The Filipino value system refers to the cultural values we, Filipinos, have often held
necessary in our lives. It is what we have been accustomed to for over the years, and it
determines what kind of person we are towards dealing with problems or essential
situations. Additionally, it can either imply a negative attitude or project a positive value that
can help us get through our daily lives. Here are some of the Filipino values that we abide
by:

1. Utang na loob (reciprocity) – “utang na loob” is a cultural value that implies

gratitude or pasasalamat. It may mean a debt (utang) or a liability, not in the
form of money but having the urge to present oneself before a particular
person because of the good things they have done to that particular person.
For instance, if you finished your studies because your aunt or your parents
sustained your needs, then the least that you can do is to pay them back in the
form of kindness, loyalty, and anything but goodness. It doesn’t mean giving
them back the money and everything they have given to you but feelings or
intimate relationships that go much deeper within. Sometimes, other persons
tend to forget the value of “utang na loob” by showing inappropriate deeds
instead of goodness. They have forgotten the favor that they once received
from people that loved and cared for them. That’s why issues between families
and friends arise because of a lack of gratitude or “utang na loob.”

         In business, “utang na loob” is also a value that companies regard as

highly important. To employees, it is their obligation or responsibility to give
back to the company they work for by being productive and working better.
Similarly, the management has the responsibility to give back to the community
by helping them sustain their needs or protect the environment in exchange for
the income earned, or resources are taken. Once again, when this value is
violated, ethical issues now arise.

2. Bahala na – “Bahala na” connotes hoping for something better to come. As
Filipinos, when we are in a desperate situation and that when don’t know what
to do anymore, then we utter “bahala na” or putting life or situation in the hands
of fate or God. In fact, “Bahala na” is derived from the root word “Bathala”
(Diyos), a Filipino word for God that Filipinos worship during the Pre-Spanish
period. Thus, leaving our problems and everything to God, believing that he
might help us get through them. In life, bahala na may be accepted, but in
business, it is not. It is not a good attitude to just let things happen instead of
doing something for it. Hence, it may signify tardiness, not being resilient, and
not having the skills to handle crises. It is always important to try and handle
situations to prevent unnecessary outcomes and to attain productivity. 

3. Hiya – Filipinos are very sensitive to personal insults. As much as possible,

they try to avoid feeling “hiya,” a painful emotion or deep shame arising from a
realization of having failed to live up to society's standards, such as a breach
 of social norms. It is a kind of anxiety, a fear of being left exposed,
unprotected, and unaccepted. It is a fear of being shunned by society, being
subjected to which would mean humiliation of oneself. (http://www.western-
asian.com/value-of-shame-qhiyaq as cited in “Is Assertiveness,” 2010). 

         “Hiya” is the value that regulates the Filipinos social behavior. Just as
one is very careful not to be subjected to embarrassment or “mapahiya,” one
must also make it a point not to cause another person’s embarrassment. For
example, in asking a favor, both parties are careful not to offend the other. So,
if a favor cannot be granted, the person who cannot oblige apologizes for his
failure to do so with an explanation that it is not his intention to refuse but that
other factors beyond his control keep him from doing so. (http://www.western-
asian.com/value-of-shame-qhiyaq as cited in “Is Assertiveness,” 2010). 

4. Amor Propio (self-respect) – Amor Propio is a Spanish term that means love
for oneself. It is a sense of self-esteem or self-respect that prevents oneself
from swallowing pride. It includes sensitivity to personal insults or slurs. A little
remark or offensive gesture, though insulting, would not trigger a sense of
“Amor propio.” Pride is an aspect of amor propio. For example, an abandoned
wife will refuse to seek financial support from a husband who has abandoned
her no matter how financially destitute she is on this principle.
(http://www.western-asian.com/filipino-qamor-propioq as cited in “Is
Assertiveness,” 2010).

         “Hele-hele bago quire” or “pakipot” are common forms of amor propio,

which shows a person initially refusing an offer, but in the end, he would gladly
accept. In the Philippine community, building up one’s self-esteem is essential
because it reinforces another Filipino value in the name of shame or “hiya.”
Concomitantly, in business, it is not wrong to be shameful, especially when
accepting an offer. It only shows how humble Filipinos are and that it prevents
inappropriate attitudes like pride and disrespect. 

5. Delicadeza – Delicadeza is a Spanish term that means daintiness in English.

It is observed through having refined or delicate tastes or manners. It could
mean observing the proper etiquette and good ethical conduct.

         “It means that our acts and words affect others; thus, we exercise utmost
caution and prudence, avoiding any compromising situations and
circumstances. Like Caesar’s wife, it is not enough that we are honest. We
should live a life beyond reproach.” (Jimenez, 2017)

         Therefore, one who doesn’t possess good conduct is understood by

saying walang delicadeza or makapal ang mukha (thick-faced). It also
 reinforces the “hiya” value because a person may protect his reputation by
following rules and doing good.

         In business, we have learned how important ethics is in governing

employee behaviors. The bottom line is, observing good ethical conduct and
practices is always essential to achieve an efficient and effective working
environment and to prevent inappropriate conflicts or outcomes.

6. Mañana Habit (Procrastination) – Mañana is a Spanish term for tomorrow or

“an unspecified future time.” Thus, Mañana Habit signifies procrastination or
“pagpapaliban sa isang gawain,” a typical cultural value of Filipinos. In school,
students usually prefer working on their assignments or projects a day before
the deadline because, perhaps, they like to or don’t interest in doing it early
since they still have time or because of laziness. “Mamaya na” is just another
term for procrastination. To some, procrastination is regarded as a skill, but
genuinely it is not a good habit because it can lead to low productivity or
failure.

“You would have done better if you work on it early.” You might hear your
teacher, or someone says that way because of procrastination.

         In business, procrastination cannot be applied anymore because, as a

professional, you have to work on time and submit your reports on time without
compromising the quality of your output. It can result in reduced efficiency,
damaged reputation, especially when communicating with customers, there
are missed opportunities, and it can become a roadblock to your other
priorities, and thus, causing stress for you and frustration for your team
members. As a professional, it is essential to be productive and follow the rules
to be a better employee. Proper time management and setting priorities right
are keys to preventing procrastination.

7. Filial Piety – Filial piety is a virtue of respect for one’s parents, elders, and
ancestors. Filipinos are widely known as family-oriented. After all, even when
we got old, we tend to be dependent and live with our parents because we
value family the most. In business, organizations are like families who
communicate with each other and develop long-lasting relationships. It is a
significant value to uphold to attain productivity and a comfortable environment
in the workplace.

8. Padrino System (Palakasan, Patronage) – this value system has long been
present in the Filipino culture. Also known as patronage in the Filipino culture
and politics, it is a value system where one gains favor, promotion, or political
appointment through family affiliation (nepotism) or friendship (cronyism), as
 opposed to one’s merit. This is synonymous with the term “backer,” or
someone who backs up a person so they can enter work quickly.

         In business, Nepotism is the practice of hiring family members

regardless of their qualifications. It is a common tradition. For instance, you
want to work in the same company as your uncle, and then you can enter
quickly because you have a relative in that company, regardless of your
qualification. It doesn’t matter whether you’re not quite skillful or haven’t even
earned a degree. What matters is that you have a family relative who can
quickly get you on the job. With that, you have an advantage over the other
applicants. To some extent, this is not a good habit because it can lead to poor
productivity, inefficiency, it can affect the company’s profitability, and even be a
source of conflict—that is, when the employee is not qualified to perform the
job.

         Cronyism is just the other side of nepotism. It is the act of hiring friends
regardless of qualifications. One of the main problems with cronyism, just like
in nepotism, is the feeling of entitlement that employees hired under these
circumstances feel. Because they know or are related to an executive with the
company, they feel they deserve raises and promotions that should be
reserved for more qualified staff members. This creates conflict in the
workplace and can result in losing qualified personnel.

9. Suki System – “Suki” is a Filipino term that means “loyal customers.” In

business, it is essential to earn customers' trust so that they will become loyal
to your business and so they can influence other customers to patronize your
business. Making customers loyal to your business means meeting their needs
and having quality products or services worth their money. It is also correctly
communicating with them and understanding their concerns. A business has to
offer promotional opportunities such as discounts, sales, etc. 

10. Ningas-cogon – “Ningas” is a noun that means flame, burning, or fire, while
cogon is a plant that can be quickly burnt with its presence. Ningas cogon
means the quick burning of cogon, which signifies how Filipinos initially exhibit
great enthusiasm at the beginning of a project but rapidly lose interest shortly
after it begins, or lack of follow-up.

         In business, the same thing happens. One may feel excited about putting
up her own business, and she would be happy along the way. However, she
might later feel less enthusiastic because she realized that the business
doesn’t fit her or manage anymore. The enthusiasm is undeniable initially, but
since she was not inclined to it, she gradually loses her interest.
11. Pakikisama/pakikipagkapwa-tao – “Pakikisama” is the ability of a person to
get along with other people to maintain good and harmonious relationships. It
signifies camaraderie and togetherness in a group and the cause of one’s
socially accepted. “Pakikisama” values the group and its welfare more than
being individualistic and solitary. With the belief that “no man is an island,”
“pakikisama” or fellowship only attests to how socializing with people is
essentially more than everything in this world. We will need each other’s
support and help, and that our friends and families are the people we couldn’t
just live without.

         A person, for instance, who has become successful in his career has to
be very careful not to neglect his friends for him to avoid being accused of
becoming proud and abandoned from the group. This is why there is so much
warmth, backslapping, and handshaking when Filipinos meet. The best
compliment that a Filipino can say to another is that he hasn’t changed (“hindi
nagbabago”), meaning he remains the person he was socially accepted as.
Conversely, one of the worst things that can be said of a person is that he has
changed a lot which means he has forgotten how to get along well with others
and thus, make him socially unacceptable.

         In business, “pakikisama” should be observed to attain good friendship.

There can be an employee who is very adept in his job but doesn’t know how
to socialize or “makisama” and another who is only mediocre but understood
the importance of “pakikisama.” With that, colleagues, employers, and the like
would instead prefer the unskilled one because skill can always be taught and
learned, whereas “pakikisama” is a value deeply rooted in someone’s
personality and is not that simple to instill. Without “pakikisama,” a worker,
even if skilled, may be considered worthless and might even cause more harm
than good to a business or a group in the future.

12. Bayanihan (team spirit) – Bayanihan is a cultural value long been present
even before the Spaniards came to the Philippines. Bayanihan originated from
the Filipino term “bayan,” which means town or community. That’s why before,
Bayanihan was portrayed through people volunteering to help a family move to
a new place by literally helping each other carry the house to a new location.
Nowadays, the Bayanihan spirit is still burning through Filipinos helping each
other out in times of adversity and calamity. In business, collaboration and
cooperation is never a new thing. It is always the key to efficiency ang good
company performance. By harnessing the strength of each member, goals are
not impossible to achieve. To attain teamwork, the company should establish
an environment where camaraderie and friendship are present, and everyone
is comfortable with each other, without hate and discrimination.
 13. Palabra De Honor – “demands in every Filipino a sense of truthfulness and
reliability. When we give our words, we have to honor them by fulfilling our
commitments even without any legal documents. Our words are most
important than a notarized contract.” (Jimenez, 2017).

         In business, managers who make promises are honored by employees

because they believe they might get promoted or get pay raises once they do a
great job in their respective works. Managers need to be truthful and possess
Palabra de honor always to be motivated, knowing that the management cares
much for them. This is also applicable to all other stakeholders that are
connected with the business.

14. Resiliency – Resilience is a profoundly rooted characteristic that has long

been present in the Filipino identity. It is described as having the courage or
strength to rise above the challenge and still smile and recover despite
calamities and sufferings. It is a good character trait. However, it can be
exploited, especially if Filipinos do not receive the proper treatment and service
in times of calamities. In business, being resilient is a good characteristic. As
you have learned previously on the discussion of classical philosophies,
Epictetus taught us to build a resilient mindset to control what we can control at
the moment and cope with current crises. The pandemic, for example, leads
businesses to realign their goals and even platforms to online marketing. With
that, businesses can easily reach broader audiences and build their brands
through technology and the internet. 

15. Filipino time – Filipino time is a common habit that describes the Filipinos’
penchant for starting or arriving at events some 15 to 30 minutes later than the
agreed time. Unfortunately, this time habit leads to poor productivity. In
business, it is not a good habit to arrive at work late than the scheduled time
because it can imply a deduction from the employee’s performance. Being
punctual is always essential because, as the old saying goes, “Time is Gold.”

Week 9

    Assuming that business owners have learned and applied some of the philosophies,
belief systems, and/or Filipino values, it is now time to be consistent or reassess whether
these practices have been successful or not. And, it is also time for them to improve their
business practices by looking back again to the goals and objectives they have set in the
beginning. Consistent improvements are critical for a business's success and sustainability.
Here are some of the critical steps business owners can consider in improving their
business:

Assess business' situation

         Before making some changes, it is a good idea to grasp all the factors affecting
business successfully. These may include the current business practices, market trends, or
changes to the broader environment in which businesses operate.

Tools that can help assess business' situations include:

 SWOT analysis — identifies the business' strengths, weaknesses, opportunities,

and threats.
 Benchmarking — measures business' performance against similar-sized
businesses in other industries.
 Market research — investigates business' market and industry to identify trends,
changes, and customer or client demands.
 Trend analysis— uses business data collected over time to identify consistent
results or trends.
 Webinars (web-based seminars) — provide helpful information to help develop
business skills.

Set clear goals

          Business goals can be as broad or as specific as businesses want them to be.
Writing down goals clearly will make it easier for businesses to achieve them. These
defined goals should be S.M.A.R.T.:

 Specific — goals should be specific and stated clearly

 Measurable — make sure that the success can be evaluated
 Achievable — check if objectives are attainable based on the time set by
businesses and if resources are met
 Relevant — make sure objectives improve profit drivers and improve some part
of a business.
 Timely — set a specific date for completion.

          Once goals have been written down, businesses should prioritize and decide which
ones to focus on first. Some goals may need to be more urgent than others. It is also
essential to recognize that some goals will need to be addressed with a long-term strategy
as they can be hard to meet because of resources, finances, or time. Setting goals and
objectives is an essential tool to ensure that the business continues to move forward.

Identify strategies for achieving goals

          Review goals and list the factors businesses think are creating their current
circumstances. Think about what strategy to use to improve the situation. Depending on the
goals businesses are trying to meet, they may want to use the services of a business
professional such as a professional trainer, contractor, or business adviser.
  Use low-budget, high-impact marketing. Social media is an example—it's low-
cost and low-risk—to promote business, build a social presence, and attract
customers' attention
 Focus on sales improvement by clarifying the mission to have a greater sense of
vision and purpose.

Develop a plan for implementing strategies

          To achieve goals, businesses need to work out how to implement their strategies.
Strategies often include several specific actions or tasks. It is an excellent idea to develop a
plan on how to do this.
Writing the plan can be of any format businesses like. It should include:

 a time frame — how long a task will take to complete and the start and finish
dates.
 Actions — state the individual actions as precisely as you can.
 Responsibilities — assign accountability for each action, so everyone knows
precisely what you expect from them and who is responsible for ensuring the
work is done.
 Resources — list budget, staff, or supplies needed to complete each action.
 A desired outcome — state how you will know that the action has been
completed.

Measure the results

          Measuring the results can be as simple as checking what has been completed.
Businesses can establish a more complex measurement process like increasing profit by a
set percentage or gaining a particular number of new clients. With these types of goals, it
can also be helpful to set points to measure their success as businesses work on them.
This will help to ensure plans are on track. How often do you want to measure your
business achievements? This can also help to set new goals regularly.

Other important ways:

 Monitor Trends
          Stay current on trends and issues happening in your industry and local
community. Keep up with the trends and consider all possibilities. The best way
to predict the future is to create it. Think about some of the ways you could set
the trends in your industry.

 Keep score – having the necessary skill for financial tracking or hiring an
accountant. Measure processes consistently over time.
 Involve workers and anyone within – they have suggestions and relevant
opinions about business improvement. Please don't take on the battle alone.
Involve them.

 Develop systems – Systems are ways of doing things that can be done the
same way, every time, achieving the same predictable results as efficiently as
possible—examples: process for product selling, raising invoices, etc.

 'Sharpen the saw' – learn, relearn, and unlearn. Life is lifelong learning, and we
could always learn some new things from everyday experiences and from every
training and study we embark on.

 Create a brand personality – a brand personality means having a 'face' or a

celebrity that represents a business, influencing a brand to reach many
customers. However, this isn't about hiring a celebrity to promote a business.
Small business owners can represent themselves, the real 'they' in their
business. Sometimes, what customers want is the authenticity within them—
someone customers can connect and engage with. Indeed, their heart, values,
and vision are what will differentiate them from each other. Simply put, "build
your brand's personality by putting more "you" into your business (Costill, 2019).
By writing a blog post, filming an instructional video, or even speaking at an
industry event, and other ways of expressing their genuine personality with their
business, they can create a long-lasting brand expression.

 Become connected to the community. Customers love supporting local

businesses. Today's businesses should support local products, specifically
products that originate in the Philippines, instead of purchasing from other
countries. After all, when customers support local small businesses, they receive
benefits and develop the local economy. Knowing the people behind the product
or service leads to better customer service and a more personalized experience.
Moreover, supporting local businesses keeps the community unique. Other ways
to be connected with the community is through charitable works—conducting
fund drives, donation drives, or sponsoring a nonprofit organization. Attending
local events and partaking with other community engagement such as soliciting
feedback or highlighting loyal customers are also ways to connect with the
community. (Costill, 2019)

 Put employees first. Once again, employees are the reason why a business
keeps on running. And, for it to continue functioning, business owners should
value and care for their workers.

Emphasizing employees goes a long way to success because the survey says
treating them with respect is the most important. Recognizing and appreciating
their puny efforts, giving them cash incentives, rewards, pay raises, opportunities
 to get promoted, and workshops that lead to self-development are just among
the ways of putting employees first. (Costill, 2019)

 Don't just acquire customers; retain them. Customers are the lifeblood of a
business. Without them, a business would not surely thrive and earn. Acquiring
customers is essential, but the process goes a really long way than just acquiring
them. Business owners should also retain existing customers because they can
pave the way for more customers. Simply put, retaining is better than acquiring
because once customers are retained, they will remain loyal to the business as
long as forever. Here are the ways to acquire and retain customers from Costill
(2019):
o Advertising products and services through channels and platforms
possible
o Promotions and premiums like discount coupons, free trials, etc.
o Referral programs where existing customers can receive incentives for
referring a business to other customers
o Providing top-notch customer service
o Building a brand that customers want to support (e.g., Apple)

 Get organized – Businesses are more likely to complete tasks and stay on top
of everything that needs to be done. (Costill, 2019)

 Carve out a niche. Want to get ahead of the competition? Then become an
expert on a specialized topic and target a niche within an established industry.
Sound complicated? Businesses can get started by:
o Defining their industry or knowledge base.
o Breaking a broad market into a more specific niche.
o Putting specialty to the test using the SPAN method (Subtopics, Pain,
Attainable, Numbers).
o Becoming an educator and advocate in your niche through content.
o Get your content in front of new people, like writing guests posts.
(Costill, 2019)

 Analyze competitors. This isn't a shady business practice. Most businesses use

it to improve their small business. This is because studying competitors allows
seeing where their weaknesses are and what they're doing. With this knowledge,
businesses can focus more on their strengths or improve the market or industry.
(Costill, 2019)

 Get street cred. The success of a business, whether small or big, goes back to
being a part of the community. After all, when a business enters a new
geographic market, it's had to win over established businesses in the area. On
top of becoming active in the community, use tactics like testimonials, word-of-
 recommendations, certifications, and professional presentations to earn
credibility. (Costill, 2019)

 Know what you stand for. Blake Mycoskie, the founder of TOMS, once said,
"The easier it is for someone to understand who you are and what you stand for,
the easier it will be for that person to spread the word to others." Take TOMS as
an example. The idea is straightforward. Whenever you make a purchase, the
company will help someone in need. You know who they are, what they stand
for, and what they do. From the get-go, figure out what you stand for and tell your
story so that it's easy for your customers to remember and share. Again, this all
goes back to building your brand. (Costill, 2019)

 Abandon the idea of discouragement - don't be discouraged about first-time or

even multiple failures.  Today, there are prominent businesses that have climbed
their way to the top after several failures, despair, and nosedive. Walt Disney,
Steve Jobs of Apple, Oprah Winfrey, Soichiro Honda, Henry Ford, J.K. Rowling,
Henry Sy, and Manny Villar in the Philippines are among entrepreneurs who
have succumbed to the pressure of doing business. They have embraced their
failures and weaknesses—took them as a lesson, an opportunity, and motivation
to become someone greater.

"No one has it easy, especially if you are aspiring for something more—
something greater. But in the end, you would realize that it was all worth it. So if
you are struggling right now, know that sometimes, the path to success is a
failure. Go on and fail, don't forget to get up and try again! ("Here are Some
Successful People," n.d.).

 Ask for help/Learn from the best – asking for help makes you seem more
intelligent. Turn to experts for advice. Not a good practice but the best way to
move forward. According to Heidi Grant, "It's virtually impossible to advance in
modern organizations without assistance from others. Cross-functional teams,
agile project management techniques, matrixed or hierarchy-minimizing
structures, and increasingly collaborative office cultures require you to constantly
push for the cooperation and support of your managers, peers, and employees.
Your performance, development, and career progression depend more than ever
on seeking out the advice, referrals, and resources you need." (Martin, 2020)

This is also a way of learning from other's mistakes. By learning from other's
mistakes, businesses can avoid dire circumstances from happening.

 Let yourself Tune Out – It is not putting too much attention to what other people
have to say about a business. Ignore their opinions, or filter them and taking
those that can be of help to a business. Other opinions are good, but sometimes
they can be suffocating and useless to some entrepreneurs. "Don’t be too
 affected by what people are doing or saying around you. Tune out from these
opinions and rely on your knowledge and trust yourself to make the right choice.”
(Martin, 2020)

 Take a break. “Take a vacation. Don’t underestimate the potential value of

spending some time away from your work.”

Week 11

Corporate Social Responsibility

            Corporate Social Responsibility (or CSR) is defined as the practices and policies
undertaken by companies or organizations to impact their stakeholders and the world. By
practicing corporate social responsibility, also known as corporate citizenship, companies
can be conscious of their impact on all aspects of society, including economic, social, and
environmental. Through CSR programs, philanthropy, and volunteer efforts, businesses can
benefit society while boosting their brands. CSR is equally important and valuable to both
the company and the community. It can help forge a stronger bond between employees and
corporations, boost morale, and help employees and employers feel more connected with
the world. (Fernando, 2021)

Responsibilities and Accountabilities of Entrepreneurs to Stakeholders

            Entrepreneurs have a moral obligation to reconcile and balance the rights and
obligations of their stakeholders, such as customers, employees, suppliers, and other
stakeholders. Discussed below are the social responsibilities of entrepreneurs and
businesses to their stakeholders.
Stakeholder- is any person, organization, social group, or society at large that has a vested
interest in the business. It can be internal or external to the business. The Stanford
Research Institute defines stakeholders as "those groups without whose support the
organization would cease to exist."

Responsibility – refers to the duty or obligation to satisfactorily perform or complete a task

(assigned by someone or created by one's circumstances) that one must fulfill, and which
fail to comply has a corresponding penalty.

Accountability – refers to the obligation of an individual to account for their activities,

disclose related results through the transparency principle, and accept responsibility for all
activities undertaken and mistakes committed. 

A.  SOCIAL RESPONSIBILITY TO EMPLOYEES

1. Safe working conditions - Employees are the most crucial asset in an

organization. One of their fundamental rights is excellent working conditions.
The term working condition refers to the physical environment, particularly
the physical setup of the work area and the procedures and practices relevant
 in performing a task. A workplace with proper seats, good lighting and
ventilation, adequate passageways, safety gear, and conducive to quality work
are characteristics of a good working environment.
2. Reasonable and Attractive Pay/wage/salary – entrepreneurs have the
responsibility to pay their employees at least a minimum hourly wage in their
locality and pay each employee money owed from working per pay period,
including overtime, sick leave, and vacation wages.
3. Job Assignments – entrepreneurs, should assign an employee to the right job
according to its educational background, skills, or inclination. 
4. Facilitate Worker's Insurance – When injuries occur through no fault of their
employees, it's entrepreneurs' responsibility to file a claim with their workers'
compensation insurance provider. Businesses must treat their injured
employee with respect and file the claim without attempting to cause a delay in
processing or attempt to deter the worker from filing a claim at all. With
insurance policies, employees may feel that they are secure and that the
business cares for them.
5. Enforce Anti-Discrimination Law – encompasses anti-sexual harassment,
anti-bullying policies, etc., that prevents or punishes every individual inside or
outside the company from and for committing discriminatory actions.
6. Equal Employment Opportunity (EEO) – providing equal opportunities to all
employees without discrimination, favoritism, nepotism, cronyism, etc.
7. Respect for Human Rights – The world of business is diverse, and every
individual is unique and different from one another. Each has its capabilities
that can help in business operations in one way or another. Entrepreneurs
have to enforce policies to promote respect among individuals, and respect
should start from them. It involves equal pay for whatever gender, race,
ethnicity, religion, etc.
8. Employment Security refers to the satisfaction among employees knowing
that they will not lose the job anytime, which will develop a high sense of trust
with their employer.
9. Opportunities for Individual Development – every individual has room for
improvement. Thus, employees should be given equal opportunities to develop
and improve themselves in any aspect of the business. These include
providing education and training, timely promotions, a shift of roles,
assignment of different tasks, etc.
10. Adoption of Welfare Schemes – financial assistance should be provided to
employees or dependents during sickness, unemployment, old age, accidents,
and death. At the time of crises, just like what's happening during the
pandemic, employers should provide continued financial support,
considerations, or opportunities to their employees.
11. Participation in Profits and Management – Having realized that the
business's profit is not owned by the owner alone, employers should share
 their profits with employees. Employees can also participate in management
meetings and other management functions.
12. Right to due process. No employee can be dismissed from work without due
process. Due Process is the employee's right to be heard before a decision for
termination is made. It ensures a fair and impartial hearing on an employee's
violation or a management decision. It also provides for an objective
investigation of the case. Due process also allows the management to impose
appropriate disciplinary action.

B. SOCIAL RESPONSIBILITY TO THE GOVERNMENT

1. Compliance with Government Rules – Entrepreneurs and companies should

comply with the government's rules, laws, and policies. These include
obtaining business licenses, price determination, and production, etc.
2. Payment of Taxes – the government imposes taxes to raise revenue for
government expenditures. It will be used to support government projects,
infrastructures, and other benefits to the general public. Taxes like income tax,
sales tax, exercise duties, tariff duties, and many others are responsibilities
entrepreneurs and businesses are accountable for.
3. Not to Seek Political Patronage by Unfair Means – it is a part entrepreneur's
responsibility not to seek political patronage by providing undue economic help
to any political party or persons during elections. It hits democratic values
when companies give anti-social activities with political patronage.
4. To cooperate with the Government for Economic Development, the
government sets the target for balanced and rapid economic development. For
that reason, entrepreneurs should cooperate with the government through
proper utilization of available resources per government targets. For example,
the government may emphasize the establishment of industries in rural areas
for their development. Therefore, businesses should put up businesses in rural
areas to employ the people, thus helping the economy climb to the top.

C. SOCIAL RESPONSIBILITY TO CREDITORS

1. Obtain Loans on Reasonable Conditions – when obtaining a loan to

creditors, entrepreneurs should provide reasonable conditions for payment of
the loan.
2. Follow Business Ethics - the processes and policies for handing out loans
and repayment of loans and other financial procedures should be honestly
complied with.
3. Proper Use of Debt Capital – money obtained from creditors should be used
for the company's operations and in meeting particular objectives and projects.
 The money should grow and be used wisely so that the repayment of money to
creditors will be fully guaranteed.
4. Regular Payment of Installment and Interest – entrepreneurs should pay
loan installments and interest based on repayment conditions.
5. Repayment of Loan – loans should be paid on the maturity date to facilitate
regular capital flow in the business.

D. SOCIAL RESPONSIBILITY TO SUPPLIERS

1. Pay Fair Prices of Goods – It is the responsibility of entrepreneurs to pay

reasonable prices for the materials purchased from suppliers. Farmers, for
instance, are the primary suppliers of various commodities to businesses, and
sometimes they are underpaid for their products. In contrast, the business can
sell it for double or triple the price. Entrepreneurs should value their suppliers
and pay reasonable and fair prices.
2. Pay in Reasonable Time – payments and purchases should be paid in time
so that businesses cannot face financial difficulties and carry out their functions
smoothly.
3. Inform about Market Changes – providing regular information to suppliers
about changes in the demand of the commodities in domestic and foreign
markets, fashion and design, etc.
4. Give Guarantee of Minimum Price – entrepreneurs should give the
assurance of lowest prices to suppliers to maintain the certainty of the price.
5. Provide Technical Advice – technical assistance for the production of new
and replaced or alternative commodities.
6. Inform Suppliers of Future Developments – in future developments;
entrepreneurs should also inform their suppliers to make changes about the
commodities they produce and sell and increase their resources to increase
demand in the market.
7. Promote healthy competition – unhealthy competitions are those that take
advantage of obtaining goods from suppliers. Therefore, entrepreneurs should
promote a healthy relationship and competition with them.

E. SOCIAL RESPONSIBILITY TO CONSUMERS/CUSTOMERS

1. Fair and Honest Transactions – entrepreneurs should commit no illegal

practices to control the industry or market where the company operates. All
transactions and processes should be per ethical standards and practices. It
includes honest and transparent disclosure of products and services—to
ensure that they are safe and trustworthy to their quality and use.
2. Product/Services Quality and Information - any related information on
prices, product features, warranties, and after-sales service and delivery
 should be honest and adequately conducted. Packing of products should be
economical.
3. Determination of Fair Prices – products and services should be priced fairly
and reasonably. Entrepreneurs should not be capitalists to their business.
4. Render Good and Economic Services – businesses should produce good
and cheaper services to customers aside from earning a profit.
5. Address Customer Complaints – customers have their complaints about the
products they receive and use. It is the responsibility of entrepreneurs to be
accountable for those complaints and address them honestly and
appropriately. It goes a long way in building trust and loyalty from customers.
6. Avoid Hoarding Practices – Hoarding of products for profit maximization is a
business, social, legal, and moral offense. It is not a good practice. That's why
entrepreneurs should never involve with it.
7. Promote Customer Research – Entrepreneurs are responsible for doing
market research regarding their new products and services to be
knowledgeable about them.
8. Efficient Distribution System – an efficient distribution system leads to low-
cost products. It should be appropriately processed and distributed among
sellers.

F. SOCIAL RESPONSIBILITY TO THE GENERAL PUBLIC

1. Promote a Healthy Competition – businesses should encourage healthy

competition among the community and provide quality commodities at fair
prices.
2. Save Local Environment from Pollution – to prevent pollution of the air,
seas, etc., companies and entrepreneurs should establish factories away from
residential areas and implement ways and practices to not induce harm to the
people, and the environment, in general.
3. Offer Philanthropic Services – businesses should offer philanthropic services
as ways of giving back to the community. Providing support in building facilities
in educational institutions, facilitating medical service, providing housing,
conducting donation drives or fund drives are among the ways organizations
can give back to the community.
4. Provide Employment – businesses are established not only to earn profits but
also to provide employment to the community. That way, it can help the local
community alleviate poverty and improve standards of living.
5. Promote Public Relations – entrepreneurs should impart the policies,
practices, and activities of their business and try to understand ordinary
people's feelings.
G. SOCIAL RESPONSIBILITY TO THE WORLD SOCIETY

1. Follow the Rules of International Trade – businesses and entrepreneurs

should follow the trade-related rules during trade with other countries. They
should not resort to inappropriate and illegal activities like smuggling, bribery,
etc.
2. Avoid Unfair Competition in International Market – entrepreneurs and
businesses should not be involved with unfair competition in the international
market. They should always be ethical and fair in all their business dealings.
3. Honest Business Dealings – honesty is always essential in doing business. It
is a way to gain the trust and loyalty of the people around you, much like in
businesses. Standardized commodities at fair prices should be supplied to
foreign customers; timely payments for purchases from across countries
should be guaranteed; all types of cheating should be avoided.
4. Help on the Economic Development of Underdeveloped Country – by
establishing new businesses and industries, entrepreneurs can help develop
the economy of underdeveloped countries.
5. Contribute towards International Peace – trade or exchange of products
between two countries lead to cooperation. As a result, mutual differences get
reduced.

SUMMARY of KEY POINTS

SOCIAL RESPONSIBILITY TO EMPLOYEES

1. Safe working conditions

2. Reasonable and Attractive Pay 
3. Job Assignments 
4. Facilitate Worker's Insurance
5. Enforce Anti-Discrimination Law
6. Equal Employment Opportunity (EEO)
7. Respect Human Rights
8. Employment Security
9. Opportunities for Individual Development
10. Adoption of Welfare Schemes
11. Participation in Profits and Management
12. Employees have the right to due process.

SOCIAL RESPONSIBILITY TO THE GOVERNMENT 

1. Compliance with Government Rules

 2. Payment of Taxes
3. Not to Seek Political Patronage by Unfair Means
4. To cooperate with the Government for Economic Development

SOCIAL RESPONSIBILITY TO CREDITORS

1. Obtain Loans on Reasonable Conditions

2. Follow Business Ethics
3. Proper Use of Debt Capital
4. Regular Payment of Installment and Interest
5. Repayment of Loan

SOCIAL RESPONSIBILITY TO SUPPLIERS

1. Pay Fair Prices of Goods

2. Pay in Reasonable Time
3. Inform about Market Changes
4. Give Guarantee of Minimum Price
5. Provide Technical Advice
6. Inform Suppliers of Future Developments
7. Promote a healthy competition

SOCIAL RESPONSIBILITY TO CONSUMERS/CUSTOMERS

1. Fair and Honest Transactions

2. Product/Services Quality and Information
3. Determination of Fair Prices
4. Render Good and Economic Services
5. Address Customer Complaints
6. Avoid Hoarding Practices
7. Promote Customer Research
8. Efficient Distribution System

SOCIAL RESPONSIBILITY TO THE GENERAL PUBLIC

1. Promote a Healthy Competition

2. Save Local Environment from Pollution
 3. Offer Philanthropic Services
4. Provide Employment
5. Promote Public Relations

SOCIAL RESPONSIBILITY TO THE WORLD SOCIETY

1. Follow the Rules of International Trade

2. Avoid Unfair Competition in International Market
3. Honest Business Dealings
4. Help on the Economic Development of Underdeveloped Country
5. Contribute towards International Peace

Week 12
Ethical issue – is a problem, situation, or opportunity that requires an individual, group, or
organization to choose among several actions to evaluate whether right or wrong, ethical or
unethical.

Ethical dilemma – "a problem in the decision-making process between two possible but
unacceptable or negative options from an ethical perspective." ("Ethical Dilemma," n.d.)

Examples of ethical dilemmas:

 Taking credit for other's work

 Offering a client a worse product for their profit
 Utilizing inside knowledge for own profit

Unethical business practices – business practices that go against ethical standards of

practice. These practices are seen as wrong, unjust or unethical.

Entrepreneurship – is the process of putting up a business, taking on financial risks to gain

a profit.

Basic Fairness
             As you will recall, fairness refers to the equal treatment of all the people involved in
an organization, especially employees, regarding decision-making, receiving rewards,
compensation and other benefits, employee hiring and firing, and many more. To
shareholders, they care for equal consideration for shareholdings they hold; that's why
companies should have a shareholder agreement. Other stakeholders such as customers,
investors, and suppliers also care for equal treatment for their respective transactions.

             When stakeholders notice that they are not treated fairly, they tend to complain,
report the situation, or, worse, withdraw from the company since they may feel inferior and
insignificant over the others. When a company promotes fairness in all its transactions,
especially to stakeholders, it is more likely to survive the pressure of interested parties.

             There are two aspects of fairness: fair results or substantive fairness and fair

procedures or procedural fairness. Having a fair result means having what someone truly
deserves. It is a fair result when an employee receives their compensation based on their
efforts or workload. There is a point of debate to what is truly meant by the word 'deserve'
because it can imply equality in a sense that every employee shares equal benefits and
burdens or the other way around; whereas, those who produce great efforts deemed
competent deserve the most benefits. Nevertheless, businesses should weigh
consequences and ensure that justice and rationality still prevail among their employees
and stakeholders. On the other hand, fair procedures concern reaching careful, honest, and
objective decisions, with the knowledge that even a process of the most excellent integrity
does not always produce certainty and that something less will have to do. ("Fairness," n.d.)

             What does it take for fairness or justice to occur? What should be the result for an
action or decision to be considered fair?

Principles of Fairness

 Treating people equally based on their qualifications and innate abilities and
handle all similar critical situations similarly and consistently.
 Make all decisions based on appropriate criteria without wrong prejudice or
undue favoritism.
 Don't blame or punish people for what they did not do, and appropriately sanction
those who violate moral obligations or laws.
 Correct personal and institutional mistakes and other accountabilities swiftly and
rationally.
 Don't take unfair advantage of people's mistakes or ignorance.
 Thoroughly consider all stakeholders' rights, interests, and perspectives,
approach judgments with open-minded impartiality (setting aside prejudices and
predispositions), conscientiously gather and verify facts, provide critical
stakeholders with an opportunity to explain or clarify, and carefully evaluate the
information.

Personnel and Customer Relations Distribution Dilemmas

Mistreating employees – concerning the concept of fairness, mistreating employees
means unfair treatment of an employee at work. Employees are mistreated because of who
they are, where they come from, including the following: age, disability, gender
reassignment, marriage and civil partnership, maternity and pregnancy, race, religion or
belief, sex, sexual orientation, and many more. It is a form of discrimination and bullying that
can lead to employees being upset, scared, ashamed, or even resulting in mental problems;
thus, decreasing their morale, productivity, and motivation—which are not good indicators in
a business.
Examples of unfair treatment in the workplace:

 Spreading rumors about an employee

 Overlooking someone for a promotion for no good reason
 Making offensive comments, emails, or social media posts to or about someone
 Excusing such comments in the name of 'banter
 Making someone's life difficult with unfair criticism and mental tasks
 Demotion, transfer, or dismissal without a fair disciplinary procedure
 Unfair treatment because of illness

Discrimination – one of the most significant ethical issues in the business world. It can be
any action that causes employee mistreatment, as discussed above. The dictionary defines
the unjust or prejudicial treatment of different people or things, especially on race, age, or
sex. Discrimination is not just unethical, but it is also illegal. Several laws in the Philippines
protect people and employees against discrimination. The RA 10911 mandates the
elimination of age-based discrimination in employment. Additionally, under the Philippine
Labour Code, discrimination of all kinds is considered unlawful and punishable.

Harassment – Harassment can come in verbal abuse, sexual abuse, teasing, racial slurs,
or bullying, which people find offensive and degrading. It can be an ethical issue if the
management is aware of harassment from someone and takes no action towards it.

Unethical accounting is like manipulating finances to appear more profitable and just for
the sake of transparency and accountability in business operations.

Health and safety – as you have learned in the previous module, it is the entrepreneurs'
responsibility to employees to establish excellent working conditions in the workplace
because the welfare and security of the workers are essential than ever. Sometimes, it is
the most basic right that companies tend to overlook. With that, injuries happen or life-
threatening situations that can lead to psychosocial risks (e.g., job insecurity or lack of
autonomy), which can further cause work-related stress.

Abuse of Leadership Authority – abuse of power in simple terms. It is typical of leaders,

managers, or supervisors who tend to practice maltreatment to employees because of their
leadership role or vested authority. Other examples are harassing or discriminating
employees, pressuring employees to work on a specific task swiftly to save time, punishing
workers unreasonably, asking for inappropriate favors, and can even go beyond the
manipulation of financial reports and other illegal practices.

Conflict of interest – it happens when a person's best interest is not in the best interest of
another person or organization to which that individual owes loyalty. It also happens when a
person serves two different individuals or groups, hurting the other group or being
undervalued.
Nepotism and Favoritism – you have learned that Nepotism is the practice of hiring
someone because they are a family member. Similarly, favoritism is the practice of treating
someone as unique and better than other workers, which can range from personal to
business reasons. These two practices have been standard and deeply rooted in
businesses or organizations since the beginning. These ethical issues connote unfairness,
which can be frustrating or disheartening to employees. Often, workers find themselves
overworked to receive a promotion or other rewards.

Privacy – As the world becomes more and more advanced, privacy seems nowhere to find.
Can we guarantee our privacy while using Facebook, Instagram, or accessing various
websites requiring personal information to sign up? In business, employers can now monitor
all worker activity on laptops and cellphones, beyond tracking employee actions and
reading emails. Employers can also punish workers for unnecessary posts on social media
about complaining about work conditions and venting out their sentiments. Worse, they can
even fire them for going against company values. Businesses have to draw a clear line
between work life and personal life.

Corporate Espionage - this ethical issue is the opposite of the above. It is described as
employee misuse of company data. Sometimes, employees may steal intellectual property
or help a competitor with information about a client for monetary purposes.

Fraud – Fraud involves the false representation of facts, whether by intentionally

withholding important information or providing false statements to another party to gain
something illegally for personal or group interest. (Chen, 2021)

According to the Association of Certified Fraud Examiners (ACFE), fraud includes:

1. Corruption – "the abuse of entrusted power for private gain" ("What is

Corruption," n.d.).
It happens anywhere, even at home, and that involves anyone. It is deeply
rooted in the government and business organizations. Corruption affects every
aspect of society and can cost so many deficiencies and failures. Furthermore,
corruption can include behaviors or practices like:
     ♦  Public servants demanding or taking money or favors in exchange for
services;
     ♦  Politicians misusing public money or granting public jobs or contracts to
their sponsors, friends, and families;
     ♦  Corporations bribing officials to get lucrative deals. ("What is Corruption,"
n.d.)
2. Asset misappropriation - theft or illegal diversions of cash or other assets
3. Financial statement fraud (e.g., asset/revenue overstatement or
understatement)

How to combat fraud?

The Association of Certified Fraud Examiners (ACFE) has discussed five practices to
counter and prevent fraud:

1. Be proactive. Adopting a code of ethics for management and employees to

prevent fraud, establishing and maintaining internal controls to prevent and
detect fraud.
2. Establish hiring procedures—conduct thorough background investigations at
the start of the hiring process. Then, incorporate evaluation of the employee's
compliance with company ethics and anti-fraud programs into regular
performance reviews after hiring.
3. Train employees in fraud prevention. Continued training on fraud prevention
and techniques.
4. Conduct regular audits. To keep track of financial transactions.
5. Call in an expert. Sometimes, it is better to hire an expert to study and
examine when fraud is suspected. The Certified Fraud Examiner (CFE)
credential is recognized by businesses and governments worldwide as the
standard for fraud investigation, prevention, and detection.

Unfair Competition – "it is a term and a branch of intellectual property law that applies to
dishonest or fraudulent rivalry in trade and commerce" (Kane, 2020). Acts of unfair
competition are generally characterized by deception, bad faith, fraud, or oppression, which
leads to another party's impediment to engaging in trade or other business processes. It is
also where consumers have been misled or suppliers have been cheated or manipulated by
the competition in the market. 

It includes:

 Trademark infringement – using another's trademarked property without

permission
 False advertising – misleading claims of advertising
 Unauthorized substitution – replacing one brand of goods with another without
authorization
 Bait-and-switch tactics
 Misappropriation of trade secrets
 Below-cost selling
 Dumping
 Rumor mongering

Non-respect of agreements – is a breach of contract. A breach of contract is a legal cause

of action in which a binding agreement or bargained-for exchange is not honored by one or
more of the parties to the contract by non-performance or interference with the other party's
performance. In simple terms, it is not following what has been stated in the contract or not
sticking to the plan, thus making actions against the plan or contract.
Environmental degradation – deterioration of the environment through depletion of
resources such as air, water, and soil, the destruction of the environment, and wildlife
eradication. As businesses continue to conduct business, sometimes they tend to overlook
that they also have a responsibility towards sustaining the environment. Environmental
degradation is not a problem within a company. Still, it is an alarming issue in the outside
world that would undoubtedly impact business operations because businesses would cease
to exist without resources coming from the environment. Therefore, protecting the
environment is the top-most priority.

Environmental degradation includes:

 Loss of Biodiversity
 Land and soil degradation
 Pollution of water by throwing trashes into the sea or illegal dumping
 Air degradation and the depletion of the ozone layer
 Deforestation

Labor contractualization – replacing regular workers with temporary workers who receive
lower wages with no or fewer benefits. These temporary workers, who are
called contractual, do the work of regular workers for a specified period. In the Philippines,
there is a type of contractualization called the 'endo,' short for 'end-of-contract. It is a
temporary employment practice that spans five months at a time. Unlike regular workers,
Contractual workers are not privileged to significant benefits like the SSS, Philhealth, and
the Pag-ibig fund contribution, unpaid leaves, 13th-month pay, and medical insurance. For
the past years, the Filipinos have continued to lobby their calls to end contractualization
finally and further protect the rights of every Filipino worker.

It is common for businesses to experience several issues between employees, employers,

and other stakeholders. They are ways for development and improvement in business
operations, and they are proofs that every business is not perfect. However, the goal should
always be to deviate from these issues and prevent them from happening because the
moment it happens can affect every employee, employer, stakeholder, and even the world
in which we live. Businesses should always find ways to improve their business practices
that promote everybody's interests and advocate honesty, transparency, fairness,
accountability, and stewardship within and outside the business.

Environmental Management

              Environmental management, in general, refers to a system that integrates

processes for summarizing, monitoring, reporting, developing, and executing environmental
policies (Bhasin, 2020). It is to preserve the Earth's resources, and that future generations
can benefit from these resources that environmental management is keenly implemented.

              In business, environmental management means a corporate strategy that monitors,

develops, and implements the environmental policies of an organization. As a systematic
approach to delivering eco-friendly and economical products to consumers, environmental
management is already practiced in businesses and continues to strengthen through
policies and practices that promote sustainability. Furthermore, it is concerned with marine,
land, and atmospheric conditions and works towards deforestation and global warming. It
deals with the carbon footprint and tries to find ways to reduce the irreversible damage
people are leaving behind. Countries have already set the deadline to 2030 to reduce
carbon footprint emissions to prevent the irreversible effects of climate change. This harmful
chemical leads to ozone layer depletion and, thus, heating the earth's atmosphere, known
as global warming. It also deals in finding appropriate solutions to environmental crises and
preventing ecological disasters. It investigates potential sources of renewable energy to
reduce the maximization of fossil fuels.

Dimension of Ecological Problem (from "Promoting Policies and Practices, n.d.)

 Overpopulation
 Depletion of natural resources
 Pollution of the environment
 Destruction of the Earth

Traditional Attitudes of Business Towards the Environment (from "Promoting Policies

and Practices, n.d.)

 Businesses have believed for a long time that the world is free and unlimited.
 The businessman's pursuit of private interests at the expense of the common
good has created an imbalance between individual gain and social costs.

Environmental ethics (from "Promoting Policies and Practices, n.d.)

 The study of man's moral obligation to preserve the environment and the natural
order of things. Along with the preservation are three essential things every man
should imbibe:
o Man has the moral obligation to preserve the environment
o Man has the primary duty to care for the environment
o Man must submit to the demands of natural law and must not
intervene carelessly with the work of nature.

Importance (Bhasin, 2020)
              As companies become more aware of the possible effects of too much carbon
emissions, disposal of harmful chemicals and wastes to the environment, the importance of
sustaining the environment has become crucial and timely. Stakeholders such as
customers, clients, employees, investors expect businesses to manage their activities not to
cause detrimental effects to the environment. Stakeholders do not only care about the
company's reputation and receive the kind of service they deserve. As humans, they also
care about the business as it deals with environmental management.

That being said, the importance of having an effective environmental management process
in action is as follows:

 Reduced carbon emissions

 It helps to manage wastes safely and effectively
 It leads to the practical and wise use of energy and resources
 It prevents pollution
 It prevents natural and artificial disasters

Advantages of Environmental Management (Bhasin, 2020)

1. Effective use of resources – resources will be maximized effectively and

efficiently without abusing or overusing them. Thus, promoting sustainability.
2. Improve sustainability – it engages a business to long-term success while
performing business functions that impose no effects on the environment.
3. Avoids trouble – businesses that implement environmental management stay
ahead of regulations and policies, thus avoiding corporate problems.
4. Pollution control – businesses can prevent pollution and find ways to control
it.
5. Improved public image – a business that practices environmental
management encourages trust and loyalty from its customers, investors, the
general public and can even attract more stakeholders to gain interest from the
organization. It also boosts employee morale and helps the organization enter
new markets and gain a competitive advantage.
6. Economic progress – The environmental management theory drives
businesses to establish social welfare programs to enable economic progress.
7. Finance – gaining investors' trust is essential because it encourages additional
financial capital necessary for supporting the business' operations.
8. Improved management efficiency – an effective environmental management
policy improves the overall management system of an organization.
Documenting routine operations and compliance plans will help in attracting
employee attention and in streamlining operations. Thus, decreasing the
chances of environmental risks.
9. Better compliance – the company will constantly be reminded of its
responsibility to comply with environmental management; thus, it ensures that
it always fulfills its responsibility towards a safe environment.
 10. Marketing – incorporating environmental tactics in business processes is an
advantage to advertising and marketing because aside from being
environmentally friendly, it can also mean less cost and, thus, economical.
11. Sales Opportunities – an organization promoting eco-friendly products and
services has increased sales opportunities as more people connect with the
company.
12. Empowered employees – employees believe that they could create a
significant change in the environment; thus, they become more empowered
and motivated with their work.
13. Certification of recognized standards – when a company strives to obtain
recognized standards, it gains business credibility with stakeholders and
customers alike.

Disadvantages of Environmental Management (Bhasin, 2020)

1. Costly – the cost of implementing effective environmental management

policies is high. Perhaps, this is one reason big companies and organizations
can implement this policy because they can afford the high cost. Nonetheless,
taking care of the environment would take many ways. Small businesses such
as sari-sari stores can also create a simple environmental management policy
by promoting eco-bags instead of plastics and implementing proper waste
disposal.
2. Troublesome – as implied above, small businesses can consider this policy
too much trouble due to limited resources. Still, every entrepreneur, whether
small or big, has a responsibility to sustain the environment.
3. Time and resources – implementing the policy can also require time,
resources, and effort. However, it will be up to an organization to establish a
system and designate people to manage different tasks.
4. Training costs – the policy will indeed involve the recruitment of people. With
that, the organization has to offer training to its recruits to establish an effective
system, which can prove costly and bothersome to the management.

Environmental Policies in Businesses (Martin, n.d.)

 Zero-waste policy – starting a recycling program to reduce the outflow of

wastes in the business. To implement a systematic way of recycling,
organizations can put recycling bins labeled clearly near trash cans,
photocopiers, fax machines, break rooms, etc. For small firms, they can hire a
local recycling organization to manage wastes. Nevertheless, every practice and
policy that would contribute much to reducing waste would help immensely.
  Conserve Energy – by turning off appliances that are not in use, organizations
can save energy costs. Other things include replacing standard light bulbs in
offices with compact fluorescent bulbs to save energy based on related studies.
Purchasing clean, natural energy can go a long way in energy conservation,
such as solar energy, wind energy or turbines, geothermal energy, and
hydrothermal energy.

 Encourage Clean Travel – practices to promote clean transport include walking,

biking, carpooling, taking public transportation, consolidating trips when going to
work to reduce fuel consumption. Concerning faraway travels, businesses can
think about purchasing alternative fuel vehicles or hybrid vehicles. Company
vehicles should be updated on maintenance, regularly tuned-up, changing the oil
on time to reduce fuel consumption.

 Encourage paperless works – going paperless can help reduce waste, save
money, and help protect the environment. Businesses can start by going online:
sending newsletters and memos through email to reduce printing.

 Encourage employees to go green – sometimes attaining significant actions

can start at individuals at first. If employees are encouraged to practice eco-
friendly practices, they could practice it wherever they go.

 Reduce the use of plastics - businesses can begin changing their product
packaging through eco-friendly bags, wrappers, and processed or recycled
packaging. It will prove economical and thus, will save money.

 Going-green activities – businesses can designate specific days in a year

where the staff can go outside and perform simple environmental practices such
as picking up trash around the town or in the seas, facilitate planting trees,
among others. These practices can boost employee morale, support the
company's green image, attract customers, benefit the community and the
environment. 

Corporate Social Responsibility

            Corporate Social Responsibility (or CSR) is an automated business strategy that
helps businesses be socially responsible and accountable to their stakeholders and the
public (Walia, 2020). Carroll (2016) generalized CSR as "policies and practices that
business people employ to be sure that society, or stakeholders, other than business
owners, are considered and protected in their strategies and operations."

            Several CSR models have been formulated over the years, and they are designed
to execute the CSR process and enable its monitoring and control. When used or adopted
by businesses, CSR models increased their adaptability to internal and external changes in
the environment. These models and frameworks help to promote positive changes and
bring about progress in the socio-economic landscape.
Carroll's Four-part definitional framework for CSR

Carroll's four-part definition of CSR has initially been stated as follows:

            "Corporate social responsibility encompasses the economic, legal, ethical, and
discretionary (or philanthropic) expectations that society has of organizations at a given
point in time" (Carroll, 1979 and 1991 as cited in Carroll, 2016).

            This foundation helps to understand the nature of businesses' responsibilities to the

society of which it is a part. Economic responsibilities, legal responsibilities, ethical
responsibilities, and philanthropic responsibilities constitute the definition of the totality of
CSR. Initially published in 1979, these four divisions of responsibilities create a framework.
They are further discussed below.

Economic Responsibilities

 Economic responsibility is the foundation of Corporate social responsibility

believing that businesses are created and sustained for the sake of the economy
—to develop it and improve the quality of living in the society.
 Society expects businesses to sustain their various needs, and the only way to
make it happen is for businesses to be profitable. When a business creates
profits, all of its stakeholders also benefit from the profits.
 Profits are necessary to incentivize owners/investors and, at the same time, to
encourage business growth when profits are reinvested back into the business.
As profit-making is vital to economic success, businesses have utilized business
concepts that led to financial effectiveness, such as investments, marketing,
cost-effectiveness, strategies, and other operations and concepts that strengthen
the long-term financial success of business organizations.
 In a competitive business world, economic responsibility has proven to counter
global challenges and compete effectively.

Legal Responsibilities 

 These are the policies, rules, laws businesses are grounded and expected to
operate.
 These laws articulate fundamental notions of fair business practices as they are
created by lawmakers at different levels of the government—from national down
to local states.
 Businesses are, therefore, expected to abide by these laws and regulations to
operate effectively and efficiently. These laws include fulfilling their legal
obligations to societal stakeholders, providing goods and services based on
minimum legal requirements, and performing business functions while complying
with the government's laws and regulations.
Ethical Responsibilities

 Ethical conduct and practices are created because sometimes laws are limited
and are not enough to counter all illegal practices. The society also expects
businesses to operate under good ethical standards of practice, although they
are not legislated and enforced into laws.
 While legal responsibilities are restricted to the "letter of the law," ethical
responsibilities are relatively responsive to the "spirit of the law," ethical actions,
and practices concerning the laws.
 Another ethical expectation is that businesses will conduct their affairs fairly and
objectively without proper enforcement of laws.
 "Ethical responsibilities are activities, standards, policies, and practices that are
expected or prohibited by society even though they are not codified into law"
(Carroll, 2016).
 To meet these ethical responsibilities, Carroll (2016) identified certain
expectations businesses are expected to do. They are stated as follows:

o perform in a manner consistent with expectations of moral, societal

mores, and ethical norms
o recognize and respect new or evolving ethical/moral norms adopted
by society
o prevent ethical norms from being compromised to achieve business
goals
o be good corporate citizens through moral/ethical actions
o recognize that business integrity and ethical behavior go beyond mere
compliance with laws and regulations (Carroll, 1991 as cited in Carroll,
2016). 

Philanthropic Responsibilities

 Corporate philanthropy includes all forms of business giving (Carroll, 2016).

Philanthropy is considered voluntary or discretionary activity because they are
acted upon the volition or discretion of businesses. They are not mandated by
law; that's why it is thought of as good "corporate citizenship." They may not be
responsibilities literally, but nowadays, they have already been considered a vital
aspect of society and businesses' expectations.
 The public expects businesses to be good corporate citizens and, by doing so,
requires businesses also to give back to society and the public. It is once again
in line with the principle of stewardship.
  Philanthropic responsibilities vary in distinct forms like gift-giving through
monetary values, donations in the form of products and services, volunteerism by
employees and management, community development, and any other
community involvement activities deemed discretionary, contributing to the
community at large.
 While some businesses conduct philanthropic activities out of altruism, others
would conduct them to intensify their reputation; thus, attracting more customers
and stakeholders.

Carroll's Pyramid Model or the CSR Pyramid

            Carroll's four-part pyramid is one of the leading CSR models. This model was
extracted from the four-part definitional framework in 1991 to single out CSR's definitional
aspect and illustrate the building-block nature of the four-part framework. (Carroll, 2016)

            The CSR pyramid model has integrated the four-part framework into a pyramid to
show order or hierarchy among the different domains. The model is further described in
Figure-1 below.

            According to Carroll, the totality of CSR is divided into four distinct components that
constitute the whole of CSR. Located at the bottom of the pyramid is the foundation of the
pyramid model—the economic component. It is the fundamental responsibility of
businesses to contribute to the economy of a particular country through gaining profits,
establishing new businesses, tax contributions, etc. However, the point is that the
infrastructure of CSR is built upon the premise of an economically sound and sustainable
business.

            The legal perspective states that businesses are expected to operate within the
jurisdiction of the law. They need to abide by the laws of the country or state to conduct a
good business sense. The third layer is an ethical responsibility, defined as "those activities
or practices that are expected or prohibited by society members even though they are not
codified into law." It has been discussed repeatedly that businesses, to continue good
reputation and relationship with stakeholders, have to establish good ethical conduct to
govern actions and behaviors of every individual within the organization. These are ethical
behaviors set by society or organizations even though the law does not enforce them. The
last component, philanthropic, essentially means the social responsibility of businesses to
give back to the community and is considered discretionary because businesses have the
choice to be philanthropic or not.
 Figure 1. Carroll’s Pyramid Model of CSR (Carroll, 2016)
Theoretical Assumptions

 The notion of responsibility in the pyramid model is reduced to normative

restraints of responsiveness. The pyramid suggests that CSR is accommodative.
In effect, it promotes satisficing behavior rather than striving for excellence as it
is not a goal but a constraint to be maximized.
 The economic responsibility is narrowed down into profit-making. The legal
responsibility is restricted to the "letter of the law," while the "spirit" of law is
reserved for the ethical domain. Ethical responsibility is related to those social
expectations and norms not yet codified into law. Lastly, philanthropic
responsibility designates those areas of voluntary social involvement not
explicitly prohibited or demanded of companies because of their economic, legal,
and ethical responsibilities. (Geva, 2008)
 Concerning the totality of CSR, businesses should not only be profitable and
ethical, but they should fulfill other obligations like legal and philanthropic
simultaneously. The pyramid is not interpreted to mean that economic
responsibilities should be fulfilled first before anything else, but business
organizations should carry them out simultaneously. (Geva, 2008)
 Therefore, for a firm to aspire for and achieve CSR, it should strive to make a
profit, obey the law, conduct ethical practices, and be a good corporate citizen
(Carroll, 2016).
 The pyramid model should be seen as sustainable. The four responsibilities are
driven towards long-term goals and are described as long-term obligations that
resonate with future generations. It should be seen as a dynamic landscape that
will serve as the basis for future frameworks (Carroll, 2016).

The Intersecting Circles (IC) CSR Model

In contrary to Carroll's Pyramid model, this model:

1. Recognizes the possibility of interrelationships among CSR domains, and

2. Rejects the hierarchical order of importance.

            The IC Model is created because the pyramid model cannot fully capture the
interpenetrating nature of the CSR domains. The model has not successfully reflected the
possible tension points of the different components. Therefore, an alternative model drawn
from the interrelationships of the components was created. It now includes the significant
domains of responsibility and clearly shows their interrelationships. The IC model refutes
the notion that CSR is nothing but a collection of contingent, externally related topics;
instead, it holds that the distinct domains are like a system that dynamically relates with
each other. Thus, businesses have the responsibility to maintain harmony and resolve
conflicts among domains.

            The primary idea behind the model is that no domain is more significant than the
other. In other words, economic responsibility is not the foundation of all four
responsibilities. Everything is, instead, social creation and the existence of everything
depends on the willingness of the society to support them (Ma, 2012 as cited in Walia,
2020). Figure-2 below explicitly shows the outline of this model.

Figure 2. Intersecting Circles Model of CSR (Geva, 2008)

Theoretical Assumption

1. The IC model is a descriptive model of CSR, which is depicted in a Venn

diagram. It highlights the overlapping nature of the domains and the resultant
creation of a set of CSR categories in which corporations and their activities
may be described, classified, and analyzed.
Concentric Circle Model of CSR

Figure 3. Concentric Circle Model of CSR (Geva, 2008)

            Also known as the CON model, this model is similar to the pyramid in that it views
the economic role of businesses as its core social responsibility. And at the same time, it is
similar to the IC model in that it emphasizes the interrelationships among the different social
responsibilities. However, there are significant differences that separate the CON model
from the other two. The CON model outlines the noneconomic social responsibilities as
embracing and permeating the core economic responsibilities, as described in Figure-3
above. It signifies that the other three responsibilities are closely linked to the economic
responsibility in that these responsibilities should reflect and depend on the economic
responsibility.

            The inner-circle represents the core responsibilities of the business in terms of CSR.
These are responsibilities that focus on efficiently executing economic functions such as
employment, products, economic growth, etc. The legal responsibilities are found in the
second circle, which involves cooperating with the government's policies to better the
business. The intermediate circle is where the ethical responsibilities are located. It includes
responsibilities that help economic exercise functions and sensitive awareness of ethical
norms, values, and priorities. Lastly, the outer circle representing the philanthropic
responsibilities describes the newly emerging responsibilities businesses should focus on to
become more broadly involved in social responsibilities.

Theoretical Assumptions

1. The CON model represents a normative approach to CSR.

2. The concentric circle further implies that the components are not mutually
exclusive but are part of a giant circle. In other words, every circle of
 responsibility is part of the giant circle that promotes further inclusion and
connection. Thus, as expressed in the CON model, all economic
responsibilities also have legal and ethical aspects from a CSR perspective. 

Why Corporate Social Responsibility Makes Good Business Sense?

            Businesses have to realize that being socially responsible can impact their business
operations significantly. Corporate social responsibility can be costly, requiring excellent
resources and time, but it should not be treated as a big deal anyway. As John D.
Rockefeller Jr. has uttered, "think of giving not as a duty but a privilege." it should be
considered a privilege because it is a way of giving back to the community. It is a way of
improving people's lives. However, merely donating is not the core teaching of corporate
social responsibility but extends beyond charitable deeds. It ensures that everyone in the
organization is held accountable for their wrongdoings and yearns for the trust of customers
and investors by upholding ethical and responsible standards ("7 Tips for putting").

            Nowadays, people expect highly of businesses—to serve their economic demands

and reach them out as stakeholders who have a high interest in them and to acquire for
whatever benefits the business may hold. Thus, businesses must give back because there
is no 'business' and 'growth' without these significant people. Of course, focusing on
profitability is not bad, but partaking with and initiating social responsibility programs can
make businesses even more profitable.

            The following are reasons why corporate social responsibility is suitable for
businesses:

1. Establishes a positive public image and reputation

             The ability of a business to swiftly generate favorable publicity for an
organization is one of the most compelling impacts of a sustainable,
responsible business. In addition to press and social media publicity, many
prominent business awards include corporate citizenship when selecting firms
to honor. On the other side, organizations that refuse to accept responsibility
for their actions risk severely affecting their reputations. ("Five Ways Corporate
Social Responsibility")

2. Increases consumer appeal

             As corporate social responsibility efforts have become more
widespread, consumers are increasingly interested in patronizing businesses
that support causes they care about. According to a Nielsen study, most
customers asked across 60 nations stated they would pay a more significant
premium for goods provided by socially responsible enterprises.

             Partnerships with organizations that are significant to a company's

clients might be beneficial. For example, an outdoor sports and recreation
store that donates a portion of its revenue to wildlife and forest preservation
stays true to its brand and helps to tackle a worldwide issue that is likely a
 priority for its customer base.

             When a customer's behavior is directly related to charitable efforts,

consumer appeal often increases. It is valid for companies like TOMS, Warby
Parker, and Yoobi, which donate one product for every purchase. Customers
are more likely to spend money, connect with the brand, and develop loyalty
when a direct link between a purchase and a charitable donation happens.
Loyal customers also leave positive feedback and refer a lot of new people to
the business. ("Five Ways Corporate Social Responsibility")

             Most Millennials and customers of all ages believe that all firms must
be socially responsible and make this a key criterion for choosing a solution
provider. (Zwilling, 2017)

3. Encourages Employee Retention and Talent Attraction

             Consumers aren't the only ones drawn to a company's dedication to
making the world a better place. When applying for jobs, talented
professionals, particularly those seeking business management positions, are
increasingly considering whether a company's core values align with their own.
Many organizations make up for the time and money spent on community
service with higher earnings due to top talent recruitment.

             Employee satisfaction and retention are also heavily influenced by

corporate responsibility. Employees feel more invested when a company's
leadership involves employees deciding which charities to serve or how to help
them.

             Another significant way that corporate responsibility leads to increased

employee satisfaction is through team or company-wide service outings.
Employees can use these opportunities to get away from the office and hone
new skills. Service days also provide excellent bonding opportunities for
various teams and departments, allowing meaningful interactions that improve
office relations. ("Five Ways Corporate Social Responsibility")

             Sponsoring social activities and allowing employees time to promote

their ideas fosters loyalty, pride, and motivation among team members and
across the enterprise. Everyone in the organization becomes more involved,
responsive, and productive as a result of this. The quality of team members a
company can attract and keep determines its success. Competent
stakeholders are eager to be part of the business if it has a socially responsible
culture and similar activities outside the organization. (Zwilling, 2017)
4. Improved Client and Community Relations
             In general, seeing one company engage in charitable work can inspire
other organizations to do the same, both locally and globally. It allows forward-
thinking businesses to collaborate with other businesses, including potential
clients or collaborators, and build valuable relationships while contributing to
the greater good.

             Working with multiple organizations in a competition to raise the most

money or accumulate the most volunteer hours is one way for company
leaders to put this into practice. Similarly, businesses can sponsor and
organize community service days. These events increase a company's positive
impact and provide excellent networking opportunities, connecting with other
professionals and laying the groundwork for future collaborations. Community-
based service events also allow employees and community members to
interact meaningfully, increasing visibility and positive associations with
potential customers. ("Five Ways Corporate Social Responsibility")

5. Allows for more governance options as well as financial grant

opportunities
             Businesses can qualify for government grants, alternative energy
rebates, and philanthropic initiatives by implementing specific social activities.

6. It makes businesses more appealing to investors

             Investors seek out teams with a strong sense of purpose,
trustworthiness and have a compelling narrative.

             They regard a commitment to social change as an excellent long-term

positioning strategy, with long-term benefits for both customers and owners,
and are on the lookout for the right mix of profit maximization and market
expansion.

7. The Bottom Line

             There is no denying that profit-making is the ultimate goal of doing
business. While corporate responsibility is deemed costly, it can also positively
affect its bottom line. All of the previously mentioned advantages – reputation
enhancement, customer and investor appeal, talent retention, strengthened
financial opportunities, and expanded connections – can significantly improve
a company's financial health.

             However, making responsible decisions on their own can be beneficial

to a company's bottom line. For example, switching from paper reporting to a
fully digital system reduces a company's environmental impact while lowering
administrative costs in the long run. Other alternatives include using
 environmentally friendly lighting, solar power, or working in a green-certified
office building. ("Five Ways Corporate Social Responsibility")

How significant is Corporate Social Responsibility?

            Being a socially responsible company has far-reaching consequences. Investing
time and other resources in corporate social responsibility programs are an excellent way
for business owners to promote goodwill, engage with the community, and create a better
area to do business. Discussed below are the impacts of social responsibility to every
stakeholder, as explained by Varga (2019):

For the Business and Its Shareholders

            Several businesses believe that their products and services are "changing the
world," which may be accurate; however, corporate social responsibility takes this a step
further and provides the company with another way to leverage its impact on the larger
community.

For Team Members

            According to one study, 64% of Millennials would turn down a job if the company
was not socially responsible, and 75% would accept lower pay to work for one of these
companies. According to a Deloitte survey, 93 percent of those polled believed that
community service improved their leadership abilities. Employees benefit from being
socially responsible because they foster their passion and commitment to the organization,
translating into better customer service.

For Customers
            Customers today not only want but also expect companies to be socially
responsible. According to a recent study, 87 percent of consumers would choose a
company if it advocated for an important cause. In today's business world, reputation is
essential. People will notice when you do good deeds even if you don't spend a fortune on
ad campaigns.

For Sellers and Referral Partners

             Recreational Equipment Inc. (REI) is one excellent example. The global outdoor
retailer has stated that "purpose comes before profits," implying that everything it does
aligns with stewardship, the environment, and sustainability. The company publishes an
annual report on its efforts, the most recent of which shows that it donates nearly 70% of its
profits to the outdoor community. As a vendor, it would be simple to choose REI over a
profit-driven competitor.

For Government Entities

             Because public funding for critical programs is frequently limited, good corporate
partners make the jobs of government entities easier.

For Non-profits
             One's donations of time, talent, and treasure will benefit non-profit organizations
and the communities they serve.
Tips for businesses to start being socially responsible ("7 Tips for putting"):

1. Adopt an ethical business code

             A business code of ethics will specify how employees should behave
in ethics, values, the environment, diversity, employee respect, and customer
service. More and more entrepreneurs are going the extra mile by amending
their governance documents to include a commitment to social and
environmental goals.

2. Adhere to a workplace health and safety plan

             Developing a comprehensive workplace health and safety program will
assist businesses in establishing dependable systems to protect employees
and prevent accidents and injuries. It will also ensure that they comply with
government health and safety legislation.

3. A pledge to protect the environment

             Establishing policies and practices that address environmental
problems is an excellent practice for becoming a socially responsible business.
Social responsibility impacts the community and its constituents and the
environment for which it is a part.

4. Bring in suppliers
             Ensure that suppliers understand and meet expectations for
responsible behavior, such as fair pricing. Screen them for previous behavior
and inform them of the business' expectations.

5.  Donate money wisely

             Get involved in causes that are important to a company. A forestry
company, for example, may choose to support environmental organizations.
Many manufacturing companies make donations to community organizations
in the communities where they have plants. The idea is to give back to society
while also sending a message about your brand's values.

6. Don't greenwash your business

             Use marketing strategies that are fair and honest and that reflect the
integrity of your business. Any advertising or communication that could be
construed as manipulative or damaging to the public should be avoided.

7. Be certified with 'Certified B Corporations'

             Certified B Corporations are enterprises that balance profit and
purpose by meeting the highest criteria of verifiable social and environmental
performance, public transparency, and legal accountability. B Corps are
speeding up a global cultural transformation that will redefine economic
 success and help to create a more equitable and sustainable economy.

             Government and organizations alone will not be able to solve society's

most complex challenges. The B Corp community strives for lower inequality,
lower poverty, a healthier environment, stronger communities, and the creation
of more high-quality, purposeful jobs. B Corps leverages the force of business
to achieve a higher goal: good effect for their employees, communities, and the
environment.

             B Corps are a global movement of people who use business as a force

for good. The B Corp Declaration of Interdependence enshrines the ideals and
goals of the B Corp community. ("About B Corps," n.d.)

What is a Social Enterprise?

             Often known as a social business, a social enterprise has specified social aims that
fulfill its core purpose. Profits are maximized while societal and environmental advantages
are maximized in social enterprises. The majority of their profits are utilized to sponsor
social activities (Barone, 2020).

             Social enterprises are businesses that thrive at the crossroads of the private and
volunteer sectors. They try to balance operations that provide financial rewards and social
purposes, such as providing low-income families with homes or job training (Barone, 2020).

             Other characteristics of social enterprises are as follows:

 The majority of funding is obtained through selling goods and services to

consumers.
 Profit maximization is not the primary goal of a social enterprise, unlike a
traditional firm.
 Social enterprises, unlike charities, pursue revenue-generating ventures that
fund their social goals.
 Job applicants from at-risk neighborhoods are given priority in the hiring process.
 Projects that social entrepreneurs and social enterprises would prioritize include
providing clean water, boosting access to renewable energy, increasing financial
inclusion, and providing high-quality educational resources (Financier Wordwide,
2020).

Examples of Social Enterprises (Barone, 2020):

 Warby Parker, an American eyeglass store, distributes a pair of glasses to

someone in need for every pair of glasses sold.
  A similar vow has been made by Tom's, a California-based retailer, to donate a
pair of shoes or sunglasses for every pair sold.
 Climate Smart also provides businesses with training and software solutions to
help them track and reduce their greenhouse gas emissions.

Social Enterprise vs. Social Entrepreneurship (Barone, 2020)

 Social entrepreneurship focuses on individuals who use existing business

processes and strategies to discover solutions to social and environmental
challenges. Social entrepreneurs look for new ways to do things and work to
bring about change.
 Social enterprises are formed to serve a corporate purpose and address
societal issues through economic activity.

SOCIAL ENTERPRISES ADVANTAGES (as cited in Jerusalem, Palencia & Palencia,

2017)

1.  Financial Freedom - Perhaps the most obvious of social enterprise's potential benefits
is the possibility to achieve financial stability and independence.

Having enough excess income to support your living expenditures is financial freedom. It's
not about being wealthy or having a large sum of money; it's about having enough money to
meet future expenses to spend time doing things one enjoys rather than doing things solely
to get money. The money should be working on you and not the other way around. It is like
having an investment so one can still earn even though one's not working.

These are simple steps to consider to attain financial independence as per ET Money (n.d.).
a. Become Debt-Free - Debt is the most significant impediment to financial
independence. The worst type is credit card debt, which has interest rates ranging from 30
to 40 percent. Avoid using credit cards and develop a debt repayment strategy to pay off
your current bills. It should be done even before you begin investing. Furthermore, while not
all loans are wrong – such as housing and school loans, which bring tax benefits – being
debt-free is a better option than having a decent loan. Whenever you receive a large sum of
money in one go, such as a bonus, pay it as much as you can toward the loan. You can
create a budget based on it.

b. Start investing early with a goal-based approach - Begin investing as soon as

possible, even if it's in tiny amounts, and let it grow through compounding interests. When it
comes to setting your monthly budget, using a goal-based approach might help you figure
out how much money should go to each investment. It can save you a lot of money and
relieve you of unnecessary financial worry.

c. Prepare for life's uncertainties - unexpected expenses are one factor that can
disrupt your financial goals. The key is to be prepared for it. Two tasks must be completed.
  Create a contingency fund to cover any unexpected or urgent needs.
Assume you've already planned your monthly budget and set aside a portion
of it for savings. As a contingency fund, set aside three to six months' worth
of costs. In the event of an emergency, you won't have to tap into your
savings.
 Purchase healthcare coverage. Because of rising healthcare costs and the
lack of health insurance, a medical emergency can set your aim of becoming
financially independent back years.

2.  Growth of the scope and size of community services - conventional funding sources
such as grants and contributions make it difficult for groups to expand the size and extent of
their services.

3.  Businesses can contribute to the mission- beyond solely supplying financial
resources; businesses can contribute to the purpose by allowing organizations to identify
moral ways to achieve their goals.

4.  Staff and donor perceptions of the company- social enterprise may impact how an
organization is regarded.

5.  Easy marketing and promotion - marketing and promotion are also relatively simple
because a societal problem is being addressed with a solution, making it easier to attract
people's and media's attention.

6.  Services can be personalized - services in any section can be tailored to meet the
demands of the individual or the problem at hand.

7.  Cost-effectiveness - another benefit of a social enterprise is that it is economical; the

solutions provided by organizations, whether in the form of products or services, are more
affordable than those provided by a profit-making company.

8.  Job creation - small social companies, are frequently run by people passionate about
their community and its difficulties.

             According to the Organisation for Economic Co-operation and Development

(OECD), social enterprises serve as a "bridge between unemployment and the open labor
market." From a purely numerical standpoint, reintegrating large groups into the labor
market can result in enormous social and financial advantages (as cited in Financier
Worldwide, 2020).

Here are some essential information about social enterprise and job creation (Meade,
2013):

 Social companies have enormous potential - they can not only provide
additional jobs, but they can also act as advocates and campaigners for hiring
individuals who are not traditionally employed.
  Recycling is a great way to create jobs - there are many possibilities in green
sectors, home care, and manufacturing.
 Find a way to incorporate a grassroots approach while also leveling the
playing field - Supporting and nurturing talent and encouraging public and
private organizations to explore local contracting can lead to progress.
 Social enterprises must connect with further education - Collaboration with
the local educational institution should be an essential part of any local social
entrepreneurship plan. They can offer courses in business training as well as
general employment information.

Five Reasons Why Social Entrepreneurship is the New Business Model (Fox, 2020):

1. It connects you to your life purpose.

2. It keeps you motivated.
3. It brings lasting happiness.
4. It helps you help others discover their life purpose.
5. It is what today's consumers want.

Importance
             Social entrepreneurship is increasing in size, scope, and support. An
unprecedented number of organizations are using it as a strategy to address social
problems across emerging markets. Many of these projects improve people's health,
safeguard the environment, and create more economic opportunities (Financier Worldwide,
2020). The following are among the impact of social entrepreneurship (as cited in
Elavathingal, 2020).

1.  Social entrepreneurship is a source of inspiration and meaningful impact.

-  Entrepreneurial zeal and social effect are found in social enterprises. Entrepreneurs do
what they love, something they are enthusiastic about, while also resolving a significant
issue that benefits our society by ensuring a more sustainable environment. The majority of
these entrepreneurs value meaning, purpose, and fulfillment over money.
-  In a word, social enterprises strengthen the connection between employment and
purpose. Social enterprises can meet this pressing desire to work with a purpose and link
people's efforts with their values. They frequently emphasize the possibilities for people to
transition from working for a salary to working for a cause. So, indeed, one can make ends
meet while addressing a social or environmental concern.

2. Social entrepreneurship responds to customers' needs.

-  Not only do social enterprises meet the demands of their consumers, but they also meet
the needs of their beneficiaries. Because these businesses meet the requirements of their
customers, they also meet the needs of other people.
-  The present desire for ecologically friendly and ethical products, on the other hand,
dispels concerns about the profitability of social enterprises. In conclusion, as long as there
is a need to fill and a sustainable business to grow, there is no reason to ignore the client
segment problem.

3. Social entrepreneurship builds relationships beyond economic purpose.

-   Social companies can also help individuals in social and economic networks form strong
bonds. Unlike traditional commerce and other commercial ties, social interactions permit
trades fueled primarily by emotional support supplied to those in need and business
owners.
-   Sharing information and resources across communities can also benefit similar social
groupings from around the world. International humanitarian projects like fair trade, for
example, have demonstrated that social entrepreneurship can generate networking
opportunities between two or more countries while simultaneously bolstering economically
and socially marginalized individuals.

4.  Social entrepreneurship is more responsive to creating economic and social

value.
-  Traditional corporations are less responsive than fast-growing sectors in solving societal
problems and exploiting new market opportunities. Because social companies are reliant on
government agendas, they are better equipped to address social issues. It is also easier to
address the requirements of our society when we are not reliant on limited money from
official entities.
-  Furthermore, social entrepreneurs provide solutions in a way that the government does
not. They are agents of change for society and contribute considerably to the global
economy.

5. Social entrepreneurship makes the world a better place.

-  Social value and social transformation are at the core of each social enterprise activity.
Entrepreneurs use monetary profit as a vehicle to achieve people-focused objectives. Social
entrepreneurship is unquestionably more than a business venture; it provides society with
good, world-changing answers at a time when we desperately require them.
-  Because it maximizes social benefit, social entrepreneurship is essential. Third- and
fourth-sector entrepreneurs see it as their responsibility to contribute back to their
communities. To do so, they come up with novel approaches to create long-term solutions
to global or local pressing social challenges like healthcare, homelessness, or child labor.