Business Ethics and Social

Responsibility
Quarter 3 – Module 1 – Lesson 1:

Discuss the Responsibilities and

Accountabilities of Entrepreneurs
What is it
People mostly believe that business should not only
make a profit but also consider the social implications
of their activities. We define social responsibility as a
business’s obligation to maximize its positive impact
and minimize its negative impact on society as well as
to the other stakeholders (both internal and external)
involved. Recognizing these responsibilities can resolve
and avoid many problems and conflicts in business.
The responsibilities and accountabilities of entrepreneurs to
stakeholders:
Business / Entrepreneur

Employers – give accurate & is somebody who pays you to

timely information about works for them, like a boss..,
the status of the business. owners of the business
Employees
 safe workplace is someone who works in a
 pay adequately business and gets paid by someone
 inform of the company status else

Internal Stakeholders
- Entities that works directly in the business
Creditors / Investors – provide
Transparency & fair return on
capital invested.
Government – need to comply
to its rules.
Suppliers – need to disclose its
purchasing and payment policies.
Customers – provide them with
satisfying, safe products and to
respect their rights as customers.
General Public – need to consider
its general welfare.
- gave their money to be used in a
certain business hoping for a return.
- Legal
Authorities
- other businesses whom you get
your raw materials.
- those who are buyers of goods and
services.
- communities and societies in
which they operate.

External Stakeholders
- Entities that don’t work in the business but are affected by its decisions.
Employer-Employee Relationship

Because you will be working in a real business soon through

your Immersion Activity as Senior High School, it will be
beneficial for you to know more about the responsibilities your
company has to you and likewise. It is often said, the company
is only as good as its work force. Companies should realize the
value of its employees. The employees not only play a role in
the operations of the company but has an impact to the overall
success of the firm. That among the business’ stakeholders, the
employees take the most vital role. Given so, it is just right to
give the employees what they deserve. But it is always a two
way process, the employees as well should be professional
enough to fulfill its responsibilities to pursue the best interest of
their organization. The employee likewise should do the
following:
The employer-employee relationship
should be one of mutual reliance. The
employer is replying upon the employee to
perform her job and, in doing so, keep the
business running smoothly.
Responsibilities of the Employer to the Employees

a. Just compensation.
b. Regular salary.
c. Proper working conditions.
d. Security in their jobs.
e. Other benefits.
f. Training an worker’s rights.
g. Fair treatment.
h. rewards.
Responsibilities of the Employees to
Employers;

• Obey a lawful, reasonable order within the terms of the

contact of employment.
• Establish open communication with the company.
• Give an honest day’s work, give enough time, efforts and
intelligence.
• Other moral obligations like loyalty, candor, caring and
respect.