Business Ethics & Social Responsibility 1-5
Business Ethics & Social Responsibility 1-5
Week 1-5
Let’s Begin
The hand is one of the most symbolized part of the human body. It is often used to depict skill, action
and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this
learning resource signifies that you as a learner is capable and empowered to successfully achieve
the relevant competencies and skills at your own pace and time. Your academic success lies in your
own hands!
This module was written for you to accomplish at home. It was carefully designed so that you can
work at your own pace and allow self-discovery of the concept through activities that you will perform.
Activities were also selected to allow independent learning which also aims to develop students’
reading comprehension skills through understanding written texts.
Your Targets
2. Partnership
-A partnership is owned by two or more persons who contribute capital to conduct business.
The partners divide the profits of the business among themselves based on agreed terms.
In general partnerships, all partners are have unlimited liability. In limited partnership (or
Limited Liability Partnership, LLC), at least one partner is a limited partner. The creditors
cannot go after personal assets of limited partners.
Advantages of partnership:
more source of capital, resources, knowledge and skills from more people versus in a sole
proprietorship
easier to set up, manage, and control compared to a corporation
Disadvantages of partnership:
no independent legal status, and general partners can be liable for the liabilities of the
business
possibility of disagreements between partners
limited source of capital and restrained growth potential compared to a corporation
3. Corporation
-A corporation is a business organization that has a separate legal personality from its
owners. Ownership in a stock corporation is represented by shares of stock.
The owners, known as stockholders, enjoy limited liability but have limited involvement in
the company's operations. The board of directors elected from the stockholders, controls
the activities and direction of the corporation.
Advantages of corporation:
prestige from passing more formal requirements
shareholders' enjoy limited liability since the company is an independent legal entity
separate from its owners
extensive sources of capital though issuance of stocks and bonds, and with it an amplified
growth potential
ownership can be easily transferred through stocks, hence allowing corporations unlimited
life, compared to partnership that gets dissolved when any of the partners decides to leave,
dies, or becomes incapable to fulfill role
Disadvantages of corporation:
more difficult to set-up and manage due to greater requirements and heavier government
scrutiny
stockholders of big corporations have limited involvement in business operations and
decisions
double taxation, taxes are charged on the company's net income and stockholders are also
taxed on dividends received from the company
Comparative Analysis:
Major Contributions of Forms of Business Organization
in Socio Economic Development
Business are considered the engine of the economy because they contributed to the economy
of our country through paying corporate taxes so that the government can provide and promote social
welfare of its citizens. Business also provides job opportunities which compensates the people in the
society.
FAIRNESS - Fairness comes from the old English word faeger, which means “pleasing or attractive.”
It is the quality of making judgments that are free from discrimination. Fairness in the context of a
business organization involves balancing the interests involved in all decision-making including any
decisions related to hiring, firing (including the investigatory process), and the compensation and
rewards system. Hiring the right people is one of the most important decisions an organization
makes.
ACCOUNTABILITY -Accountability is the obligation of an individual or organization to account for its
activities, accept responsibility for them, and to disclose the results in a transparent manner.
Accountability in the context of a business organization is the obligation to demonstrate that work has
been conducted in compliance with agreed rules and standards or to report fairly and accurately on
performance results vis-à-vis mandated roles and/or plans.
TRANSPARENCY -Transparency is defined as being authentic in the way an organization message
themselves externally – to stakeholders, to prospective customers and talent, and within the
community. It allows stakeholders to understand whether the activities of social institutions provide a
genuine service to civil society and whether money is used appropriately. Thus, transparency means
there is lack of hidden agendas or conditions, accompanied by the availability of full information
required of collaboration, cooperation, and collective decision-making.
STEWARDSHIP - In Biblical terms, stewardship is defined as utilizing and managing all resources
God provides for the glory of God and the betterment of His creation. That definition plays a critical
role in today’s business landscape. In the context of business organization, stewardship refers to
taking responsibility for the business and the effects it has on the world around it. This involves
considering more than just the bottom line and looking at elements such as values, ethics, and moral
I. TRUE OR FALSE. Write “True’’ if the statement is correct and “false” if it is incorrect.
__________1. A Sole Proprietorship, owned by one person, is a form of business organization that is small,
requires little amount of capital and is readily established under the control of one person.
__________2. A Partnership is a form of business in which two or more people operate for the common goal of
making a profit.
__________3. A Partnership is an artificial being created by operation of law.
__________4. A Sole Proprietorship has the advantage of least government regulations.
__________5. A Corporation has powers, attributes, and properties expressly authorized by law.
__________6. Fairness involves balancing the interests involved in all decision making including decisions
related to employees’ hiring, firing, compensation, and reward system.
__________7. Transparency allows stakeholders to understand whether the activities of social institutions such
as internet organizations and NGOs provide a genuine service to civil society and whether money is used
appropriately.
__________8. Transparency means to be liable to explain or justify one’s action and decision.
__________9. Accountability is the quality of making judgment that is free from discrimination.
__________10. Accountability implies responsibility.
1. Sole Proprietorship
2. Partnership
3. Corporation