Social Responsibility of Entrepreneurs

Research and Modified by:

Gemmar A. Lumot, MBA
Social Responsibility

• Social Responsibility responsibility to obey the laws of our

country.
• It is likewise our responsibility to help our neighbors
whenever they need help.
• As responsible citizens, it is our duty to vote during
election time.
• We respect human dignity whether the person is white or
black whether schooled or unschooled or whether rich or
poor.
When we become an Entrepreneurs are we still responsible
to our fellowmen, to our community and to our country?

• In our desire to maximize profits?

• Are we going to cheat our customers?
• Exploit our employees?
• Dump our wastes into the air, water and land?

All of these things are opposite of social responsibility.

The Concept of Social Responsibility has various meanings
to different individuals.
• For instance, to a banker, his social responsibility is to lend
money even to the poor producers, and not to the rich ones.

• To manufacturers, their social responsibility is to create quality

products, and not to pollute the environment.

• For instance, if you are manufacturing a huge number of print

postcards in your digital printing plant, make sure that your
trash and other wastes are properly disposed and not just
thrown to rivers and seas.

• More so, to the rich their social responsibility is to share their

excess wealth with less fortunate.
What exactly is the social responsibility of the Entrepreneur
or Businessmen
• The entrepreneur must sell quality products at fair price. He must
also be fair with his suppliers by paying them on time as agreed
upon.

• He must pay the correct amount of taxes to the government. He

must promote the welfare of his employees.

• He must observe business ethics with his fellow businessmen.

• Equally important is the social responsibility of the entrepreneur

to his community in terms of job creation and environmental
observation.
Responsibility vs. Accountability

• Responsibility can be shared while accountability cannot.

• Responsibility can be before and/ or after a task.

Being accountable not only means being responsible for some

but ultimately being answerable for your decisions or actions.

Also, accountability is something you hold a person to only after

a task is done ot not done.
"Leaders need to be accountable," managers say.
"Employees need to be accountable. We must do
everything possible to ensure accountability at all
levels of the organization.
Accountability vs. Ownership
Accountability
• As I define it, accountability is
something assigned or given I can
assign accountability.
• I can instruct an employee to
perform a task or even
accomplish a goal.
• But in effect I still own that task or
goal. I tell the employee what I
want, I define success and 1
create metrics to measure the
success. That is accountability.
Ownership
• Ownership is taken cannot
appoint ownership.
• It happens when an employee
comes forward and says, "I'm
going to make this happen.
 Here's what I will do.
 Here's what I will accomplish
 Here's how I will measure progress
Accountabilities of Entrepreneurs toward the Employees

• What is an organization without employees?

Employees are said to be the true assetsof an organization.

Even the best technology or best infrastructure would not be of
much use if employees do not perform up to the mark and are
not satisfied with their current profits.
Responsibility of Entrepeneurs towards its employees

• To ensure that they are happy and satisfied with their jobs
• Do not treat your staff as labours.
• Provide healthy working conditions
• Assign proper workstations for them to work comfortably
and eventually deliver their level best.
• Everyone need some amount of privacy and make sure
your employees get the same
Laws that Govern Employees Rights

The Labor Code of the Philippines Pre -Employment Policies

• The minimum age for
It identifies the rules and
standards regarding
employment such as pre -
employment policies, labor
conditions, wage rate,
work hours, employee
benefits, termination of
employees, and so on.
employment is 15 years
old and below that age is
not allowed. Persons of
age 15 to 18 can be
employed given that they
work in non-hazardous
environment
 Regulation on
Conditions of
Employment
• Minimum Wage Rates
• Normal hours of work
any employee shall not
exceed 8 hours a day.
Positive Results of Accountability
The positive results of practicing a
constructive appraoch to accountability
include: Implementing Accountability
• Improved performance • Setting Clear, challenging
• More employee participation and yet attainable goals and
involment
• Increased feeling of competency
objectives
• Increased employee commitment • Coach employees
to the work
• Monitor Progress
• More creativity and innovation
• Higher employee morale and • Provide training
satisfaction with the work. • Recognize employees for
good performance
Business Dilemmas

Ethical Dilemmas
 Thoug ethical dilemmas faced by certain companies may be
specific to their industry or company, other types of ethical
issues are common to all type of companies.

Handling ethical decisions with wisdom is especially important

for small business, given the potentially devastating effects
these companies may face if such issue are not handled
correctly.
• Healt and Safety
One area of ethical consideration for employers is how to
balance expense control with the health and safety interest
of employees.
• Technology
Advancements in technology and the growth of the internet in the ealy
21st century have produced a slew of ethical dilemmas for
comapanies.
Certain companies go so far as to monitor all online users and email
communication form employee computers and work accounts.
A company may have this right, but its leaders need to understand the
potential concern about privacy and autonomy among employees.
• Transparency
 Prominent business and accounting scandals have made it imperative that
companies operate with openess and transparency.
 This includes hones, accurate and complete reporting on mandated
financial accounting reports.
 For large and small business, transparency includes communicating
messages, including marketing messages, that aren't open to
misinterpretation and that clearly represent the intentions of the company
and its message.
• Fair Working Conditions
 Being responsible with employee treatment typically mean higher labor
costs and resource utilization
 Fair pay and benefits for work are more obvious elements of a fair
workplace
Fraud

Act or course of deception, an intentional concealment,

omission, or perversion of truth to:
Gain unlawful or unfair advantage,
Induce another to part with some valuable item or surrender
a legal right, or
Inflict injury in some manner
Willfull Fraud
is a criminal offense which calls for severe penalties, and its
prosecution and punishment (like that of murder) is not bound by the
statue of limitations.
Unfair Competition

• Unjust and often illegal attempt to gain unfair competitive

advantage through:

False, fraudulent
unethical commercial conduct

For example inlcude below-cost selling, counterfeiting or

imitation, dumping, misleading advertising, rumor mongering,
trademark or trade secret infringement.
Non- Respect Agreement

• The Five Principles of Peaceful Coexistence

Mutual respect for each other's territorial intregrity and

sovereignty.
Mutual non - aggression
Mutual non - interference in each other's internal affairs
Equality and cooperation for mutual benefit
Peaceful co - existence
Practice of Sound Business
• Is a method , procedure, process, or rule employed or followed by a
company in the pursuit of its objectives. Business practrice may alse refer
to these collectively.
– The spearhead ' sound business practice' is divided into three subjects.
Integrity and Transparency - Do what you say and say what you
do and A deal is a deal are key to mottos at Filipinos.
Leadership - The Filipinos inspire and motivate based on conviction
and values. Leaders set a good example, are proactive and take
responsibility. They put the strategy into practice, are result-driven
and are open to self-relfection.
Responsible Procurement - means purchasing based on open
and honest communication whilst being aware of the chain behind
the product.
Standards of Sound Business

• Standard 1 - Corporate Governance ( credit unions and

caisses populaires must effectively direct, oversee, and
manage their business activities and ensure that
performace, accountability, and integrity are achieved.

 Leadership
Oversight
Standard 2 - Strategic Management

Credit unions and caisses populaies must ensure that

business operations are effectively planned, executed,
and monitored.
• It includes the following key elements:
Corporate Mission and Business objectives
Strategic Plan
Standard 3 - Risk Management
• Human Resource Risk
• Credit Risk
• Asset/Liability Structure Risk
• Foreign Exchange Risk
• Capital Management Risk
• Liquidity Management Risk
• Outsourcing Risk
• Informartion Technology Risk
• Fiduciary Risk
Standard 4- Internal Control Structure

• It ensures these systems are reviewed and

validated on a regular basis.
Internal Control Environment and Internal Controls
Audit Function
Thank you so
much!