Republic of the Philippines

Polytechnic University of the Philippines

Sta. Mesa Manila
http://www.pup.edu.ph

Business Ethics:
Importance of Establishing & Sustaining Business as Job Opportunities

Prepared By:

Alinea, Mark Louie P.

Tolentino, Kathreena Angela C.

Abm 12-1
 Importance of Establishing a Business as Job Opportunities

WHAT DO WE MEAN BY ESTABLISHING?

- According to the definition from oxford languages, Establishing means to set up (an

organization, system, or set of rules) on a firm or permanent basis.

WHAT IS ESTABLISHING A BUSINESS?

- To start or set-up a business

- This includes enterprises operated with the intention of creating a profit or of generating

income for the owners if organized as a legal not-for-profit venture.

Establishing a business means organizing the production, marketing and sale of products

or services.

WHAT ARE THE WAYS TO ESTABLISH A BUSINESS?

Conduct market research

Market research will tell you if there’s an opportunity to turn your idea into a successful

business. It’s a way to gather information about potential customers and businesses

already operating in your area. Use that information to find a competitive advantage for

your business.

Write your business plan

Your business plan is the foundation of your business. It’s a roadmap for how to structure,

run, and grow your new business. You’ll use it to convince people that working with you

— or investing in your company — is a smart choice.

Fund your business

Your business plan will help you figure out how much money you’ll need to start your

business. If you don’t have that amount on hand, you’ll need to either raise or borrow the

capital. Fortunately, there are more ways than ever to find the capital you need.

Pick your business location

Your business location is one of the most important decisions you’ll make. Whether you’re

setting up a brick-and-mortar business or launching an online store, the choices you make

could affect your taxes, legal requirements, and revenue.

Choose a business structure

The legal structure you choose for your business will impact your business registration

requirements, how much you pay in taxes, and your personal liability.

Choose your business name

You’ll want one that reflects your brand and captures your spirit. You’ll also want to make

sure your business name isn’t already being used by someone else.

Register your business

Once you’ve picked the perfect business name, it’s time to make it legal and protect your

brand. If you’re doing business under a name different than your own, you’ll need to

register with the federal government, and maybe your state government, too.

Get federal and state tax IDs

You’ll use your employer identification number (EIN) for important steps to start and grow

your business, like opening a bank account and paying taxes. It’s like a social security

number for your business. Some — but not all — states require you to get a tax ID as well.

Apply for licenses and permits

Keep your business running smoothly by staying legally compliant. The licenses and

permits you need for your business will vary by industry, state, location, and other factors.
Open a business bank account

A small business checking account can help you handle legal, tax, and day-to-day issues.

The good news is it’s easy to set one up if you have the right registrations and paperwork

ready.

WHY ARE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY RELEVANT IN

ESTABLISHING A BUSINESS?

Now more than ever, how your business conducts itself, ethically speaking, can change

the trajectory of success. Here are four reasons why it’s important.

1. Recruiting Top Talent

A Bentley University study found that a whopping 86 percent of Millennials consider

it a priority to work for a business that conducts itself ethically and responsibly. In

fact, most Millennials would be willing to take a considerable pay cut to work for

such a business.

2. Employee Engagement

When you include your employees in larger processes and vision planning, such

as designing and implementing a socially responsible program for your company,

they’ll feel like they’re part of something bigger and more important than their day

to day, and therefore they’ll be more engaged.

3. Competitive Edge

When it comes to business ethics and social responsibility, another factor to

consider is the compounding nature of competition. As more businesses adopt and

invest in ethical practices, those that do not will look worse by comparison.

4. It Can Build or Break a Brand

 4.1 Adopting ethical business practices and implementing social responsibility are

good ways to help build your brand, especially when you’re just starting out. While,

you should never implement these practices solely for marketing purposes — more

on this in the “What to Avoid” chapter — doing so can help create co-branding and

marketing opportunities.

4.2 On the flip side, choosing to hire in ethics can be hard to shake and can directly

impact your hiring and revenue pipeline, and therefore your company’s ability to

succeed. These days, a company’s history, public messages, and current staff are

all publicly available information, and all it takes is a quick Google search for a

prospective employee to find it. For this reason alone, company ethics are more

important than they’ve ever been.

WHAT DOES IT GIVE BACK TO THE SOCIETY?

Just Like anything else, establishing a business also has its own positive and

negative effects in society. Here are the listed effects of Establishing a business in a

society.

POSITIVE EFFECTS IN SOCIETY:

A. Entrepreneurs and businesses boost economic growth by introducing

innovative technologies, products, and services.

Radical innovations, which are big and groundbreaking ideas, often

lead to economic growth. Entrepreneurs who bring these innovations to the

market play a vital role in driving economic progress. Unlike established

companies, new firms are more willing to invest time and resources in

exploring new opportunities. Existing firms may struggle to innovate due to

their resistance to change or concerns about competing with their own

 products. They might miss out on adopting new ideas because they fear it

would hurt their current market. For inventors and innovators, starting their

own business is often the best way to turn their ideas into successful

products or services.

B. Increased competition from entrepreneurs challenges existing firms to

become more competitive.

By establishing new businesses, entrepreneurs intensify

competition for existing businesses. Consumers benefit from the resulting

lower prices and greater product variety.

C. Establishing a business provides new job opportunities in the short and

long term.

Businesses and entrepreneurs generate short-term employment by

starting new ventures, expanding existing ones, and fulfilling market needs.

Over the long term, they contribute to continued job growth through

business growth, industry development, and innovative practices. A

flourishing entrepreneurial ecosystem attracts investments and nurtures

employment expansion.

D. Entrepreneurial activity raises the productivity of firms and economies.

Competition between new and established firms encourages

the strongest to survive and improves productivity. New firms bring

competition, motivating existing firms to improve or leave the market.

While there might be initial challenges, entrepreneurship ultimately

boosts productivity, particularly for innovative and fast-growing

entrepreneurs.

E. Entrepreneurs accelerate structural change by replacing established,

sclerotic firms.
 Established firms often find it difficult to adapt to new market

conditions and changes, becoming stuck in their old ways. They struggle

to make necessary internal adjustments and lack the ability for "creative

destruction" as described by Schumpeter. However, the entry of new

businesses and the exit of outdated firms can break this deadlock.

Additionally, entrepreneurs have the potential to create completely new

markets and industries that drive future growth.

NEGATIVE EFFECTS ON SOCIETY

A. Only a few people have the drive to become entrepreneurs.

Share certain traits, such as creativity and a high tolerance for the

uncertainty that comes with developing new products. Four personality

characteristics are particularly important for becoming an entrepreneur:

willingness to bear risks, openness to experience, belief in their ability to

control their own future (internal locus of control), and extraversion.

B. Entrepreneurs face a substantial risk of failure, and the costs are

sometimes borne by taxpayers.

Entrepreneurs face a significant risk of failure when starting and

running their businesses. The entrepreneurial journey involves

uncertainties, market dynamics, and other challenges that can lead to

business closures and financial losses. In some cases, when

entrepreneurs fail, the costs associated with their businesses are borne by

taxpayers. This can happen through various mechanisms such as

government-backed loans or grants, tax incentives, or public assistance

programs aimed at supporting entrepreneurs. The intention behind such

support is to encourage innovation and economic growth, but it also means

 that taxpayers may be exposed to financial risks associated with

entrepreneurial ventures that do not succeed.

C. In the medium term, entrepreneurial activities may lead to layoffs

(Discharge of a worker) if existing firms close.

At some point, entrepreneurial activities can result in layoffs when

existing firms shut down. When entrepreneurs enter the market and

compete with established companies, some of these companies may

struggle and must close their operations. As a result, employees working

for these firms may experience temporary job loss. This occurs because

competition compels businesses to enhance their efficiency or face the risk

of being surpassed by new entrants. Although entrepreneurship ultimately

leads to job creation, in the short term, it can lead to layoffs as existing firms

adapt to market changes.

HOW DOES IT CREATE JOB OPPORTUNITIES?

 Entrepreneurs and Start-Ups Innovate.

- Entrepreneurship is all about innovation. This is the new, the exciting, the factor

in the front seat driving us to our future. Entrepreneurs identify a gap in the market

and work to fill it with a new product or service. This can create new job

opportunities for people with the skills needed to develop, manufacture, and

market these new products or services. For example, innovative advancements in

technology, such as the rollout of 5G networks, has introduced a host of new jobs

in telecommunications, IT, and cyber security.

 Small Business Creation

- Most entrepreneurs start out as small businesses owners. By starting a new

business, entrepreneurs are able to create jobs for themselves and others.

According to the Small Business Association, entrepreneurship is responsible for

 nearly 13 million new jobs since 1997. These businesses can range from a sole

proprietorship to a small business with only a handful of employees. However, they

all have the potential to grow and create more job opportunities as they expand.

 Industry Disruption

- Many entrepreneurs are able to disrupt existing industries by introducing new

products or services that challenge established businesses. Social media and the

Internet, mentioned earlier, are part of this idea. There are limitless possibilities

when it comes to innovative solutions and industry disruption. Uber, for example,

disrupted the transportation industry by introducing a new ride-sharing service that

is more convenient and affordable for consumers than taxis. This disruption has

created new job opportunities for drivers and other workers in the gig economy,

such as grocery delivery services. During the pandemic, the demand for these

services exploded, which caused a shift in how grocers had to adjust to meet these

new demands. This trend will likely continue now that consumers have

experienced this new efficiency.

 Economic Growth

- Entrepreneurship can also drive overall economic growth, which can create new

job opportunities across a range of industries. When entrepreneurs are successful,

they are able to generate new wealth that can be reinvested into the economy and

contribute to entrepreneurship-led economic development (ELED) within their local

community. This can lead to new business creation, increased tax revenue to fund

infrastructure development, and job growth in a variety of sectors. Think of your

own community or perhaps some you’ve visited. There’s always a certain it-factor

that sticks with you that attracts new residents and welcomes visitors for years to

come. Entrepreneurship can help create these robust, charming, thriving

 communities by stimulating the local economy and adding to its diversity in

offerings.

 Regional Development

- By creating new businesses and job opportunities in areas that have been

historically underserved, entrepreneurs can help to revitalize local economies and

provide new opportunities for residents. This can help to improve physical

infrastructure, doing important work such as fixing roads and buildings and

ensuring access to clean water. In addition, these new opportunities can help to

reduce poverty, pave the way for access to education and healthcare, and create

a more vibrant and diverse community.

NOW THAT JOBS ARE CREATED, WHAT IS THE IMPACT OF JOB CREATION IN SOCIETY?

Job creation has a profound impact on society. Firstly, it provides individuals with

employment opportunities, allowing them to earn a living and support themselves and

their families. Meaningful and stable employment fosters economic security, reduces

poverty rates, and enhances overall well-being. Additionally, job creation fuels economic

growth by stimulating consumer spending, increasing tax revenues, and fostering

innovation and productivity. It also strengthens social cohesion by reducing income

inequality and creating a sense of purpose and belonging in communities. Moreover, job

creation contributes to the development of skills and expertise, boosts workforce

productivity, and drives technological advancements. Overall, the positive effects of job

creation extend beyond individuals to the broader society, creating a more prosperous

and inclusive environment. Because of Establishing a business, we became capable of

creating more jobs. Because of Job Creation, society will benefit a lot from it.
 Importance of Sustaining Business as Job Opportunities

WHAT DO WE MEAN BY SUSTAIN?

- It is to keep something alive and continue for a long time

- It is to maintain something

WHAT IS SUSTAINING A BUSINESS?

In business, sustainability refers to doing business without negatively impacting the

environment, community, or society.

The goal of a sustainable business strategy is to make a positive impact on at least one

of those areas. When companies fail to assume responsibility, the opposite can happen, leading

to issues like environmental degradation, inequality, and social injustice. Sustainable businesses

consider a wide array of environmental, economic, and social factors when making business

decisions. These organizations monitor the impact of their operations to ensure that short-term

profits don’t turn into long-term liabilities.

Sustainability in business generally addresses two main categories:

- The effect business has on the environment.

- The effect business has on society.

WHAT DOES IT DO?

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. Investment in renewable energy is also growing momentum among big

organizations, with many building their own solar or wind farms, in order to phase out the

consumption of fossil fuels and reduce their carbon emissions.

Sustainability and employment

Businesses with strategies that are sustainable in the long run pay their workers salaries

and benefits that allow them to live sustainable life within their community. This builds

loyalty within the organization, benefiting the company through increased productivity and

creativity, as well as lower levels of fraud and mismanagement. Besides, when

organizations look to improve the health and well-being of communities, they can motivate

employees who are genuinely interested in contributing to the business's success.

Sustainability in business practices

Pushed by growing demands from consumers for products and services that cause

minimal effects on the ecosystems, corporations have shown interest in bringing

sustainability aspects to the core of the business.

WHY DOES IT CREATE JOB OPPORTUNITIES?

- The increase in production ensures freedom as it promotes jobs.

- New technologies are utilized and created by business establishments. Modernization of

efficient labor and a faster pace of production is then needed.

- To technology advancements, skilled and knowledgeable workers are needed to sustain

the technology demands.

- Another importance arises when investors invest in products that are necessities to

people. Once an investment is set into progress the need to manufacture more products

arises to keep up with the demand. The result of the increased investors to meet product

demand calls for a need to hire more people in the industry. Building and sustaining a

business is always necessary.

WHY IS IT RELEVANT?

Businesses with strategies that are sustainable in the long run pay their workers salaries

and benefits that allow them to live sustainable life within their community. This builds loyalty

within the organization, benefiting the company through increased productivity and creativity, as

well as lower levels of fraud and mismanagement. Besides, when organizations look to improve

the health and well-being of communities, they can motivate employees who are genuinely

interested in contributing to the business's success.

1. Sustainability draws job seekers because it’s a source of employee’s pride

Sustainability actions often lift a company’s reputation and status, leading many

job seekers to believe they’d feel proud to work for a prestigious organization admired for

its sustainability. Reinforce that anticipated sense of pride by creating and celebrating a

distinctive reputation for sustainability.

2. Sustainability draws job seekers because it implies the company cares about

its employees.

To some job seekers, sustainability initiatives suggest that if a company genuinely

cares about the well-being of the greater society, it would therefore stand to reason that it

likely treats its employees well. Reinforce the belief that the company cares about society

and the planet more generally, and link this to your people's practices.

3. Sustainability connects organizational values to job seekers' personal values.

Job seekers want an employer whose values are a good fit with their own. More

than three decades of research show that the match a person feels with an organization

is a major driver of job choice decisions. Clearly link your sustainability initiatives to specific

organizational values and demonstrate their authenticity.

IN CONCLUSION:

1. Investors invest in your products which are the necessities of people

Upon investment in products, there is a need to manufacture more and keep up

with the demands of the investing company, thus, there is a need to hire more

people for the industry.

2. and regional economic integration

When new businesses export goods and services to nearby regions, these

enterprises contribute directly to a region’s productivity and earnings. Having this

type of production and rise in services, promotes job considering that businesses

involve needs more people for production.

3. New technologies are created and utilized

In the height of progress in some businesses, technology always earns its place.

We need modernization for the fast-paced production and efficiency of labor. In

this thought, more skilled and knowledgeable workers from the field are needed to

sustain the demands of technology.

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