5.

What kind of relationship should I portray to my consumers, clients and the

general public?

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What’s New

Read analyze the quote and perform the activity below.

“As an entrepreneur, you have a lot of passion and

responsibility. You have to kindle the same passion and
responsibility to your employees” –

Gurudev Sri Sri Shankar

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Discuss what you understand about the quote.

What Is It?

According to Investopedia there are a lot of responsibilities of an entrepreneur to his

employees. Among of these are the following:

1. Sensible and Attractive Salary – the company should have attractive

compensation packages to attract more potential talents to join the
organization who can be of help in the achievement of the long-term goals of
the company. This can be also a source of motivation for employees to do the
job well assigned to them according to the plans of the organization.

2. Assignment of Right Jobs

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 Taking into consideration the technical and the educational background of the
employees in assigning them to the job where they are good at. No
mismatching of jobs with employees’ qualification.

3. Provide Security of Employment

The entrepreneur should give their employees job security in the organization
so that these employees will be motivated to work with utmost dedication and
commitment. Employees will no longer have fear to lose the job and thus,
develops higher degree of faith with their employer.

4. Provide Best Working Environments

Making sure that the physical environment of the workers are well taken-cared
of by providing good lighting, proper temperature and workable space for the
employees is an accountability by the entrepreneur. This will make the
workers comfortable working in their own department.

5. Assumption of Welfare Arrangements

Entrepreneurs are also responsible in the welfare of their employees. It is their

accountability to provide financial support during sickness, old age, accidents
and even death. Even at the time of health crisis where there are
unemployment, employers should also provide financial assistance.

6. Humane Behavior towards employees

Employees should be treated compassionately by allowing them to practice

their rights and enjoy being workers of the company. Entrepreneur should
create humane workplace necessary for the workers to do the things that they
are tasked to do.

7. Formation of Small Business Relations

Establishment of good relationship with the employees to protect the interests

of everyone. An organization with good industrial relations may have effective
communication lines which is very important in any organization.

8. Participation in Profits and Management

There are instances when employers share their profits to the employees.
This is based on the principle that profit of the organization is not of the owner
alone but also for the rest of the employees of the organization. This can be
one of the responsibilities of the entrepreneur.

9. Definite Service Surroundings

The employees should also have full knowledge of all these service conditions
that may cover promotions, appointment, penalties, suspensions and

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 dismissals as well as retirements, service period. There must be clear and
well-defined structure of these areas of employment.

10. Espouse Incentives Wages Structure

One way of inspiring employees to aspire for higher quality of work is to give
them incentives and salaries. These provisions will be beneficial to both the
workers and the enterprise.

On the other hand, entrepreneurs also have responsibilities to their suppliers and
creditors. Entrepreneurs are accountable of the following:

1. Pay Fair Prices of Goods at a reasonable time – Entrepreneurs have the

responsibility to pay for the agreed prices with the suppliers. This helps in the
establishment of good relationship with the suppliers. On the other hand, it is
also the responsibility of the entrepreneurs to pay their creditors at an agreed
term.

2. Inform about Changes in Market – Information on the Changes in the

market should be provided by the entrepreneur to his supplier especially on
the demands of the commodities.

3. Give Guarantee of Minimum Price - The entrepreneurs should give the

assurance of lowest prices to the suppliers so that the certainty of the price
will be sustained.

4. Provide Technical Advice -The entrepreneur has the responsibility to

provide procedural assistance his suppliers for the creation of new and
replaced supplies.

5. Inform Suppliers of Future Developments – Provision of information on

future growths to the suppliers so that suppliers will be aware of these
circumstances and that they will develop themselves in line with the changes
of the business environment.

6. Promote Healthy Competition – Any unhealthy and hostile competitions

among suppliers should not be allowed by the entrepreneur. This is one of the
accountabilities of an entrepreneur to his creditors and suppliers.

Finally, entrepreneurs also have responsibilities and accountabilities to their clients.

Customers are the most important factors of the business. Thus, it is only important
that entrepreneurs should take care of them. The following are the responsibilities of
the entrepreneurs to the customers.

1. Determination of Fair Prices – Entrepreneurs should identify just process for

the goods and services so that customers will develop trust on the product

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 and in the long run, they also develop loyalty to the business as well as to the
product.

2. To Render Good and Economic Services – Good customer service is very

important in a business. It is the responsibility of the entrepreneurs to provide
good and cheaper services to the customers.

3. Standardization of Goods – The entrepreneurs should make sure that the

product or the goods bought by the customers are in good condition so that it
will not provide danger to the customers when they use it. Goods and services
should pass the quality standards set by the company as well as the
government.

4. Best and Economic Packing of Products – Packaging is an important

marketing strategy. The goods and services should be packed well to prevent
damage of the product.

5. Right and Truthful Advertising – Truthful and honest in advertising are very
essential in marketing the product. It is a moral and a social responsibility of
the entrepreneurs.

6. To Avoid Adulteration, Low Weight and Measurement of Products –

Products should be produced following the specific designs set by the quality
standards of the company. Tarnishing of live-saving goods such as medicines
are harmful to life.

What’s More

There are also responsibilities and accountabilities of entrepreneurs to the

government.

1. Compliance of Government Rules – The entrepreneur should be law

abiding. Whatever will be required by the government, the entrepreneur
should comply with it in accordance with the law.

The entrepreneur should comply with the laws concerning attainment of

licenses for a particular business, running of the business, price identification
and even production of goods and services.

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 2. Payment of Taxes – Any business is taxed by the government. The
entrepreneur should follow the imposition of taxes such as income tax and
sales tax. There should be honest declaration of income so that it will be
taxed accordingly.

3. Not to Seek Political Patronage by Unfair Means – It is the responsibility of

the entrepreneur not to seek for any political support through provision of
unnecessary economic help to any political party or politicians especially
during elections.

4. Work together with Government for Commercial Development

The entrepreneur should cooperate to the government by appropriate

application of existing resources in harmony with the government objectives.
For example, the Philippine government aims to increase employment for
retrenched employees during the health crisis. Therefore, the entrepreneur
should help the government achieve its aims.

What I have Learned?

Write a reflection of these responsibilities and accountabilities of entrepreneurs by

answering the question:

“Put yourself in a work environment as a food chain crew, and list down the
accountability and responsibility as employee and the employer during the pandemic
crisis?”
Commented [U2]: Activity question should be realistic.
Example: Question: Put yourself in a work place either; you
are a crew in a fast food chain, or as employee of a gasoline
station or any work related in a company. What are the
accountability and responsibility of the following during the
pandemic crisis.
Employee vs Employer

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