Ethical and Social Responsibility

of an Entrepreneur
Social Responsibilities of
Entrepreneur

Chavez, Cristine Joy F.

Paragsa, Jan Tricia
What is Social Responsibility?

- is an ethical framework in which individuals or corporations are

accountable for fulfilling their civic duty and taking actions that will benefit
society as a whole.

- Nicholas Sirpolis has defined social responsibility as : “The circle of

care and concern that a business has for the well-being of society. ”
Social Responsibilities of Entrepreneur

1. Social Responsibility towards the Customers

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.
a. Ensure Quality of Products

b. Ensure Consumer’s Health and Safety

c. Be Fair with Prices
d. Be Honest in Advertising and Marketing
e. Be Honest in Dealings
Social Responsibilities of Entrepreneur

f. Attend to Complaints
g. Service even after Sales
h. Respect Customer’s Time
i. Treat Customers Well

2. Social Responsibility towards the Employees

Employees produce wealth for the business and give their best service and share in the
resulting profits.
Social Responsibilities of Entrepreneur

a. Pay Wages and Taxes

b. Create and Maintain a Safe Workplace
c. Facilitate Workers’ Compensation Insurance
d. Enforce Anti-Discrimination Law
e. Create And Maintain a Favorable Working Environment
f. Respect Human Rights
g. Support Career Development
h. Give Rewards and Benefits
Social Responsibilities of Entrepreneur

3. Social Responsibilities towards the Community

To maintain a positive public image and attract new clients, a company must understand
its corporate responsibilities to the public.
a. Be Fiscally Responsible
b. Consider Public Input
c. Take Care of the Community
Social Responsibilities of Entrepreneur

4. Social Responsibility towards the Creditors

As an entrepreneur, it’s essential to maintain good relations with your creditors.
a. Give Correct Informations
b. Provide Fair Return on Investment
c. Strengthen Share Prices
Social Responsibilities of Entrepreneur

5. Social Responsibility towards the Suppliers

Suppliers are primarily responsible for providing or delivering the raw materials and
resources that a company needs in the production.
a. Practice Fair Pricing and Licensing
b. Avoid Coercion and Litigation
c. Maintain Stability
d. Maintain Confidentiality
e. Pay on Time
Social Responsibilities of Entrepreneur

6. Social Responsibility towards the Government

The business has to extend its cooperation to the government.
a. Observe Laws, Rules, and Regulations
b. Pay Taxes
c. Abide by Labor Laws
d. Disclose Financial Statements
e. Avoid Corruption
Social Responsibilities of Entrepreneur

7. Social Responsibility towards the Environment

Entrepreneur is a trustee of the resources of the society.
a. Comply with Environmental Legislation
b. Dispose Waste Properly
c. Recycle
d. Conserve and Protect Biodiversity
e. Prevent Damages to Environment
f. Use Scarce Natural Resources Sparingly
“ The entrepreneur is the pivot of
development.”