ARELLANO UNIVERSITY

Basic Education Department – Senior High School

Name: __Sherilyn Juanico _____________________________________ Date: ___Feb. 10,2022____

Grade/Track/Section: __Grade 12 ABM-12_________________________ Room No: ______________

Activity # 2
Activity Title: The Social Functions of the Business
Learning Target: Understanding the roles of Business Organizations in the Society
Reference Title: Business Ethics and Social Responsibility: K-12
Author(s): Diwa Senior High School Series
Type of Activity: Concept notes, classroom discussion, collaborative exercises

The Roles of Business Organizations in the Society

The primary objective of business organizations is to develop, produce, and distribute goods and services to
the market in order to generate profits. But business organizations are not only meant to generate profits for themselves.
They perform important roles in the society, particularly in socioeconomic development. Among these roles are:
1. Providing Goods and services
2. Creating Employment Opportunities
3. Advancing the Economy
4. Promoting Sustainability
5. Entrepreneurship

EXERCISES:
1. When you buy products, do you consciously seek those that are made by socially responsible companies? Why or
Why not? Which among the products that you buy are manufactured by socially responsible companies?

Yes, I consciously seek those that are made by socially responsible companies, so that we have
appropriate and responsible products to utilize The quality of a brand's products and services. One
of the products I buy that are made by socially responsible companies is the Coca Cola brand of soft
drinks and the Nestle brand.

2. Read the case study and answer the given questions

Macao, an autonomous territory on the western side of china, is considered one of the richest in the world mainly
because of its two industries – tourism and gambling. It houses world –famous casinos, and several famous personalities
have visited its territory to travel and pay.
ABC Corporation in the Philippines witnessed the success of casinos in Macao and eventually established a huge
casino business in Manila. Indeed, the casino business has been a tremendous success for ABC Corporation. It gained
regular customers mostly belonging to the youth segment, majority of them are rich, and fresh graduates aged 21 - 25.
Instead of entering the corporate world or managing the business of their families, these customers devoted their time
going to the casino in the quest of winning. Most of them smoke inside the casino since it is allowed and spend most of
their winnings going to the bars having drinking sprees. When they lose, they ask money from their parents in the hope
of winning again and recovering the lost money. This has been the customer cycle of ABC Corporation’s primary target
market. ABC Corporation’s net income grew by 40% after a year of running the casino.

1. Did ABC Corporation violate good management practice? Why or Why not?
• Yes, since the ABC corporation causes a great deal of harm to individuals.
2. Did ABC Corporation violate any government policy? Why or why not?
• Despite the fact that numerous customers went to ABC Corporation and their net income soared, the
company nonetheless violated the law. For starters, casinos are illegal in the country, and many people
are addicted to them.
3. What do you think is the public’s opinion on ABC Corporation?
• I believe public opinion on this corporation is split 50/50 because there are those who enjoy gambling
and want it to continue, as well as those who dislike casinos because individuals might become addicted
to them without realizing it.
4. Will you consider establishing a casino in the Philippines a new opportunity? Why or Why not?
• Of course not, because it can lead to a serious addiction. Though gambling is regarded as a harmless
pastime, it has the potential to become a problem in the future.