customers:
a. No use of manipulated or false advertisements. Avoid unfair selling practices.
b. Charge reasonable price for products or services.
c. Fair guarantee of product.