I.

OBJECTIVES

Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN
SCHOOL
A. Content Standard:
The learners have an understanding of the basic fairness,
personnel and customer relations distribution dilemmas, fraud,
unfair competition, unfair communication, no respect of agree-
ments, environmental degradation etc.
B. Performance Standard:
The learners shall be able to discuss the major ethical issues in
entrepreneurship; Formulate a morally defensible position on ethi-
cal issues in entrepreneurship;

C. Most Essential Learning Competencies (MELCs)

The learners shall be to formulate a morally defensible position
BUSINESS ETHICS and on ethical issues in entrepreneurship like basic fairness, personal
customer relations distribution dilemmas, fraud, unfair competi-

SOCIAL RESPONSIBILITY tion, unfair communication, no respect of agreements, environmen-

tal degradation, etc.
D. Specific Objectives:
( ETHICS AND SOCIAL RE- 1. Discuss the major ethical issues in entrepreneurship;

SPONBILITY IN BUSINESS) 2. Enumerate some business doing the right business

ACTIVITY SHEET Lesson 3.2: Discuss the major ethical issues in entrepreneurship;
3.3: Formulate a morally defensible position on ethical is-
(Quarter 2, Week 2) sues in entrepreneurship;
NAME: ____________________________________________________
II. CONTENT
LAST NAME FIRST NAME M.I.

STRAND/GRADE/SECTION:_____________________________________ III. PROCEDURES:

DATE OF SUBMISSION: ________________________________________
Before you start studying this learning activity sheet, take this simple
MM / DD / YY test to find out what you already know about the topic.

1 2
 A.Preliminary Activities
Direction: Write the letter of the correct answer on the space provide :
____1. The company should have attractive compensation packages to at-
tract more potential talents to join the organization who can be of
help in the achievement of the long-term goals of the company.
A. Sensible and Attractive Salary
B. Humane Behavior towards employees
C. Pay Fair Prices of Goods at a reasonable time
D. Give Guarantee of Minimum Price
____2. Employees should be treated compassionately by allowing them to
practice their rights and enjoy being workers of the company.
A. Give Guarantee of Minimum Price
B. Sensible and Attractive Salary
C. Humane Behavior towards employees
D. Pay Fair Prices of Goods at a reasonable time
____3. Entrepreneurs have the responsibility to pay for the agreed prices
with the suppliers.
A. Give Guarantee of Minimum Price
B. Pay Fair Prices of Goods at a reasonable time
C. Sensible and Attractive Salary
D. Humane Behavior towards employees
____4. The entrepreneurs should give the assurance of lowest prices to the
suppliers so that the certainty of the price will be sustained.
A. Pay Fair Prices of Goods at a reasonable time
B. Humane Behavior towards employees
C. Give Guarantee of Minimum Price
D. Sensible and Attractive Salary
____5. Entrepreneurs are also responsible in the well-being of their employ-
ees. It is their responsibility to deliver financial sustenance during
sickness, old age, accidents and even death.
A. Pay Fair Prices of Goods at a reasonable time
B. Give Guarantee of Minimum Price
C. Sensible and Attractive Salary
D. Assumption of Welfare Arrangements
3 4
B. Presenting the New Lesson
Pfizer uses the term corporate citizenship to coin their CSR initiatives
and believes it is a core part of their company and 'simply how they do
business'. Across the globe, the company drives initiatives that raise
awareness for non-infectious diseases as well as providing healthcare for
women and children who otherwise would not have the care they need.
One example of this is the reduction in the price of their Prevenar
13 vaccines (for pneumonia, ear and blood infections) for those in need
and in situations such as refugees and emergency settings. Do you know a
business that also has a social responsibility to its society or environment?
III. LESSON 1: Ethical Issues in Entrepreneurship
Ethical issues - is a problem or situation that requires a person or or-
ganization to choose between alternatives that must be evaluated as right
(ethical) or wrong (unethical).
What is Ethical issues in entrepreneurship?
Ethical issues occur when a given decision, scenario or activity creates a
conflict with a society's moral principles. Both individuals and businesses
can be involved in these conflicts, since any of their activities might be
put to question from an ethical standpoint.
Integrity and Trust- the most fundamental ethical issues that business-
es face nowadays.
Ethical Dilemma- situation/s concerning right or wrong when values are
in conflict.
Basic Fairness- Ethical decision-making processes should center on pro-
tecting employee and customer rights, making sure all business opera-
tions are fair and just, protecting the common good and making sure in-
dividual values and beliefs of workers are protected.
Successful entrepreneurs operate on sound business ethics which are
approved and accepted in any society.
Entrepreneurial Ethics are those codes of conduct, employed by entre-
preneurs which impact society positively, thereby increasing the entre-
The following are the most common ethical issues encountered by
entrepreneurs:
1. Favoritism/Partiality
Entrepreneurs should not be biased when it comes to hiring employees
and in making decisions in other aspects. You don’t hire a less qualified
job candidate because he is related to you or because he is your favor-
ite. It is not only unethical but you are also hiring someone who is not
best for the position.
2. Copyright Violation
The mistake of infringing copyrights of other businesses is an abuse of
the law. It is important that you should ask permission from the right-
ful owner before you use their own creations for business.
3. Overworking Your Staff
Entrepreneurs asking too much work from their employees without
even understanding their situations is unethical. Entrepreneurs
should know their limit in assigning workloads to their employees.
4. Tax Accounting and Dishonesty of Expenses
Dishonesty in declaration of assets and income just to get lower tax is
unethical. It is important that the entrepreneur should not mix person-
al and business expenses. Not doing it right mind end up in trouble
with the law.
5. Claiming Income
Hiding income generated and not declaring it may hamper the business
because it will deprive the government from collecting from these entre-
preneurs. This qualifies as unethical because there is dishonesty in this
situation.
6. Hiding Blemishes During Fundraising
It can be very tempting to slightly exaggerate things while on the hunt
for investment and it is a very slippery slope with no real upside. You
either lose credibility/trust later on or commit yourself to an unrealistic
timeline that will only frustrate those who have bought into your
dream. Be optimistic but realistic with where challenges might occur.
Openness and honesty help ensure a good fit.
7. Merging Personal and Business Accounts
Never merge personal income with business income. Entrepreneurs
should be sensible with their expenses. Proper payroll or paying quar-
terly taxes should be observed.
5 6
8. Hiring someone to write fake reviews
Hiring people to write fake reviews about the company is unethical.
There also companies being paid just create fake survey results just
like TV ratings. This action is not ethical because these businessmen
are giving fake information about their company just to appear posi-
tive online.
9, Harassment and Discrimination in the Workplace
Harassment and discrimination are arguably the largest ethical is-
sues that impact business owners today. Should harassment or dis-
crimination take place in the workplace, the result could be cata-
strophic for your organization both financially and reputationally.
10. . Whistleblowing or Social Media Rants
The widespread nature of social media has made employees conduct
online a factor in their employment status. The question of the ethics
of firing or punishing employees for their online posts is complicated.
However, the line is usually drawn when an employee’s online behav-
ior is considered to be disloyal to their employer. This means that a
Facebook post complaining about work is not punishable on its own
but can be punishable if it does something to reduce business.
11. Ethics in Accounting Practices
Any organization must maintain accurate bookkeeping practices.
“Cooking the books”, and otherwise conducting unethical accounting
practices, is a serious concern for organizations, especially in publicly
traded companies.
12. Nondisclosure and Corporate Espionage
Many employers are at risk of current and former employees stealing
information, including client data used by organizations in direct
competition with the company. When intellectual property is stolen,
or private client information is illegally distributed, this constitutes
corporate espionage. Companies may put in place mandatory nondis-
closure agreements, stipulating strict financial penalties in case of
violation, in order to discourage these types of ethics violations.
13. Technology and Privacy Practices
Under the same umbrella as nondisclosure agreements, the develop-
ments in technological security capability pose privacy concerns for
clients and employees alike. Employers now have the ability to moni-
tor employee activity on their computers and other company-provided
devices, and while electronic surveillance is meant to ensure efficien-
cy and productivity, it often comes dangerously close to privacy viola-
tion.
Brands Doing it Right
1. An excellent example of CSR is global giant Johnson & Johnson. They
have focused on reducing their impact on the planet for three decades.
Their initiatives range from leveraging the power of the wind to providing
safe water to communities around the world. Its purchase of a privately-
owned energy supplier in the Texas Panhandle allowed the company to
reduce pollution while providing a renewable, economical alternative to
electricity.
2. Google is trusted not only for its environmentally friendly initiatives
but also due to their outspoken CEO Sundar Pichai. He stands up
against social issues including President Donald Trump’s anti-Muslim
comments. Google also earned RI’s highest CSR score much in part due
to their data center using 50% less energy than others in the world. They
also have committed over $1 billion to renewable energy projects and en-
able other businesses to reduce their environmental impact through ser-
vices such as Gmail
3. Coca-Cola’s massive fleet of delivery trucks contributed 3.7 million
metric tons of greenhouse gases to the world. They have made major
changes to their supply chain practices including investing in new alter-
natively fueled trucks. Their initiatives are intended to create a 25% re-
duction in their carbon footprint by 2020
4. Ford Motor Company. Ford plans to reduce their greenhouse gas
emissions using their EcoBoost engine to increase fuel efficiency. It also
plans to introduce 40 electrified vehicles (electric and hybrid) by 2022, in
an investment of $11 billion. According to Ford: “We’re all in on this and
we’re taking our mainstream vehicles, our most iconic vehicles, and we’re
electrifying them. If we want to be successful with electrification, we have
to do it with vehicles that are already popular.”
5. Netflix & Spotify. From a social perspective, companies such as Net-
flix and Spotify offer benefits to support their employees and families.
Netflix offers 52 weeks of paid parental leave. This compares to 18 weeks
at other tech companies. Spotify offers a similar program, although for a
shorter duration of 24 weeks of paid leave.
6. Starbucks. With an eye to hiring, Starbucks is looking to diversify
their workforce and provide opportunities for certain cohorts. By 2025 it
has pledged to hire 25,000 veterans by 2025. This hiring initiative will
also look to hire more younger people with the aim of "helping jump-start
careers by giving them their first job'. While globally the company has
joined with the UN Refugee Agency to scale up the company’s support
and efforts to reach refugee candidates to hire 10,000 refugees by 2022.
7 8
IV. ACTIVITIES
INDEPENDENT ACTIVITY 1:
Directions: Write A if you agree on the statement and write D if you dis-
agree in the statement.
_____1. The manager has a monitor connected with the company's’
CCTV, and a speaker in every corner of the building, to monitor
all of the activity happening in his business.
_____2. Your company's’ CPA has two sets of Financial Statement, one
with a lower income for the BIR, and another one for the real in-
come of the company.
_____3. The Partially disabled persons are the priority of your company in
hiring additional production worker.
_____4. Mr. Tobias has paid a news agency to inform the public that
there was a bird flu outbreak in their province. Mr. Tobias don’t
have a poultry.
_____5. You post on your FB account the incident that happen in your
company. A died cockroach was found in the drums of milk.
You were working n a milk tea store.
INDEPENDENT ASSESSMENT 1:
Application: Case analysis
You have gathered all the necessary document to start up your
“Milk Thea” Shop. As a young entrepreneur, you don’t’ have any
background in the payment of your monthly, quarterly and annual
taxes. To learn everything about it you visit the government office
near you. While you were asking about the taxes due for your busi-
ness, the government employee offers you, an irresistible amount,
you are going to pay, but there will be no receipts, only a certification
that you pay your taxes will be given to you. Will you accept the offer
or not? Explain your reasons.
INDEPENDENT ACTIVITY 2
INDEPENDENT ASSESSMENT 2:
Matching Type: Match the word on column A with the description DIRECTIONS: Choose the letter of the correct answer. Write your answer on
on column B. write the letter of your chosen answer on separate the space provided.
sheet of paper. 1. They offers 52 weeks of paid parental leave.
A. Ford b. google c. Netflix d. Starbucks
Column A Column B
2. They have committed over $1 billion to renewable energy projects.
1. Entrepre- A. Situation/s concerning right or wrong when values are in
A. Coca-Cola b. google c. Netflix d. Starbucks
neurial Ethics conflict.
3. They help to reduce pollution while providing a renewable, economical alter-
2. Technology B. Widespread nature of social media has made employees native to electricity.
and Privacy conduct online a factor in their employment status.
A. Ford b. Johnson c. Netflix d. Starbucks
Practices
4. They aim of "helping jump-start careers by giving them their first job'.
3. Integrity and C. Employer was monitoring the employees activity on their
Trust computer and CCTV. A. Ford b. Coca-Cola c. Netflix d. Starbucks

4. Basic Fair- D. Manager want a one night stand with his employee, 5. The company are intended to create a 25% reduction in their carbon foot-
ness which she knew was recently separated from her partner. print by 2020

5. Whistle E. Employees has to work 12 hours a day without receiving A. Ford b. Coca-Cola c. Netflix d. Starbucks
blowing overtime pay. INDEPENDENT ACTIVITY 3:
6. Favoritism/ F. Ask permission from the rightful owner before you use Directions: look for the word or words on the puzzle. Hint: they are the
company’s doing it right.
Partiality their own creations for business.
G F A S D F G H S
7. Harassment G. Preparing two sets of financial statements, the lower in- J O H N S O N & P
Q R O W E R T J O
8. Tax ac- G. Entrepreneurs should be sensible with their expenses. Y D U G I D P O T
counting O I J E L N G H I
9. Ethical di- H. Decision-making processes should center on protecting E R T Y U E I N F
lemma employee and customer rights,. C O C A D T C S Y
10. Overwork- I. Manager hire a less qualified job candidate because they A W E C R F T O B
ing Your Staff are first degree related to each other. R A Y O R L D N E
T P G L I I R E R
J. The most fundamental ethical issues that businesses face
C O T A Y X L O T
nowadays
S T A R B U C K S
K. Those codes of conduct, employed by entrepreneurs which
E O W E R T Y O A
impact society positively
F M H R G H J K W
L. When intellectual property is stolen, or private client infor-
mation is illegally distributed. A S E N Y O M R E

9 10
INDEPENDENT ASSESSMENT 3: Application: REFLECTION
Directions: Choose among the list of employee and employer, ac- Directions: assuming that you have your own business. Answer the ques-
countability and responsibility during the time of pandemic. tion below.
Write E if it is for employee and write R if it is for employer, use
the space provided: What is your idea of unfair competition? How essential is the respect of
____1. Provide the necessary PPE’s. agreements or contracts?

____2. Prepare the alternative work from home schedule.

____3. Follow the new schedule.
_____________________________________________
____4. Report to the proper authorities the condition of the employees. _____________________________________________
_____________________________________________
____5. File to the government agency concern the status of the busi-
_____________________________________________
ness.
_____________________________________________
____6. Wear the prescribe PPE’s. _____________________________________________
_____________________________________________
____7. Follow-up to the government agency the needed help for the em- _____________________________________________
ployees. _____________________________________________
____8. Donate to the most affected areas a portion of the company’s _____________________________________________
income. _____________________________________________
_____________________________________________
____9. Follow guidelines implemented by the different government _____________________________________________
agency, in and out of the premises. _____________________________________________
____10. Inform the company’s real Finsncial situation.

11 12
 IV. ASSESSMENT
Post Test :
RUBRICS Direction. Answer the 5-item Simple Recall Test and write your answers
on the blank provided before the number.
_____1. Caroll’s Pyramid model of Social Responsibility includes the fol-
lowing except:
A, Economic C. Philanthropic
CRITERIA 4 3 2 1 B. Ethical D. Subliminal
_____2. Entrepreneurs should identify just process for the goods and
Includes sig- Includes many Includes few Missing or services so that customers will develop trust on the product and in
nificant rele- details to sup- details to sup- weak facts or the long run, they also develop loyalty to the business as well as to
Content vant, and port infor- port infor- details
the product.
compelling mation or po- mation or po- A. Determination of Fair Prices
details or facts sition though sition many B. Not to Seek Political Patronage by Unfair Means
to support few are not all are not rele- C. Formation of Small Business Relations
information relevant vant D. Right and True Advertising
Evidence of Evidence of Few evidence New learning _____3. It is the responsibility of the entrepreneur not to seek for any
Knowledge / genuine learn- learning of learning is not evident. political support through provision of unnecessary economic help
ing not just a though some most of the Not developed
to any political party or politicians especially during elections.
Application
repeat of infor- information information or tied into A. Formation of Small Business Relations
mation found appears to appears to past B. Right and True Advertising
just be given just be given knowledge C. Not to Seek Political Patronage by Unfair Means
Virtually no Few spelling A number of So many D. A and B are correct
Grammar grammatical and grammati- spelling and spelling and _____4. Establishment of good relationship with the employees to pro-
errors cal errors grammatical grammatical tect the interests of everyone
errors errors A. Formation of Small Business Relations
B. Right and True Advertising
C. Not to Seek Political Patronage by Unfair Means
D. Assumption of Welfare Arrangements
_____5. Making sure that the physical environment of the workers is
well taken-cared of by providing good lighting, proper temperature
and workable space for the employees is a responsibility by the en-
trepreneur
A. Sensible and Attractive Salary
B. Pay Fair Prices of Goods at a reasonable time
C. Provide Best Working Environments
D. Assumption of Welfare Arrangements

13 14
Enrichment Activities References:
Formulate your own ethical principles regarding customer service as a https://www.chegg.com/homework-help/questions-and-answers/4-
future entrepreneur. models-corporate-social-responsibility--economic-model--profit-based-
social-responsibili-q29764937
https://www.desientrepreneurs.com/entrepreneur-ethics-importance/
https://www.google.com/search?

15 16