0

G12

Accountancy, Business and

Management

Business Ethics and Social

Responsibility
QUARTER 4: WEEK 6

Capsulized Self-Learning
Empowerment Toolkit

Schools Division Office of Zamboanga City

Region IX, Zamboanga Peninsula
Zamboanga City

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 1

CapSLET
BUSINESS ETHICS AND SOCIAL
RESPONSIBILITY
Subject & ABM
QUARTER 4 WEEK 6 DAY
Grade Level ESR-12 dd/mm/yyyy
The importance of doing business beyond profit motivation. Introduction to
CONTENT the notion of SOCIAL ENTERPRISE (meeting a given social objective or resolving
a real social problem while making ends meet) for poverty alleviation
LEARNING Prepare and implement a proposed personal action plan to assist an
COMPETENCY existing small business enterprise to practice ethics and social
responsibility in their business operation.
ABM_ESR12-IVm-p-4.2 to 4.3

IMPORTANT: Do not write on this material. Write your answers on the Learner’s Activity and
Assessment Sheets provided separately.

KNOW AND UNDERSTAND

CONTENT STANDARD:
The importance of doing business beyond profit motivation. Introduction to the notion of SOCIAL
ENTERPRISE (meeting a given social objective or resolving a real social problem while making ends
meet) for poverty alleviation.

CHECKPOINT: How do action plan assist business enterprise to practice ethics and social
responsibility in its operation?
Many big businesses and companies started from small and humble beginnings. Some were born
out of dreams; some out of one’s passion; others materialized out of necessity; while, others came
about by accident. Indeed, ideas come in many forms, shapes and sizes, in different places, at
different times. But as author Ashleigh Brilliant puts it, “Good ideas are common - what's
uncommon are people who will work hard enough to bring them about.” Therefore, ideas are good
but only becomes better when acted upon.

The previous module emphasized the need for a stage where one has to generate ideas that can
be turned into viable opportunities. This is important since not all ideas can be turned into good
opportunities. In generating ideas for social enterprise, each idea must be evaluated to ensure the
likelihood that it can produce positive social change, that there is a market for it, and, that it will
be sustainable and feasible over time.

A social enterprise starts with the recognition of a need in the society, driven by motivation to
initiate social change. Ideas are important because they represent a start of something that has a
potential to get bigger later on. They represent unrealized potential values in their original state.
Entrepreneurs are often in the lookout for ideas that can be offered to the market to answer
customer needs.

General Sources of Ideas that Spur Creativity and Change

 Personal Experiences. These are common sources of entrepreneurial ideas, which may
come from solving problems or having unresolved issues encountered at home, at work, or in
school. One social enterprise started due to the lack of availability of natural personal care products
“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”
Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 2

in the Philippines that are affordable and environment-friendly. The sisters – a new mom and a
make-up enthusiast – both researched had found ways to set up their company. Please visit
https://humanheartnature.com/buy/our-story to read more about this enterprise. For example:
Filipino consumers are starting to live a healthy lifestyle as validated by a study of the
Department of Health. Isa, a health enthusiast, noticed that her officemates are starting to look for
a healthy alternative to the beverage offered in their cafeteria – soda, chocolate drink and coffee.
Due to this, her officemates opt to walk three blocks away from their office just to grab a healthy
drink, which would usually take 15 minutes of walk from their office and back.
Isa took advantage of the opportunity and decided to offer freshly-squeezed fruit juices to
her officemates. With the assistance of her helper, she bought fresh fruits in the nearest wet
market, converts them into fruit juices in the morning, packs them in glass bottles and sells them
to her officemates.

 Hobbies or Passion. One’s passion or interest may inspire an idea and be turned into a
business. Ella and Gah, passionate about the healthy vegan (people who do not consume meat and
animal by-products such as eggs, milk and honey) lifestyle decided to start an online shop that
provides healthy ingredients for people who are passionate as they are to live healthy. Visit
https://thesuperfoodgrocer.com/pages/about-us to learn more about the enterprise. For
example:
Thirdy is a coffee lover and would usually consume two to three cups of coffee a day. He is
also fond of researching and trying out various types of coffee beans and studying how these
variants differ in taste. When traveling, he also makes sure that he grabs a bag of coffee bean so
he can personally taste what each type of coffee has to offer. After a few years, he decided to put
up a small coffee shop.

 Accidental Discovery. Some ideas for a product came about completely by accident. A
company may be seeking to innovate a product, yet accidentally discovers something else through
the course of product development. Such is the case in the discovery of this popular product that
most people cannot live without – those little sticky notes that help you get reminded, serve to
mark pages, and help you organize your life to some extent. Read https://www.post-
it.com/3M/en_US/post-it/contact-us/about-us/ to learn more. For example:
Faith is a graduate of fashion designing. She is creative, artistic and has an eye for detail.
One day, she was going through a ton of her used clothes and was thinking on how she could recycle
them. She started playing with her used jeans by cutting the edges and stitching the other parts.
Eventually, she realized that she was able to create a very stylish shoulder bag out of her old jeans.
Faith showed her masterpiece to her family and friends and received positive feedback. She
eventually got order from her friends and decided to sell more pieces online.

 Systematic or Intentional Research. Some entrepreneurs find ideas by actively and

intentionally searching for them. Some may look at the list of unused patents or search on the
internet for ideas that have yet to be turned to into reality. Others may seek inspiration from other
entrepreneurs by attending gatherings, seminars or informal types of meetings. For example:
Shecaniah has been in the remittance business for more than a decade. He is looking for
ways on how to make OFW remittance simpler, cheaper and more convenient without sacrificing
integrity and compliance of remittance transactions. By studying the current market trends, 90%-
95% of OFWs use social media, while 80% of their beneficiaries have social media accounts.
Shecaniah has thought of enabling payments through social media accounts. This has not been
patented since this is new in the industry but Shecaniah sees it as a feasible solution to the pain
points of remitters and beneficiaries.

 Awareness through different channels. Most social entrepreneurs may find inspiration from
watching the news, reading articles or through professional or social networks. Media and the
“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”
Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 3

internet make the world a smaller place. A curious entrepreneur from another part of the world
may see a social problem in one country and think of ideas to solve it. For example:
Don is a resident of Leyte and is one of those affected by typhoon Yolanda. While watching
the news, he noticed that one of the main problems of the local government of Tacloban City is the
damaged uprooted trees that blocked the road. Don saw an opportunity in this news by getting the
uprooted trees and converting them into wood carving artworks. He converted the tree trunks into
classy furniture and home décor pieces, which he eventually sold with a profit.

Classifying Ideas
According to Justin G. Longenecker et al, authors of Small Business Management: Launching and
Growing Entrepreneurial Ventures, 14th edition published by Thomson South-Western, USA, there
are three (3) categories of classifying ideas: Type A – new market for an existing product, Type B –
new product, and, Type C – new process for producing an existing product.

Type A identifies a new market for an existing product. For example, a burger patty can be
suggested as a main dish paired with rice, especially for the rice-loving culture of the Philippines.
Type B develops an entirely new product, which can be based on a technological breakthrough.
Type C seeks ways to find more effective ways of producing an existing product. This can be
through the discovery of a more energy-efficient machine and cutting steps in the manufacturing
process without affecting the quality of the product.

SAQ1: How do you generate ideas for a social enterprise?

Innovation
Creativity and innovation are often used synonymously, but these words are distinctly different.
Creativity is the development of original ideas or inventions, while innovation is the
implementation of these inventions. Entrepreneurs are considered as innovators but not all of
them are inventors. Ideas or inventions are developed from creativity and are implemented
through innovation. Innovation involves establishing new and better ways for accomplishing a
worthwhile objective. In a social enterprise, worthwhile objective is the creative idea, while the
implementation of actions to achieve this is innovation.

According to Austrian economist

Joseph Schumpeter, there are five (5) types of innovation. Dees et al added two (2) more that are
specific to social entrepreneurship. The seven (7) types of innovation are enumerated in Table 1
below.

Table 1. Seven Types of Innovation

Creation of New Products This is making available products, which can be goods, services,
programs or projects, that had not been previously conceived or
offered to the market.
New Process for Producing The term product includes goods, services, programs or projects.
an Existing Product It can be an existing product, such as shampoo, but does not use
chemicals such as sodium laureth sulphate (SLES), which is
deemed harmful to humans.
Delivering an Existing Natural and organic products have always been expensive. When
Product to a New or a social enterprise fulfilled its vision of offering a more affordable
Undeserved Market line-up of products that do not contain harmful chemicals, it was
able to tap into a market that is not used to buying natural
products because they are out of their budget.
Utilizing a New Source of A social enterprise that utilizes at-risk youth as its labor force.
Labor They are mostly out-of-school youth who had a rough start in life
“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”
Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 4

Implementing New
Organizational Structure
Implementing New Ways of
Engaging Customers or
Target Beneficiaries
Utilization of New Funding
Models
and may have used drugs in the past. They are trained to work
and are given informal education by volunteer teachers.
Social enterprises usually start small and are manned by only a
handful of people. Some may work as volunteers, which are
usually not seen in traditional organizational structures.
Microfinance institutions do not operate like commercial banks.
While their main function is to lend money to microenterprises,
most of them do not require collateral as most people who
borrow money from them do not have properties that qualify as
collaterals. The borrowers are mostly entrepreneurial poor who
need funds to start a micro-business.
Despite the seeming philanthropic nature of social enterprises,
they do not rely on donations. Instead, they generate their own
income to finance their social causes. The business model is
similar to commercial enterprises in the sense that they have to
earn profits to ensure sustainability of the business venture.

SAQ2: What is innovation and what are its types?

Recognizing Opportunity
According to Timmons and Spinelli, ideas are turned into opportunities when they have the
following characteristics:
 Ability to add value for the customer;
 Creating value by solving a customer problem or fulfilling a customer need;
 Ability to capture a market and generate profits; and,
 Compatibility with the skill set of the entrepreneurs who pursue them.

The value added for the customer is known as the value proposition. This is the value that the
customers seek in a product and make them choose the product over its competitors. When this
is identified in an opportunity, the potential of it to become profitable becomes bigger. However,
it is not the only criterion that must be satisfied in order to evaluate an idea as a true opportunity.
Market size, presence of competitors, ease of entry, and timing are some other factors that must
be considered to decide if an idea is viable.

According to Kickul and Lyons, authors of Understanding Social Entrepreneurship: The Relentless
Pursuit of Mission in an Ever-Changing World (2012), opportunity can be defined as “a business
concept for a product or service that adds value to the lives of its customers by uniquely addressing
an identified need or desire in a way that takes advantage of existing market conditions and the
skill set of the entrepreneur(s) and ensures the financial viability of the enterprise delivering the
product or service.

While above discussions has been so far pertaining to a business opportunity, the same applies to
social enterprises. However, in a social enterprise, the needs of both the target beneficiaries and
the customers must be considered in order for the venture to succeed.

Social Opportunity Assessment Tool

The social opportunity assessment tool adapted from Kickul and Lyons contains four (4) major
assessment categories: social value potential, market potential, competitive advantage potential
and sustainability potential. Each category contains five (5) criteria that an entrepreneur can
evaluate by rating them. In short, the social opportunity assessment tool is an evaluation tool that
measures the attractiveness of an idea’s social value potential, market potential, competitive
advantage potential and sustainability potential.
“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”
Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 5

To understand things better in using this tool, we will use the term target beneficiaries to refer to
people who will benefit from the social enterprise and customers to refer to people who will be
interested to purchase the product of the enterprise. Usually, they are separated, that is, the
people who benefit from the venture are not the same as the people who buy from the venture.
There are times though, when the target beneficiaries and the customers are the same.

The social value potential measures the potential of an idea to create social value for the target
beneficiaries as detailed in Table 2.

Table 2. Social Value Potential

Criteria Strong Opportunity Weak Opportunity
Social Need The product (goods or The product only
Example: services) directly indirectly addresses the
Training former drug addicts or ex-convicts addresses the social social need.
to manufacture semiconductor products need.
(Philippines’ number 1 export product)
Mission Alignment The product is aligned The product is
Example: with the mission of the misaligned or not
Selling vegetable and salad dishes enterprise. directly aligned with the
exclusively sourced from local farmers mission.
Achievable Impact The product can help The product addresses
Example: resolve the identified the need only
Carpooling business which will reduce social need in a minimally.
570,000 vehicles in just 40 days measurable way.
Social Return on Investment (SROI) The enterprise has Cost exceeds impact or
Example: strong effectiveness to have weak effectiveness
Hiring of jobless mothers to manufacture cost ratio. to cost ratio.
peanut butter products where the cost per
bottle is only P15 and selling it at P30
Community Support The enterprise will The community has
Example: have a positive image hesitation toward
Manufacturing of locally-produced natural and endorsement by supporting the
potato chips by an indigenous tribe in the community. enterprise.
Benguet

The market potential measures the ability of the idea to address customer needs and wants as
detailed in Table 3.

Table 3. Market Potential

Criteria Strong Opportunity Weak Opportunity
Customer Need or Want Customers and target The target beneficiaries
Example: beneficiaries’ needs and the customers are
Middle-income earners these days look for and wants are met. indifferent to the
an insurance/investment product in one; the product.
“invesure” is the right fit which is both an
insurance and investment product in one.

Window of Opportunity The timing to launch Timing is bad.

Example: the enterprise is good.

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 6

College students and employees are now

shifting to mobile application to choose
what restaurant to go to at lunchtime, thus,
the launch of “Rapza” mobile app is just in
time since it showcases all high-rated
restaurants near the location of the
customer.
Investor Interest There is evidence of There is little or no
Example: interest for investors. evidence of interest for
Dos formulated a tea extract that reduces investors.
cholesterol and at the same time burns fats.
This tea is one of the best-tasting in the
industry because he injected fusion of local
fruits. Dos gives 5% of his income to the local
fruit farmers as his advocacy. His tea extract
was a big hit. Dos was able to attract the
interest of investors because of this.
Market Size The market size is big The market size is small.
Example: in terms of number.
Because of growing demand for mobile
data, Thirdy, a sari-sari store owner, added
a prepaid mobile load and data business in
his store and estimated that the business
covers 3,000 customers.
Market Share Attainable There may be The market is saturated
Example: competitors but the with the same or similar
Despite the very common “ginataang halo- product has strong products.
halo,” Isa was still able to beat the competitive
competition because she has a unique set of advantage.
ingredients and way of cooking. Her recipe
was pass on to Isa by her grandmother. Most
of her customers are construction workers
and laborers who prefer a carbohydrate-
heavy and sumptuous snacks.

Similar to commercial/business enterprise, the company must be able to identify its product’s
competitive advantage in order to capitalize on it. The same is true for a social enterprise – the
competitive advantage potential provides an evaluation of the competitive environment where
the enterprise will choose to compete in as detailed in Table 4.

Table 4. Competitive Advantage Potential

Criteria Strong Opportunity Weak Opportunity
Barriers to Entry There are low barriers The industry or market
Example: to enter the industry is difficult to enter.
Hernie developed an ordering mobile app or market.
called “Supermarket App” that enables a
consumer to order grocery/food items from
the local supermarket where the customer is
in proximity.
Prospective Partners and Alliances There are many There are a few
Example: potential partners. potential partners.

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 7

Hernie started to partner with large

supermarkets in Cebu City. Local
supermarket owners are also enabled with
the mobile app.
Control Over Cost There is substantial There is little or no
Example: control over cost. control over the costs.
Hernie’s cost only includes mobile app
development and other maintenance and
incidental costs.
Compelling Mission There is widespread There is little sympathy
Example: sympathy for the or understanding of the
Hernie’s primary mission is to help the mission. mission.
supermarket owners augment their income
by adding auxiliary services and new
customers while for the customers, ease of
doing groceries.
Management Team The team has the right The team has
Example: skills, capability and incomplete skills,
Hernie graduated with a bachelor’s degree knowledge. capability and
in information technology and a post- knowledge.
graduate degree in information and
communication technology.

The sustainability potential measures the stability of the idea when transformed into a social
venture.

Table 5. Sustainability Potential

Criteria Strong Opportunity Weak Opportunity
Venture Capacity There are sufficient Physical resources are
physical resources to insufficient and
maintain the venture. unsustainable.
Venture Capability People on board are People are insufficiently
sufficiently skilled. skilled.
Investor Interest There is evidence of There is little or no
interest for investors. evidence of interest for
investors.
Ability to Generate Earned Income There is high potential There is low potential
for earning profits for earning profits from
from the products that the products.
will be sold in the
market.
Compelling Mission There is widespread There is little or
sympathy for the understanding of the
mission. mission.

Overall potential summarizes the evaluation of the entrepreneur on each of the categories
mentioned above, based on a high-moderate-low scale. If the idea scores a high rating, then it
must be worth pursuing. A moderate rating deserves the idea to be looked into further. A low
rating means that other idea must be considered for social enterprise.

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 8

Table 6. Overall Potential

Category Rating
Social Value Potential High Moderate Low
Market Potential High Moderate Low
Competitive Advantage Potential High Moderate Low
Sustainability Potential High Moderate Low

Example:
Shella Faith established a social enterprise that helps out-of-school youth in their barangay. She
trained these youth in weaving bayong bags with materials (e.g. pandan leaves) sourced from local
suppliers. Based on her market research, many cities and municipalities have already restricted the
use of plastic bags for groceries and supermarkets. Thus Shella Faith thought that the bayong,
which has been widely used in rural areas, would continue to gain popularity. Instead of hiring
regular employees, she helped the out-of-school youth instead and this is the best solution she could
think of to uplift their lives. She rigorously trained the out-of-school youth but had a difficult time
doing while her business started with a few bayongs sold. But its market started to grow especially
when the customers knew that it is not just a bayong that they are getting but they are also
supporting the advocacy of Shella Faith. There are a number of investors who offered Shella Faith
to improve her social enterprise. Below are the ratings and justifications for the overall potential of
the business:

 Social value potential is HIGH. Shella Faith will be able to train and assist out-of-school youth
by giving them decent jobs. This advocacy will be very much appreciated by the primary
target market of bayong business – housewives and mothers.
 Market potential is HIGH. The imposition of no plastic allowed in commercial establishments
paved the way for the bayong business. People going shopping or grocery are now
compelled to bring a bayong or an eco-bag for their shopping or grocery items.
 Competitive advantage potential is MODERATE. Despite the social value and the market
potential, the bayong business is still faced with stiff competition specifically from the eco-
bags, which are also gaining popularity and very handy and fashionable to use. Bayong is
outdated.
 Sustainability potential is MODERATE. Shella Faith should innovate to compete with the eco-
bags in the market to be sustainable.

The Social Enterprise Plan

The social enterprise plan can help in formulating and finalizing your social venture. The outline is
shown below:

I. Situational Analysis
a. Social Issue(s)
b. Social Impact
c. Market Analysis
II. Social Enterprise
a. Product(s)
b. Mission and Vision
c. Target Beneficiaries
d. Customers
e. Competitors
III. Operations
IV. Financial Plan

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 9

The first part of the plan, situational analysis, gives you an overview of the environment in which
the social enterprise will be operating. You may include analysis of current trends that are related
to the enterprise you are proposing, the social issues that you hope to address and the social
impact that your social venture may have on the society. You may consider the following in
deciding on the social issue you want to help resolve:
 Prevalence – Is the social problem rampant in society?
 Relevance – How can the social entrepreneur help solve the problem? Does he/she have
the necessary skills and knowledge to manage the social enterprise?
 Radicalness – What are the solutions being proposed by the social enterprise? How
innovative are they to address the social problem?
 Urgency – How quickly should the social enterprise respond to the social problem?
 Accessibility – What are the challenges in providing logistical support, mechanisms, and/or
operations of the social enterprise? How can this be resolved?

The second part of the plan that specifically focuses on the social enterprise requires the detailed
description of the specific things about the venture. What are the products to be made available
to the market? What is the product competitive advantage? Establish the vision and the mission
to set as “guiding light” of the social venture. Identify the target beneficiaries and customers to
give a clear picture of who will benefit from the enterprise and what exactly do they need, and,
who will patronize the products of the enterprise. Competitors will provide understanding on how
competitive the environment is and give insights as to what competitors are doing.

The third part, operations, require the provision of the specific details of the social enterprise.
Some of the questions that may be answered in this section are as follows:
 Where will the social enterprise operate?
 How many people will manage and run it?
 Where will the raw materials come from?
 How long will it take to make the products and have them available to the market?

The last part will show the viability of the plan. It refers to the ability to start, grow and sustain the
enterprise. This usually involves skills in business finance.

SAQ3: What is opportunity and social opportunity assessment tool?

BE ABLE TO DO
Prepare and implement a personal action plan to assist an existing small business enterprise to practice
ethics and social responsibility in their business operation.

Let’s Practice!
Activity 1
Directions: Reflect upon by answering the questions below. Write your answer on a separate
sheet.
Identify two (2) opportunities that you think may be developed into a social enterprise. Use the
social opportunity assessment tool (pages 4-8) on your two (2) ideas and compare their viability
and later on choose the best one to be developed into a social enterprise.

Follow the outline shown:

1. Social issue(s) – What social issue(s) do you wish to address with your social enterprise?
2. Social Enterprise Idea – What is the social enterprise you have in mind? Who will be the
target beneficiaries and what will be their participation? Who are the customers, and what
products will be made available for them to purchase?
“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”
Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 10

3. Social Opportunity Assessment Tool (pages 4-8)

4. Recommendation – Which of the two (2) ideas are you most likely to pursue into a social
enterprise? Justify your answer.

Your output will be evaluated based on the clarity of the message, comprehensiveness of the ideas
and the viability of the chosen idea.

REMEMBER
Key Points
 Ideas inspire action. An idea for a social enterprise may power a social change, if acted upon.
 Ideas are important because they represent a start of something that has a potential to get
bigger later on. As is in their original state, ideas represent unrealized potential value.
 Entrepreneurs are often on the lookout for ideas that can be offered to the market to answer
customer needs. These ideas may come from personal experiences, passion, accidental
discovery, systematic search, or, awareness through various channels.
 Creativity and innovation are distinctly different: the former (creativity) is the development of
original ideas or inventions, while the latter (innovation) is the implementation of these ideas
or inventions.
 Entrepreneurs are considered as innovators but not all of them are inventors.
 There are seven (7) types of innovation: creation of new products, new process of creating an
existing product, delivering an existing product to a new or undeserved market, utilizing a new
source of labor, implementing a new organizational structure, implementing new ways of
engaging customers or target beneficiaries, and, utilization of new funding models.
 Ideas are turned into new opportunities when they have the following characteristics, the
ability to add value for customer, creating value by solving a customer problem or fulfilling a
customer need, the ability to capture a market and generate profits, and, compatibility with
the skill set of entrepreneurs who pursue them.
 The social opportunity assessment tool contains four (4) major assessment categories: social
value potential, market potential, competitive advantage potential, and, sustainability
potential. Each category has five (5) criteria that the entrepreneur can evaluate by rating them.
 The social enterprise plan can help assist you in formulating and finalizing your social venture.

TRY
Let’s see how much have you learned today!

A. TRUE OR FALSE
Directions: Tell whether the statement is True or False, write your answer on a separate
sheet.
_________ 1. All entrepreneurs are innovators.
_________ 2. The market potential measures the potential of an idea to create social value for the
target beneficiaries.
_________ 3. The social entrepreneurship assessment tool is an evaluation tool that measures the
attractiveness of an idea’s social value potential, market potential, competitive
advantage potential and sustainability potential.

_________ 4. Value proposition is the value that the customers seek in a product and make them
choose the product over its competitors.

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 11

_________ 5. Worthwhile objective referred in a social enterprise is the creative idea, while the
implementation of actions to achieve this is innovation.

B. MULTIPLE CHOICE
Directions: Read the statements carefully and write the letter of your choice on a separate sheet.

_________ 1. Ideas or inventions are developed from creativity and implemented through _____.
A. innovation C. opportunity
B. social value D. mission
_________ 2. The following are general sources of ideas that spur creativity and change except
A. accidental discovery C. mission and vision
B. personal experiences D. hobbies
_________ 3. The following statements for classifying ideas are true except
A. new process for making existing product C. new market for an existing product
B. new product D. new sources of materials
_________ 4. Ideas turn into opportunities when they have the following characteristics, except
A. It can capture a market and generate profits
B. It adds value for the customer
C. Solve a customer problem or fulfill a customer need
D. Provides new products
_________ 5. The social opportunity assessment tool contains the following assessment categories
except ;
A. susceptibility potential
B. competitive advantage potential
C. market potential
D. social value potential

Jonalyn C Baquillas, Business Ethics and Social Responsibility, Makati City, Diwa Learning
REFERENCES
Systems, Inc., 2017, p158-185
This learning resource contains copyright materials. The use of which has not been specifically
authorized by the copyright owner. We are making this learning resource in our efforts to provide
printed and e-copy learning resources available for the learners in reference to the learning
DISCLAIMER
continuity plan for this division in this time of pandemic. This LR is produced and distributed locally
without profit and will be used for educational purposes only. No malicious infringement is
intended by the writer. Credits and respect to the original creator/owner of the materials found in
this learning resource.

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School
 12

“Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”

Prepared by: Shellame R. Mabalo/ Teacher II
DPLMHS Stand-Alone Senior High School