LESSON 1:

Responsibilities and
Accountabilities of
an Entrepreneur
STAKEHOLDERS - is any
person, organization, social
group or society at large that
has stake in the business. It
can be internal or external to
the business.
Entrepreneurs have a moral
obligation to reconcile and
balance the rights obligations of
their stakeholders such as
customers, employees, suppliers
and other stakeholders.
A. SOCIAL RESPONSIBILITY
to CUSTOMERS
 Companies should be honest
in disclosing the potential
harm that a product may
cause. Companies should
also be truthful about the
safety aspect of their
products. Labels should
indicate warnings and
harmful effects of the
product.
-It is the social responsibility
of manufacturers or service
provider to honor or comply
with the provision of sales
contracts.
-They should inform the
customers of the terms and
conditions of the purchase such
as product features, price,
warranties for equipment or
appliances as well as after sales
service and delivery.
-All consumers have the
right to safe product and
services which should not
pose any undue harm to
them.
 Examples of unsafe products
are spoiled food and expired
canned goods, unsafe services,
defective automobiles,
computers and other devices
and equipment and expired
drugs.
EIGHT BASIC
RIGHTS of
the
CUSTOMERS
1. Right to Basic Needs
Customers must not be
deprived of the basic needs
for survival. They should be
made available at
affordable prices.
2. Right to Safety Consumers
should be safeguarded
against goods and services
that are hazardous to
human health.
3. Right to Information
Consumers have to right to be
properly informed and not be misled
by dishonest advertisements, labels or
packaging. They are entitled to honest
and truthful information so they can
select the best products and services
4. Right to Choose
Consumers are free to
select from the line up or
array of quality products
and services available in
the market.
5. Right to Representation
Consumers have the right to
participate in the formulation
and execution of policies and
guidelines on consumer
welfare and protection.
6. Right to Redress Consumers
have the right to be
compensated or reimbursed on
any purchase or availment of
goods and services which do not
meet the expected standards of
quality.
7. Right to Education
Consumers have the
right to acquire the skills
needed to always be an
informed customer.
8. Right to Healthy
Environment Consumers
have the right to safe and
conducive place to live and
work free from any form of
danger.
 B. SOCIAL
RESPONSIBILIT
Y TO
EMPLOYEES
-Employees are the
most important asset
in an organization.
One of their basic
right is a good
working condition.
-The term working condition
refers to the physical
environment, particularly the
physical set up of the work area,
as well as the procedures and
practices that are relevant in
performing a task.

-Employees should be provided

with a safe work with proper
seats, good lightning and
ventilation, adequate
passageways, exits, fire-fighting
equipment, safety gears,
uniforms, medicine and first aid
kit.
-Employees should not be
exposed to dangerous
process or activities which
will inflict harm or endanger
life.

-Workloads should not be

beyond what the
employees can undertake.
Another dimension of
working condition is equal
opportunities for all.
-Employees have the right
to due process. No
employee can be
dismissed from work
without the due process.

-Due Process is the

employee’s right to be heard
before a decision for
termination is made. It ensures a
fair and impartial hearing on
employee’s violation or a
management decision.
- Due process also
allows the
management to
impose appropriate
disciplinary action.
 C. SOCIAL
RESPONSIBILITY
to SUPPLIERS
-Suppliers should be
treated as the company’s
partner. Despite the
supposed partnership
between entrepreneurs
and supplier, there are
malpractices that
suppliers may commit in
order to seal a deal. The
most common is bribery.
Bribery is defined as
the giving gifts or
favors to influence a
person’s or a
company’s decision.
-Both the person who
bribes and the one
who accepts the bribe
commit on unethical
action.
D.
CONFLICT
of
INTEREST
Conflict of Interest is defined
as an international and
deliberate action or decision
that results in getting
personal gain, while adversely
affecting the company.

Examples of conflict of interest

involves an employee who
works for a company but also
owns a business similar in nature
to his/her employer. In short,
he/she becomes a competitor to
his/her own employer.
E. PAYMENT
of TAXES
Taxation is an orderly and
compulsory manner of
raising money to finance
government projects for
better delivery of services
to the people.
There are various forms of
taxes and the most popular
among them is income tax,
which is the tax imposed
by the government on the
business and individuals.
-There are two ways to
face the responsibility of
paying taxes: tax evasion
and tax avoidance. Some
companies tend to evade
the payment of taxes
Tax evasion is
the deliberate
failure to pay
taxes due to a
business.
This is intentional and is
therefore, illegal because
this deprives the general
public of the projects
which could have been
realized if payment were
made.
Tax avoidance is a tactic of
deliberately finding a way to
avoid payment of taxes or pay
lower taxes by using methods
such as transferring to a city
where taxes are lower.
F. INTELLECTUAL
PROPERTY RIGHT
Intellectual Property is
defined by the World
Intellectual Property
Organization (WIPO) as the
knowledge, creative ideas
or expressions of human
mind that have commercial
value and are protectable
under copyright, patent,
service mark or trademark or
trade secrets laws from
imitation, infringement and
dilution.
-Intellectual property
includes brand names,
discoveries, inventions,
knowledge, registered
designs, software and works
of artistic, literary or musical
nature.
CATEGORIES of
INTELLECTUAL
PROPERTY
A.) Industrial
Property – includes
trademarks or service
marks, layout
designs of integrated
circuits, commercial
names and
designations, as well
as geographical
indications and
protection against
unfair competition.
Copyright – refers
to all artistic creations
like poems, novels,
music, paintings and
cinematographic
works.
-This means that it is only
the author who can make
copies of a literary or
artistic work such as book,
painting, a sculpture, a
photograph, or a motion
picture.
 WHY DO THEY
NEED TO PROTECT
INTELLECTUAL
PROPERTY?
1. It is an expression and protection
of the moral and economic rights
of creators and authors in their
pieces of work.
2. This can promote creativity
as well as support economic
and social development.
Patent also refers to the
act of filing for a patent
application through the
national or regional patent
office to justify that the
said invention is new and is
completely different from
existing technologies in the
same field. It is a right given to
an inventor to exclude anyone
from using or benefitting from
the invention for a period of
20 years.
Trademark is a sign
or a combination of
signs in the form of
words, numerals,
pictures, shapes and
colors which
differentiate one
product or service from
another. A trademark is
used in the marketing of
goods.

TRADE NAMES -
identifies a company or an
organization. The
protection given under
intellectual property is that
the name cannot be used by
another organization. In many
countries, trade names may be
registered in a government
office like the Department of
Trade and Industry in the
Philippines.
TRADE SECRETS- is a t

formula, practice, process,

design, instrument, pattern,
commercial method, or
compilation of information
not generally known or
reasonably ascertainable by
others by which a business
can obtain an economic
advantage over
competitors or customers.