BUSINESS ETHICS REVIEWER
success of every business.
Responsibility
- refers to the duty or
obligation to
satisfactorily perform or
complete a task
(assigned by someone,
or created by one’s own
circumstances) that one
must fulfill, and which
has a consequent
penalty for failure.
Accountability
- Is the obligation to
demonstrate that work
has been conducted in
compliance with agreed
rules and standards or
to report fairly and
accurately on
performance results vis-
à-vis mandated roles
and/or plans. render is
one who organizes,
manages and assumes
the risk of an enterprise.
An entrepreneur should
be aware of the ethics
and social.
RESPONSIBILITIES and
ACCOUNTABILITIES of
ENTREPRENEURS To Employees,
Government, Creditors and Suppliers
 An entrepreneur is one who
organizes, manages and
assumes the risk of an
enterprise.
A. Employee
Employees are the true assets
of an organization. They are
the ones who contribute
effectively towards the
Responsibilities of an Entrepreneurs
to his/her Employees:
• Pay wages/salaries and taxes
• Assignment of right jobs
• Create and maintain an
ergonomic workplace
• Facilitate employees’
compensation insurance
• Support career development
• Train and educate employees
• Enforce anti-discrimination law
• Respect human rights
• Give rewards and Benefits
• Give security of employment
Responsibilities of an Entrepreneurs
to the Government:
• Compliance of government
rules
• Payment of Taxes
• Not to correct the government
machinery
• Not to seek political patronage
by unfair means
• Cooperate with government for
economic development
Responsibilities of an Entrepreneurs
to their creditors:
• Obtain loans on reasonable
conditions
• Follow mortgage rules
• Follow business ethics
• Proper utilization of debt capital
• Regular Payment of Instalment
and Interest
Responsibilities and Accountabilities
of an Entrepreneur to their Suppliers:
• Pay fair prices of goods at a
reasonable time
• Inform about changes in market
• Give guarantee of minimum
price
• Provide technical advice
• Inform suppliers of future
developments
• Promote healthy competition

Responsibilities and
Accountabilities of
Entrepreneurs to:
Employees
a. Train Employees
b. Insurance and benefits
c. Favorable working environment
d. Manage performance
e. Respect human rights
f. Anti- discrimination law
g. Pay wages
h. Career development
Government
a. Pay taxes
b. Abide by labor laws
c. Contribute to political stability
d. Follow environmental
regulations
e. Help foreign exchange
f. Avoid Corruption
g. Contribute to government
treasury
maintain a balance between the
economy and the ecosystems.
4 Components of Carroll’s Pyramid of
Corporate Social Responsibility:
• Economic – For the business to
survive on a long-term basis and benefit
the society, the first responsibility of the
company is to gain profits.
• Legal – It is imperative for the
company to obey and adhere to the laws
and regulations related to the nature of
its business, competition, employment,
and health and safety among others.
• Ethical – It is important for the
company to act on the grounds of ethics
and morals in society and should also
go beyond the narrow requirements of
the law and order.
• Philanthropic – It is the responsibility of
the company to give back to society.
This facet of responsibility holds an
important place even though it is
discretionary in nature.

Creditors
Understanding the Four Levels of
a. Give correct Information
CSR
b. Provide fair return of
investment
Suppliers
a. Practice fair pricing and
licensing
b. Maintain stability and
confidentiality c. Pay on time
d. Select suppliers with
Philanthropic
discernment
1. At the top of the pyramid, occupying
the smallest space is philanthropy.
MODELS AND FRAMEWORK OF
SOCIAL RESPONSIBILITY 2. Businesses have long been criticized
for their carbon footprint, their part in
- Social responsibility is an ethical pollution, using natural resources and
framework and suggests that an more.
individual has an obligation to work and
Economic 3. For the business to
cooperate with other individuals and survive on a long-term basis and benefit
organizations for the benefit of society at the society, the first responsibility of the
large. company is to gain profits
- Social responsibility is a duty Intersecting-Circle 4. It is the overall
every individual has to perform so as to corporate responsibility to advance
harmony and resolve conflicts between
them.
Social Responsibility 5. It is a means
of achieving sustainability
Legal 6. It is imperative for the company
to obey and adhere to the laws and
regulations related to the nature of its
business, competition, employment, and
health and safety among others.
Ethical 7. It is important for the
company to act on the grounds of ethics
and morals in society and should also
go beyond the narrow requirements of
the law and order.
Philanthropic 8. It is the responsibility
of the company to give back to society.
This facet of responsibility holds an
important place even though it is
discretionary in nature.
Pyramid 9. The CSR______ was
framed to embrace the entire spectrum
of society's expectations of business
responsibilities and define them in terms
of categories.
Economic 10. The lowest level of the
pyramid represents a business’s first
responsibility, which is to be profitable.
Legal 11. The second level of the
pyramid is the business’s legal
obligation to obey the law.
Concentric-Circle 12. This represents a
normative approach to CSR.
Social Responsibility 13. This adopts
key social responsibility principles, such
as accountability and transparency, can
help ensure the long-term viability and
success of any organization or system.
Legal 14. This is the most important
responsibility out of the four levels as
this will show how companies conduct
their business in the marketplace.
Intersecting-Circle 15. This model
refutes the notion that CSR is nothing
but a collection of contingent, externally
related topics.
IMPORTANCE OF ESTABLISHING
AND SUSTAINING BUSINESS
ENTERPRISES
Environmental Sustainability
- Environmental sustainability
can be applied in many ways, such as
creating alternative routes in a
production process to reduce waste
generation and increase water and
energy efficiencies
Sustainability and employment
- Businesses with strategies that
are sustainable in the long run pay their
workers’ salaries and benefits that allow
them to live a sustainable life within their
community.
ACTION PLAN IN ASSISTING SMALL
BUSINESSES IN PRACTICING
ETHICS AND SOCIAL
RESPONSIBILITY for Business Ethics
and Social Responsibility
Code of Ethics 1. A system of moral
principles or rules of conduct relating to
human behavior.
Honesty 2. Truthfulness, sincerity, or
frankness.
Unethical 3. Lacking moral principles.
Tell the teacher so she may change it
4. Jason figures out his teacher’s
password to unlock her electronic grade-
book. What is the ethically correct thing
for him to do?
Ethics 5. are principles of morality or
rules of conduct.
What’s in it for me? 7. What is not
something you ask yourself when faced
with an ethical dilemma?
Training employees right out of
school 8. What is not considered
unethical business practice?
What is an Action Plan?
• An action plan is a road map that
outlines the path between the current
situation and the goal to be attained.
• It is a way to make sure your
organization’s vision is made concrete.
• It describes the way you will use its
strategies to meet its objectives
What makes an action plan effective?
1. Current
• We need to know more about the
current work to judge whether this part
of the action plan is up-to-date.
2. Clear
• It should outline who will do exactly
what by when
3. Complete
• It must include all the steps that need
to be taken and are arranged in
sequential order.