Socio-Economic Development Share employees, which enhances their skills and

Observations on Business Policies and employability. This can lead to a more

Practices skilled workforce and increased productivity.

Socio-economic development is the process Technological Innovation

of social and economic development in a
● Businesses invest in research and
society.
development, leading to technological
Its purpose is to maintain the social and advancements
material well-being of the nation and its
that can improve healthcare, education, and
people with
other areas vital for socioeconomic
the aim of achieving the highest possible development.
level of human development.
Social Responsibility
Positive Impacts on How Business Policies
● Businesses that engage in social
and Practices Affect Socioeconomic
responsibility practices, such as
Development
philanthropy, environmental sustainability
Job Creation initiatives, and community development
projects, can directly contribute to improved
● Businesses create jobs, which provide
living conditions and social justice.
income and improve living standards. This
can lead to increased purchasing power, Increased Standard of Living
stimulating the economy and reducing
● Economic development occurs as
poverty.
economies diversify, provide a greater
Economic Growth variety of goods and services, and as the
purchasing power of consumers increases.
● Businesses contribute to economic growth
by producing goods and services, investing Negative Impacts on How Business Policies
in technology and infrastructure, and and Practices Affect Socioeconomic
generating tax revenue. This creates a Development
larger economic pie, potentially benefiting
Income Inequality
everyone in society.
● Some business practices can exacerbate
Skill Development
income inequality. For example, offshoring
● Businesses often provide training and jobs to countries with lower wages can
development opportunities for their benefit corporations but reduce employment
opportunities and wages in developed Importance of socio Economic
economies. Development

Environmental Degradation Quality of Life: Better access to

necessities like clean water, shelter,
● Businesses can have a significant impact
healthcare, and education raises the level of
on the environment through pollution,
living. Reduce Poverty: Through
resource depletion, and waste generation.
empowering marginalized populations,
This can damage ecosystems, harm human
increasing income distribution, and
health, and hinder long-term sustainability.
generating work opportunities, it contributes
Exploitation of Labor to the reduction of poverty. Social Stability:

● Unethical business practices, where an It keeps societies peaceful and stable, and it

employer benefits from unethical or illegal strengthens social cohesion, lessens

treatment of their employees. This includes inequality, and encourages inclusivity.

unfair wages, long working hours, harmful Economic Growth: By making investments

or dangerous working conditions, violations in human capital, infrastructure, and

of workers’ rights and more and undermines innovation, it promotes economic growth

social development. and raises competitiveness and productivity.

Environmental Sustainability: It promotes
Monopolistic Practices
sustainable development strategies that
● Businesses with significant market power balance economic growth and
can engage in monopolistic practices, environmental protection, ensuring that
driving up prices and stifling competition. resources remain available for future
This can harm consumers and limit generations. Environmental
economic growth. Sustainability: It improves human
capabilities through education, healthcare,
Tax Avoidance
and skill development, allowing individuals
● Businesses that use tax havens or other to attain their full potential and make
strategies to avoid paying their fair share of meaningful contributions to society. In
taxes deprive governments of resources general, socioeconomic development is
needed to invest in public services like essential to building a more just, wealthy,
education, healthcare, and infrastructure, and sustainable society for everybody
hindering socioeconomic development.
Responsibilities and Accountabilities of Importance Of Entrepreneur’s
Entrepreneurs Accountability To Business

Responsibility is the act of having a duty or

● Improved performance - Accountability
obligation to successfully carry out a task,
promotes establishing clear goals and
whether it is assigned by someone else or
encourages entrepreneurs to strive for
created by one's own circumstances. Failing
excellence, take consistent action, and
to fulfill this duty or obligation may result in
achieve better results.
consequences or penalties.
● Strategic decision-making - Rather
Accountability refers to the responsibility of than making impulsive decisions,
demonstrating that work has been carried entrepreneurs committed to
out in accordance with established rules accountability gather the relevant
and standards, or accurately reporting on information and weigh the risks and
performance outcomes in relation to benefits to ensure their choices are
prescribed roles and plans. It involves intelligent and thoughtful.
ensuring compliance and providing
● Employee engagement - Someone said,
transparent and accurate information
“The speed of the leader is the speed of
regarding one's actions and results.
the gang.” Members of your team will
Entrepreneurs are pulled in many different
often mimic and follow your behavior.
directions by a multitude of duties that
So, credibility builds when you do what
demand their attention. Learning how to
you say you’ll do.
manage time efficiently and productively is
● Accelerated learning - Accountability
one of the most difficult things an
encourages business owners to
entrepreneur can do. Understanding which
proactively address problems and
duties belong to the entrepreneur and which
challenges, which fosters accelerated
should be assigned to others can be
learning and subsequent growth.
particularly challenging for a new business
● Sustainable growth - Entrepreneurial
owner who has just left the corporate
accountability ultimately builds a culture
environment.
of responsibility, transparency, and
ethical behavior that ensures the
business operates in alignment with its
values, which leads to greater resilience
and long-term success.
Responsibilities And of all social improvement policies
Accountabilities Of Entrepreneurs adopted by the government.
To ● Creditors
● Employees - Entrepreneurs are obligated to pay the
- Entrepreneurs have the responsibility to sum of money they owe their creditors
pay their employees at least the whether they are at a profit or at a loss.
minimum hourly wage in their locality and - Entrepreneurs must keep a regular
to also pay each employee money owed stream of financial reports to their
from working per pay period, including creditors.
overtime, vacation wages and sick leave.
● Consumer
- Entrepreneurs must make their
- Entrepreneurs must handle the
employees aware of areas in their
complaints of the customers carefully
business that have a high risk for injury
and efficiently and cooperate to the
and train their employees in safety
maximum extent with the consumers
procedures in order to minimize the risk
associations.
of injury.
- Entrepreneurs must provide, “those
- Entrepreneurs should give their
goods and services which the society
employees the best working conditions
needs at a price which the society can
such as provision of pure air, sufficient
afford to pay.”
light, proper temperature, proper space
● General Public
of the workplace, and also arrangements
- The entrepreneur should provide more
for rest, entertainment, sports and
employment to the local people of the
refreshments can be provided.
place, where he is establishing his
● Government
business unit or is performing the
- Entrepreneurs must pay taxes honestly
business activities.
and promptly. These can include taxes
- The entrepreneur should make all
on revenues, tariffs on imported
possible efforts to improve the standard
products, and a number of administrative
of living of the public such as providing
fees necessary to register the business.
scholarships to the children of the
- Entrepreneurs must abide by the laws
employees and other students in the
of the country in their true spirit. They
community, employment facilities, suiting
must help in the proper implementation
disabled persons and orphans, and
 providing assistance in time of any
natural calamities.
Legal Forms Of Business Organization
Advantages:
Sole Proprietorship: A business owned
and operated by one individual. It's the  Shared Responsibilities And
Simplest form of business and offers full Resource
control to the owner but also makes them  Combines Skills And Expertise
personally liable for business debts.  Access To Capital
 Tax Benefits
Advantages:
 Flexibility
 Simple And Inexpensive Setup
Disadvantages:
 Direct Control
 Flexibility  Unlimited liability
 Tax Benefits  Potential for conflict
 Direct Rewards  Shared profits
 Depending on partners
Disadvantages:
 Difficulty in exiting
 Unlimited Liability
Corporation: A legal entity separate from
 Limited Resources
its owners (shareholders) with its own rights
 Limited Skills And Expertise
and liabilities. Shareholders have limited
 Business Continuity
liability, meaning their personal assets are
 Difficulty In Scaling
generally protected from business debts.

Advantages:
Partnership: A business owned by two or
 Limited Liability
more individuals who share profits and
 Perpetual Existence
liabilities. There are different types of
 Access To Capital
partnerships including General
 Transferability To Ownership
partnerships (where all partners manage
the business and share liability) and  Tax Benefits

Limited partnerships (where there are Disadvantages:

both general partners and limited partners,
 Complexity And Regulations
with limited partners having limited liability).
 Double Taxation
  Cost Of Formation And Maintenance  Housing Cooperatives
 Agency Issues  Service Cooperatives
 Disclosure And Transparency  Producer’s Cooperatives
 Transport Cooperatives
Cooperative (Co-op): A business owned
and democratically controlled by its The Cooperative Principle
Members, who could be customers, 1. Voluntary And
employees, or suppliers. Profits and Open Membership
decision-making are shared among 2. Democratic Member
members based on their contributions or Control
transactions with the cooperative. 3. Member Economic

Advantages: Participation
4. Autonomy And
 Democratic Control
Independence
 Mutual Benefit 5. Education, Training, And
 Shared Cost And Resources Information
 Risk Mitigation 6. Cooperation Among
 Social And Community Impact Cooperatives
 Education And Training 7. Concern For Community

Disadvantages: Major Activities In Business

 Decision Making Challenges 1. Sales

 Limited Access To Capital 2. Marketing

 Potential For Free Riding 3. Human Resources

4. Finance
 Business Complexity
5. Production
 Limited Scale And Growth
6. Operations
7. Customer Services

Common Types of Cooperatives: Legal Certificates

 Agricultural Cooperatives Security and Exchange Commission (SEC)

 Consumer Cooperatives
 Batas Pambansa Blg. 68
 Credit Cooperatives
 Multi - Purpose Cooperatives Department of Trade and Industries (DTI)
  Provision of Act 3883, as amended
by Act 4147 and Republic Act No.
863

Cooperative Development Authority (CDA)

 Republic Act 9520