BUSINESS

ETHICS AND
SOCIAL
RESPONSIBILITY
QUARTER 4
Directions: In your notebook, write at least 2
responsibilities of every
business/organization towards their:
a. employees
b. Suppliers
c. Creditors
d. Consumers
e. investors
 Responsibilities
and
Accountabilities of
Entrepreneurs
Corporate social responsibility is a
business model by which companies
make a concerted effort to operate in
ways that enhance rather than degrade
society and the environment. CSR can
help improve society and promote a
positive brand image for companies.
According to Bowen (1953), social
responsibility refers to a person’s obligation
to think about the effects of his decisions
and actions on the whole social system. It
also refers to the approach that an
organization takes in assessing its
responsibilities toward different stakeholders
when making legal, economic, ethical, and
social decisions.
Every organization has its
responsibilities. They have
responsibilities towards their
employees, government, creditors,
suppliers, consumers, general
public, and of course, to other
stakeholders.
What is the main
difference between
responsibility and
accountability?
The main difference between
responsibility and accountability is
that responsibility can be shared
while accountability cannot
(Siquete, 2016). Being accountable
not only means being responsible
for something but as well as being
What will happen to the
business or organization
without its employees?
Without them, who will run
the business? Who will man?
Who will perform the specific
Employees are obviously the true assets of
every business or organization. First, an
organization must ensure that employees are
happy and satisfied with their jobs. The
management of every business or
organization must see to it that their
employees are being treated fairly, must
provide healthy working conditions, ensure
the security and safety of employees.
Businesses are responsible for
compliance of government rules,
regular and honest payment of taxes,
cooperate with the government for
economic development, follow
waste management control and all
other government policies.
For suppliers, an organization must
ensure that fair payment of prices for
goods and services are being followed at
a reasonable time, companies also should
inform any changes in the business or in
the market, coordinate future
developments, and promote healthy
competition.
For creditors, every business or
company must strictly follow the
loans agreement, ensure business
ethics are being practiced, proper
utilization of loans, and ensure
regular payment of any financial
accountabilities.
Suppliers
Supplying quality goods or services for
consumers are very important. It is the
business’ responsibility to ensure that the
product or service they provide for the
consumers has better quality. It is also their
responsibility to ensure that after sales
service is being provided to the consumers
based on the nature of a product or service
Every business must protect the
environment and the society. It is
therefore their responsibility to
promote public health, proper
segregation of waste must be done,
a care for the environment is very
important.
Every company must meet its
obligations to its stakeholders.
Stakeholders are the individuals or
groups to whom a business has a
responsibility. The stakeholders of a
business are its employees, its
customers, the public, and its
1. Do you believe that the majority of
today’s companies are not sincere in
their CSR? Why or why not?
2. Do you agree that startup businesses
must also actively participate in CSR
programs and activities?
3. Why do you think CSR is important in
every business?