ASSUMPTA TECHNICAL HIGH SCHOOL

Sta. Monica, San Simon, Pampanga

S.Y. 2021 – 2022

MODULE IN BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Grade 12
QUARTER: 3

I. Topic: The Business Organization

Time Frame: 2 weeks
II. Most Essential Learning Competencies:
At the end of this module, you will be able to:
• Differentiate the forms of business organizations in terms of their purpose and
role in socio-economic development.
• Illustrate how fairness, accountability, transparency, and stewardship are
observed in business and non-profit organizations.

III. Formation Standard:

The learner will become a person of integrity in the midst of the changing and
challenging environment.

IV. Learning Objectives:

At the end of the module, you should be able to:
• differentiate the forms of business organizations and give examples for each;
• discuss how these organizations contribute to socio-economic development;
• illustrate how fairness, accountability, and transparency are practiced in business
and nonprofit organizations.
V. Learning Activities
Let us pray…
In the name of the Father, and of the Son, and of the Holy Spirit.
Amen.
The Memorare
Remember, O most gracious Virgin Mary, that never was it known
that anyone who fled to thy protection, implored thy help, or sought
thine intercession was left unaided.
Inspired by this confidence, I fly unto thee, O Virgin of virgins, my
Mother; to thee do I come, before thee I stand, sinful and
sorrowful. O Mother of the Word Incarnate, despise not my
petitions, but in thy mercy hear and answer me.
Amen.
In the name of the Father, and of the Son, and of the Holy Spirit. Amen.
ATHS Module for Business Ethics and Social Responsibility Grade 12: The Business
Organization | 1
Profit Organizations & Nonprofit Organizations
Profit Organizations
• Have the right to keep and use
their profits as they choose –
within legal limits – because profit
is the reward for the risk they take
in making and selling their
products.
Nonprofit Organizations (NPOs)
• Are formed for a specific purpose
to serve the common good of the
public.
• These organizations do not have
the fundamental purpose of
earning profits, but they may
initiate activities that can help
them raise funds for their
advocacy.
• “Entirely or largely independent
of the government; Are not
operated for profits; and Exist to
serve humanitarian, social or
cultural interests, either of their
members or of society as a whole.”
–World Bank
• Example: To assist victims of
domestic violence, to promote
animal welfare, or to care for the
elderly, etc.

If you were to choose a nonprofit organization to support, which would it be?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Why did you choose this organization?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

What is its advocacy?

ATHS Module for Business Ethics and Social Responsibility Grade 12: The Business
Organization | 3
 ▪ Creating Employment Opportunities
Business organizations, whether big or small,
create employment opportunities. When
customers patronize the products of businesses,
these companies commit to providing better
goods and services for the customers to continue
buying their products. As companies grow, they
hire more people to keep up with the demands of
the market. (Baquillas, 2017)

▪ Advancing the Economy

The 1987 Philippine Constitution recognizes entrepreneurship or putting up businesses
as an engine of economic growth.
Article XII, Section 1 highlights the role of private enterprises in supporting the
equitable distribution of income and wealth, sustaining production of goods and
services, and expanding productivity, therefore raising the quality of life.
When people have jobs or businesses, they have disposable income that they can use
to purchase more goods and services.
The income that businesses generate advances the national economy.
Big corporations are not the only ones that contribute to the economy. Micro, small
and medium enterprises (MSME) are
also important components of the
economy.
They stimulate the development in
rural and far-flung areas, supply or
provide support services to large
enterprises, and serve as a breeding
ground for new entrepreneurs.
(Baquillas, 2017)

▪ Promoting Sustainability
Most CSR activities use sustainable development as a starting point for business
organizations.
This means that if a company takes raw materials from the forest (e.g. timber), this
will be replenished in the immediate future through different means such as the use of
sustainable farming, replanting, etc.
Promoting sustainable development and becoming environmentally sustainable make
good business sense because of the
following reasons:

ATHS Module for Business Ethics and Social Responsibility Grade 12: The Business
Organization | 5
 ___________________________________________________________________________
___________________________________________________________________________

Which of the products that you buy are manufactured by socially responsible companies?
___________________________________________________________________________
___________________________________________________________________________

ACCOUNTABILITY, FAIRNESS & TRANSPARENCY

Please read the Article on Society and the State in Economic Life given below.

Society and the State in Economic Life

Society is composed of people, each person free to act in a planned and rational manner, and to work to
the best of his abilities in order to support both himself and his family. Of course, working to earn a living is
only one form of activity in which people in society are engaged. There are many others, such as playing a
sport or, in the case of students, studying for an exam. As we pursue our individual activities, we may get
into one another’s way.

The potential for chaos is thus very real, not because people are inherently evil, forever plotting and
scheming to put one over another, but because it is simply impossible for us to be fully aware of and
sensitive to other’s rights all the time, even if we try very hard. To help people avoid feeling this way, and
also to prevent them, in turn, from deliberately violating other’s rights, the State enters to promulgate and
enforce laws duly agreed upon by members of society. Laws and the state function more like the conductor
of an orchestra. Each musician can play with superb skill, perhaps better than any other musician not
handling that particular instrument. But to produce the full sound of an orchestra, complete with the soulful
harmony and sweet tonal quality, each musician has to follow a conductor.

In society, the State is the conductor who must coordinate everyone’s movements, its members are the
musicians who need to be guided according to the musical score, and the symphony is the set of societal
goals which, when obtained, enables people to bring out their best and to improve their quality of life. But
in the orchestra, the conductor needs to look at the musical score, which can be viewed, in our society
analogy, as the set of laws and regulations.

The orchestra produces harmony when each musician pays attention to the conductor and his own sheet of
music! The musicians do not choose what sheet of music to bring and follow; they use the same score as
what the conductor is following. The conductor expects each instrument to be great at what it is designed
for, and to be used in harmony with others, to create great music. These traits of the musician –justice,
obedience, and accountability –are important for harmony.

Source: Villegas, Bernardo, (2001). Guide to Economics for Filipinos. Manila: Sinag-tala Publishers,
Inc.
What is the article all about? How is it related to our lesson?

Accountability

ATHS Module for Business Ethics and Social Responsibility Grade 12: The Business
Organization | 7
 ➢ (1) looks at the balance of benefits and burdens distributed among members of a
group; and/or
➢ (2) can result from the application of rules, policies, or laws that apply to a society or a
group.
➢ In general, the just results of actions override utilitarian results.

Transparency
Several issues associated with corporate transparency such as:
-The ethical justifications for information disclosure
-The ethical nature of corporate information transparency
-The use of transparency in management-employee relationships.
Transparency is essential in building families, and through families, in strengthening civil
society as a whole: “The human family does not submerge the identities of individuals,
peoples, and cultures, but makes them more transparent to each other and links them more
closely in their legitimate diversity”. (CV 53)
On the organizational level,
Transparency is identified as an important mechanism for guaranteeing social
accountability.
Transparency plays in international and non-government organizations (NGOs) working
on humanitarian projects. Appropriate information disclosure is necessary to inform
donors about how their money is used by these organizations.

“Business is a combination of war and sport.”

– Andre Maurois

Do you agree with the statement above? Explain.

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Formative Assessment:
I. TRUE or FALSE. Write TRUE if the statement is correct and FALSE if it is incorrect.
ATHS Module for Business Ethics and Social Responsibility Grade 12: The Business
Organization | 9