12

Business Ethics and

Social Responsibility
Quarter 2 Week 1
The Responsibilities and Accountabilities
of Entrepreneurs

Locally Developed Self-Learning Material

Business Ethics and Social Responsibility – Grade 12
Quarter 2 – Module 4: Week 1 - The Responsibilities and Accountabilities of
Entrepreneurs

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Development Team of the Module

Writer: Zaldy D. Danaytan, Jr.

Editor: Rosalinda DP. Anonas

Edmundo Banagan
Christine C. Damaso
Shermein F. Sunga

Cover Illustrator: Gamaliel R. Paz, Jr.

Reviewers: Richel R. Quinto

Samson S. Buqueron
Orven O. Danugrao
Corazon B. Dumlao

Management Team:
Leilani S. Cunanan, CESO V
Maylene M. Minimo, EdD, CESE
Ariel C. Lansang
Jose C. Tala, EdD
 The Responsibilities and
Accountabilities of Entrepreneurs

What I Need to Know

Entrepreneurs have a moral obligation to reconcile and balance their stakeholders'

rights and responsibilities, such as consumers, employees, suppliers, creditors,
governments, the general public, and other stakeholders.

The following information and activities will encourage you, as a learner, to carry out
entrepreneurial activities in the context of one's accountability and social responsibility. You
can then review your work and progress by checking the answer key and the score
headings.

After going through this module, you are expected to:

1. Identify responsibilities to the business organization; and

2. discuss the responsibilities and accountabilities of entrepreneurs.

What I Know

Directions: Match column A with column B by writing the letter of the correct answers on a
separate sheet of paper.

A B

1. The most important asset of an organization. A. Consumer

2. The primarily responsible for providing or

delivering the raw materials and resources B. Employee
that a company needs in the production.
3. A business cannot work without the
C. Environment
customer.

4. The development of business depends upon

D. Government
the development of the community.
5. Entrepreneurs must help reduce pollution or
encouraging recycling, and also have the
E. Suppliers
opportunity to adopt a “green” mentality in the
organization.
 What’s In

Good day student! When entrepreneurs feel responsible and accountable, they are
more likely to take action and stay focused on their most important work. This
accountability builds confidence and capability. When you are responsible, you become
responsible for your decisions, actions, thoughts, and communications. Here is an activity
for you to do. Are you ready?

Directions: Write TRUE if the statement is correct; otherwise, choose FALSE. Write your
answers on a separate sheet of paper.

1. Employees are now part of society.

2. SWOT analysis stands for strengths, weaknesses, opportunities, and traits.
3. Measures your performance against similar businesses in your company.
4. Consumer awareness is a commitment to ensuring that the purchaser or
consumer is aware of information on products, goods, services, and consumers'
rights.
5. Market Research is the process of investigating your business' market and
industry to identify trends, changes, and customer or client demands.

What’s New

Activity 1

Directions: Write 3 to 5 sentences expressing your opinions on the statement below. Use a
separate sheet of paper for your answer.

"With great power comes great responsibility"

- known as the Peter Parker principle, is

a proverb popularized by the Spider-Man comic
books written by Stan Lee.

What is It
Responsibility refers to the duty or obligation to satisfactorily perform or complete the
task that one must fulfill and has a resulting penalty for failure.

Refers to an individuals or organization's obligation to account for its activities,

accept responsibility for them, and disclose the results transparently. It also includes the
responsibility for money or other entrusted property.
 The main difference between the two is that responsibility can be shared while
accountability cannot. Being accountable not only means being responsible for something
but also ultimately being answerable for your actions. Also, you hold a person to
accountability only after a task is done or not done. Responsibility can be before and/or after
the task (diffen,2016)

Simply put, the difference between the two terms is that responsibility involves
having authority over one's action. Accountability means you are liable or answerable for
one's action. To be responsible, you must accountable and vice versa (kelly,2014)

Responsibilities and Accountabilities of Entrepreneurs

Employee

Employees are the most important asset of an organization. A decent working

environment is one of the fundamental rights. The word "work condition" refers to the
physical environment, particularly the physical structure of the work area, as well as the
procedures and practices relevant to the performance of the task. The company's
responsibility towards employees lies in training, promotion, fair selection, fair wages,
safety, health, training of workers, comfortable working conditions, participation
management, etc. (Chand, 2016).

 Pay wages and taxes

 Create and maintain a safe workplace
 Facilitate workers’ compensation insurance
 Enforce anti-discrimination law (EEO) “Equal Employment Opportunity”
 Create and maintain a favourable working environment
 Respect human rights
 Support career development
 Train and educate employees
 Manage performance
 Give rewards and benefits

Government

The development of business depends upon the development of the community;

hence business has got to be very particular about discharging its obligation towards the
government.

 Observe laws, rules, and regulations

 Pay taxes
 Follow environmental regulations
 Abide by labor laws
 Avoid restrictive trade practices
 Disclose financial statements
 Avoid corruption
 Assist in implementing socio-economic
  Help earn foreign exchange
 Advise the government
 Complete promptly government contracts
 Contribute to government treasury
 Contribute to political stability

Creditors

The following are the responsibilities and accountabilities to the creditors.

 Give Correct Information

 Provide Fair Return on Investment (ROI)
 Strengthen Share Prices
 Honor Fiduciary Duties

Suppliers

The suppliers are primarily responsible for providing or delivering the raw materials
and resources that a company needs in the production. In dealing with suppliers, there are
specific key points that firms must take note of.

 Practice Fair Pricing and Licensing

 Avoid Coercion and Litigation
 Maintain Stability
 Maintain Confidentiality
 Pay on Time
 Select Suppliers with discernment

Three fundamental requirements:

 legal compliance
 quality control
 environmental conservation.

Consumer

A business cannot work without the consumer. The survival and growth of a
business depend on consumer satisfaction, service, and support.

 Ensure Quality of Products and Services

 Ensure Consumer’s Health and Safety
 Provide Easy-to-Use Products
 Provide Free Training
 Be Fair with Prices
 Be Honest in Advertising and Marketing
 Be Honest in Dealings
 Attend to Complaints
 Service Even After Sales
 Respect Customers’ Time
  Treat Customers well
 Ensure Regular Supply
 Research and Develop to Increase Customer Satisfaction
 Avoid Monopolistic Competition

General Public

Any business that encounters the public has responsibilities.

 Be Fiscally Responsible
 Consider Public Input
 Take Care of the Community

Environment

Global warming and climate change are not “words,” but realities that we are still in
time to lessen their impact. As entrepreneurs, in addition to starting a business to help
reduce pollution or encouraging recycling, you also have the opportunity to adopt a “green”
mentality in your company.

 Comply with Environmental Legislation

 Comply with legislation regarding emissions into the air.

 Store waste safely and securely, make sure it is treated appropriately, ensure
it is collected by an authorized organization(such as your local authority or a
licensed private waste contractor) and complete a waste transfer note or
consignment note when waste is handed over.
 Manage your business waste for recycling by separating paper, card, plastic,
metals, and glass prior to collection. Most food businesses also need to
separate food waste for recycling.
 Others…

 Dispose Waste Properly

 Recycle
 Conserve and Protect Biodiversity
 Prevent and Remedy Damages to Environment
 Report an Incident
 Use Scarce Natural Resources Sparingly

What’s More

Directions: Read and understand each situation in each item, and identify the
responsibilities and accountabilities of entrepreneurs described in the situations. Write only
the letter of the correct answer for each item on a separate sheet of paper.

1. Strong Bank Co. pays its employee’s salary and benefits on time.
 A. Consumer C. Employee
B. Creditors D. Government

2. An employee of Biggest Appliances Center entertained the customer complaint

regarding the damaged television he purchased last week.
A. Consumer C. Employee
B. Creditors D. Government

3. Teachers from Parker International School attended a seminar entitled "Earth:

Let's Make It Green Again", an environmental training.
A. Consumer C. Environment
B. Employee D. Government

4. Armor Construction Company received a certificate of compliance from the

Department of Labor for complying with the Labor Law.
A. Consumer C. Environment
B. Employee D. Government

5. The ENT Co. pays fair and reasonable prices for the materials they purchased
from the suppliers despite the economic loss they experienced.
A. Consumer C. Employee
B. Creditors D. Suppliers

6. JJ Manpower Agency implemented a project called “Go PAPERless”. This

project can make a big difference in their total paper consumption, which will also
save their money in the long term.
A. Consumer C. Environment
B. Employee D. General Public

7. Aseah Manufacturing company conducted a job fair for the community where
their factory is located.
A. Consumer C. Environment
B. Employee D. General Public

8. Jose works for a company that assigns the appropriate jobs to the right
employees based on their abilities.
A. Consumer C. Environment
B. Employee D. General Public

9. Mammie Ketchup creates a television and radio commercial based on the

cultural beliefs of its consumers.
A. Consumer C. Environment
B. Employee D. General Public

10. Paying business licensing on time is one of the Exclusive Hotel Corp. priorities
every first month of the year; this supports the rules and regulations of their
locality.
A. Creditors C. General Public
B. Employee D. Government
 Additional Activities

Directions: Analyze the picture below and write your answers on a separate sheet of paper.
The rubric below is designed to make clear the scoring process.

Business or government:
Who do you trust more?
Source: https://www.quotemaster.org/good+business+practices#&gid=1&pid=2

Rubrics for picture analysis:

Photographs are extremely well explained. Information is very organized,

5 points
brief, and to the point.
Photographs are very well explained. Information is organized, brief, and to
4 points
the point.
Photographs are somewhat well explained. Information is organized, but
3 points
the analysis is too complex or lengthy.
Photographs are not so well explained. The information appears to be
2 points
disorganized
1 point Photographs are not at all explained. No information provided.

References:
Business Practices. (n.d.). [Illustration].
Https://Www.Quotemaster.Org/Good+business+practices#&gid=1&pid=2.
https://www.quotemaster.org/good+business+practices#&gid=1&pid=2

Chiang, L. (2016, January 20). Business or government: Who do you trust

more? CBS News. https://www.cbsnews.com/news/business-or-
government-who-do-you-trust-more/

Franz Giuseppe F. Cortez. (2016). Business Ethics and Social Responsibility

Teacher Manual. Vibal Group, Inc.
 Nivethigha, R. P. (2017). Business Ethics, Values and Social Responsibility to
An Entrepreneur. International Journal of Research in Management &
Business Studies, 4(1), 18–21. http://www.ijrmbs.com/
Answer Key