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Republic of the Philippines

PHILIPPINE STATE COLLEGE OF AERONAUTICS


INSTITUTE OF LIBERAL ARTS AND SCIENCES
Piccio Garden, Villamor, Pasay City

____________________________________________________________________________________

The
ENTREPRENEURIAL
MIND
2ND SEMESTER, A.Y. 2022-2023
GEC 4110 1211

LEARNING MODULE 3

ETHICAL, SOCIAL AND SUSTAINABLE


ENTREPRENEURSHIP

1|Ethical, Social and Sustainable Entrepreneurship


MODULE LEARNING OUTCOMES:

➢ Develop and demonstrate the mindset and behavior of a social


entrepreneur.
➢ Demonstrate ethics in the practice of the students’ respective
industries.
➢ Formulate and develop sustainable solutions to current problems and
issues.

TOPIC LEARNING OUTCOMES:

➢ Justify the concepts of ethical, social, and sustainable


entrepreneurship.
➢ Recognize the role of ethics in the practice of entrepreneurship, and in
the context of the cross-cultural world.
➢ Determine the relationship between entrepreneurship and sustainable
development.

Table of Contents:

TITLE PAGE TIME ALLOTMENT


Introduction 3 3 mins.
Social Entrepreneur Define 4-5 8 mins.
Adam Smith “The Wealth of Nations” 5 8 mins.
Example of Social Entrepreneur 6 5 mins.
How Social Entrepreneur Take Action 7-8 10 mins.
The Mind set of Social Entrepreneur 8-10 10 mins.
Ethics and Entrepreneurship 11-13 10 mins.

Code of Ethics 13-14 8 mins.


Unethical Practices 14-15 5 mins.
Entrepreneurial Ethics 15-16 10 mnins.

Entrepreneurship for Sustainable 17-18 3 mins.


Development
Importance of Sustainability 19 10 mins.

2|Ethical, Social and Sustainable Entrepreneurship


Role of Sustainable Development 20-21 10 mins.

Ecopreneurs Define 21 5 mins.


Philippine Ecopreneurs 22-23 3 mins.

Principles of Ecopreneurs 23-25 10 mins.

Thinking like an Entrepreneur in a time 26-27 8 mins.


of Crisis
A lens of Hope and Challenge 27 5 mins.
Summary/Assessment 28 1.5 hrs.
Rubrics 29 -
References 31 -

Introduction:

An entrepreneur is one who organizes, manages and assumes the risk of an


enterprise. An entrepreneur visualizes a business, takes bold steps to
establish undertaking, coordinates the various factors of production and
gives it a start. An entrepreneur should be aware of ethics and social
Responsibility in business and should follow them in order to maintain the
ecological balance in the society. The study and examination of moral and
social Responsibility in relation to business practice and decision making in
business is known as “Business Ethics”. The term “business” is commonly
referred to the commercial activities achieved at making profit, but gradually
there is a substantial change in the way in which people viewed the business.
In the past primary objective of a business was profit maximization but the
present perspectives on business objectives are not maximization. Besides
profit maximization the entrepreneur needs to fulfil the ethics in the business.

3|Ethical, Social and Sustainable Entrepreneurship


What is a Social Entrepreneur?

A social entrepreneur is a
person who pursues novel
applications that have the
potential to solve community-
based problems. These
individuals are willing to take on
the risk and effort to create
positive changes in society
through their initiatives.

Widespread use of ethical


practices such as impact
investing, conscious
consumerism, and corporate
social responsibility programs
facilitate the success of social
entrepreneurs.

➢ A social entrepreneur is
interested in starting a business
for greater social good and not
just the pursuit of profits.

➢ Social entrepreneurs may


seek to produce environmentally-
friendly products, serve an
underserved community, or focus
on philanthropic activities.

4|Ethical, Social and Sustainable Entrepreneurship


➢ Social
entrepreneurship is a
growing trend alongside
socially responsible
(SRI) – Socially
Responsible Investing
and ESG –
Environmental, Social
and Governance
investing.

Understanding Social
Entrepreneurs
While most
entrepreneurs are
motivated by the
potential to earn a
profit, the profit
motive does not prevent
the ordinary
entrepreneur from
having a positive impact
on society.

As Adam
Smith explained in The
Wealth of
Nations (1776), "It is not
from the benevolence of
the butcher, the brewer,
or the baker that we
expect our dinner, but
from their regard to their
own self-interest." Smith
believed that when
individuals pursued their own best interests, they would be guided toward
decisions that benefited others. The baker, for example, wants to earn a
living to support his family. To accomplish this, he produces a
product, bread, which feeds and nourishes hundreds of people.
5|Ethical, Social and Sustainable Entrepreneurship
Examples of Social Entrepreneurship
Include microfinance institutions, educational programs, providing banking
services in underserved areas and helping children orphaned by epidemic
disease. Their efforts are
connected to a notion of
addressing unmet needs
within communities that have
been overlooked or not
granted access to services,
products, or base essentials
available in more developed
communities.

➢ A social entrepreneur
might also seek to address
imbalances in such
availability, the root causes
behind such social problems,
or social stigma associated
with being a resident of such
communities. The main goal
of a social entrepreneur is
not to earn a profit, but rather
to implement widespread
improvements in society.
However, a social
entrepreneur must still be
financially savy to succeed in
his or her cause.

6|Ethical, Social and Sustainable Entrepreneurship


How Social Entrepreneurs Take Action?

The introduction of
freshwater services,
through the
construction of new
wells for instance, to
communities that lack
stable utilities of their
own is another
example of social
entrepreneurship.

In the modern era,


social
entrepreneurship may
be combined with
technology assets
such as bringing high-
speed internet
connectivity to remote
communities, with the
intent to provide
school students with
more access to
information and
knowledge resources.
Social
entrepreneurship is a
way to connect you to
your life's purpose, help others find theirs, and make a difference in the
world, all while making out a living.

7|Ethical, Social and Sustainable Entrepreneurship


The development of mobile apps that speak to the needs of the community
is another way social entrepreneurship is expressed. This can include
giving individuals ways to alert their city administrations to such problems
as burst water mains, downed power lines, or patterns of repeated traffic
accidents. There are also apps created to report infractions committed by
city officials or
even law
enforcement,
giving a voice to
the community
through
technology.

The Mindset of Social Entrepreneurs

8|Ethical, Social and Sustainable Entrepreneurship


The Mind set of Entrepreneurship Define:

Definition of the Mind set of Social Entrepreneurship

9|Ethical, Social and Sustainable Entrepreneurship


Relationship between the definitions of the Mind set of
Entrepreneurship and that of Social Entrepreneur

Learning Outcome key Questions:

10 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
ETHICS AND ENTREPRENEURSHIP

ETHICS Involves acceptable


behavior, relating to such
questions as what is wrong or
right, fair or unfair, professional
or unprofessional, legal or
illegal, etc. The criteria for
judging acceptable behavior is
derived from social values,
professional codes of conduct,
religion, natural justice, laws,
regulations, corporate codes of
conduct, social good etc.

Ethics therefore has the following elements

➢ It is defined in the context of


the individual

➢ What constitutes ethical


behavior can vary from person to
person
➢ Ethics is relative, not
absolute
➢ Ethics guide behaviour on
the basis of which managers and
organizations are judged.
Judgment passed will determine
the image various/relevant
stakeholders will have of the
entrepreneur or organization.
➢ Unethical behaviour can
have negative impact on the
entrepreneurship venture in
addition to that on the affected
party.
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Levels of Ethics are four levels or areas at which ethics are most
significant:

➢ The relations of the organizations and its employees; in relation to


hiring, termination of employment, wages, working conditions,
confidentiality of employee information, respect for religious beliefs
etc.,
The relations of the employee
to the employer in relation to
conflict of interest, secrecy,
honesty, integrity, diligence,
theft, embezzlement, abuse
of property etc.,
➢ The relations of the
organizations to society
(individuals, organizations)
wider society, communities,
environment and other
organizations.
➢ The relations of the organizations with other organizations in relation
to stealing secrets (industrial espionage), undercutting prices,
negative promotional messages.

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Role of entrepreneurs in promoting ethics:
➢Establishing a culture
that clearly defines
behaviour that is
acceptable and
unacceptable.
➢Include issues of
ethics in all training
programs.
➢Guide employees on
how to deal with ethical
dilemmas
➢Form an ethics
committee that reports to
the CEO and the board
Prepare guidelines on how employees should deal with all
stakeholders
➢ Develop code of ethics and code of conduct.

Codes of Ethics
A document that spells
out the ethical
standards, norms,
beliefs and values an
entrepreneur has
committed himself/
herself to abide by.
A code of ethics
➢Is an indication of an
entrepreneur’s
commitment to high
ethical standards?

13 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
➢ Lays the parameters within
which individuals must behave
➢ Provides the employee with
a basis to inform senior
management of unethical
behaviour.
➢ Helps employees to deal
with ethical dilemmas.

Unethical Practices
These are behaviours which do not conform to the organization/ industry’s
norms, values, beliefs, standards and expectations

Unethical Practices:

14 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
➢ Corruption (misuse of office
for personal gain)
Bribery (by government officers,
other co-employees.
➢ Offers for lunch, drinks
groceries, hampers
➢ Stock holding
➢ Smuggling
➢ Nepotism
➢ Pollution
➢ Tribalism

➢ (Argument for bribe is that it


is necessary to “grease” the palms
of others to get assistance BUT
entrepreneurs should desist from
these kinds of practices for
continuity)

ENTREPRENEURIAL ETHICS
Entrepreneurial Ethics; all
successful entrepreneurs
employ sound business ethics to
bring the organization to an
enviable position. The essence
of entrepreneurial ethics is to
build entrepreneurs; whose
activities grow wealth in any
society.

15 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
Entrepreneurial ethics are
sound business principles
to be employed by
entrepreneurs or
businessmen as to succeed
in life, thereby creating
impacts in the society.
Entrepreneurial ethics
would lead to positive
attitudes towards raising
successful entrepreneurs,
who would in turn build
entrepreneurial institutions
for societal growth and
advancement.
Akin to entrepreneurial ethics is integrity in business in which a Nigerian
Administrator, Emmanuel Ikazoboh described thus, “Integrity matters a
great deal. It is very important, even when many scorns you, later they
would come back to give you respect”.

When entrepreneurial
ethics are followed, the
entrepreneurs and the
team work with great
passion, determination
and perseverance to
achieve a common
purpose. Sound
entrepreneurial ethics
makes it possible for
business ventures to
handle or tackle
problems when they
arose. Sound entrepreneurial spirit is the way out of un-employment crises
many countries are facing especially in the third world countries.
Entrepreneurial ethics would lead to gradual development of various
sectors in the economy including agriculture, commerce, technology etc.
Without trust, nobody would want to have business relationship with
nobody. Such trust and respects build business empires became credibility
has been built.
16 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
Entrepreneurial spirits
connote remaining
positive with the vision
and mission of an
organization. It
therefore requires great
sense of self-discipline
which grows business
empires from humble
beginning to a larger
conglomerate.

Entrepreneurship for sustainable development

Is a multilevel phenomenon connecting


social, environmental and economic
dimensions
between entrepreneurial processes,
market transformations, as well as
large-scale societal developments
.

17 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
Sustainability entrepreneurship
contributes to solving social
and environmental problems,
particularly in emerging and
developing countries...They
have in common

that entrepreneurial approaches are used to solve social and


environmental problems and that a positive contribution is made
to sustainable development.

Sustainable Development:
Is defined as an
approach to
developing or
growing by using
resources in a way
that allows for them
to renew or
continue to exist for
others. Using
recycled materials
or renewable
resources when
building is

an example of sustainable development.

18 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
Sustainable development is the idea that human societies must live and
meet their needs without compromising the ability of future generations to
meet their own needs.

The Importance of sustainability:


Sustainability supports that
mission by striving to
improve the environmental
health and quality of life for
our campus and

community. Sustainability is important for many reasons including:


Environmental Quality – In order to have healthy communities, we need
clean air, natural resources, and a nontoxic environment.

Principles of Sustainable Development


The principles of sustainable development are as follows:
• Conservation of ecosystem.
• Development of sustainable society.
• Conservation of biodiversity.
• Control of population growth.
• Development of human resources.
• Promotion of public participation.

The benefits of sustainable living:


Here are just a few ways living a sustainable lifestyle can be a form of
philanthropy:
• Reduces Wasteful Spending. ...
• Reduces Landfills. ...
• Changes Carbon Footprint. ...
• Promotes Energy Efficiency. ...
• Supports Fair Trade Workers.

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The Role of Sustainable Development:
Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to
meet their own needs. ... The goal
of which is to achieve
balance/harmony between
environment sustainability,
economic sustainability and socio-
political sustainability.

Examples of Sustainable Development


• Wind Energy.
• Solar Energy.
• Crop Rotation.
• Water efficient fixtures.
• Green Spaces.

The 17 sustainable development goals (SDGs) to transform our world:


GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic Growth
GOAL 9: Industry, Innovation and Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and Communities
GOAL 12: Responsible Consumption and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong Institutions
GOAL 17: Partnerships to achieve the Goal

20 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
How can you support
sustainable development?
Five ways to help reach the
sustainable development goals
in your personal life.
1. Educate yourself and your
co-workers. ...
2. Start fundraising campaigns
at work. ...
3. Promote volunteering and
capacity building. ...
4. Do more good by doing less
harm...
5. Use your connections to
empower changemakers.
t-based approach to identifying
opportunities for improving
environmental quality and capitalizing upon them in the private sector for
profit. "

What is Ecopreneurs? Ecopreneur is ‘an entrepreneur operating an


environmentally sustainable business.’

Ecopreneurs consist of individuals wanting to deal with wide-spanning


environmental issues. The most common are:

• Ocean pollution
• Food waste
• Single-use plastic
• Deforestation
• Ecosystem destruction
• Endangered species
Ecopreneurs are usually working towards cradle to cradle product design
and triple bottom line accounting. Profits do not come before the planet.

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Philippine Ecopreneurs

Joane Fides, 22,


papeldeletra.s

Papel De Letra.s

Kelvin Yu, 23,


@narra.watches
Narra Wood Watches

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Camille Rose Duque-
Albarracin, 39,
@greenelas.ph

Gree-ne-las PH

1. Jamico Jamlang, 25,


@jamicocojam
The Bamboo Company

In short the principles of Ecopreneurship help guide sustainable


business models, influence green thought leaders, and
environmental entrepreneurs or what we call “ecopreneurs”.

23 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
In order for all of us to thrive we need to build a more sustainable way of
doing business in which everyone in society can flourish. According to the
Natural Step Framework, a sustainable society must:

1. shouldn't systematically subject nature’s functions and diversity to


increasing concentrations of substances extracted from the Earth’s
crust.

2. shouldn't systematically subject nature’s functions and diversity to


increasing concentrations of substances produced by society.

3. shouldn't systematically impoverish nature’s functions and diversity by


physical displacement, over-harvesting, or other forms of ecosystem
manipulation.

4. shouldn't subject people to conditions that systematically undermine


their capacity to meet their needs.

Being an Ecopreneur starts by looking at your business and those


businesses/brands that you support and asking ‘What is their carbon
footprint and are they taking actions to improve their Eco-efficiency?’
Ecopreneur’s are creating a new way of doing business, one that works
together with the environment, creating more sustainable development
models and encouraging others to do the same.

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“You must be the change you wish to see in the world.” -Mahatma Gandhi

Ecopreneurs also use the Tripple Bottom Line method in their accounting
systems, which takes into consideration social, environmental (or
ecological) and financial objectives. This means that we look at the bottom
line in terms of how what we produce effects people, planet and profits.

This is also known as the “three pillars of sustainability” and serves to better
our global economy along with Eco-capitalism or green capitalism. Eco-
Capitalism is the view that capital exists in nature as “natural capital” which
everything depends on and therefore, all policy’s that govern people and
business should take into consideration their environmental impact and
sustainability.

25 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
“If we consume resources according to
our standard of living, we’re going to
need another planet.” — Todd Wilkinson

Ecopreneur’s are managing their


businesses with the environment in mind
and making money at the same time. We
do not have to give up on our dreams of
success, rather we must redefine what it
means to be successful! Join the movement toward a more sustainable
future, become an Ecopreneur.

Thinking Like an Entrepreneur in a Time of Crisis

The coronavirus pandemic has left us all with a heap of uncertainty.


Endless cancellations and postponements, from school classes, sports
games and proms, to graduations and internships, have created a new
world view where our hours, days and weeks look very little like they used
to. What’s more, it’s difficult to plan anything when you don’t know what
tomorrow will bring.

This reality we’re


living resembles
that of
an entrepreneur, or
somebody who is
starting a business.
“Extreme
uncertainty faced by
most start-up
companies is
closely related to the

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situation we are currently in,” says Serguei Netessine, Wharton’s Dhirubhai
Ambani Professor of Innovation and Entrepreneurship and vice dean for
Wharton Global Initiatives. “The outcome of the innovation process is very
hard to predict, which is why my favorite quote here comes from boxer
Mike Tyson: ‘Everybody has a plan until they get punched in the face.’
Start-up founders get repeatedly ‘punched in the face’ by market realities,
customer responses, competitors, and so on.”

Many of us are absorbing the blow right now, and it is sending us off
course. An entrepreneurial mindset will help us to adapt. “Start-up founders
try to stay agile and react to information as it comes,” adds Netessine,
whose daughter Victoria, a high school senior, has had to respond to
change in the past several weeks. “In these times of extreme
uncertainty…we need to be ready to change the direction depending on
how the situation evolves.”

‘A Lens of Hope and


Change’

Flexibility is key in this


time of uncertainty, and
so too, says Tyler Wry,
is creativity. “An
entrepreneurial mindset
is about embracing
a pain point as an
opportunity to create
novel and productive
solutions. This may
result in a business
idea, or it may not: the
important thing is that
entrepreneurs don’t just
sit back and accept the
status quo,” notes Wry,
who is a Wharton
associate professor
of management.
“Entrepreneurs tackle
adversity though

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creative thinking and experimentation… they actively look for solutions and
approach problems through a lens of hope and change.”

Summary:

All the Entrepreneurs should consider ethics and social responsibility as


their part of life. Doing business legally and ethically will lead a
development to the country. The entrepreneur should do business without
affecting the society. We all have an image of our better selves-of how we
are when we act ethically or are”at our best”. We probably also have an
image of what an ethical community, an ethical business an ethical
government, or an ethical society should be Creating ethical organizations
and governments makes our society as a whole ethical in the way it treats
everyone. The government also should take necessary steps for the
development and welfare of Entrepreneurs

Assessment for this Module:

1. What characteristics you must have to be a Social Entrepreneur


someday?
2. Give at least 3 famous Social Entrepreneur in the Philippines.
3. Discuss one important Mind set of a Social Entrepreneur.
4. How important Ethical behaviours in any organizations?
5. Describe any incident of Unethical Practices,
what is your recommendation to stop these illegal activities?
6. Give any Sustainable Development projects by our government or any
private organizations.
7. How important to you the concepts of Sustainable Development?
8. If you were given the chance to be an Ecopreneur what specific project
would you like to engage with?

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Academic Honesty Clause:
• Always practice Academic Honesty. Ideas, whether submitted in writing or
shared in class discussions are expected to be the student’s own. Students
should always ensure to make a distinction between their own ideas and
knowledge from information derived from sources (printed and online/or
information and opinions gained directly from other people).
• Follow the set deadline of submission. In the event of not meeting the due date
for any valid reasons, inform the instructor ahead of time.
• Follow the class schedule reflected in your Registration if you have any questions
or if you wish to have a consultation with your instructor.
• Always include your references. In text and a list of all references used at the last
part of your submitted file.

I affirm that I will not give or receive any unauthorized help on these module activities
and that all work will be my own understanding in each topic content and discussion.

_______________________
Signature over Printed Name

RUBRICS: ESSAY
CRITERIA 1 2 3 4 SCORE
Focus/ Main Point The essay The essay is The essay is The essay is
poorly focused on focused on the focused,
addresses topic topic and topic and purposeful, and
and includes includes few includes reflects clear
irrelevant ideas loosely related relevant ideas insight and
ideas ideas
Support Provides little or Supports main Supports main Persuasively
no support for point with some point with supports main
the main point underdeveloped developed point with well-
reasons and/or reasons and/or developed
examples examples reasons and/or
examples

29 | E t h i c a l , S o c i a l a n d S u s t a i n a b l e E n t r e p r e n e u r s h i p
Organization & Little or no Some Organizes Effectively
Format organization of organization of ideas to build organizes ideas
(Paragraphs, ideas to build ideas to build an argument to build a
Transitions an argument an argument logical,
coherent
argument
Language Use, Little or no use Some use of Appropriate use Effective and
Style & of elements of elements of of elements of creative use of
Conventions style style style elements of
(Sentence style to
structure, word Many errors in Contains Uses correct enhance
choice, grammar, grammar, frequent errors grammar, meaning
spelling, spelling, and in grammar, spelling, and
punctuation) punctuation, spelling, and punctuation Uses correct
makes reader’s punctuation with few errors grammar,
comprehension spelling,
punctuation
throughout with
very few errors
No Very little Sufficient Distinctive
experimentation experimentation experimentation experimentation
Originality nor to enhance with language with language
(Expression of the enhancement concepts and usage to and usage to
theme in a of concepts enhance enhance
creative way Does not exhibit concepts concepts
No adherence creativity
to the theme Applies basic Applies higher
creative skills to order thinking
relay ideas and creative
skills to relay
complex ideas

References:
Kuratko, D. (2017). Entrepreneurship: Theory, Process, Practice 10th Edition. Melbourne, AU:
Cengage Learning
Hisrich, R., Peters, M., Shepherd, D. (2017). Entrepreneurship 10th Edition. New York, NY: Mc-Graw
Hill.
https://www.investopedia.com/terms/s/social-entrepreneur.asp
https://www.slideshare.net/YutakaTanabe/defining-the-mindset-of-social-entrepreneurship
https://www.slideshare.net/hfrederick/social-and-ethical-entrepreneurship
http://www.inspireforgreatness.com/entrepreneurship/145-entrepreneurial-ethics.html
https://kwhs.wharton.upenn.edu/2020/04/adapt-thinking-like-entrepreneur-time-crisis/

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