4

RESPONSIBILITIES AND
ACCOUNTABILITIES OF ENTREPRENEURS
for Business Ethics and Social Responsibility
Senior High School (ABM)
Quarter 2-Week 1
 FOREWORD
This Self-Learning Kit for Business Ethics and Social
Responsibility is an innovative tool designed exclusively for ABM
students in the Senior High School. It assists in understanding deeply
the responsibilities and accountabilities of entrepreneurs to
employees, government, creditors and suppliers.
It is aligned with the BEC of the Department of Education
following the prescribed MELCs (Most Essential Learning
Competencies.
This Self-Learning Kit is divided into three parts.

What Happened? (Pre-Test)

This section contains pre-activities that serve as springboard
and pretest to determine if students are sufficiently prepared to
begin a new course of study.

What You Need to Know? (Discussion)

This section also contains the definition of responsibility and
accountability and discussion of responsibilities and
accountabilities of entrepreneurs to employees, government,
creditors and suppliers.

What Have I Learned? (Evaluation/Post Test)

A summary of key concepts and exercises that measures
student’s understanding on the responsibilities and accountabilities
of entrepreneurs to employees, government, creditors and suppliers
and how to become socially responsible and accountable
businessmen someday.
 LESSON RESPONSIBILITIES AND ACCOUNTABILITIES
1 OF ENTREPRENEURS TO EMPLOYEES,
GOVERNMENT, CREDITORS AND SUPPLIERS

OBJECTIVES:
K: Identify the responsibility and accountability
of entrepreneurs to employees, government,
creditors and suppliers;
S: Discuss the responsibilities and accountabilities
of entrepreneurs to employees, government,
creditors and suppliers; and
A: Appreciate the importance of the responsibilities
of entrepreneurs to employees, government,
creditors and suppliers

LEARNING COMPETENCY:
Discuss the responsibilities and accountabilities of
entrepreneurs to employees, government, creditors and
suppliers. (ABM_ESR12-IVi-l-3.1)

I. WHAT HAPPENED

Pre-Activity
Put yourself in a work place either you are a housekeeper in a beach
resort, a service crew in a fast-food chain or any work you have known. Write
your responsibilities as an employee and the responsibilities of the employer in
this covid-19 disease pandemic. Write your answer in your activity notebook.

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PRE-TEST:
Multiple Choice. 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
6. What responsibility of the entrepreneurs to pay 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

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7. Loans are obtained for 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
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. Promote healthy competition
C. Inform about changes in market
D. None of the above

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: 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

II. WHAT YOU NEED TO KNOW

KEY TERMS!

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.
DISCUSSION
Accountability – is the obligation to demonstrate that work has been
conducted in compliance
RESPONSIBILITIES andwith agreed rules and
ACCOUNTABILITIES standards or to report
of ENTREPRENEURS
fairly and Toaccurately onGovernment,
Employees, performance results and
Creditors vis-à-vis mandated roles
Suppliers
and/or
An plans.
entrepreneur is one who organizes, manages and assumes the risk
of an enterprise. An entrepreneur should be aware of the ethics and social

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DISCUSSION

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.

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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.

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 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

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 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

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 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.

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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.

III. WHAT HAVE I LEARNED

REMEMBER KEY IDEAS!

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

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EVALUATION:
Multiple Choice. Read and analyze each statement below and choose the
letter that corresponds the correct answer.

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
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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

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 REFERENCES

Book:
Racelis, Aliza. 2017. Business Ethics and Social Responsibility (Manila,
Philippines, Rex Book Store, Inc.,2017) page 24

Online Sources:

Abrogueňa, Jessie Cris N. Business Ethics and Social Responsibility. Page 13.
https://docs.google.com/document/d/104Klb0wB8iJazzYYoouY8k5O-
NeQA6oS/edit

Bondoc, Lorey. Social Responsibility of Entrepreneur. Pp 1-4.

https://www.academia.edu/36905141/Social_Responsibility_of_Entrepr
eneurs

Nivethigha, R.P. et al. Business Ethics, Values and Social Responsibility to An

Entrepreneur http://ijrmbs.com/vol4issue1/nivethigha.pdf

Responsibilities and Accountabilities of an Entrepreneur. November 7, 2020.

https://quizlet.com/269183249/business-ethics-responsibilities-and
accountabilities-of-an-entrepreneur-1-employees-flash-cards

Rivera, Catherine. Responsibilities and Accountabilities of Entrepreneurs.

March 3, 2019.
https://www.scribd.com/document/400919767/Responsibilities-and-
Accountabilities-of-Entrepreneurs

Social Responsibility of Entrepreneurs towards Government. April 1, 2020.

https://www.googlesir.com/social-responsibility-of-. entrepreneurs-
towards-government-
institutions/#1_Reasonable_and_Attractive_Remuneration

13 Social Responsibility of Entrepreneurs towards Employees. April 1, 2020

https://www.googlesir.com/social-responsibility-of-entrepreneurs-
towards-government-institutions/

18 Responsibility of Entrepreneur towards Suppliers, Creditors and Depositor.

April 1, 2020. https://www.googlesir.com/responsibility-of-entrepreneur-
towards-suppliers-creditors-and-depositor/

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 SYNOPSIS AND ABOUT THE AUTHOR

SYNOPSIS ANSWER KEY

This SLK (Self-Learning Kit) is

about the discussion on the
responsibilities and
accountabilities of
entrepreneurs to employees,
government, government,
creditors and suppliers.

Students are expected to

apply the concepts of being
socially responsible and
accountable as an
entrepreneur in the future.

Explore and enjoy!

AUTHOR
FLORAMAE TUBOG SIOCO is an Accountancy
Business and Management (ABM) teacher at Dauin
National High School Division of Negros Oriental. She
currently teaches specialized, applied, and core
subjects for Senior High School students.
She graduated Bachelor of Science in Industrial
Engineering from the University of San Jose –
Recoletos in Cebu City. She earned her degree in
Master of Business Administration at Foundation
University, Dumaguete City. She took her Continuing
Program Education at Negros Oriental State
University (NORSU), which made her qualified to
teach in the Department of Education.
She was a faculty member of the School of Industrial
Engineering, Foundation University for 20 years.
Her experiences strengthened her in materializing this
Self-Learning Kit.
26
 LESSON RESPONSIBILITIES AND ACCOUNTABILITIES
2 OF ENTREPRENEURS

OBJECTIVES:
K: Distinguish the responsibilities and accountabilities
of business;
S: Discuss the responsibilities and accountabilities of
business; and
A: Apply the importance of business responsibilities
and accountabilities in every business
organization.

LEARNING COMPETENCY:
Discuss the responsibilities and accountabilities of
entrepreneurs. (ABM_ESR12-1Vi-I-3.1)

I. WHAT HAPPENED

REVIEW/ RECALL

Responsibilities and Accountabilities of Entrepreneurs to:

1. Employees
a. Train Employees
b. Insurance and benefits
c. Favorable working environment
d. Manage performance
e. Respect human rights
f. Anti- discrimination law
g. Pay wages
h. Career development
2. Government

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 a. Pay taxes
b. Abide by labor laws
c. Contribute to political stability
d. Follow environmental regulations
e. Help foreign exchange
f. Avoid Corruption
g. Contribute to government treasury

3. Creditors
a. Give correct Information
b. Provide fair return of investment

4. Suppliers
a. Practice fair pricing and licensing
b. Maintain stability and confidentiality
c. Pay on time
d. Select suppliers with discernment

PRE-ACTIVITY

Activity 1. Direction. Read the given selection and answer the question
written below. Write your answer in your activity notebook.

The Johnson & Johnson’s Tylenol Crisis

In 1982, many persons died after the consuming Johnson and Johnson’s
Tylenol capsules contaminated with a cyanide
( a poison). As it dealt with sensitive issue and the protection of the public was
a must, the managers recalled all capsules from all the places worldwide. This
crisis incident worked as a catalyst that boosted J&J’s image in the eyes of
customers worldwide. One sees that an ethical commitment to health and
safety of consumers is deeply rooted in Johnson & Johnson.

( Racelis, 2017)

Question:
1. What was the effect of the cyanide poisoning on Tylenol as a brand
and on Johnson & Johnson’s as company?
2. Do you think our government should require companies
to undertake their social responsibilities? Why or why not?

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PRE- TEST
Test I. True or False. Read each item carefully. Write TRUE if the stament is true
and write FALSE if the statement is false. Write your answer in your activity
notebook.

1. The idea of Milton Friedman that the mission of business is to produce

goods and services at a profit, thus maximizing its contribution to
society is associated with.
2. A corporation can be considered a moral agent, it is therefore
responsible to society for its actions.
3. One of the social responsibilies of the business organization towards
their consumer is being honest in advertising and marketing.
4. Unsafe products can improve the company’s reputation.
5. Responsibility refers to the obligation of an individual or an organization
to account for its activities, accept responsibililty for them, and to
disclose the result in a transparent manner.
6. An entrepreneur must sell quality products at fair price.
7. As a businessman or entrepreneur he must pay the incorrect amount of
taxes to the government.
8. Equally important is the social responsibility of entrepreneur to his
community in terms of job creation and environment observation.
9. Entrepreneurs must provide goods and services which the
society needs at a price which the society can afford to pay.
10. An entrepreneur must provide fair return of investment.

II. WHAT YOU NEED TO KNOW

INTRODUCTION

This module 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.
An entrepreneur must take risks with his or her own capital in order to
sell and deliver products and services while expending greater energy than
the average business person in order to innovate. According to H.R. Brown,

26
an entrepreneur, today, has an obligation ‘to pursue those policies, to make
those decisions or to follow those lines of action which are desirable, in terms
of the objectives and values of the society. The entrepreneur, therefore, has
to include his social obligations and social values as inputs into the decision
and action process, along with organizational, economic, technological and
other relevant values and variables. According to Koontz O’ Donnell “Social
responsibility is the personal obligation of everyone as he acts for his own
interests, to assume that the rights and legitimate interests of all others are not
impugned.”

DISCUSSION
According to Earnest Dale, “the manager sees himself as an arbiter
among the many interests of ‘public’ affected by the business, the
stockholders, the employees, the suppliers, the general public and the
consumers. It is his duty to divide the returns from the business equitably by
providing a ‘fair’ return to the shareholders, ‘fair’ working conditions and pay
for the employees or ‘fair’ prices to the suppliers and customers and to make
the business, in general, an asset to the local community and the nation.” The
most important social obligation of an entrepreneur is to reconcile and
balance the various conflicting interests in the best possible manner.

Obligations of the Entrepreneur to the Different Segments of

the Society

Employees Government Creditors

Suppliers Organization Consumers

General Public Other Stakeholders

Possible Organizational Stakeholders

26
Responsibilities and Accountabilities of Entrepreneurs
(as cited in Jerusalem , Palencia & Palencia , 2017)

A. Responsibilities and Accountabilities to the Consumers

A business cannot work without the consumer. The survival and growth
of a business depend on consumer satisfaction, service, and support. The
commercial organization should win the confidence of the customers. This is
possible by sharing a positive attitude towards customers and fulfilling social
responsibilities towards them.

1. Ensure Quality of Products and Services

Your responsibility is to offer customers the highest quality in your
products and services provide the best care and never lie to get a sale. A
good entrepreneur is honest and gives a good price/benefit. Never use
marketing to deceive or sell false expectations. Quality goods should be
produce and supplied. Distribution system should make goods easily
available “to avoid artificial scarcities and after-sales service should be
prompt”. Buying capacity and consumer preferences should be taken into
consideration while deciding the manufacturing policies.
2. Ensures Consumer’s Health and Safety
A key consumer issue is the quality and safety of products. Customer’s
need clear instructions for safe product use, including assembly and
maintenance. To avoid customer harm and danger, anticipate potential risks
of your product and services in the design stage and throughout the product
lifecycle, from R&D to manufacturing, storage, and distribution, use and
disposal, reuse and recycling. Whether or not legal safety regulations exist,
products should be safe for their intended use and and if misused in a way
that can be foreseen.
3. Provide Free Training
The commercial organization should arrange to train the customers
either free or for a free. It must be in the case of computers, etc.
4. Be Fair with Prices
The customer should not be cheated by charging high prices. It is
unethical to charge customers with a higher price than the suggested. Thus,
fair price converts customer into a permanent customer.
5. Be Honest in Advertising and Marketing
The customers want to know the facts, features, advantages, side-
effects, etc., of the product. The advertisement conveys this information. Thus,
the company must see the advertisement is not being misleading and it must
be done by providing the true and actual information.

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6. Be Honest in Dealings
Never lie to your customers. It is foolish to cook false stories. You will be
caught. In today’s world, where information is just a click away, everyone
does his/her through research before purchasing something. You will lose
respect in front of them. If you can’t deliver something, please mention it
clearly. They might not invest in that particular product but believe me, would
definitely come back to you in near future just because you were honest, and
guided them correctly. It is pointless to badmouth your competitors.
7. Attend to Complaints
The consumer complaints must be attended immediately. When major
issues, occur, employ a system for making decisions on steps and measures to
take while placing top priority on not convincing the customers.

8. Service Even After Sales

The company is expected to provide after sale service for
maintenance of goods during the period of warranty. Efficient and effective
after sale service
helps to establish a good relationship between the customers and the
company.

9. Respect Customer’s Time

Respect your customer’s time. Do not decide the time and venue as
per your availability and comfort. If the customer wants to meet you at 6 in
the evening, make sure you are there on time. Neither arrives too early nor too
late. Do not keep your customers waiting. Do not forget that there are
several options available in the market. Your loss is someone else’s gain.

10. Treat Customers’ well

Treat your customers as kings and do not think of them only when you
have a pressure to meet your targets within the stipulated time frame.
Understand that a customer buys your products or services only when he/ she
trusts your brand and most importantly believes in you. Understand the needs
and requirements of your clients. Find out as to why they need a particular
product and how your product would benefit them. You need to build a
strong relationship with your customers for them not only to remain your loyal
clients but also bring more people along with them. It is the responsibility of
the organization to give correct suggestions and feedbacks to customers.
Avoid making false promises and commitments which you yourself know are
difficult to fulfill.

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B. Responsibilities and Accountabilities to the General Public
To maintain a positive public image and attract new clients, a
company must understand its corporate responsibilities to the public.
Ultimately, any business has responsibilities to the public.

1. Be Fiscally Responsible
One of the actions prompted failure of companies such as Enron and
Adelphia occurred when executives gave themselves loans using company
funds, according to RR Donnelley. While it can be disappointing to consumers
that companies need legislation to be fiscally responsible, it would be naïve to
allow company executives to keep raiding corporate bank accounts for their
own needs. When a company is caught up in scandal caused by executive
greed, it can be fiscally fatal for that company. That is why a company need
s to enact and enforce guidelines for its own that agree with the law but also
apply specifically to the company, to avoid misuse of company funds. There
is a bond of trust between a consumer and a company that is broken when
fiscal fraud occurs. This goes for public or private companies.

2. Consider public Input

A company should be able to operate under its own rules and ideals,
but a company should also take into account the input of its customers to
remain competitive, according to the World Bank Institute’s reported titled
“Public Policy for Corporate Social Responsibility.” A company should reach
out to its customers and benefit from the insight of what customers are
looking for in products improvements.
A company that creates an advisory board of a cross-section of its
target of its target audience gathers recommendations on how to keep in
touch with the customer base and how to improve the company’s public
image. It is the responsibility of the company to remain accountable to its
customers; otherwise, the company will lose its customers and cease to
exist.

3. Community Oriented
A company exists because of the customers it serves and the
community in which it is located. The community provides most of the
employees for the company, and the community provides all the public
services the company enjoys, such as electricity and firefighting protection.
In some cases, companies are given breaks on their utilities and taxes in order
to entice them to establish a location within the community. The company
has a responsibility to give back to the community that supports it with tax
breaks and a labor force. When there is a community event, the company
should contribute volunteers, money, or something that would support the

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event. The company should use local suppliers as it can help to support local
businesses.

C. Responsibilities and Accountabilities to Other Stakeholders

1. Actively protecting the Environment

a. Comply with Environmental Legislation

• Comply with the Clean Air Act of 1999
• Store waste safely and securely, make sure it is
treated appropriately, ensure it is collected.
• Manage your business waste for recycling by segregating
it prior to collection.

b. Dispose waste properly

• Appropriate steps should be taken in prevent
environmental pollution, and to preserve ecological
balance.

c. Recycle
• Business are required to separate the following forms of
commercial waste for re-cycling: paper, card, plastic,
metals, and glass.
d. Conserve and Protect Biodiversity
• Biodiversity refers to all species of plants and animals,
including any genetic variations within those species and
the complex ecosystem they live in.
e. Prevent and remedy damages to environment
Every year there are thousands of cases of damage to
environment covering:
• damage to species and habitat
• damage to water
• risks to human health from contamination of land
g. Use Scarce Natural Resources Sparingly
Scarce natural resources should be used very carefully at these
are depleting at a very fast rate.

2. Operating with an Ethical Supply Chain

Stakeholders are increasingly aware of life-cycle issues with

business supply chains and are insisting on ethical sourcing of materials.
For a jewelry company, this can mean taking steps to ensure that you
are not purchasing “blood diamonds”, which are jewels from mines
operated in near slave-like conditions and that fund brutal warlords.

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 Large coffee buyers are increasingly sourcing their coffee
from farms that have been certified to operate sustainably by paying
workers a living wage and avoid clear- cutting rainforests and other
forms of habitat destruction.

III. WHAT HAVE I LEARNED

EVALUATION/POSTTEST
Test I. Direction. Read the given selection and answer the question written
below.

Starbucks

Every Starbucks bar counter has a barista who is expert in preparing

coffee. A Starbucks barista is trained in grounding coffee beans, brewing,
and serving fresh coffee. He/ She should know all the regular customers of
the store by name and remember their coffee preferences. He/ She must
also be able to pour coffee with one hand and whipped cream with the
other while talking with the customer. This is what later on called the
Starbucks experience. This is a unique way of serving coffee while
building a more personal relationship with patrons.

Today, Starbucks is the number one provider of not only the finest
coffee-drinking experience in the world, specifically in 24,000 stores in 70
countries. True to its mission, “ to inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time.” Starbucks continue to
meet this goal by creating value and satisfaction for its customers.

Based on the reading above, answer the following briefly:

1. How did Starbucks evolve from a coffee bean roaster to a café?

2. What customer need did the owner of the Starbucks seek to meet with the
changes he made in Starbucks?
3. List down the social responsibilities and accountabilities that the Starbucks
Company shows to their customers, general public, and to other
stakeholders.

Rubrics in Essay

Focus Content Organization

4 Sharp, distinct Substantial, specific, Sophisticated

controlling point and or illustrative arrangement of content

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 made about the content, with evident and/or
topic with evident demonstrating strong subtle transitions.
awareness development and
sophisticated ideas

3 Apparent point Sufficiently developed Functional

made about the content with arrangement of
topic with sufficient adequate elaboration content that sustains a
awareness of topic or explanation logical order with some
evidence of transitions.
2 No apparent point Limited content with Confused or inconsistent
but evidence of a inadequate arrangement of content
topic elaboration or with or without attempts
explanation at transition.

Source: Rubrics by Jenny Tuazon, BSE_Math

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 REFERENCES

Racelis, A. 2017. Business Ethics and Social Responsibility. Quezon City: Rex
Bookstore

Zarte, C. 2017, Principles of Marketing. Quezon City: C&E Publishing, Inc.

Online Source:

Bondoc, Lorey. Social Responsibilty of Entrepreneur.

https://www.academia.edu/36901541/

Responsibility of Entreprenuers. Retrieved from https://www. scribd.com/

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

FAY C. LUAREZ, TM, EdD, PhD

OIC - Assistant Schools Division Superintendent
Acting CID Chief

NILITA L. RAGAY, EdD

OIC - Assistant Schools Division Superintendent

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ARNOLD R. JUNGCO
Education Program Supervisor – (SCIENCE & MATH)

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

FLORAMAE T. SIOCO
MARIA ACENITH D. PASTOR
Writers

CHRISTY BLEZEILLE L. POCONG

Lay-out Artist
_________________________________

ALPHA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO

BETA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
GIL S. DAEL
MARIA SOLEDAD M. DAYUPAY
MARIA ACENITH D PASTOR
JEE LIZA T. INGUITO
MERCYDITHA D. ENOLPE
RONALD G. TOLENTINO

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible learning modality to the
teachers and learners of the Division of Negros Oriental. The contents of this module are carefully researched, chosen, and evaluated to
comply with the set learning competencies. The writers and evaluator were clearly instructed to give credits to information and illustrations
used to substantiate this material. All content is subject to copyright and may not be reproduced in any form without expressed written
consent from the division.

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 SYNOPSIS AND ABOUT THE AUTHOR

SYNOPSIS ANSWER KEY

This SLK (Self-Learning Kit)
is designed for the Grade 12 ( Answers may Vary)
students under Accountancy, POST TEST/ EVALUATION
Business and Management
strand. It covers the 10. True 5. True
Responsibilities and 9. True 4. False
Accountabilities of
8. True 3. True

Entrepreneurs.
7. False 2. True
. True 1. True

In this SLK the students

Activity 2: True or False

have a depth-understanding vary)

on the different responsibilities Activity I (Answers may
and accountabilities in every Pre – Test
business organizations.

AUTHOR
MARIA ACENITH D. PASTOR received her Certificate
of Professional Education last March 2014 at St.
Francis College of Guihulngan, Guihulngan City,
Negros Oriental. She was a graduate of Bachelor of
Science in Commerce major in Business
Administration at University of San Jose- Recoletos,
Cebu City in 1999. She is pursuing her Master’s
Degree major in Administration and Supervision at STI
West Negros in Bacolod City, Negros Occidental.
She is currently teaching at Demetrio L. Alviola
National High School, Bindoy Negros Oriental
handling Accountancy, Business and Management
(ABM) subjects. She is also a Grade 12- ABM adviser,
the Career Guidance and GAD coordinator of the
said school.

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