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Quarter 4: Lesson 1
SOCIAL RESPONSIBILITY AND ACCOUNTABILITY

OF ENTREPRENEURS
Prepared By: Randell Jan G. Salonga
SOCIAL RESPONSIBILITY
• Social Responsibility is the act of obeying the laws of our country.
• It is likewise our responsibility to help our neighbors whenever they
need help.
• As responsible citizens, it is our duty to vote during election time.
• We respect human dignity whether the person is white or black
whether schooled or unschooled or whether rich or poor.
Angeles City Senior High School

St. Ignatius, Pandan, Angeles City
When we become an Entrepreneurs are we
still responsible to our fellowmen, to our
community and to our country?
• In our desire to maximize our profit?

• Are we going to cheat our customers?
• Exploit our employees?
• Dump our wastes into the air, water and land?
All of these things are opposite of social responsibility.

The Concept of Social Responsibility
has various meanings to different
individuals.
• For instance, to a banker, his social responsibility is to lend money even to the
poor producers, and not to the rich ones.
• To manufacturers, their social responsibility is to create quality products, and
not to pollute the environment.
• For instance, f you are manufacturing a huge number of print postcards in your
digital printing plant, make sure that your trash and other wastes are properly
disposed and not just thrown to rivers and seas.
• More so, to rich individuals their social responsibility is to share their excess
wealth with less fortunate.

What exactly is the social responsibility
of the Entrepreneur or Businessman?
• The entrepreneur must sell quality products at fair price. He must also be fair
with his suppliers by paying them on time as agreed upon.
• He must pay the correct amount of taxes to the government. He must promote
the welfare of his employees.
• He must observe business ethics with his fellow businessmen.
• Equally important is the social responsibility of the entrepreneur to his
community in terms of job creation and environmental observation.

Responsibility vs. Accountability
• Responsibility can be shared while accountability cannot.

• Responsibility can be before or and/or after a task.
 Being accountable not only means being responsible for
some but ultimately being answerable for your
decisions or actions.
 Also, accountability is something you hold a person to
only after a task is done or not done.

Responsibility vs. Accountability

Example of Responsibility
1. Take Responsibility for Your Actions
When someone does not do what they promised, if you can, you should do it yourself. Do
not spend your time worrying about someone’s inactions. Worry about the things you do
because you are responsible for your own action.
Also, when you have a problem at work, it can be tempting not to do anything and hope
that someone else will fix it. But that is not the right thing to do if you can solve the problem
yourself.
Waiting for someone else to come and fix your problem or clean up your mess is one of
the examples of not taking responsibility. Take control of your issues and try to solve them
on your own.
2. Change Your Work Environment
Good examples of responsibility include suggesting to your
boss or someone else that you want to do projects in areas
outside your current role.
That way, they will be more likely to put you on different projects
or tasks. You can also take on difficult tasks for the long-term
good of your skills and future promotions.
3. Admit Your Mistakes
Accept responsibility if you make a mistake, own up to it,
and apologize. Learn from your mistakes and don’t
repeat them. Don’t excuse your behavior or make
excuses for yourself. It shows humility on your part.

4. Be Respectful at All Times
There are invisible social contracts at every workplace, and you
have to figure out how to respect them. You don’t have to be
popular or social at work.
All you need to do is learn and respecting the visible and

invisible rules of the workplace. Whether that is to be at work on
time, avoid conflict, being respectful to colleagues, or anything
that can get you in trouble.
5. Be Proactive in Offering Solutions to Issues
When a team member fails to complete their project while you
have with your own, give them feedback about what they can do
to get back on track.
You might also have to offer help with the project, depending on
whether your input is necessary for it to be completed or not.

6. Provide Unsolicited Feedback
Offer unsolicited constructive feedback and suggestions on
projects or assignments that need improvement.
It will demonstrate that you care enough about success or failure

and often motivate your colleagues to look critically at their work.

7. Do your Best Work and Never Give up
Taking responsibility can be difficult when you receive conflicting
instructions or feel like giving up because things are too hard.
The key is to keep going and never back down from challenging tasks.
People will trust and consider you as an effective employee who can handle
anything.

8. Be Honest with Everybody
Being honest is to be respectful and responsible. Anything that
may affect your work, you should tell your boss to help you.
If it’s a work-life balance issue, things are running more slowly

than planned, or people give you trouble at work or anything else
that might need their attention.

9. Ask Questions to Understand
If some things seem confusing and struggling, ask someone else
who understands. You will never know everything about your job.
That is why it’s essential to let someone help you. Whenever

you don’t understand somethings at work, ask your supervisor,
manager, or coworker for help.

10. Never Blame Others
Don’t blame other people for your problems at work. Instead,
look inside yourself and find ways to solve the issues.
Someone who takes personal responsibility at work can be

resourceful, and they demonstrate that whenever things go
wrong.

11. Stay Focused and Avoid Distractions
You are accountable for your success, and you know that
distractions can lead to procrastination. So, you stay focused,
avoiding all those things that could derail your progress.
When you take responsibility for your work, it helps you stay on
track and makes you accountable to yourself and others around
you.
12. Avoid Frustrating Others with False Promises
Good examples of taking responsibility include avoiding
to make false promises. If you know that a task will take
you longer to complete, tell people who depend on your
part of the work how much time it would take so there is
no confusion or frustrations later if you are unable to
complete the work on time.

13. Speak Up to Highlight Problems
Another good example of taking responsibility is to
speak up if there is a work problem that needs
attention. The purpose of speaking up is to highlight the
issue and find a solution together, not just complain. So,
if possible and appropriate, make suggestions of fixing it
but remember to do so respectfully.

14. Don’t Gossip about Other People
It’s not appropriate to gossip about other people at work. Talking about
other people at work is unprofessional and could be damaging to
professional relationships. It is the quickest way to lose friends and trust
from your colleagues.
Focus on doing your job, and resist talking about others or making rumors
and side talks. Whenever you feel tempted to gossip about someone at
work, pause and ask yourself – who is this going to help?

15. Go to Work Everyday
Attendance is probably the most important thing an employee
can do — when you show up for work and on time.
It’s important to remember that your attendance is a factor in

how your manager evaluates you. If you are often late for work,
it will mean that you don’t take your job seriously and are not a
reliable worker.
16. Show up to Meetings on Time and Prepared
Make sure to come prepared for meetings. Bring all
necessary materials to a meeting with you like,
PowerPoint slides and a laptop with the meeting agenda
ready before coming to allow for participation. Be on
time because it shows respect toward others in the
meeting.

“Leaders need to be accountable,”
managers say. “Employees need to be
accountable, We must do everything
possible to ensure accountability at all
levels of the organization.

Accountabilities of Entrepreneurs
toward the Employee
What is an organization without employee?
• Employees are said to be the true assets of an organization.
• Even the best technology or best infrastructure would not be
of much use if employees do not perform up to the mark and
are not satisfied with their current profits.

Positive Results of Accountability
Implementing Accountability
 Improved performance  Setting clear, challenging yet
 More employee participation attainable goals and objectives.
and involvement  Coach employee.
 Increased feeling of competency  Monitor progress.
 Increased employee  Provide training.
commitment to work  Recognize employees for good
 More creativity and innovation performance.
 Higher employee morale and
satisfaction with the work.
Responsibility and Accountability of
Entrepreneurs toward the Employee
• To ensure that they are happy and satisfied with their jobs.
• Do not treat your staff as labors.
• Provide healthy working conditions.
• Assign proper workstations for them to work comfortably
and eventually deliver their level best.
• Everyone need some amount of privacy and make sure
your employees get the same.

• To ensure that they are happy and satisfied with their jobs.
• Do not treat your staff as labors.
• Provide healthy working conditions.
• Assign proper workstations for them to work comfortably
and eventually deliver their level best.
• Everyone need some amount of privacy and make sure
your employees get the same.

1. Pay Wages and Taxes

Entrepreneurs have the responsibility to pay their employees of their business at least the
minimum hourly wage in their locality and to pay each employee money owed from working
per pay period, including overtime, sick leave, and vacation wages. Paychecks should always
be on time and without delay so the workers can meet individual financial obligations. The
government also requires entrepreneurs to pay PhilHealth, Social Security, taxes out of
employee wages for each employee working their business.

2. Create and Maintain a Safe Workplace

The government requires businesses to create and maintain a safe working environment for
their employees as per standards. Entrepreneurs must also make employees aware of areas in
their business that have a high risk for injury and train their employees in safety procedures
to minimize the risk of injury. Continual inspection of their facilities and employee
knowledge of safety standards is necessary to make certain their workplace remains as safe
as possible.

3. Facilitate Workers’ Compensation Insurance

Despite business owners’ best efforts to maintain a safe working environment, accidents will
happen. When injuries occur through no fault of their employees, it’s their responsibility to
file a claim with their workers’ compensation insurance provider. This coverage provides for
medical care and wage replacement for their injured employee. Businesses must treat their
injured employee with respect and file the claim without attempting to cause a delay in
processing or attempt to defer the worker from filing a claim at all. This is illegal and can
cost the business hefty fines and possible jail time if the entrepreneur refuses to honor their
commitment and requirements as a business owner.

4. Enforce Anti-Discrimination Law

It is illegal to discriminate against anyone according to their culture. This means not only
race, religion, and country, but also age, gender, sexual preference, disability, a way of life
and beliefs. “EEO” stands for “Equal Employment Opportunity”, which means that
employees cannot be disadvantaged, dismissed, or not given employment for any of these
reasons. It is the employer’s responsibility to ensure that all staff is trained and aware of their
obligations under anti-discrimination laws.

5. Create and Maintain a Favorable Working Environment

As an entrepreneur and employer, you should try to provide a healthy working environment,
which respects each person and their opinion is considered. Listen to all your collaborators
and worry about their welfare. Remember that they are working for your company exists and
is profitable and that as better feel, the better they will do their job.

6. Respect Human Rights

The Mitsubishi Electric Group understands that its business operations are interrelated with a
wide range of peoples and societies throughout the world, and implements and enforces a
code of conduct that fosters respect for human rights.

7. Support Career Development

Mitsubishi Electric provides a human resources development system that supports the careers
of employees, a self-development support program, and transfer opportunities for willing
employees.

8. Train and Educate Employees

Promoting knowledge is important in changing the business environment. Acquisition of new
knowledge and skills through the professional and personal development of employees is a
prerequisite and a guarantee of business success.

9. Manage Performance
"What gets measured gets done" is an expression you will often hear when talking about
performance management and the simple meaning behind this statement is the key to our
philosophy of rewarding and managing performance. We want all our employees to have
clearly defined goals, which they defined themselves with their managers, on the basis of
business goals, through three main performance areas profit, process, and people.

10. Give Rewards and Benefits
\
We reward our employees fairly and attractively, in line with the prevailing conditions on the
local market. We gather data from the labor market on a regular basis, ensuring that our
reward structures remain competitive. Our reward system is well structured and transparent
in its application. It:
• Allocates appropriate people to appropriate job positions
• Set requirements and standards, outcomes and measures
• Provides effective orientation, education, and training
• Provides ongoing coaching and feedback
• Designs a foundation for effective systems that reward people for their contributions
• Provides promotional/career development opportunities for employees

Entrepreneurs toward Government
1. Observe Laws, Rules, and Regulations

A number of legislative are formed from time to time by the government for proper
regulation and control of the business. Businessmen should comply with all legal
requirements, execute government contracts, pay taxes honestly and in time, make services
of executives available for government, suggest measures and send proposals to enact new
laws for the business.

2. Pay Taxes
Businesses must pay taxes and fees to the government in the course of carrying out their
operations. These can include taxes on revenues, tariffs on imported products, and a number
of administrative fees necessary to register the business. Withholding these payments,
particularly taxes, is considered a crime.

3. Follow Environmental Regulations

Many companies, particularly those in the industrial and manufacturing sectors, face heavy
regulations regarding the number and variety of pollutants that they are allowed to emit.
Some companies, feeling a "social responsibility" toward the common good, may seek to
limit their pollution more than the law requires.

4. Abide by Labor Laws

Businesses that hire employees must abide by a slew of laws relating to how they treat their
employees. These include laws related to how much an employee can be paid, how many
hours he may work, and the criteria under which he can be hired and fired.

5. Avoid Restrictive Trade Practices

Companies are forbidden from engaging in certain kinds of restrictive trade practices that
limit competition. For example, most companies may not develop monopolies within a
particular sector or provide substantial barriers for new companies to compete with them.
Restrictive trade practices of this kind can often reduce the quality of products available to
consumers and drive up prices.

6. Disclose Financial Statements

Companies must disclose a number of financial statements to the government in the form of
tax returns, and, if the company makes ownership of shares of stock commonly available, to
the public as well. This financial transparency helps to ensure that the company is not
violating any laws, such as withholding taxes and to aid the public in deciding whether to
invest in the company.

7. Avoid Corruption
The commercial organization should not take any type of favor from government officials by
bribing or influencing them.
8. Assist in Implementing Socio-Economic Policies
The government expects co-operation and help from the business sector to help in
implementing programs and policies relating to social and economic development.
9. Help Earn Foreign Exchange
The government also expects from a business organization that it will earn foreign currency
by exporting goods in the foreign market. The government requires this foreign currency for
importing valuable and important products.

10. Advise the Government

The business organization has to provide timely advice to the government in respect of
framing important policies such as Industrial policy, Import & Export policy, Licensing
policy, etc.
11. Contribute to Government Treasury
The commercial organization must contribute the funds to the government during
emergencies and natural calamities like floods, earthquakes, etc.
12. Contribute to Political Stability
The commercial organizations should work towards the political stability of the country. The
stable government often brings more return and peace in a democratic country.

Responsibility and Accountability
of Entrepreneurs to Creditors
1. Give Correct Information

Shareholders who are the owners of the business should be provided with correct information
about the company to enable them to decide about further investments.
2. Provide Fair Return on Investment
The company should provide a fair return on the investment made by shareholders. If
shareholders do not get the proper dividend, then they will hesitate to invest additional funds.
Shareholders should be kept fully informed about the working of the company for healthy
growth of the business. The Companies Act 1956 also requires the company to give full
disclosure in the published statements.

of Entrepreneurs to Creditors
3. Strengthen Share Prices

The company should strengthen the share prices by its growth, innovation, and
diversification. At the same time, shareholders should also offer wholehearted support and
co-operation to the company to protect their own interests.

of Entrepreneurs to Suppliers
1. Practice Fair Pricing and Licensing

Companies must seek fairness and truthfulness in all dealings with suppliers especially
pricing and licensing.
2. Avoid Coercion and Litigation
Companies should make certain that any business transaction with suppliers must be free
from any form of coercion and unnecessary litigation.
3. Maintain Stability
Firms must promote long-term stability in their relationship with the suppliers to pay back
the good value, quality, and reliability they gained.

4. Maintain Confidentiality
Dealing with suppliers properly means sharing information with them and making them part
of the planning processes. They must keep their clients and purchasers abreast of any new
information on new technology and latest raw materials. Confidentiality must be strictly
practiced. This means no unnecessary disclosure of information shared by the company and
its activities.
5. Pay on Time
One of the best ways to deal with suppliers is to be responsible for making timely payments
according to the agreed terms and conditions of the trade.

6. Select Suppliers with discernment

A business that aims at succeeding must have a good discernment in selecting suppliers.
There are three fundamental requirements every company must need from their suppliers:
legal compliance, quality control, and environmental conservation.

of Entrepreneurs to Consumer
1. Ensure Quality of Products and Services

Your responsibility is to offer customers the highest quality in your products and services
provide the best care and never lie to get a sale. A good entrepreneur is honest and gives a
good price/ benefit. Never use marketing to deceive or sell false expectations.
Quality goods should be produced and supplied. Distribution system should make goods
easily available "to avoid artificial scarcities and after-sales service should be prompt.
Buying capacity and consumer preferences should be taken into consideration while deciding
the manufacturing policies.

2. Ensure Consumer’s Health and Safety

A key consumer issue is the quality and safety of products. Customers need clear instructions
for safe product use, including assembly and maintenance. To avoid customer harm and
danger, anticipate potential risks of your product and services in the design stage and
throughout the product lifecycle, from R & D to manufacturing, storage, and distribution, use
and disposal, reuse and recycling. Whether or not legal safety regulations exist, products
should be safe for their intended use and if mi used in a way that can be foreseen.
3. Provide Free Training
The commercial organization should arrange to train the customers either free or for a fee. It
must be in the case of computers, etc.

4. Be Fair with Prices

The customers should not be cheated by charging high prices. It is not possible to fool the
customer at all the time. Thus, fair price converts a customer into a permanent customer.
5. Be Honest in Advertising and Marketing
The customers want to know the facts, features, advantages, side-effects, etc, of the product.
The advertisement conveys this information. Thus, the company must see that the
advertisement is not being misleading and it must be done by providing the true and actual
information.

6. Be Honest in Dealings
Never lie to your customers. It is foolish to cook false stories. You will be caught. In today's
world, where information is just a click away, everyone does his/her thorough research
before purchasing something. Unnecessarily you will lose your respect in front of them. If
you can't deliver something, please mention it clearly. They might not invest in that
particular product but believe me, would definitely come back to you in near future just
because you were honest, and guided them correctly. It is pointless to badmouth your
competitors.
7. Attend to Complaints
The consumer complaints must be attended immediately. When major issues occur, employ a
system for making quick and accurate decisions on steps and measures to take while placing
top priority on not inconveniencing the customers.
8. Service Even After Sales
The company is expected to provide after sale service for maintenance of goods during the
period of warranty. Efficient and effective after sale service helps to establish a good
relationship between the customers and the company.
9. Respect Customers’ Time
Respect your customer's time. Do not decide the time and venue as per your availability and
comfort. If the customer wants to meet you at 6 in the evening, make sure you are there on
time. Neither arrives too early nor too late. Do not keep your customers waiting. Do not
forget that there are several options available in the market. Your loss is someone else's gain.

10. Treat Customers well
Treat your customers as kings and do not think of them only when you have a pressure to
meet your targets within the stipulated time frame. Understand that a customer buys your
products or services only when he/she trusts your brand and most importantly believes in
you. Understand the needs and requirements of your clients. Find out as to why they need a
particular product and how your product would benefit them. You need to build a strong
relationship with your customers for them not only to remain your loyal clients but also bring
more people along with them. It is the responsibility of the organization to give correct
suggestions and feedbacks to customers. Avoid making fake promises and commitments
which you yourself know are difficult to fulfill.

Entrepreneurs to General Public
2. Consider Public Input

A company should be able to operate under its own rules and ideals, but a company should
also take into account the input of its customers to remain competitive, according to the
World Bank Institute's report titled "Public Policy for Corporate Social Responsibility."
A company should reach out to its customers and benefit from the insight of what customers
are looking for in product improvements. A company that creates an advisory board of a
cross-section of its target audience gathers recommendations on how to keep in touch with
the customer base and how to improve the company's public image. It is the responsibility of
the company to remain accountable to its customers; otherwise, the company will lose its
customers and cease to exist.

3. Take Care of the Community

A company exists because of the customers it serves and the community in which it is
located. The community provides most of the employees for the company, and the
community provides all the public services the company enjoys, such as electricity and
firefighting protection. In some cases, companies are given breaks on their utilities and taxes
in order to entice them to establish a location within the community. The company has a
responsibility to give back to the community that supports it with tax breaks and a labor
force. When there is a community event, the company should contribute volunteers, money,
or something that would support the event. The company should use local suppliers as much
as it can to help support local businesses.

1. Be Fiscally Responsible
One of the actions that prompted failure of companies such as Enron and Adelphia occurred
when executives gave themselves loans using company funds, according to RR Donnelley.
While it can be disappointing to consumers that companies need legislation to be fiscally
responsible, it would be naive to allow company executives to keep raiding corporate bank
accounts for their own needs. When a company is caught up in a scandal caused by executive
greed, it can be fiscally fatal for that company. That is why a company needs to enact and
enforce guidelines of its own that agree with the law but also apply specifically to the
company, to avoid misuse of company funds. There is a bond of trust between a consumer
and a company that is broken when fiscal fraud occurs. This goes for public or private
companies.

Laws that Govern Employee
Rights
The Labor Code of the Philippines

 It identifies the rules and standards regarding employment
such as pre-employment policies, labor conditions, wage
rate, work hours, employee benefits, termination of
employees, and so on.

Laws that Govern Employee
Rights
Pre-Employment Policies
 The minimum age for employment is 15 years old and
below that age is not allowed. Persons of age 15 to 18 can
be employed given that they work in non-hazardous
environment.

Regulation on Condition of
Employment
 Minimum Wage
Rates
 Normal hours of
work any employee
shall not exceed 8
hours a day.

Business Dilemmas
Ethical Dilemmas
 A situation in which a difficult choice has to be made between two
courses of action, either of which entails disobeying a moral principles.
 Ethical dilemmas faced by certain companies may be specific to their
industry or company, other types of ethical issues are common to all
types of company.
 Handling ethical decisions with wisdom is especially important for small
business, given the potentially devastating effects these companies may
face if such issues are not handled correctly.
Business Dilemmas
Health and Safety

 One area of ethical consideration for employers is how to balance expense
control with the health and safety interest of employees.
Technology
 Advancement in technology and the growth of the internet in the early 21st
century have produced a slew of ethical dilemmas for many companies.
 Certain companies go so far as to monitor all online users and email
communication form employee computers and work accounts.
 A company may have this right, but its leaders need to understand the potential
concern about privacy and autonomy among employee.
Business Dilemmas
Transparency
 Prominent business and accounting scandals have made it imperative that
companies operate with openness and transparency.
 This includes hones, accurate and complete reporting on mandated financial
accounting reports.
 For large and small business, transparency includes communicating messages ,
including marketing messages that aren’t open to misinterpretation and that
clearly represent the intentions of the company and its message.

Business Dilemmas
Fair Working Condition

 Being responsible with employee treatment typically mean higher labor costs
and resources utilization.
 Fair pay and benefits for work are more obvious elements of a fair workplace.
Fraud
 Act or course of deception, an intention concealment, omission, or perversion
of truth to:
 Gain unlawful or unfair advantage.
 Induce another to part with some valuable item or surrender a legal right,
or
 Inflict injury in some manner
Business Dilemmas
Unfair Competition
 Unjust and often illegal attempt to gain competitive advantage though:
 False fraudulent
 Unethical commercial conduct
Examples: Below-cost selling, counterfeiting or imitation, dumping, misleading
advertisement, rumor mongering, trademark or trade secret infringement.

Business Dilemmas
Unethical Advertisements in
terms of fair competition

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business-management/social-responsibility-of-entrepreneurs/
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Quarter 4: Lesson 1

SOCIAL RESPONSIBILITY AND ACCOUNTABILITY

Angeles City Senior High School

• In our desire to maximize our profit?

All of these things are opposite of social responsibility.

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

• Responsibility can be shared while accountability cannot.

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

All you need to do is learn and respecting the visible and

Angeles City Senior High School

It will demonstrate that you care enough about success or failure

Angeles City Senior High School

Angeles City Senior High School

If it’s a work-life balance issue, things are running more slowly

Angeles City Senior High School

That is why it’s essential to let someone help you. Whenever

Angeles City Senior High School

Someone who takes personal responsibility at work can be

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

It’s important to remember that your attendance is a factor in

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

Angeles City Senior High School

1. Pay Wages and Taxes

Angeles City Senior High School

2. Create and Maintain a Safe Workplace

Angeles City Senior High School

3. Facilitate Workers’ Compensation Insurance

Angeles City Senior High School

4. Enforce Anti-Discrimination Law

Angeles City Senior High School

5. Create and Maintain a Favorable Working Environment

Angeles City Senior High School

6. Respect Human Rights

Angeles City Senior High School

7. Support Career Development

Angeles City Senior High School

8. Train and Educate Employees

Angeles City Senior High School

Angeles City Senior High School

10. Give Rewards and Benefits

Angeles City Senior High School

1. Observe Laws, Rules, and Regulations

Angeles City Senior High School

Angeles City Senior High School

3. Follow Environmental Regulations

Angeles City Senior High School

4. Abide by Labor Laws

Angeles City Senior High School

5. Avoid Restrictive Trade Practices

Angeles City Senior High School

6. Disclose Financial Statements

Angeles City Senior High School

Angeles City Senior High School