Business Ethics

ORIGINS AND ROLES OF BUSINESS ORGANIZATIONS

Lesson 1
Throughout human history…
In modern times
Needs and Wants
A need is a state of felt
deprivation about something that
is deemed to be necessary.

A want is a desire for something.

Entrepreneur
A person who uses opportunities to organize and operate a
business, and who accepts the risks of operating a business.

Division of Labor – is the separation of tasks, which allows an

individual to be an expert in one thing in order to improve
efficiency of society. It is the source of interdependence of
entrepreneurs and organizations, which results into increase
in trading. It also increases productivity of the organization
and the individual worker.
 The concept of a modern corporation
An organization is formed and lawfully recognized by the government.

Registration

SECURITIES AND
Activities
EXCHANGE COMMISSION

Death
Corporation Code of the Philippines
Under the Corporation Code of the Philippines #68,
corporations are established, not only for private gains
but also as “effective partners of the government in
spreading the benefits of capitalism for the social and
economic development of the nation” (Torres, 2008)
Role of Business Organizations in Society
• To provide products and services needed
• To provide employment
• A percentage of the income is paid to the government
as taxes
• Boosts the economy of the nation
Build you Business Know-how
Answer the following
1. What are the roles of business in society?
2. Why do businesses need to pay taxes to
the government?
3. Why is division of labor important in a
business?