Senior High School

Business Ethics
and
Social Responsibility
The Business Responsibilities and
Accountabilities

SELF-LEARNING KIT
For Grade 12
(Specialized Subject)
2nd Semester
Module 2 – Week 2

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Business Ethics and Social Responsibility – Grade 12
Learners Self Learning Module
Quarter 4 – Module 2: The Business Responsibilities and Accountabilities

Republic Act 8293, section 176 states that: No copyright shall subsist in
any work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other
things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this book are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to
use these materials from their respective copyright owners. The publisher and
authors do not represent nor claim ownership over them.

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DEPARTMENT OF EDUCATION
REGION VII
DIVISION OF MANDAUE

NIMFA D. BONGO, EdD, CESO V

Schools Division Superintendent

ESTELA B. SUSVILLA, EdD, CESO VI

Assistant School Division Superintendent

JAIME P. RUELAN, EdD

Chief Curriculum Implementation Division

ISMAELITA DESABELLE, EdD

Education Program Supervisor (LRMDS)

KENN NORWAY B. MARZADO, EdD

Education Program Supervisor- EPP/TLE

RESTY ALOB TOMPONG, LPT, MBA

Writer/Illustrator/Layout Artist
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Learners Self Learning Module

for Senior High School Grades 11 and 12
Module No. 3, Week 2

Responsibilities and Accountabilities of an Entrepreneurs

CONTENT STANDARD:

• discuss the responsibilities and accountabilities of entrepreneurs toward

the employees, government, creditors, suppliers, consumers, general
public, and other stakeholders; major ethical issues in entrepreneurship
(basic fairness, personnel and customer relations distribution dilemmas,
fraud, unfair competition, unfair communication, non-respect of
agreements, environmental degradation, etc.);

• models and frameworks of social responsibility in the practice of sound

business.

PERFORMANCE STANDARD:

1. identify responsibilities to the business organization he/she belongs

to;
2. explain the different models, frameworks of social responsibility,
importance of these social responsibilities and accountabilities.

❖ What I Need to Know?

For the Learners

Module three offers lessons that will help the leaners to understand deeply
the social responsibilities and accountabilities of an entrepreneur. This allows the
leaners to develop the needed competencies that they need to achieve for this
quarter. Finally, the development team hopes that learners will enjoy doing this
module.

❖ What Do you Already Know?

Instructions: Carefully read and try to evaluate each statement listed below.
Write the letter of your choice on space before each item.

___ 1. It is an authority which employs and pays individual who are in contract
for their labor. It may be an individual person, or it may be a company
representing many people.
a. Contractors b. Crew c. Employee d. Employer
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___ 2. It is the process of designing, launching and running a new business, which
is often initially a small business, or as the "capacity and willingness to develop,
organize and manage a business venture along with any of its risks to make a
profit
a. Enterprise c. Entrepreneur
b. Vendors d. Small scale business

___ 3. Employers should possess lawful and righteous responsibility towards

employees except;
a. Employers must make sure their employees are not harassed or
discriminated against.
b. Employers must pay their employees the salary and benefits they
agreed to, including vacation, paid holidays and other types of
holidays.
c. Employers must make sure their employees’ working conditions
are safe
d. Employers must maintain balance from profit and employees work
percentage

___ 4. Employees responsibilities towards their employer should;

a. Work on the time where you are able to perform
b. Always ask for equal profit shares
c. Time on task to the detailed work instruction
d. Ask for cash assistance during the pandemic

___ 5. It is an obligation to do on what is right, just and fair actions.

a. Legal Responsibilities c. Social Responsibilities
b. Ethical Responsibilities d. None of the above

Lesson 2 Major Ethical Issues in Entrepreneurship

Learning Objectives:
At the end of the week, it is expected that the learners must be able to:

1. discuss the major ethical issues in entrepreneurship;

2. formulate a morally defensible position on ethical issues in
entrepreneurship;

Learning Competency:

• formulate a morally defensible position on ethical issues in

entrepreneurship like basic fairness, personnel and customer relations
distribution dilemmas, fraud, unfair competition, unfair communication,
non-respect of agreements, environmental degradation, etc.
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 Lesson 2_ Activity 1

1. Was there a situation in school wherein you experienced moral predicament?

How did you deal with it?
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

2. What do you think is the purpose of moral principles especially in business?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

3. What ethical principle in life that you might use it also as your guiding
principle in your future business?
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

❖ What is it?

Listed below are the most common ethical issues encountered by

entrepreneurs:

Favouritism/Partiality

Entrepreneurs should not be biased when it comes to hiring employees and

in making decisions in other aspects. You don’t hire a less qualified job
candidate because he is related to you or because he is your favorite. It is
not only unethical but you are also hiring someone who is not best for the
position.

Copyright Violation

The mistake of infringing copyrights of other businesses is an abuse of the

law. It is important that you should ask permission from the rightful owner
before you use their own creations for business.

Overworking Your Staff

Entrepreneurs asking too much work from their employees without even
understanding their situations is unethical. Entrepreneurs should know
their limit in assigning workloads to their employees.

Tax Accounting and Dishonesty of Expenses

Dishonesty in declaration of assets and income just to get lower tax is

unethical. It is important that the entrepreneur should not mix personal and
business expenses. Not doing it right mind end up in trouble with the law.

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 Claiming Income

Hiding income generated and not declaring it may hamper the business
because it will deprive the government from collecting from these
entrepreneurs. This qualifies as unethical because there is dishonesty in this
situation.

Hiding Blemishes During Fundraising

It can be very tempting to slightly exaggerate things while on the hunt for
investment and it is a very slippery slope with no real upside. You either
lose credibility/trust later on or commit yourself to an unrealistic timeline
that will only frustrate those who have bought into your dream. Be
optimistic but realistic with where challenges might occur. Openness and
honesty help ensure a good fit.

Merging Personal and Business Accounts

Never merge personal income with business income. Entrepreneurs should

be sensible with their expenses. Proper payroll or paying quarterly taxes
should be observed.

Hiring someone to write fake reviews

Hiring people to write fake reviews about the company is unethical. There
also companies being paid just create fake survey results just like TV
ratings. This action is not ethical because these businessmen are giving fake
information about their company just to appear positive online.

 Lesson 2_ Activity 2

1. How important are these ethical principles in business?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

2. How do you deal with unfair practices in entrepreneurship?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

3. What is your idea of unfair competition? How essential is the respect of

agreements or contracts?
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

4. Formulate your own ethical principles reagarding customer service as a future

entrepreneur.
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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 Lesson 2_ Activity 3

Case Analysis:

An Entrepreneur is looking for contractors to work on their new building

in preparation for her company’s expansion this 2021. She then assigned
her resident engineer to facilitate the invitation to bid for the project. There
were five bidders sent letters of intention. Two days before the final
evaluation of bids, one of the bidders Chaani Devasena gave the engineer
five gift certificates worth P10,000 each. Engineer assigned, gladly
accepted the gift certificates.

1. Was an engineer right in accepting the gift certificates? Why? Or Why not?
___________________________________________________________
___________________________________________________________
___________________________________________________________
2. If you were the said Engineer, would you do the same? Why? Or why not?

___________________________________________________________
___________________________________________________________
___________________________________________________________

3. In case you were Chaani Devasena and you knew about it;
how will you handle the situation?

4. Write a situation in your life where

you also encountered the similar
situation with the
Engineer. How did you handle the situation?

Reflect on your drawing by answering the question below. Discuss your

insights with your classmates and teachers during the face-to-face or
online conference.

___________________________________________________________
___________________________________________________________
___________________________________________________________

5. How do you describe the activity? How does your drawing relate to you
and you’re your life?
___________________________________________________________
___________________________________________________________
___________________________________________________________

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 KEY POINTS TO REMEMBER:
Most common ethical issues encountered by
entrepreneurs:
➢ Favoritism/Partiality
➢ Copyright Violation
➢ Overworking Your Staff
➢ Tax Accounting and Dishonesty of Expenses
➢ Claiming Income
➢ Hiding Blemishes During Fundraising
➢ Merging Personal and Business Accounts
➢ Hiring someone to write fake reviews

Good job!
You have completed Lesson 2 successfully!
✓ Self-Check:
 I have understood the lesson well and I can even teach others to learned
to.
 I have understood the lesson but there are still other things that I need to
review and revisit.
 I need to do an additional work to be able to master the lesson well. I need
someone’s help in some tasks to do.
Note:
If you checked the first box, you are ready to take the next lesson. If you have
checked the second box, you need to review the things that you need to
relearn. If you have checked the third box, it would be best if you read more
and ask help from your teacher, parents or peers in clarifying the lessons that
you find difficult. Assess yourself honestly.

REFERENCES:
https://www.researchgate.net/figure/Carrolls-pyramid-model-of-corporate-social-
responsibility-Carroll-1991_fig1_308937632
https://hbr.org/2020/04/coronavirus-is-putting-corporate-social-responsibility-to-the-
test
https://www.googlesir.com/responsibility-of-entrepreneur-towards-suppliers-creditors-
and-depositor/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-employees/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-government-
institutions/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-customers/
https://images.app.goo.gl/aNyzzqNVfAXo3hRU7
DISCLAIMER
I do not own or license any copyright in the texts, images, photographs,
graphics and other content provided in this module. This module is solely for
non-commercial, informational and educational purposes. There is no intention
on my part to claim ownership as the contents or make profit out of this module.
Prepared by: RESTY A. TOMPONG, LPT, MBA
SHS Teacher/ SHS Curriculum In-Charge
DGLLOMNHS