HOLY SPIRIT ACADEMY OF LAOAG

BUSINESS ETHICS
HOMEWORK
Corporate Social Responsibility of Entrepreneurs
(continuation)

B. Responsibilities and Accountabilities to the Consumers

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. This is possible by following a positive attitude towards customers and fulfilling
following social responsibilities towards them.

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.

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.

3. 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.

4. Be Honest in Advertising and Marketing

The customers want to know the facts, features, advantages and side-effects 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. Treat Customers well

Understand that a customer buys your products or services only when he/she trusts your brand and
most importantly believes in you. 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.
C. Responsibilities and Accountabilities to the Environment

1. Comply with Environmental Legislation

There is a range of environment rules your business may have to follow:
 Comply with legislation regarding emissions into the air.
 Store waste safely and securely, make sure it is treated appropriately, ensure it is collected by an
authorized organization and complete a waste transfer note or consignment note when waste is
handed over.
 Manage your business waste for recycling by separating paper, card, plastic, metals, and glass
prior to collection.
 Join an approved compliance scheme if you handle more than 50 tons of packaging.
 Make sure that you comply with restrictions on the storage and use the hazardous substances.
2. Dispose Waste Properly
Appropriate steps should be taken to prevent environmental pollution and to preserve ecological
balance. The industrial waste should be disposed of carefully or if possible, can be recycled to
minimize pollution. The toxic wastes, excessive noise, chemical pesticides, automobile exhaust etc.
need to be checked from time to time.
3. Recycle
Businesses are required to separate the following forms of commercial waste for recycling: paper,
card, plastic, metals, and glass.
If your business processes prepare or distribute food and produce over 50kg of food waste per week,
you are required to separate food waste. It is illegal to dispose of food waste directly or indirectly into
a public drain or sewer.

4. Conserve and Protect Biodiversity

Biodiversity refers to all species of plants and animals, including any genetic variations within those
species, and the complex ecosystems they live in.
The world is losing biodiversity at an ever-increasing rate as a result of human activity. All types of
business operating near protected areas should be aware of their responsibilities for conservation and
protect biodiversity. This doesn't just apply to land-based industries such as forestry or farming, but to
all offices, factories and other business activities based on or near these areas.

Protected areas include:

 Local nature reserves - places with wildlife or geological features that are of special interest
locally.
 National scenic areas - areas of particular natural beauty in need of conservation.
 National parks - tracts of the countryside that have been given protection for the conservation
and enhancement of their special qualities.
 National nature reserves - important areas of wildlife habitat.
 Sites of special scientific interest - good examples of the natural heritage of wildlife habitats,
geological features, and landforms.
 Special areas of conservation - strictly protected sites for habitat types and species that are
considered to be most in need of conservation at a European level.
 Special protection areas - strictly protected sites classified for rare and vulnerable birds.
 Wetlands

5. Prevent and remedy damages to environment

Every year there are thousands of cases of damage to the environment covering:
 damage to species and habitats
 damage to water
 risks to human health from contamination of land
If you are responsible 'operator' of the activity that causes or threatens the damage you must take the
immediate action to prevent or remedy this.

6. Report an incident
You should report incidents such as:
 damage or danger to the natural environment
 pollution to water or land
 poaching or illegal fishing
 fish in distress or dead fish
  watercourse blocked by a vehicle or fallen tree causing risk of flooding
 illegal dumping of special (hazardous) waste or large amounts of industrial waste
 incidents at waste sites
 illegal abstraction from watercourses
 unusual drops in river flow
 collapsed or badly damaged river or canal banks
You should report incidents such as gas leaks, burst water mains, or domestic odors, noise, waste or
pest nuisances to your local authority or utility company. Business should protect the environment
which has acquired great importance all over the world.

7. Use Scarce Natural Resources Sparingly

Scarce natural resources should be used very carefully as these are depleting at a very fast rate. The
alternative sources can also be found out to save natural resources like to save forests alternative to
wood and pulp can be found, the use of coal can be reduced by an alternative source of energy.
Start by recycling paper, making the most of digital way and reusing the recording sheets. Separate
garbage dumps and avoids using disposable plates, especially Styrofoam. Implement energy saving
systems such as LED lighting, and invite your team to tum off lights and equipment when not in use.
Encourage the use of bicycles and car-pooling. In addition, invite them to perform activities
such as planting trees.

D. Responsibilities and Accountabilities to the Government

In any country, the government tries to preserve the community and improve its conditions. In that
respect, the business has to extend its cooperation to the government. If the business discharges its
responsibilities the government sincerely and effectively, the government can function more
efficiently.
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. 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.
4. 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.
5. Avoid Corruption
The commercial organization should not take any type of favor from government officials by bribing or
influencing them.
6. 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.
Your Task:

Answer the following questions:

1. As a student, how can you encourage businesses to become more environmentally responsible?
2. Why do organizations promote Corporate Social Responsibility?
3. What are the benefits of a socially responsible organization?