Senior High School

Business Ethics
and
Social Responsibility
The Business Responsibilities and
Accountabilities

SELF-LEARNING KIT
For Grade 12
(Specialized Subject)
2nd Semester
Module 1 – Week 1

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Business Ethics and Social Responsibility – Grade 12
Learners Self Learning Module
Quarter 4 – Module 1: The Business Responsibilities and Accountabilities

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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 1

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. Its payment usually of money for labor or services usually according to
contract and on an hourly, daily, or piecework basis.
a. Payment b. Salary c. Wage d. Benefits
___ 2. It is a form of payment from an employer to an employee, which may be
specified in an employment contract.
a. Payment b. Salary c. Wage d. Benefits

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___ 3. It is an indirect, non-cash, or cash compensation paid to an employee
above and beyond regular salary or wage.
a. Payment b. Salary c. Wage d. Benefits
___ 4. The entrepreneur’s character should possess the following except;
a. Stay on top of your industry and be ready to adopt changes in
processes and product as they are needed.
b. The Passion to find motivation when you are discouraged, and it
will drive to move forward.
c. It will not take risks of anything where return of products is less.
d. Basic Money Management Skills and Knowledge.
___ 5. A person who is hired by the contracting parties or an individual after an
application and interview process results in his or her selection.
a. Contractors b. Crew c. Employee d. Employer

Lesson 1 Responsibilities and Accountabilities of an Entrepreneurs

Learning Objectives:

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

1. discuss the responsibilities and accountabilities of

entrepreneurs to: employees, government, creditors,
suppliers, consumers, general public, other stakeholders.

If I am going to
considered myself as
an entrepreneur, what
am I responsible of?

✓ Self-Check:

1. How will I cater needs of my clients, customers, consumers and to the

general buying public?
____________________________________________________
____________________________________________________
____________________________________________________

2. What are those social responsibilities or the things that I need to

comply to the government in order to help in building a nation?
____________________________________________________
____________________________________________________
____________________________________________________

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 3. What are my rules and responsibility to my creditors?
____________________________________________________
____________________________________________________
____________________________________________________

4. What are my accountabilities to the employees?

____________________________________________________
____________________________________________________
____________________________________________________

5. How will I deal with my suppliers?

____________________________________________________
____________________________________________________
____________________________________________________

“As an entrepreneur, you have a lot of passion and responsibility.

You have to kindle the same passion and responsibility to your
employees.” ~ Gurudev Sri Sri Shankar

 Write your insights inside the box provided:

❖ What is it?
According to Investopedia there are a lot of responsibilities of an
entrepreneur to his employees. Among of these are the following:

1. Sensible and Attractive Salary – the company should have attractive

compensation packages to attract more potential talents to join the
organization who can be of help in the achievement of the long-term goals
of the company. This can be also a source of motivation for employees to
do the job well assigned to them according to the plans of the organization.

2. Assignment of Right Jobs

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 Taking into consideration the technical and the educational background of
the employees in assigning them to the job where they are good at. No
mismatching of jobs with employees’ qualification.

3. Provide Security of Employment

The entrepreneur should give their employees job security in the
organization so that these employees will be motivated to work with utmost
dedication and commitment. Employees will no longer have fear to lose the
job and thus, develops higher degree of faith with their employer.

4. Provide Best Working Environments

Making sure that the physical environment of the workers are well taken-
cared of by providing good lighting, proper temperature and workable space
for the employees is an accountability by the entrepreneur. This will make
the workers comfortable working in their own department.

5. Assumption of Welfare Arrangements

Entrepreneurs are also responsible in the welfare of their employees. It is
their accountability to provide financial support during sickness, old age,
accidents and even death. Even at the time of health crisis where there are
unemployment, employers should also provide financial assistance.

6. Humane Behavior towards employees

Employees should be treated compassionately by allowing them to practice
their rights and enjoy being workers of the company. Entrepreneur should
create humane workplace necessary for the workers to do the things that
they are tasked to do.

7. Formation of Small Business Relations

Establishment of good relationship with the employees to protect the
interests of everyone. An organization with good industrial relations may
have effective communication lines which is very important in any
organization.

8. Participation in Profits and Management

There are instances when employers share their profits to the employees.
This is based on the principle that profit of the organization is not of the
owner alone but also for the rest of the employees of the organization. This
can be one of the responsibilities of the entrepreneur.

9. Definite Service Surroundings

The employees should also have full knowledge of all these service
conditions that may cover promotions, appointment, penalties, suspensions
and dismissals as well as retirements, service period. There must be clear
and well-defined structure of these areas of employment.

10. Spouse Incentives Wages Structure

One way of inspiring employees to aspire for higher quality of work is to
give them incentives and salaries. These provisions will be beneficial to both
the workers and the enterprise.

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On the other hand, entrepreneurs also have responsibilities to their suppliers and
creditors. Entrepreneurs are accountable of the following:

2. Pay Fair Prices of Goods at a reasonable time – Entrepreneurs have

the responsibility to pay for the agreed prices with the suppliers. This helps
in the establishment of good relationship with the suppliers. On the other
hand, it is also the responsibility of the entrepreneurs to pay their creditors
at an agreed term.

3. Inform about Changes in Market – Information on the Changes in the

market should be provided by the entrepreneur to his supplier especially on
the demands of the commodities.

4. Give Guarantee of Minimum Price - The entrepreneurs should give the

assurance of lowest prices to the suppliers so that the certainty of the price
will be sustained.

5. Provide Technical Advice -The entrepreneur has the responsibility to

provide procedural assistance his suppliers for the creation of new and
replaced supplies.

6. Inform Suppliers of Future Developments – Provision of information on

future growths to the suppliers so that suppliers will be aware of these
circumstances and that they will develop themselves in line with the
changes of the business environment.

7. Promote Healthy Competition – Any unhealthy and hostile competitions

among suppliers should not be allowed by the entrepreneur. This is one of
the accountabilities of an entrepreneur to his creditors and suppliers.

Finally, entrepreneurs also have responsibilities and accountabilities to their

clients. Customers are the most important factors of the business. Thus, it is only
important that entrepreneurs should take care of them. The following are the
responsibilities of the entrepreneurs to the customers.

1. Determination of Fair Prices – Entrepreneurs should identify just process

for the goods and services so that customers will develop trust on the
product and in the long run, they also develop loyalty to the business as
well as to the product.

2. To Render Good and Economic Services – Good customer service is

very important in a business. It is the responsibility of the entrepreneurs to
provide good and cheaper services to the customers.

3. Standardization of Goods – The entrepreneurs should make sure that the

product or the goods bought by the customers are in good condition so that
it will not provide danger to the customers when they use it. Goods and
services should pass the quality standards set by the company as well as
the government.

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 4. Best and Economic Packing of Products – Packaging is an important
marketing strategy. The goods and services should be packed well to
prevent damage of the product.

5. Right and Truthful Advertising – Truthful and honest in advertising are

very essential in marketing the product. It is a moral and a social
responsibility of the entrepreneurs.

6. To Avoid Adulteration, Low Weight and Measurement of Products –

Products should be produced following the specific designs set by the quality
standards of the company. Tarnishing of live-saving goods such as
medicines are harmful to life.

❖ What’s More?

There are also responsibilities and accountabilities of entrepreneurs to the

government.

1. Compliance of Government Rules – The entrepreneur should be law

abiding. Whatever will be required by the government, the entrepreneur
should comply with it in accordance with the law. The entrepreneur should
comply with the laws concerning attainment of licenses for a particular
business, running of the business, price identification and even production
of goods and services.

2. Payment of Taxes – Any business is taxed by the government. The

entrepreneur should follow the imposition of taxes such as income tax and
sales tax. There should be honest declaration of income so that it will be
taxed accordingly.

3. Not to Seek Political Patronage by Unfair Means – It is the

responsibility of the entrepreneur not to seek for any political support
through provision of unnecessary economic help to any political party or
politicians especially during elections.

4. Work together with Government for Commercial Development

The entrepreneur should cooperate to the government by appropriate
application of existing resources in harmony with the government
objectives. For example, the Philippine government aims to increase
employment for retrenched employees during the health crisis. Therefore,
the entrepreneur should help the government achieve its aims.

Congratulations! You have completed Lesson 1 successfully!

 Let us Apply What I have learned?

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 ✓ Self-Check: A.

“Try to put yourself in a workplace either; you are a crew in a fast food chain,
or as employee of a gasoline station or any work related in a company. What
are the accountability and responsibility of the following during the pandemic
crisis.”

✓ Self-Check:
DISCLAIMER B.
I do not own or license any copyright in the texts, images, photographs,
❖ HOW MUCH
graphics andHAVE YOU LEARNED
other content provided inFROM THIS This
this module. MODULE?
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
_______________________________________________________________

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

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 KEY POINTS TO REMEMBER:
Responsibilities of an entrepreneurs to his employees:
• Sensible and attractive salary
• Assignment of right jobs
• Provide security of employment
• Provide best working environments
• Assumption of welfare arrangements
• Humane behavior towards employees
• Formation of small business relation
• Participation in profits management
• Definite service
• Espouse incentives wages structure
Responsibilities of an entrepreneurs to their suppliers and
creditors:
• Pay fair prices of goods at a reasonable time
• Inform about changes in marker
• Give guarantee of minimum price
• Provide technical advice
• Inform suppliers of future developments
• Promote healthy competition
Responsibilities and accountabilities of an entrepreneurs to their
clients:
• Determination of fair prices
• To render good and economic services
• Standardization of goods
• Best and economic packing of products
• Right and truthful advertisements
• To avoid adulteration, low weight and measurement
of products
Responsibilities and accountabilities of an entrepreneurs to the
government:
• Compliance of government rule
• Pay of taxes
• Not to seek political patronage by unfair means
• Work together with government of commercial
development

5. C Answer Key
4. C
3. D
2. B
1. B
Pre-assessment Test For other activities: Answers may vary

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