Chapter 2

Business Organizations
as Partners for
Socioeconomic
Development
1
Have you ever
experienced feeling
relieved that a
nearby store sells a
product that you
need??
2
Or that it offers
services that meet
your needs?
3
Businesses aim to
meet the demand
for goods and
services while they
make a profit.
4
BUSINESS’S WORTH
1. Identify three local business organizations that are present in your
barangay.
2. List the contributions of these businesses to your local community.
Write down your answers in the table provided.
3. Answer the questions that follow.
5
BUSINESS’S WORTH
Table. Businesses in our barangay
Businesses Contributions
QUESTIONS TO PONDER
1. How does your barangay benefit from the businesses that operate
locally?
2. If these businesses do not exist, what could happen to your community?
3. Do you think businesses can have negative effects on a barangay or the
society in general? Explain your answer.
7
Why is it important for businesses to
establish a good relationship with the
community?
8
THE PURPOSE OF BUSINESS
BUSINESSES
● private, profit-
oriented entities
● differ in size,
structure, and types
of activities
9
10
PURPOSE
● to provide the needs

of society
● to contribute to the
common good
11
PROFIT OR SOCIAL GOOD?
“The purpose of business

is to provide goods and
services, the motivating
force is the reward of
profit for individuals.”
- Ronald Duska
12
PROFIT OR SOCIAL GOOD?
● primary: to provide
socioeconomic
development
● secondary: to gain
profit
- Paul Camenisch
13
1. WHAT WOULD HAPPEN IF BUSINESSES FOCUS ON SEEKING
PROFIT AS THEIR PRIMARY PURPOSE WITHOUT CONSIDERING
THE IMPACT ON SOCIETY AND THE COMMUNITY?
14
How the Community Appreciates a Business
Maria established a rice retailing business with a general

merchandise store in their barrio. She hopes to earn sufficient
profit to fund her children’s education and her family’s needs
through this business. She admits that she wants to grow her
business to have a chance to live a comfortable and luxurious life.
15
How the Community Appreciates a Business
While Maria’s motive is financial reward, the community

appreciates the existence of her business because rice—a
staple food for Filipinos—is now easily accessible and has
become more affordable. The residents note that before Maria
set up her business, they had to rent a tricycle to go to the
town center to buy rice and other essential commodities.
16
CONTRIBUTION TO SOCIOECONOMIC
DEVELOPMENT
BUSINESSES
● major drivers of
socioeconomic
development.
● Their success
depending on
socioeconomic
factors.
17
DEVELOPMENT
BUSINESSES
● can positively or
negatively impact the
people’s quality of life
● need people as their
workforce,
consumers,
distributors, and
retailers 18
DEVELOPMENT
19
DEVELOPMENT
CREATING JOB
OPPORTUNITIES
● workforce: an
important element in
businesses
20
DEVELOPMENT
CREATING JOB
OPPORTUNITIES
● employment: With a
stable source of
income, people can
spend on services and
products .
21
DEVELOPMENT
CREATING JOB OPPORTUNITIES
● Businesses can generate jobs directly.

● Their activities can revitalize other sectors of the
economy.
22
DEVELOPMENT
CREATING JOB OPPORTUNITIES
17.5%
● 7.2 million Filipinos were

employed by the formal
business sector in 2018.
(PSA 2018) 23
DEVELOPMENT
PROVIDING OPPORTUNITIES FOR CAREER
ADVANCEMENT
● People can move up in

the organization by
developing new skills and
gaining relevant work
experience.
24
DEVELOPMENT

ADVANCEMENT
● higher skills = higher

wages
● People earning a good
wage can improve their
standard of living.
25
DEVELOPMENT
ADVANCEMENT
● Employees can get inspired

to become entrepreneurs.
○ Their innovative ideas can
provide solutions to local
concerns.
26
DEVELOPMENT
DISTRIBUTING INFORMATION
AND TRAINING
● Businesses have an
unending drive to
improve their products
and services.
27
DEVELOPMENT
AND TRAINING
Businesses gather data on

consumers. Why?
● To innovate strategies
and technologies
● To create new products
and services
28
DEVELOPMENT
AND TRAINING
● Employees are trained on

the latest technology and
strategies.
● Training enhance the
skills of the community.
29
2. ASIDE FROM THOSE MENTIONED, WHAT ARE THE OTHER
CONTRIBUTIONS OF BUSINESSES TO THE COMMUNITY AND
SOCIETY?
30
DEVELOPMENT
IMPROVING THE ECONOMY
● Economy is the process or

system by which goods
and services are
produced, sold, and
bought in an area.
31
DEVELOPMENT
● Goals:
○ growth
○ high employment rate
○ price stability
32
DEVELOPMENT
● Local businesses enhance

the circulation of money
within an area. Their
activities promote growth
and development.
33
Helping Hands
Jose decided to put up a coffee shop and bakery in their

barangay. He lived near a tourist destination and some farms
that produce coffee beans.
He approached the local farmers’ organization and offered to

buy their coffee beans for his shop. He also asked Juan and
Frank, the known masons in the neighborhood, to ask them to
help him build his shop and get more workers.
34
Helping Hands
Jose employed other residents as his baker, barista, and

service crew. He trained them since none of them had previous
related experience. He also asked for the assistance of a local
agent in acquiring business permits and looking for a
bookkeeper who would track his business expenses and a
social media manager who would help him promote his
business.
35
DEVELOPMENT
CONTRIBUTING TO COMMUNITY
DEVELOPMENT
● Community development:
Activities and programs for
the well-being of the
community can create
opportunities.
36
DEVELOPMENT
DEVELOPMENT
● Businesses are usually involved in the

social activities of their communities.
○ charities
○ volunteer programs
○ relief and rehabilitation missions.
37
DEVELOPMENT
DEVELOPMENT
● Social activities create a

symbiotic relationship
between businesses and the
community.
38
The Uplifting Philippine Organization
There exists an organization dedicated to uplifting Filipinos'

lives by becoming a consultant and partner of Filipino
companies and benefactors.
The organization actively engages with companies by

promoting responsible business practices, social investment,
and philanthropy. It consistently creates sustainable solutions
to societal problems in its core program areas: education,
environment, health, livelihood, and enterprise development.
Philippine Business for Social Progress, “Who We Are,” PBSP, https://www.pbsp.org.ph/about,
last accessed on April 26, 2022. 39
The Uplifting Philippine Organization
At the height of the COVID-19 pandemic in 2020, this

organization worked with its members and partners to provide
personal protective equipment, relief goods, and livelihood
assistance to vulnerable sectors and communities affected by
the pandemic.
Philippine Business for Social Progress, “Who We Are,” PBSP, https://www.pbsp.org.ph/about,

last accessed on April 26, 2022. 40
● Businesses are social institutions that exist to address the needs of
society. They provide opportunities for people to improve their
quality of life. The primary purpose of businesses is to contribute to
social and economic development, while gaining personal benefit
and profit is secondary.
● Businesses can build and maintain capital through their operations,
the goods and services they provide, and the programs they support
through complex supply chains.
41
42
Do a thumbs-up if the statement is correct. Otherwise, do give a
thumbs- down.
1. According to Ronald Duska, the motivation and purpose of

businesses are to create wealth for their owners.
TRUE FALSE
43
thumbs- down.
2. Business activities can only positively impact the

opportunities and quality of life of people.
TRUE FALSE
44
thumbs-down.
3. Local businesses that patronize other companies create a

thriving local economy.
TRUE FALSE
45
thumbs-down.
4. Planning and starting a small business limit the

opportunities for entrepreneurs to be in control of their
future.
TRUE FALSE
46
thumbs-down.
5. The contribution of business organizations is limited to

their role in the market as producers and consumers.
TRUE FALSE
47
Map of Local Businesses
Draw a map of a thriving business hub within or near your community.
Label the business enterprises and indicate the type of business they
operate.
48
1. What makes this local business hub thrive? How does it
meet the local needs of the community?
Answer area
49
2. How do these businesses improve the local economy?
Answer area
50
Answer the following questions:
1. When you become an entrepreneur, what should be your

goal in setting up your business?
Answer area
51
Answer the following questions:
2. Among all the stated contributions of business

organizations, which do you think is the most important?
Why?
Answer area
52

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Chapter 2

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Business Organizations

● to provide the needs

PROFIT OR SOCIAL GOOD?

“The purpose of business

PROFIT OR SOCIAL GOOD?

Maria established a rice retailing business with a general

While Maria’s motive is financial reward, the community

● Businesses can generate jobs directly.

● 7.2 million Filipinos were

● People can move up in

PROVIDING OPPORTUNITIES FOR CAREER

● higher skills = higher

● Employees can get inspired

Businesses gather data on

● Employees are trained on

● Economy is the process or

● Local businesses enhance

Jose decided to put up a coffee shop and bakery in their

He approached the local farmers’ organization and offered to

Jose employed other residents as his baker, barista, and

● Businesses are usually involved in the

● Social activities create a

There exists an organization dedicated to uplifting Filipinos'

The organization actively engages with companies by

At the height of the COVID-19 pandemic in 2020, this

Philippine Business for Social Progress, “Who We Are,” PBSP, https://www.pbsp.org.ph/about,

1. According to Ronald Duska, the motivation and purpose of

2. Business activities can only positively impact the

3. Local businesses that patronize other companies create a

4. Planning and starting a small business limit the

5. The contribution of business organizations is limited to

1. When you become an entrepreneur, what should be your

2. Among all the stated contributions of business

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