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Business Ethics & Social Responsibility 1-5

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106 views15 pages

Business Ethics & Social Responsibility 1-5

social

Uploaded by

Janine
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BUSINESS ETHICS & SOCIAL RESPONSIBILITY

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

After going through the module, you are expected to:


1. differentiate the forms of business organizations;
2. give examples of the different forms of business organizations found in your locality;
3. analyze the given situation wherein you practice the characteristics of transparency, fairness,
accountability, and stewardship; and
4. understand the importance of possessing these traits in the success of both business and non-
profit organization.

Keep This Is In Mind

NATURE AND FORMS OF BUSINESS ORGANIZATION

Forms of Business Organization according to ownership


1. Sole Proprietorship
-A sole proprietorship is a business owned by only one person. It is easy to set-up and is
the least costly among all forms of ownership. The owner faces unlimited liability; meaning,
the creditors of the business may go after the personal assets of the owner if the business
cannot pay them. The sole proprietorship form is usually adopted by small business entities.

Advantages of sole proprietorship:


 easy to set up
 owner has full control over business decisions
Disadvantages of sole proprietorship:
 no independent legal status, owner is liable for the liabilities of the business
 limited source of funds

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.

Purpose of business in the socio


economic development
The primary role of business
industry has remained reasonably
constant: To provide goods
and services that people may need
and will want. What has changed
dramatically over time
are the expectations on these
businesses. Boards of directors,
management and investors of
large corporations are now expected
to address an array of social,
economic and ecological
challenges.
Business derives its social
legitimacy and right to operate
from the economic value it
creates for society at large, from its
performance for both investors and a
wider network of
constituencies, its partnership with
governments and other agents in
solving social
problems, and the trust its leadership
inspires in employees and society as
a whole.
Businesses hold a major
responsibility not just to consumers
in need but more so, it must
respond to the socio economic
development of its country or
society.
Purpose of business in the socio
economic development
The primary role of business
industry has remained reasonably
constant: To provide goods
and services that people may need
and will want. What has changed
dramatically over time
are the expectations on these
businesses. Boards of directors,
management and investors of
large corporations are now expected
to address an array of social,
economic and ecological
challenges.
Business derives its social
legitimacy and right to operate
from the economic value it
creates for society at large, from its
performance for both investors and a
wider network of
constituencies, its partnership with
governments and other agents in
solving social
problems, and the trust its leadership
inspires in employees and society as
a whole.
Businesses hold a major
responsibility not just to consumers
in need but more so, it must
respond to the socio economic
development of its country or
society.
Purpose of business in the socio
economic development
The primary role of business
industry has remained reasonably
constant: To provide goods
and services that people may need
and will want. What has changed
dramatically over time
are the expectations on these
businesses. Boards of directors,
management and investors of
large corporations are now expected
to address an array of social,
economic and ecological
challenges.
Business derives its social
legitimacy and right to operate
from the economic value it
creates for society at large, from its
performance for both investors and a
wider network of
constituencies, its partnership with
governments and other agents in
solving social
problems, and the trust its leadership
inspires in employees and society as
a whole.
Businesses hold a major
responsibility not just to consumers
in need but more so, it must
respond to the socio economic
development of its country or
society.
Purpose of business in the socio
economic development
The primary role of business
industry has remained reasonably
constant: To provide goods
and services that people may need
and will want. What has changed
dramatically over time
are the expectations on these
businesses. Boards of directors,
management and investors of
large corporations are now expected
to address an array of social,
economic and ecological
challenges.
Business derives its social
legitimacy and right to operate
from the economic value it
creates for society at large, from its
performance for both investors and a
wider network of
constituencies, its partnership with
governments and other agents in
solving social
problems, and the trust its leadership
inspires in employees and society as
a whole.
Businesses hold a major
responsibility not just to consumers
in need but more so, it must
respond to the socio economic
development of its country or
society.
Purpose of business in the socio
economic development
The primary role of business
industry has remained reasonably
constant: To provide goods
and services that people may need
and will want. What has changed
dramatically over time
are the expectations on these
businesses. Boards of directors,
management and investors of
large corporations are now expected
to address an array of social,
economic and ecological
challenges.
Business derives its social
legitimacy and right to operate
from the economic value it
creates for society at large, from its
performance for both investors and a
wider network of
constituencies, its partnership with
governments and other agents in
solving social
problems, and the trust its leadership
inspires in employees and society as
a whole.
Businesses hold a major
responsibility not just to consumers
in need but more so, it must
respond to the socio economic
development of its country or
society.

The Core Principles of Good Corporate


Governance
A Good Corporate Governance in all businesses and even in non-profit organizations such as
foundations is very important in order to build trust and confidence with the investors, donors, and the
community in general. A good corporate governance builds the integrity of the institution. Below are
the Core Principles of a Good Corporate Governance:

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

What I Need To Reflect


How do you and your family cope up with the financial crisis that we
are encountering while we are trying to overcome the pandemic?
Even at home, you can organize any form of business
ownership for you to cope up with the financial crisis you are
encountering. Look for the opportunities brought about by the
pandemic. Seize that opportunity. You will be surprised that you
turned the impossible to possible (if you will rely solely to Him who is
in total control of the unwelcome atmosphere).
As Book of Isaiah 41:10 says “Fear not, for I am with you; Be
not dismayed, for I am your God. I will strengthen you, Yes, I will
help you, I will uphold you with My righteous hand.”
God sees your heart and mind. He knows your needs, your
worries, your fears, so trust in His presence.

EMA EMITS COLLEGE PHILIPPINES


(Formerly: Eastern Mindoro Institute of Technology & Sciences)
Del Pilar St.; Pinamalayan, Oriental Mindoro
Telefax No. (043) 284-3974
BUSINESS ETHICS & SOCIAL RESPONSIBILITY
Prelim Exam
NAME: RATE:
Strand&Section: INSTRUCTOR:

I. Multiple Choice. Direction: Encircle the letter of the correct answer.


1. Which is NOT a form of business ownership?
a. Sole Proprietorship b. Partnership c. Corporation d. Retail
2. Easy to start; owner is own boss; owner keeps all the profits and shoulders losses. These are some descriptions of what
type of business.
a. Sole Proprietorship b. Partnership c. Corporation d. Franchise
3. What form of business consists of two or more people to carry on, as co-owners of a business for profit?
a. Sole Proprietorship b. Partnership c. Corporation d. Cooperative
4. Your mother has Php 100,000. She wants to invest her money in the form of business that has the least amount of
personal liability. What form of business would you recommend?
a. Sole Proprietorship b. Partnership c. Corporation d. Cooperative
5. How a corporation differs from a sole proprietorship?
a. Corporations are owned by only one person.
b. Corporations can sell stocks to large and small investors to raise money for the business.
c. Sole proprietorships have limited liability for the owners.
d. Sole proprietorships require a legal charter to start the business.
6. You insert the exact amount into the vending machine at school for a can of soda. Two cans are released from the
machine. What will you do with the extra can of soda?
a. Offer the can of juice to your classmate.
b. Keep the extra can of soda for you.
c. Report an incident to appropriate school personnel.
d. Neglect what happened.
7. Employees expect that their employers will be transparent. What does this refer to?
a. The need for an office space to use glass walls.
b. Employees are responsible for their employer’s actions.
c. Employers to provide honest and clear information to their employees.
d. Employers need to use transparent materials in the office.
8. Joseph found out his teacher’s password to open her Facebook account. What is the ethically correct thing for him to
do?
a. Give the password to all other students.
b. Tell the teacher so she may change it.
c. Keep it to himself and if someone finds out the password it is not his problem.
d. Save it for yourself.
9. Arriving to work on time is an example of which characteristic of a good employee?
a. Timeliness b. Personal accountability c. Adaptability d. creativity
10. Providing wrong information on the resume is an example of which of the following:
a. Lack of transparency on employee’s part.
b. Poor transparency on an employer’s part.
c. Lack of accountability on an employer’s part.
11. What is fairness?
a. Something that is beneficial for you. b. Something that is beneficial for all of society.
c. The quality of treating people equally. d. None of the above.
12. Stewardship is not limited to money. What other thing that God expects you manage?
a. Education b. Time c. Health d. affection
13. What does accountability refer to?
a. Being responsible for one’s action. b. Providing access to information.
c. The ability to hire and fire an employee d. All of the above
14. Which is considered unethical business practice?
a. Training employees unfairly. c. Good word of mouth from customers.
b. Selling quality product d. All of the above
15. All of the following are considered abusive conduct in the workplace EXCEPT
a. Invading the personal space of co-workers. b. Insulting co-workers.
c. Receiving a performance review from a supervisor. d. Giving nasty gestures at co-workers.

EMA EMITS COLLEGE PHILIPPINES


(Formerly: Eastern Mindoro Institute of Technology & Sciences)
Del Pilar St.; Pinamalayan, Oriental Mindoro
Telefax No. (043) 284-3974
Telefax No. (043) 284-3974

BUSINESS ETHICS & SOCIAL RESPONSIBILITY


Longtest I
NAME: RATE:
Strand&Section: INSTRUCTOR:

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.

II. Direction: Complete the graph with the required information.


Forms of Business Organization Characteristics Examples
According to ownership

1. Sole Proprietorship

2. Partnership

3. Corporation

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