BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

I. LESSON DISCUSSION:
Model in a Social Enterprise
Some of the common frameworks being used by successful social enterprises:
1. Cross-Compensation- one group of customers pays for the service.
2. Fee for Service- beneficiaries pay directly for the good or services provided by the social enterprise.
3. Employment and skills training- the core purpose is to provide living wages, skills development, and job training to the
beneficiaries: the employees.
4. Market Intermediary- the social enterprise acts as an intermediary, or distributor, to an expanded market.
5. Market Connector- the social enterprise facilitates trade relationships between beneficiaries and new markets.
6. Independent support- the social enterprise delivers a product or service to an external market that is separate
from the beneficiary and social impact generated.
7. Cooperative- for profit or non-profit business that is owned by its members who also used its services,
providing virtually any type of goods and services.

Splendid Social Enterprise Ideas that Entrepreneurs may Work on to Establish and Create a Social Enterprise Business
1. Social Supermarket- it is a food market that sells food to low income communities at a discounted price.
Business Model: Fee for service
Example: Community shop
2. Used textbooks for social change- this is a partnership with student groups or clubs to collect used textbooks at the end of
each semester.
Business Model: Cross-Compensation and Independent Support
Example: Textbooks for change
3. Online Socially Conscious Marketplace- this is to help underserved artisans sell their products to the world by building a
platform that makes it easy for them.
Business Model: Market Connector
Example: Batuta in Brief
4. Sustainable Water- this is about building small water purification stations in communities of developing countries using off-
the - shelf products.
Business Model: Fee for Service
Example: Water help international
5. Micro Lending- this is creating a platform for individuals and organizations to lend money directly to entrepreneurs who
would otherwise not get funding, such as those in the developing world.
Business Model: Market Connector
Example: Kiva
6. Social Crowd funding- this is about building a platform for social entrepreneurs to find groups of funders.
Business Model: Market Connector
Example: Start some good
7. Baking/Cooking for a Social cause- this is opening a bakery/restaurant or another food-providing establishment that focuses
on building employment skills for underemployed groups, such as at-risk youth or former drug addicts.
Business Model: Employment and skills training
Example: Edgar and Joe's
8. Efficient Wood Stoves for Developing World- millions of women in developing countries suffer from cardiopulmonary
diseases as a direct result of breathing in wood smoke on a daily basis.
Business Model: Cross-Compensation
Example: Bio Lite
Chef's Collaborative Network Principles
 Food is fundamental to life
 Good, safe, wholesome food is a basic human right
 Society has the obligation to make good, pure food affordable and accesible to all.
 Good food begins with unpolluted air, land and water, environmentally sustainable farming and fishing, and humane
animal husbandry
 Sound food choices emphasis locally grown, seasonally fresh and whole or minimally processed ingredients
 The healthy, traditional diets of many cultures offer abundant evidence that fruits, vegetables are the foundation of
good diets
 As part of their education, our children deserve to be taught basic cooking skills and to learn the impact of their food
choices on themselves, on their culture, and on their environment.
9. Innovative Information Product- this concerns creating a baby blanket with information about how to take care of a baby,
such as when to immunize, how big a baby should be at a specific age, and how often to feed the baby.
 Business Model: Cross-Compensation
Example: Information Blanket
10. Micro Power Generation- it is about providing micro-electric solutions for remote applications in the developing world.
Business Model: Fee for Service
Example: husk Power
11. Socially conscious consumer electronics- this concerns building a new kind of consumer electronic device; one that is built
with conflict- free materials, provides fair wages to the workers who build it, offers a fair and transparent price for the end
consumer, and does not engage in unfair consumer practices(such as locking smartphones, or creating proprietary
software/hardware interfaces).
Business Model: Fee for Service and market Intermediary
Example: Fair phone
12. Education books on a social topic- this is about creating a book or other educational publication, whose benefit is easily
understood and salable.
Business Model: Fee for Service and Independent support
Example: Chef's Collaborative Network
13. Ultra-Modern Technology to attract economic development- a small community normally doesnt have much to offer a
business, unless it becomes a place that has the best business service in one area.
Business Model: Fee for Service and Cooperative
Example: O-net
14. Beauty Products to support a social mission- this is about partnering with major beauty brands to sell their products as an
online retailer.
Business Model: Independent support
Example: Bottle 4 Bottle
15. A virtual factory of computer workers- this is about building an online community of computer workers for hired for under
employed communities.
Business Model: Employment and skills training.
Example: Cloud Factory
16. A market place for social good- sell socially and ethically conscious products in a virtual or real environment.
Business Model: Market Intermediary
Example: ten thousand villages
17. Exercise equipment for social outreach- sell a piece of exercise equipment that is simple to use and affordable.
Business Model: Fee for Service and Cross-Compensation
Example: Rubber Banditz
18. Educational Travel Company- Start a company that brings together traveler with experiences that provide an intercultural
learning experience and a positive social impact on a local community.
Business Model: Fee for Service
Example: Think impact
19. Food for Philanthropy- create a food company that provides an already needed or wanted products and use the profits to
support Philanthropic work.
Business Model: Independent Support
Example: Newman's Own
20. Social Products and Employment for the underserved- source one or several social good products, and hire an under
employed group to sell this products to their company as a commission basis.
Business Model: Employment and skills training, Fee for Service
Example: Livelihoods
21. Water for everyone- this concerns the creation of a home water filtration solution that sells to the first world, and use the
proceeds of these sales to provide the same solution to the developing world.
Business Model: Cross-Compensation
Example: Soma Water

II. REFERENCES:
  Jerusalem, V., Palecia M, & Palencia J. (2017). Business Ethics and Social Responsibility: Concepts, Principles & Practices
of Ethical standards. Manila, Philippines: FASTBOOKS Educational Supply, Inc.
 https://www.coursehero.com/file/50601841/04-Handout-1pdf/
 https://prezi.com/p/egayotet7win/group-1-chapter-iv-business-beyond-profit-motivation/
III. REQUIREMENTS:
Direction: Read thoroughly the case and answer the questions that follow:

A Case Study of One Ottawa Social Enterprise: Right Bike

The social enterprise, Right Bike, has launched a major expansion that brings with it both environmental and social benefits.
The Ottawa bike-sharing service, backed by a $30,000 grant from the City of Ottawa’s Better Neighborhoods Program, has this year
expanded from its base in Wellington West into the Glebe, Centre town and Sandy Hill. Three years ago, Right Bike — one of four
social enterprises operated by the non-profit Causeway Work Centre — began with three stations in Wellington West, Hintonburg and
Westboro. It now features 14 stations with 70 of its distinctive purple bikes, which rent for $5 a day. That steady growth has come
with the kind of spinoff benefits that define a social enterprise.
Right Bike refurbishes donated bikes and turns them into a community asset while teaching bike mechanics to people who
need job skills, experience and references. The social enterprise keeps old bikes out of landfill and offers an eco-friendly alternative to
driving. The idea, says Right Bike manager Shane Norris, is to maximize the social good that flows from one business : “We want to
make cycling as accessible to as many people as possible so we make prices as low as possible while providing employment to as
many people as possible.”
Right Bike offers on-the-job training. Velibor Jankovic, 24, an apprentice mechanic, says he values the opportunity . “I
haven’t had a real job in a couple of years,” says Jankovic, who hopes to make a career of bike mechanics. This winter, Right Bike
will also offer a 16-week training program for aspiring bike mechanics. Chief mechanic Brian Wheeler left a job at Bushtukah for the
chance to try his hand at Right Bike’s practical social work. “I get a feeling that I’ve accomplished something worthwhile at the end
of the day,” he says.
Wheeler and his staff rebuild old bicycles to populate Right Bike’s fleet, which is mostly comprised of three-speed bikes with
step- through frames. “These are the easiest for everybody to ride,” says Wheeler. “Even if you haven’t been on a bike in 40 years,
you can get on one of these and go.”
Right Bike earns revenue from rental fees and sponsorship deals; government grants cover other costs. Still, Causeway
expects the business will operate at a $10,000 loss this year — money that will be recovered from the organization’s more profitable
social enterprises.
With more charities competing for fewer government dollars, it only makes sense for non-profit groups to use business as a
vehicle to bolster their revenues and their reach, Norris says. A University of Ottawa business graduate, Norris, 36, left a career in
banking to pursue a job with more meaning. He took a substantial pay cut to join Causeway. “I’m content with the idea that I’m using
skill sets from my education and from my life to help other people,” he says. “It helps me feel OK with why I get up every morning.”
Questions:
1. Why do you think Right Bike is considered as a social enterprise? (5 pts.)
2. What are the social enterprise advantages that Right Bike possess? Why do you say so? Explain your answer. (10 pts.)
3. What are the benefits that Right Bike brings? Are these benefits applicable for a social enterprise? Justify your answer. (10 pts.)