SHS

BUSINESS ETHICS
Module 8
Business Ethics
Grade 12: Module 8
First Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any

form without written permission from the copyright owners.

Development Team of the Module

Author: Donna M. Casilla, T II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II
 Target

Entrepreneurship is the process of identifying opportunities in the

marketplace marshalling the resources required to pursue these opportunities and
investing the resources to exploit the opportunities of long-term gain. The
successful entrepreneur should maintain a strict discipline in their business. It is
necessary for an entrepreneur to know the values and important of business ethics.
Doing business ethically means holding right things right and wrong things wrong
in business.

An entrepreneur is one who organizes, manages and assumes the risk of an

enterprise. An entrepreneur visualizes a business, takes bold steps to establish
undertaking, coordinates the various factors of production and gives it a start. An
entrepreneur should be aware of ethics and social Responsibility in business and
should follow them in order to maintain the ecological balance in the society.

Business ethics are centrally concentrated with the business conduct. A

value is something that has worth or importance to an individual, it contains a
judgment elemental in that it carries individual, ideas as to what is right, good or
desirable.

This module will provide you with information and activities that will help
you understand the responsibilities or duties of entrepreneurs as well as their
accountabilities or liabilities.

After going through this module, you are expected to:

3.1 Discuss the responsibilities and accountabilities of entrepreneurs to:

a. employees
b. government
c. creditors
ABM_ESR12-IVi-l-3.1

Before going on, check how much you know about this topic. Answer the
pretest on the next page in a separate sheet of paper.
 Jumpstart
Activity 1: Entrepreneur Mind Map
Direction: What do you think of an entrepreneur? What do you think are the
characteristics of an entrepreneur? Make a mind map of your ideas. Do it in your
answer sheet.

Entrepreneur

RUBRIC FOR SCORING THE MIND MAP

5 4 3 2 1
Neatness and The mind map The mind map The mind map The mind map The mind map
Presentation was well was well was mostly was not neat was not neat
presented and presented and well presented enough to enough to
all the most of the but some of understand understand
information is information is the most concepts
easy to easy to information
understand understand was difficult to
understand
Use of images/ Most Some A few The mind map The mind map
symbols categories are categories are categories are includes some includes few
enhanced with enhanced with enhanced with images images
simple simple simple
symbols or symbols or symbols or
diagrams diagrams diagrams
Use of color Has included Has included Has included Has used very Has failed to
color to show color to some color in little color in include color
all demonstrate the mind map the mind map in the mind
connections some but has not and has not ma
and/or to connections used color to used color to
categorize and or topics categorize categorize
topics throughout throughout the throughout the
throughout the mind map mind map mind map
the mind map
Understanding The mind map The mind map The mind map The mind map The mind map
demonstrates demonstrates demonstrates demonstrates demonstrates
a thorough a very good some some little
understanding understanding understanding understanding understanding
of the of the concepts of the concepts of the concepts of the
concepts of of the topic of the topic of the topic concepts of
the topic the topic
 Discover
A. Responsibilities and Accountabilities to the Employees

Responsibilities are the duties or obligations to satisfactorily perform or

complete a task that one must fulfill, and which has a consent penalty for failure.
1. Pay Wages and Taxes
Entrepreneurs have the responsibility to pay their employees of their
business at least the minimum hourly wage in their locality and to pay each
employee money owed from working per pay period, including overtime, sick
leave, and vacation wages. Paychecks should always be on time and without
delay so the workers can meet individual financial obligations. The
government also requires entrepreneurs to pay Phil Health, Social Security,
taxes out of employee wages for each employee working their business.
2. Create and Maintain a Safe Workplace
The government requires businesses to create and maintain a safe working
environment for their employees as per standards. Entrepreneurs must also
make employees aware of areas in their business that have a high risk for
injury and train their employees in safety procedures to minimize the risk of
injury. Continual inspection of their facilities and employee knowledge of
safety standards is necessary to make certain their workplace remains as
safe as possible.
3. Facilitate Workers’ Compensation Insurance
Despite business owners’ best efforts to maintain a safe working
environment, accidents will happen. When injuries occur through no fault of
their employees, it’s their responsibility to file a claim with their workers’
compensation insurance provider. This coverage provides for medical care
and wage replacement for their injured employee. Businesses must treat their
injured employee with respect and file the claim without attempting to cause
a delay in processing or attempt to defer the worker from filing a claim at all.
This is illegal and can cost the business hefty fines and possible jail time if
the entrepreneur refuses to honor their commitment and requirements as a
business owner.
4. Enforce Anti-Discrimination Law
It is illegal to discriminate against anyone according to their culture. This
means not only race, religion, and country, but also age, gender, sexual
preference, disability, a way of life and beliefs. “EEO” stands for “Equal
Employment Opportunity”, which means that employees cannot be
disadvantaged, dismissed, or not given employment for any of these reasons.
It is the employer’s responsibility to ensure that all staff is trained and aware
of their obligations under anti-discrimination laws.
5. Create and Maintain a Favorable Working Environment
As an entrepreneur and employer, you should try to provide a healthy
working environment, which respects each person and their opinion is
considered. Listen to all your collaborators and worry about their welfare.
Remember that they are working for your company exists and is profitable
and that as better feel, the better they will do their job.
6. Respect Human Rights
The Mitsubishi Electric Group understands that its business operations are
interrelated with a wide range of peoples and societies throughout the world,
and implements and enforces a code of conduct that fosters respect for
human rights.

7. Support Career Development

Mitsubishi Electric provides a human resources development system that
supports the careers of employees, a self-development support program, and
transfer opportunities for willing employees.
8. Train and Educate Employees
Promoting knowledge is important in changing the business environment.
Acquisition of new knowledge and skills through the professional and
personal development of employees is a prerequisite and a guarantee of
business success.
9. Manage Performance
"What gets measured gets done" is an expression you will often hear when
talking about performance management and the simple meaning behind this
statement is the key to our philosophy of rewarding and managing
performance. We want all our employees to have clearly defined goals, which
they defined themselves with their managers, on the basis of business goals,
through three main performance areas profit, process, and people.
10. Give Rewards and Benefits
We reward our employees fairly and attractively, in line with the prevailing
conditions on the local market. We gather data from the labor market on a
regular basis, ensuring that our reward structures remain competitive. Our
reward system is well structured and transparent in its application. It:
• Allocates appropriate people to appropriate job positions
• Set requirements and standards, outcomes and measures
• Provides effective orientation, education, and training
• Provides ongoing coaching and feedback
• Designs a foundation for effective systems that reward people for their
contributions
• Provides promotional/career development opportunities for employees

B. Responsibilities and Accountabilities to the Government

In any country, the government tries to preserve the community and improve
its conditions. In that respect, the business has to extend its cooperation to
the government. If the business discharges its responsibilities the government
sincerely and effectively, the government can function more efficiently.

1. Observe Laws, Rules, and Regulations

A number of legislative are formed from time to time by the government for
proper regulation and control of the business. Businessmen should comply
with all legal requirements, execute government contracts, pay taxes honestly
and in time, make services of executives available for government, suggest
measures and send proposals to enact new laws for the business.
2. Pay Taxes
Businesses must pay taxes and fees to the government in the course of
carrying out their operations. These can include taxes on revenues, tariffs on
imported products, and a number of administrative fees necessary to register
the business. Withholding these payments, particularly taxes, is considered a
crime.
3. Follow Environmental Regulations
Many companies, particularly those in the industrial and manufacturing
sectors, face heavy regulations regarding the number and variety of
pollutants that they are allowed to emit.
 Some companies, feeling a "social responsibility" toward the common good,
may seek to limit their pollution more than the law requires.
4. Abide by Labor Laws
Businesses that hire employees must abide by a slew of laws relating to how
they treat their employees. These include laws related to how much an
employee can be paid, how many hours he may work, and the criteria under
which he can be hired and fired.
5. Avoid Restrictive Trade Practices
Companies are forbidden from engaging in certain kinds of restrictive trade
practices that limit competition. For example, most companies may not
develop monopolies within a particular sector or provide substantial barriers
for new companies to compete with them. Restrictive trade practices of this
kind can often reduce the quality of products available to consumers and
drive-up prices.
6. Disclose Financial Statements
Companies must disclose a number of financial statements to the
government in the form of tax returns, and, if the company makes ownership
of shares of stock commonly available, to the public as well. This financial
transparency helps to ensure that the company is not violating any laws,
such as withholding taxes and to aid the public in deciding whether to invest
in the company.
7. Avoid Corruption
The commercial organization should not take any type of favor from
government officials by bribing or influencing them.
8. Assist in Implementing Socio-Economic Policies
The government expects co-operation and help from the business sector to
help in implementing programs and policies relating to social and economic
development.

9. Help Earn Foreign Exchange

The government also expects from a business organization that it will earn
foreign currency by exporting goods in the foreign market. The government
requires this foreign currency for importing valuable and important products.
10. Advise the Government
The business organization has to provide timely advice to the government in
respect of framing important policies such as Industrial policy, Import &
Export policy, Licensing policy, etc.

11. Contribute to Government Treasury

The commercial organization must contribute the funds to the government
during emergencies and natural calamities like floods, earthquakes, etc.

12. Contribute to Political Stability

The commercial organizations should work towards the political stability of
the country. The stable government often brings more return and peace in a
democratic country.

C. Responsibilities and Accountabilities to the Creditors

1. Give Correct Information

Shareholders who are the owners of the business should be provided with
correct information about the company to enable them to decide about further
investments.

2. Provide Fair Return on Investment

The company should provide a fair return on the investment made by
shareholders. If shareholders do not get the proper dividend, then they will
hesitate to invest additional funds.

Shareholders should be kept fully informed about the working of the

company for healthy growth of the business. The Companies Act 1956 also
requires the company to give full disclosure in the published statements.

3. Strengthen Share Prices

The company should strengthen the share prices by its growth, innovation,
and diversification. At the same time, shareholders should also offer
wholehearted support and co-operation to the company to protect their own
interests.
 Explore
Assessment 1
Direction: Answer the following in not less than 5 sentences.
Discuss the responsibilities and accountabilities of entrepreneurs to the
following:
a. employees
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
b. government
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

c. creditors
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Rubric:

5 4 3 2 1
All the ideas Most of the Some ideas The ideas can’t No clear idea.
were very ideas were were clear. be understood. None of the
clear. clear Some A small information
All Most information amount of the provided is
information information provided is information is accurate.
provided is provided is accurate. accurate.
accurate. accurate.
Enrichment Activity 1 Modified True or False
Directions: Write T if the statement is TRUE. If the statement is FALSE,
copy the word or phrase that makes the statement incorrect, then make
the statement or sentence true by writing the correct word or phrase.

_______________1. Paychecks should always be in staggered basis and

without delay so the workers can meet individual
financial obligations.

_______________2. Entrepreneurs are not required to pay Phil Health, Social

Security, taxes out of employee wages for each employee
working in their business.

________________-3. Businesses must pay taxes and fees to the government in

the course of carrying out their operations.

_______________4. Businessmen are not required to comply with all legal

requirements, execute government contracts, pay taxes
honestly and in time, make services of executives
available for government, suggest measures and send
proposals to enact new laws for the business.

_______________5. The commercial organization may take any type of favor

from government officials by bribing or influencing them.

________________6. The government expects from a business organization that

it will earn foreign currency by importing goods in the
local market.

_______________7. Shareholders should offer wholehearted support and co-

operation to the company to protect their own interests.

_______________8. Shareholders who are the owners of the business should

be provided with correct information about the company
to enable them to decide about further investments.

_______________9. The company should provide a fair return on the

investment made by shareholders.

_______________10. Shareholders should be kept fully informed about the

working of the company for healthy growth of the
business.
 Deepen

Direction: Make a graphic organizer on the responsibilities and

accountabilities of entrepreneurs to: (a) employees (b) government (c)
creditors.
Rubric for Scoring the Graphic Organizer
Excellent Good Fair Poor
4 points 3 points 2 points 1 point
Completeness Graphic Graphic At least 1/2 of Less than 1/2
Contains ALL Organizer Organizer is the assignment of the
information as labeled as labeled. was attempted. assignment was
requested. directed. Definitions are Some attempted
Definitions, if mostly definitions are and/or
used, are complete. The missing. The complete. Most
complete. The concept is concept shows definitions are
concept is clear. adequate. one or two missing. The
misconceptions. concept shows
more than two
misconceptions
Legibility All writing is Majority of the Writing is Writing is not
Is the student's legible and writing is somewhat legible and
writing legible? graphic legible and legible and the graphic
organizer is most of the assignment is a organizer is not
neat. graphic bit messy. neat. Shows a
organizer is lack of
neat. understanding
or carelessness.
Accuracy All of the Most of the At least 1/2 of Less than 1/2
Did the student assignment is assignment the assignment of the
recheck the correct and (more than 1/2) is correct. assignment is
assignment? neat. is complete but accurate.
Definitions are the definitions Graphic
accurate and and/or graphic organizer is not
complete. organizer is not accurate
accurate.
Requirements Goes beyond More than 1/2 At least 1/2 of Less than 1/2
Did the student the of the the of the
follow the requirements of requirements requirements requirements
directions the assignment. are met. are met. are met.
given? Information are
written in
detail.
Grammar There are no There are 1-2 There are 3-4 There are more
Did the student grammatical grammatical grammatical than 4
check spelling? and/or and/or and/or grammatical
mechanical mechanical mechanical and/or
mistakes on the mistakes on the mistakes on the mechanical
graphic graphic graphic mistakes on the
organizer. organizer. organizer. graphic
organizer.
 Gauge

Directions: Read each statement carefully. Write the letter of the correct
answer in your answer sheet.
_____ 1. Which of the following is a responsibility of an entrepreneur to its
employee?
A. Abide by Labor Laws B. Contribute to Political Stability
C. Give Correct Information D. Respect Human Rights
_____ 2. Which is NOT a responsibility of an entrepreneur to a creditor?
A. Give Correct Information B. Provide Fair Return on Investment
C. Strengthen Share Prices D. Service Even After Sales
_____ 3. What are the responsibilities and accountabilities of an entrepreneur to the
government?
I. Avoid Corruption
II. Help Earn Foreign Exchange
III. Pay Taxes
IV. Provide Fair Return on Investment
A. I and II B. II and III C. I, II, and III D. I, II, III, and IV
_____ 4. What are the responsibilities and accountabilities of an entrepreneur to the
creditors?
I. Avoid Restrictive Trade Practices
II. Contribute to Government Treasury
III. Give Correct Information
IV. Strengthen Share Prices
A. I and II B. II and III C. III and IV D. I and IV
_____ 5. Which is INCORRECT about the responsibilities and accountabilities of an
entrepreneur to its employee?
A. Train employees in safety procedures to minimize the risk of injury.
B. Provide a healthy working environment, which respects each person and
their opinion is considered.
C. Ensure that all staff is trained and aware of their obligations under anti-
discrimination laws.
D. Offer wholehearted support and co-operation to the company to protect
their own interests.
_____ 6. Which is TRUE about the responsibilities and accountabilities of an
entrepreneur to the government?
A. Maintain a safe working environment
B. comply with all legal requirements
C. Implements and enforces a code of conduct that fosters respect for human
rights
D. Responsible for making timely payments according to the agreed terms
and conditions of the trade.

_____ 7. Which of the following discusses the responsibilities and accountabilities of

an entrepreneur to the creditors?
A. Businesses must pay taxes and fees to the government in the course of
 carrying out their operations. These can include taxes on revenues,
tariffs on imported products, and a number of administrative fees
necessary to register the business.
B. Businesses that hire employees must abide by a slew of laws relating
to how they treat their employees. These include laws related to how
much an employee can be paid, how many hours he may work, and
the criteria under which he can be hired and fired.
C. Companies are forbidden from engaging in certain kinds of restrictive
trade practices that limit competition. For example, most companies
may not develop monopolies within a particular sector or provide
substantial barriers for new companies to compete with them.
D. The company should provide a fair return on the investment made by
shareholders. If shareholders do not get the proper dividend, then they
will hesitate to invest additional funds.
_____ 8. Which of the following discusses the responsibilities and accountabilities of
an entrepreneur to the government?
A. Companies must disclose a number of financial statements to the
government in the form of tax returns, and, if the company makes
ownership of shares of stock commonly available, to the public as
well.
B. It is illegal to discriminate against anyone according to their culture.
This means not only race, religion, and country, but also age,
gender, sexual preference, disability, a way of life and beliefs. “EEO”
stands for “Equal Employment Opportunity”, which means that
employees cannot be disadvantaged, dismissed, or not given
employment for any of these reasons.
C. Acquisition of new knowledge and skills through the professional
and personal development of employees is a prerequisite and a
guarantee of business success.
D. Pay their employees of their business at least the minimum hourly
wage in their locality and to pay each employee money owed from
working per pay period, including overtime, sick leave, and
vacation wages.
_____ 9. Which are NOT a responsibility of an entrepreneur to employees?
I. Abide by Labor Laws III. Disclose Financial Statements
II. Avoid Corruption IV. Give Rewards and Benefits
A. I and II B. II and III C. I, II, and III D. I, II, III, and IV
_____ 10. Which of the following are NOT a responsibility of an entrepreneur to
government?
I.Attend to Complaints II. Contribute to Political Stability
III. Avoid Corruption IV. Help Earn Foreign Exchange
A. I and II B. II and III C. I, II, and III D. I, II, III, and IV
References:

Cortez, F. (2016). Business ethics and social responsibility. Quezon City, Philippines: Vibal Group,
Inc.

Department of Education, (2014). K to 12 Senior High School Accountancy, Business, and

Management Strand, Curriculum Guide in Business Ethics, Pasig City, Philippines

Orjalo, V. & Frias S. (2016). Business ethics and social responsibility: principles, policies, programs,
and practices. Quezon City, Philippines: The Phoenix Publishing House, Inc.

Racelis, Aliza (2017). Business Ethics and Social Responsibility, Samploc, Manila, Philippines: Rex
Bookstore, Inc.
 Answer Key

Jumpstart
Activity 1: Entrepreneur Mind Map -Answers vary

Explore
Assessment 1 -Answers vary
Enrichment Activity 1
1. T
2. F
3. T
4. F
5. F
6. F
7. T
8. T
9. T
10. T

Deepen
Answers vary

Gauge
1. D
2. D
3. D
4. C
5. D
6. B
7. D
8. A
9. C
10. D