BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

THIRD QUARTER-WEEK 1
LESSON 1 - Forms of Business Organization and its Role in Social Economic Development

Activity 1: Introduction
Direction: Below are the characteristics of money. Match the description of each word in
Column I with its meaning in Column II.
Column I Column II
1. Easily exchanged for goods and services A. Acceptable
2. Money is universally accepted B. Convertible
3. Long lasting C. Divisible
4. Can be easily broken down into smaller units D. Durable
5. Easy to carry E. Homogenous
F. Portable
Ever since the birth of free enterprise, all kinds of businesses have influenced society
one way or another. Business, also known as an enterprise, agency, or firm, is an entity involved
in the provision of goods and/or services to consumers. Businesses are prevalent in capitalist
economies, where most of them are privately owned and provide goods and services to
customers in exchange for other goods, services, or money.

The characteristics of Money

1. Acceptable - money is universally accepted
2. Convertible - easily exchanged for goods and services
3. Divisible - can be easily broken down into smaller units
4. Durable - long lasting
5. Homogenous - similar example: all $100 bills are the same in appearance
6. Scarce - this ensures its value
7. Portable - easy to carry
Activity 2 (Development)
Direction: Respond to the statement below and write your answer on a separate sheet of
paper. Define the term “business” based on your own understanding.
There are several types of business organizations such as:
a. Conglomerates
b. Cooperatives
c. Franchise
d. Government Departments
e. Local and Municipal Authorities
f. Nationalized Industries and
g. Partnership
An organization is a system that groups people together towards establishing a common
goal. Business organizations are centered on creating goods and services for profit.
The following are the types of business organizations:
1. Conglomerate - a group of unrelated companies under one umbrella. A parent company
owns a controlling stake in each company which conducts business separately. (e.g.,
Restaurant, shoe store, travel agency, etc.)
2. Cooperatives -business entities owned by their members who purchase shares to join them.
They are usually established because of a need existing among a number of persons who wish
to acquire goods and services at a reasonable cost. (e.g., Retail Consumer cooperatives and
Producer cooperatives)
3. Franchise – an agreement between the person requesting permission to set up business and
the parent company to allow the franchisee to sell its product or services. Many multinational
companies expand into new regions through franchises. (e.g., Jollibee, McDonalds, Choking,
etc.)
4. Government department – includes the government ministries that are very important to
the running of government. (e.g., The Ministry of Finance and Education)
5. Local and municipal authorities – these bodies fulfill local needs and allow for more
balanced local development. (e.g., The Kingston and St. Andrew Corporation (K.S.A.C) in
Jamaica)
6. Nationalized industries – are government owned and controlled businesses. They provide
essential services such as water, electricity and transportation. They carry out duties such as
cleaning gullies and drains and fixing community roads. (e.g., water company providing
standpipes to rural communities)
7. Partnership – formed legally by a minimum of two and a maximum of twenty persons in a
business. (e.g., Red Bull selling energy drinks)
Activity No. 3: (Engagement)
DAY 2
Activity 3: Engagement
Using the KWL Chart, write down what you know about the topic in the What I Know column.
Then, in the form of a question write the things that you want to know in the What I Want To
Know column. Lastly, in the What I Learned column, write what has been added to your
knowledge in business.
K-W-L CHART
What I Know What I Want to Know What I Learned
ASSIMILATION
Starting a business requires a lot of hard work. Therefore, persons must be ready when
deciding to start up a business to dedicate a lot of time and energy to the start-up. It is also very
costly and therefore capital will have to be identified to inject into a new business.
To better understand, here are some reasons for starting a business. (Mindshapers Co., Inc)
1. Being your own boss where you can make decisions about the direction and operation of the
business.
2. Financial independence where starting the business would give you the opportunity to be a
successful businessperson and achieve financial independence.
3. Self-actualization/Fulfillment in which owning and operating a successful business will give a
feeling of accomplishment.
4. Creation of employment for relatives, friends and community members which can assist in
providing jobs for persons in communities with high levels of unemployment.
5. Use of skills and knowledge for yourself where the skills, knowledge and experience that you
have acquired can be put to work for you.
Activity No. 4
Direction: As a future businessperson, discuss the importance of business in today’s generation
and create your own reason for starting a business.

ASSESSMENT
Let us check your understanding. Direction: Write T if the statement is True and F if the
statement if False.
_____ 1. Business enterprises are legal entities operating in an economy to provide goods and
services at a profit.
_____ 2. Businesses will close if they are making losses.
_____ 3. Firms produce commodities/goods and services that satisfy needs and wants for its
market.
_____ 4. Government manages the economy. They set the laws that govern households and
businesses.
_____ 5. Households consume the goods and services provided by firms.
_____ 6. Households are known as consumers.
_____ 7. Whether man lives in a simple economy or in a more sophisticated one, he must
survive.
_____ 8. A man is seen as an economic animal. To survive, he must be involved in economic
activities such as production, consumption and exchange.
_____ 9. Firms are the producers in an economy. They obtain and maintain markets through
consistent advertising and sales promotion.
_____10. Government provides the necessary services (road, water, transportation,
communication, etc.) so that businesses may operate efficiently. Households and businesses
must in turn pay their taxes.