Business

Ethics and
Responsibility
12-ABM
 Objectives
MELC 1.Distinguish the responsibilities and
accountabilities of a business.
DISCUSS THE
RESPONSIBILITIES AND 2.Discuss the responsibilities and
ACCOUNTABILITIES OF accountabilities of entrepreneurs to
ENTREPRENEURS employees, government, creditors and
(ABM_ESR12-IVI-L-3.1) suppliers.

3. Apply the importance of business

responsibilities and accountabilities in
every business organization.
 ACCOUNTABAL RESPONSIBILIT
ITY
• means you are liable or
answerable for one’s
Y• involves having
actions. In order to be authority over
responsible, you must one’s actions.
be accountable and vice
versa.

In ethics and governance, accountability is answerability, blameworthiness,

liability, and the expectation of account-giving. Responsibility may refer to: being in
charge, being the owner of a task or event.
 Tom's responsibility to make sure
there are supplies in the office room.

• At this point, you cannot say Tom has been held

accountable (answerable) for performing this task. Tom is
responsible for the office supplies,
• but he is only held accountable — owes an explanation
for his actions — if the supplies ever run out.
The Responsibilities and
Accountabilities of
Entrepreneurs
Clas 1
(to employees, Government, Creditors and
Suppliers
 the person who do the
ENTREPRENE initiative and risks.
Entrepreneur is
UR someone who create
the idea and make an
enterprise.
RESPONSIBILITY AND ACCOUNTABILITY
TO EMPLOYEE
1.Payment of Taxes, Salaries 2. Provide Safe Working
and Wages Environments
The government also requires
Entrepreneurs is accountable for
entrepreneurs to pay Philhealth, Social
the safety of the employees, so
Security, taxes out of employee wages
they ensure that the physical
for each employee working their
environment is safe and well-
business. Entrepreneurs are responsible
maintained with good lighting,
to pay their employees with the
proper temperature and enough
minimum hourly wage set by the
space for employees to perform
government including overtime pay,
their work.
sick leave, and bonuses.
3. Respect Humane Behavior towards
Employees
Employees should be
treated with compassion by
allowing them to practice
their rights and enjoy being
workers of the company.
4. Support Career Development
Acquisition of new knowledge and
skills through the professional and
personal development of employee is
a prerequisite and guarantee success
in business. Encouraging and enabling
our employees to attend seminars and
conferences for professional growth is
a way to support their career
development.
RESPONSIBILITY AND ACCOUNTABILITY
TO EMPLOYEE
Create a Small Business Relations

Establishment a good relationship

with the employees protects the
interests of everyone. Effective
communication lines is vital in
establishing and maintaining good
relations.
RESPONSIBILITY AND ACCOUNTABILITY
TO GOVERNMENT

1. Observe Law, Rules and 2. Pay Taxes

Regulation
Entrepreneurs should follow Businesses must pay taxes
the laws impose by the and fees to the government
government regarding in the course of carrying out
obtaining of business their operation which
licenses/permits, operation of include taxes on revenue
the business, price and tariffs on imported
determination and production. products.
RESPONSIBILITY AND ACCOUNTABILITY
TO GOVERNMENT

3. Not to Seek Political

Patronage by Unfair Means
4. Avoid Corruption

Entrepreneurs should not seek

political patronage by providing The commercial organization
undue economic help to any should not take any type of
political party or person during favor from government officials
election.
 CREDITORS
is an entity (person or
institution) that extends credit
by giving another entity
permission to borrow money
intended to be repaid in the
future.
RESPONSIBILITY AND ACCOUNTABILITY
TO CREDITORS

1. GIVE CORRECT 2. FOLLOW

INFORMATION MORTGAGE RULES

Creditors provide loans in

Entrepreneurs should be secured and unsecured forms. If
provided with correct the creditor has provided the
information about the company secured loan on the mortgaged
to enable them to decide about property, the entrepreneur
further investment. should follow the rules of
mortgaged property.
RESPONSIBILITY AND ACCOUNTABILITY
TO CREDITORS
3. FOLLOW
BUSINESS ETHICS
Both the entrepreneurs and
creditors should follow the Entrepreneurs should pay loan
business ethics in providing
loans
4. REGULAR PAYMENT
OF INSTALLMENT AND
INTEREST
installments and interest
regularly, according to
repayment conditions.
 SUPPLIERS
The services of the suppliers are also
important for any business because they
supply raw materials, machinery, labor,
and other materials. Without them, the
smooth operation of the business is
quite difficult.
RESPONSIBILITY AND ACCOUNTABILITY
TO SUPPLIERS
1. PRACTICE FAIR 2. AVOID COERCION
PRICING AND AND LITIGATION
LICENSING

Companies must seek Companies should make certain

fairness and truthfulness in that any business transaction
all dealings with suppliers with suppliers must be free from
especially pricing and any form of coercion and
licensing. unnecessary litigation.
RESPONSIBILITY AND ACCOUNTABILITY
TO SUPPLIERS
3. MAINTAIN 4. INFORM ABOUT
STABILITY CHANGES IN
MARKET
Entrepreneurs have the responsibility to
provide regular information to the
Firms must promote long- suppliers regarding changes happening in
term stability in their the demand of the commodities in
relationship with the domestic or in foreign markets, so that
suppliers to pay back the the suppliers may make necessary
goods value, quality and changes in their manufacturing projects,
reliability they granted. according to the requirements.
RESPONSIBILITY AND ACCOUNTABILITY
TO SUPPLIERS
5. GIVE GARANTEE OF
MINIMUM PRICE

The entrepreneurs should give the

guarantee of minimum prices to the
suppliers so that they may feel assured
about the certainty of the price and may
continue to maintain their will power.
Corporate social responsibility,
commonly referred to as CSR, is a business
model that helps companies, both big and
small, be socially accountable to
themselves, its stakeholders, and the public.
It is a 
practical and socially conscious way for co
mpanies
 to give
There back tofour
are typically society.
types of CSR:
–    environmental sustainability initiatives
–    direct philanthropic giving COMMON EXAMPLES OF CSR
–    ethical business practices •Reducing carbon footprints
–    economic responsibility •Improving labor policies
•Participating in Fairtrade
•Charitable giving
•Volunteering in the community
•Implementing corporate policies that benefit the environment
•Engaging in socially and environmentally conscious investments
Thank You
12-ABM

BUSINESS ETHICS
AND SOCIAL
RESPONSIBILITY

12-abm
MELC
Formulate a morally defensible position on
ethical issues in entrepreneurship like basic
fairness, personnel and customer relations,
distribution dilemmas, fraud, unfair competition,
unfair communication, nonrespect of
agreements, environmental degradation, etc.
ABM_ESR12-IVi-l-3.2 ; ABM_ESR12-IVi-l-3.3
OBJECTIVES
1. Define ethical issue and
ethical dilemma.
2. Identify the different ethical
issues in business.
3. Formulate a morally
defensible position on ethical
issues in entrepreneurship.
4. Apply a morally defensible
position on ethical issues in as
anentrepreneur in the future.
Morally
Defensible
Position on
Ethical Issues in
Business
CLAS 2
Ethical Issue
is a problem or situation that
requires a person or organization
to choose between alternatives
that must be evaluated as right or
wrong.
Ethical Dilemma
This way of thinking leads
people to mistakenly assume
that if it’s not illegal, it must be
ethical
 Major Ethical Issues in
Entrepreneurship
Business policies and
practices against ethical
A. Basic Fairness- Ethical decision-making process should center on issue in an enterprise:
protecting employee and customer rights, making sure all business If you proceed with this
operations are fair and just, protecting the common good, and making sure course of action, you would
individual values and beliefs of workers are protected. likely be in violation of your
ethical and legal obligation
to act in good faith
1. Partners- Two college friends created an online ukay-ukay concerning your partner
business which had great profitability. One of them believed that
their partner does not deserve the profit from their business because What to do? :
he/she doesn't like the other's personality. He/she wonders if he/she The better course of action
could simply take the other's name off the bank account and change may be to simply buy out
the pin code his interest in the
business
 Major Ethical Issues in
Entrepreneurship
Business policies
and practices
A. Basic Fairness- against ethical
issue in an
enterprise:
2. Gross Negligence- Assume you are the head supervisor Failing to properly
of pharmacies organization. You and the boss, in order to investigate a matter
head off right on time for these special seasons, hurry that affects the
interests among
through the investigatory interaction associated with a partners could be
much - foreseen consolidation. As a head supervisor, you viewed as gross
have an obligation to give the most extreme consideration negligence
regarding choices that influence the partnership and its supporting a breach
partners. of your ethical and
legal duty.
B. Personnel and Customer
Relations
1. Mistreating Employee
→ There are many examples of unethical corporate conduct toward employee or other
workers in the supply chain.
Example: Representatives and occupation searchers frequently have inquiries regarding
extra time, unused get-away time, compensation and other worker rights issues.

2. Discrimination and harassment in th workplace

→ Maintaining professional workplace relationship between employees is a continuing
challenge for employers
regardless of the industry.

Example: Rey has been functioning as an investigator for a very long time at his organization In his
new work assignment, his supervisor Ann made improper advances towards Rey which he repelled.
The following day Rey was called to a conference with Ann to an hour and told that he didn't
approve of her behavior and he could never progress inside the organization
3. Family Run Businesses→

→ working in a family business you can be a multifaceted

environment.
Example: Conflict of interest arises

4. Side Deals and Sub-Standard Work

→ When dealing with customers or clients, business people must

ensure that they use their information correctly, do not falsely advertise a
product or service, and do not intentionally do sub-standard work.
5 .Employee Working Conditions

→ Employers must secure the safety of their

employees in a work place such as providing PPE (Personal
Protective Equipment)
when needed
C .Distribution Dilemmas→ Ethics is a prime concern in marketing, and the areas of
price, placement, and promotion are no exception.

1. Pricing Strategies 2. Product 3. Promotion

refers to the complete
is the amount or refers to any goods set of activities wherein
value that a customer or services that are the entrepreneur the
gives up to enjoy the produced to meet product, brand or
benefits of having or
the consumers’ service to the user. The
using a product or
wants, tastes and idea is to attract people
service.
preferences. to buy your product
over others.
Why Ethics in Pricing is
Important?
PRICING STRATEGIES
Ethics is a critical issue in pricing because ethics and legality are not synonyms; an unethical price is not
always an illegal price.

5 Unethical Pricing Strategies

1. Price Fixing
2. Price Discrimination
3. False Advertising
4. Yo-yo Pricing
5. Predatory Pricing
 PRICE FIXING
an agreement (written, verbal, or inferred from conduct) among competitors 
that raises, lowers, or stabilizes prices or competitive terms.”

In simple terms, price fixing can be when your business and one or more competitors agree to:
• Raise prices on a specific product
• Keep prices on a specific product steady
• Not allow retailers to discount products
• And other examples
One possible sign of price fixing is collusion. Have two or more companies worked together to price
the same product in a way that is beneficial for just those businesses
From a legal perspective, price fixing often runs afoul of antitrust laws. Your business is
supposed to set prices independently from your competitors—you shouldn’t agree to certain prices
with your competitors as a way to control the market. The goal here is to protect consumers and ensure
that prices are based on a free market, not a fixed one.
Price fixing is also about reducing competition. It removes the ability for consumers to go
to a competitor to find a better deal on a specific product, as those competitors have colluded to fix the
price.
 PRICE DISCREMINATION
Another common unethical pricing strategy is price discrimination. Price
discrimination is when a retailer sells the exact same product or service at
different prices to different people. Instead of the same price across all
markets, retailers adjust prices based on what they think the consumer will
pay.
Price discrimination can be ethical or unethical, depending on how it is
used. For example, many goods cost more in Hawaii due to the costs of
shipping and selling on islands isolated from common supply lines. It’s
typically fine—legally and ethically—to price products higher depending on
the manufacturing and distribution costs for serving a particular market.
 FALSE ADVERTISING
Speaking of marketing and sales, false advertising is a similar pitfall for unethical
prices.

False advertising can take many forms when it comes to pricing, including:
• Labeling a price as a “discount” when it’s actually the normal price
• Running a promotion when there was never any intention to sell the
product at full price
• Or, running a promotion where it’s actually more cost-effective to buy
the product in a different bundle
• Advertising a sale or discount when the product has never been in
stock
False advertising is pretty easy to spot internally. You should know if your
company is misleading shoppers.
 YO-YO PRICING

Yo-yo pricing is when a business prices a product higher for a

limited time—typically when supply is also low—then decreases prices and
increases supply immediately after. It’s often a tactic to drive sales at that
higher price.
However, it’s not always unethical. In many cases, yo-yo pricing is
just dynamic pricing: adjusting prices automatically based on supply,
demand, or other market conditions. Where it gets unethical is in how it is
used.
 PREDATORY PRICING
is the practice of using below-cost pricing to undercut
competitors and establish an unfair market advantage. Predatory pricing is a
method in which a seller sets a price so low that other suppliers cannot
compete and are forced to exit the market. A company that does this will see
initial losses, but eventually, it benefits by driving competitors out of the
market and raising its prices again. This predatory pricing practice often
results in the formation of monopolies controlling market power for a
lengthy period of time.
This form of pricing can also be illegal, again problematic for
antitrust laws. The concept is that a business that engages in predatory
pricing could force its competitors to close and thus create a monopoly.
Either way, it’s unethical in part because it is pricing to hurt competitors,
not to help consumers.
Price for Your Customers

Put yourself in your customers’ shoes if you’re ever in doubt whether a

price is ethical or unethical. In most of these cases, unethical pricing occurs
when you’re pricing for yourself—either to hurt the competition, skirt a law or
regulation, or discriminate against or deceive consumers.
On the contrary, your prices are ethical when they are done with the
customers’ best interests in mind or price decisions are made based on
market conditions, specifically supply and demand. The best part? Ethical
prices are a long-term solution—they set your business up for extended success.
Unethical prices are a quick fix or a cheap win. They’re not worth the risk.
Why Ethics in product is
Important?
 ETHICAL PRODUCT
is an offering that does not cause any harm, neither to its users
nor the planet.

UNETHICAL PRODUCT
are those goods and services which any stakeholder believes may
damage society as a whole. This may be the result of the firm operating in
an inappropriate manner or because the actual product is potentially
damaging to its users.
 ETHICAL ADVERTISING
is about being truthful concerning the product or service in
question and never exaggerating the capabilities of a product/service, or
hiding its flaws. Whether using an in-house marketing team or advertising
agency, any advertisements should have clear intentions and no hidden
agendas.

UNETHICAL ADVERTISING
is the misrepresentation of a product/service in some
way or the use of subliminal messaging to fit a hidden agenda.
This form of advertising uses deceptive ways to manipulate or
convince the consumer to buy the product or service..
Fraud
In business, it takes up so many forms and sizes. It can be in the form of
financial misconduct or misrepresentation.
 A Proactive Approach
to Addressing Unethical
Behavior in the
Workplace

In a business of lacks robust HR support, it’s critical for

employees to have an easy way to report their concerns
and for the company to put in place policies, protocols and
training related to unethical behavior.
WEEKLY To-Do List Date: APRIL 10 - 17

MONDAY
FRIDAY
MONTHLY TO-DO LIST Month: APRIL

WEEK SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

 JANUARY FEBRUARY MARCH

YEARLY
To-Do APRIL MAY JUNE

List
JULY AUGUST SEPTEMBER

Year:
2022 OCTOBER NOVEMBER NOVEMBER