Business Ethics

Quarter 4 – Module 1:
Responsibilities and
Accountabilities of
Entrepreneurs
Business Ethics and Social Responsibility – Grade 12
Alternative Delivery Mode
Quarter 4 – Module 1: Responsibilities and Accountabilities of Entrepreneurs
First Edition, 2021

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Business Ethics
Quarter 4 – Module 1:
Responsibilities and
Accountabilities of
Entrepreneurs
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each

SLM. This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better understanding of
the lesson. At the end of each module, you need to answer the post-test to self-check
your learning. Answer keys are provided for each activity and test. We trust that you
will be honest in using these.

In addition to the material in the main text, notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they can
best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests. And
read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.
 What I Need to Know

This module was designed and written to give you knowledge on the
competency of responsibilities and accountabilities of entrepreneurs. When you plan
to be an entrepreneur someday, this module will give you a deep understanding on
the importance of the aforementioned subject matter, especially when you will be
exposed to the field of business.

At the end of the lesson, the learners are expected to appreciate entrepreneur’s
responsibilities to stakeholders and to demonstrate understanding on social
responsibilities of the entrepreneurs: (ABM_ESR12-IVi-1-3.1)

a. differentiate responsibility and accountability in entrepreneurship;

b. distinguish the responsibility of employees, government, creditors,

suppliers, consumers and stakeholders; and

c. enumerate the accountability of employees, government, creditors,

suppliers, consumers and stakeholders.

Notes to the Teacher/Facilitator

This module aims to broaden the understanding of the
students to the responsibility and accountability of the
entrepreneur. It will set learner’s mind to comprehend on
underlying factors for being consistently ethical in ways of
treating employees, customers, community and stakeholders.

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 What I Know

Directions: Read each statement. Choose the letter of the correct answer and write it
on a separate sheet of paper.

1. It is the study of business policies and practices including corporate

governance, bribery, and discrimination.
a. business ethics c. education, training and seminar
b. entrepreneur d. payment of taxes
2. It is an important pilot of economic growth and innovation.
a. entrepreneur c. safety working condition
b. entrepreneurship d. shareholder
3. It refers to a person who undertakes the risk of starting a new business.
a. supplier c. entrepreneur
b. consumers d. employees
4. It is the state of being responsible, answerable, or accountable for something
within one’s power, control, or management.
a. Responsibility c. entrepreneurship
b. Accountability d. business ethics
5. This means that you are taking or being assigned responsibility for
something that you have done.
a. accountability c. ethics
b. responsibility d. finance
6. This responsibility advises that entrepreneurs should pay at least the
minimum wage, sick leave, and vacation leave.
a. responsibility to the employee c. responsibility to the supplier
b. responsibility to the government d. responsibility to the customer
7. This responsibility explains that business owners should pay taxes like
income tax or sales tax.
a. responsibility to the customer c. responsibility to the creditors
b. responsibility to the government d. responsibility to the employees

8. This responsibility explains that an entrepreneur should pay on time and

inform the employees about the changes in the market.
a. responsibility to the employees c. responsibility to the supplier
b. responsibility to the government d. responsibility to the general
public
9. This responsibility explains that an entrepreneur should follow mortgage
rules and business ethics.
a. responsibility to the employees c. responsibility to the government
b. responsibility to the supplier d. responsibility to the creditor

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10. This includes upgrading personal and professional development and enhancing
new knowledge and skills of the employees.
a. education, trainings, and seminars c. payment of wages and taxes
b. safety working condition d. management of performance
11.This responsibility explains that one must maintain loyal and must have trust
with one another.
a. responsibility to the employees c. responsibility to the government
b. responsibility to the customers d. responsibility to the suppliers
12. This responsibility explains that an entrepreneur should adhere to fair labor
laws in hiring employees.
a. responsibility to the customers c. responsibility to the stakeholders
b. responsibility to the employees d. responsibility to the creditors
13. This responsibility advises that an entrepreneur should not correct government
and join anti-social purposes.
a. responsibility to the employees c. responsibility to the stakeholders
b. responsibility to the government d. responsibility to the customers
14. This responsibility advises that an entrepreneur should pay loan and interest
religiously according to the repayment condition.
a. responsibility to the customers c. responsibility to the employees
b. responsibility to the creditors d. responsibility to the government
15. This responsibility advises that an entrepreneur should provide security of
employment.
a. responsibility to the customers c. responsibility to the creditors
b. responsibility to the employees d. responsibility to the stakeholders

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 Lesson Responsibilities and
1 Accountabilities of
Entrepreneurs
Business Ethics

Business Ethics pertains to ethical

guidelines and moral or ethical problems that
can occur in a business environment. It
employs diligently to all positions of business
conduct and has relevance to the act of
individuals and the whole business
organization. It deals to know what is right or
wrong in the workplace and gives emphasis on
doing what is right.

Responsibility
https://cdn.pixabay.com/phot
Responsibility refers to the duty or
o/2017/03/02/07/36/ethics-
2110621_1280.jpg obligation to satisfactorily perform or complete
a task that is assigned by someone or created

by one's own circumstances which one must fulfill. As businesspeople, we must

know that every action leads to certain effects. One should step off and accept that
ignoring responsibility has consequences, so it cannot be simply ignored.

Accountability

Accountability is the obligation of an individual or an organization to account

for activities and accept blame for failures. A person who is accountable may be
called upon to answer and account the consequences. In a business circle, one’s
action, decision-making, strategy, or policy could lead to the biggest accountability
if not managed properly.

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 What’s In

Directions: Read each statement carefully. On a separate sheet of paper, write

TRUE if the statement is correct and FALSE if the statement is incorrect.

1. In putting up business, you should set aside the idea of discouragement.

2. Our modern business nowadays, serving customers in an unbiased manner
is not applicable.
3. As you start a business, do not hesitate to ask help from expert.
4. It is not important to update yourself with new technology while your
business is progressing.
5. It is important to maintain collaboration with other businesspeople to
enhance problem-solving skills and creativity.
6. Business is also responsible in protecting and improving our environment.
7. The entrepreneur should treat workers or employees humanely.
8. Any dispute between entrepreneur and employee should not be solved
peacefully.
9. Entrepreneur and creditors must violate business ethics in providing and
repaying of loans.
10. The laws, rules and regulation implemented by the government for any
Business must be fully complied.

What’s New

Directions: Read and analyze the words in column A. Choose the best
description in Column B that perfectly fits the words presented in Column A.
Write on a separate sheet of paper the letter of your choice.

Column A Column B

1. stakeholder a. fair price and safe product

2. shareholder b. one that has stake in business

3. employee c. good return of investment

4. supplier d. employment for local community

5. customer e. less pollution

6. local community f. safety habit to minimize risk of injury

7. government g. fair pay and good working condition

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8. environment h. education and training of employees

9. personal growth i. regular business and on-time

payment

10. safe workplace j. creation of jobs and continue in normal

progress

What is It

Responsibility to
the employees

Responsibility to Responsibility to
the government the customers

Entrepreneur

Responsibility to Responsibility to
the suppliers the stakeholders

Responsibility to
the creditors

Social Responsibilities of Entrepreneurs towards Employees and

Workers

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 source: https://www.goodreads.com/book/show/44316386-start-with-your-people

Entrepreneurs have the responsibility to pay their employees at least the

minimum hourly wage according to locality and pay each employee money owed from
working per pay period including overtime, sick leave, and vacation wages.
Employees deserve to receive reasonable and attractive remuneration. Right
jobs should be assigned to the employee based on their abilities and skills.
Entrepreneurs must give security of employment and a conducive working place.
They should provide opportunities to professional development like trainings,
seminars, and education. They should also develop mutual understanding and trust,
adapt welfare schemes like financial assistance during sickness, old age, or medical
concerns.
The entrepreneur should behave humanely to their employees. They should
not treat their employees with mistakes inhumanely. They should also create a well-
defined service condition like promotion, appointments, retirement and should adopt
a wage incentive scheme that will inspire the employees to higher quality work.

Social Responsibility of Entrepreneur towards Government

Payment Compliance of
of Taxes Government
Rules

ENTREPRENEUR

Not Correcting the

Government Not Seeking Political
Machinery Patronage

Cooperating with
Government for
Economic
Development

Entrepreneurs have strong responsibility to the government by complying with

government rules like licenses for operation, price determination, and production.
They should honestly pay different taxes such as income tax, sales tax, excise, tariff
duties, and wealth tax.

They must not accept antisocial activities with a political party or person
during election. The businesspeople must cooperate with the government for
economic development.

Social Responsibility of Entrepreneur towards Suppliers

Supplier Entrepreneur

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 The role of the supplier to the entrepreneur is very important for any business.
They supply raw materials, machinery, and labor. With that, they must pay fair
prices of goods and pay on time. They should inform suppliers of future development
and changes in the demand of commodities.

The entrepreneur has the responsibility to give needed technical assistance to

produce new and substitute products and innovate indigenous supplies. Healthy
competition is encouraged to individual suppliers and institutional suppliers.

Social Responsibility of Entrepreneur to the Creditor

Bank

Investment Entrepreneur Savings and Loan

Companies Association

Credit Unions

Financial institutions and banks play an important role in entrepreneurship.

They should gain loans on reasonable conditions. They should follow mortgage rules
and business ethics with proper use of debt capital. They should religiously pay the
installment and interest until the repayment of loan.

Social Responsibility of Entrepreneur towards Customer/Consumer/General

Public
The general practice is that the customer or
consumer is always right. It is essential that the
entrepreneurs fulfill social responsibilities towards
the customers or consumers.

The entrepreneurs should provide

commodities and services, according to the desires
and needs of the consumers, at affordable prices by
determining fair prices for commodities and delivery
https://www.entrepreneur- of goods and economic services. The goods should be
resources.net/perfect-10- standardized based on the need of the customer.
simple-ways-keep-
Another consideration is the packaging. It should be
customers-happy
packed well. Publish what is right and make truthful advertisement because
customers depend on what they see in commercials.
Entrepreneurs should re-address quickly the complaints of the customer.
They should keep in contact with customers association and follow rules and by-
laws of such organizations.
Some entrepreneurs establish organizations to protect the interests of the
consumers whose membership is voluntary. The entrepreneurs should become
members and should follow the rules and by-laws of such organizations.
After-sales service should be implemented by trained employees or engineers.
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 The entrepreneur should avoid hoarding practices for the sake of
maximization of profits. They must promote customer research so that they would
know the changes happening in desires, tastes, looks, and designs. The efficient
distribution should be implemented so that commodities do not become costly. For
the prosperity of business, civilized and respectful behavior to all types of customer
is very important.

Social Responsibility and Accountability towards Stakeholders

Entrepreneurs have a huge role in the
local community or stakeholders. Whether it
is the private or public sector, they should
make efforts to upgrade and improve the
conditions of surrounding areas like by
offering employment and helping the needy
one.
The business has also the
responsibility of providing employment to the https://www.toppr.com/guides/gener
al-awareness/money-and-money-
members of the stakeholders. They can also market/effects-of-inflation-on-indian-
help improve standards of living by giving economy/

scholarship grants to the children of the employees. They should also promote
good public relations to understand the feelings and opinions of common people.

What’s More

Directions: Read the statement carefully. Write on a separate sheet of paper the
corresponding answer provided in the Phrase Pool.

PHRASE POOL

Giving rewards Supporting career development

Consistent suppliers Education and training of employees

Management of performance Regular customers

Creation and maintenance a safe Pay wages and taxes

workplace

Respect for human rights Facilitate worker’s compensation

insurance

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1. 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.

2. Business operations are interrelated with a wide range of people and societies
throughout the world. They should implement and enforce a code of conduct
that fosters respect for human rights.

3. Provide a human resources development system like the ones that supports
the careers of employees, a self-development support program, and transfer
opportunities for willing employees.

4. Acquisition of new knowledge and skills through the professional and personal
development of employees is a prerequisite and a guarantee of business
success.

5. "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.

6. Reward employees fairly and attractively, in line with the prevailing conditions
on the local market. Gather data from the labor market on a regular basis.
Ensuring that reward structures remain competitive.

7. 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.

8. When injuries occur though not the fault of their employees, it's their
responsibility to file a claim with their workers' compensation insurance
provider. Businesses must treat their injured employee with respect and file
the claim without attempting to cause a delay in processing or attempt to deter
the worker from filing a claim at all.

9. They are very important in every business. They supply raw materials,
machinery, labor and other materials.

10. The general acceptance of customers or consumers is always right.

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 What I Have Learned

Directions: Fill in the blank. Identify whether it is a Responsibility or

Accountability. Write your answer on a separate sheet of paper.

1. The ___________________ of the businesspeople is to give reasonable and

attractive salaries to their employees.
2. It is the entrepreneur’s _________________ to provide employment security.
3. Transparency and _________________ are important to the consumers.
4. The lack of __________________ in their certain business has made the lack of
completeness.
5. Management needed a sense of _____________ from their department heads.
6. To address customer’s complaint is the ________________ of entrepreneur.
7. The entrepreneur has a _________________ to pay wages and taxes.
8. All people made mistakes sometimes, however, this is all about ___________.
9. Entrepreneurs have the _________________ to implement fair prices of
commodities and services.
10.To adopt incentive schemes is also the __________________ of the
entrepreneur to his employee.

What I Can Do

Let us check on how you will apply the lesson! Compose your own essay
containing at least 2-3 paragraphs. Write your answer in one whole sheet of paper.
You will be graded based on the given rubric.

As a student, what do you think are your responsibilities and accountabilities

as a member in your family? And as a student at school?

RUBRICS FOR WRITTEN WORK (ESSAY)

RAW SCORE INDICATORS

Write the essay nicely and it has appropriate content related to the
5
topic

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 4 Correct and appropriate but lack of neatness

3 Wrong use of capitalization, punctuation marks, indention, etc.

2 Incomplete work

1 Obviously copied the work of others

Assessment

Direction: Read each statement carefully. Choose the letter of the correct answer.
Write your answer on a separate sheet of paper.
1. The following defines entrepreneurship, except __________.
a. buying an existing, successful business
b. working part-time
c. having an idea and taking risks to start a new business
d. giving wages to its employees
2. ______________is a good reason why not everyone wants to be an entrepreneur.
a. Economic development
b. Increase in capital
c. Improves community
d. Lack of experience and expertise
3. The following are social responsibility and accountability towards the local
community or public, except _______________.
a. saving the environment
b. establishing public utilities
c. providing employment
d. regulating sanitary ordinance
4. The following are social responsibility and accountability towards government,
except _______________.
a. payment of taxes
b. compliance of rules and laws
c. seeking political patronage
d. cooperating for economic development
5. The following are social responsibility and accountability towards employees,
except _______________.
a. holding benefit grants
b. securing employment
c. providing convenient workplace
d. assignment of right job

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6. An entrepreneur does the following, except ____________.
a. manages a business for someone else
b. owns controlling interest in the stock of a major corporation
c. manages a business that operates in more than one country
d. accepts the risk of starting and running a business
7. The primary focus in managing a business should likely be ___________.
a. human relations and accounting
b. financing and planning
c. marketing and public relations
d. charity and community service
8. A well-defined service conditions that will inspire the employees to higher
quality work are the following, except ___________.
a. promotion
b. appointments
c. contractualization
d. adopting wage incentive scheme
9. The following are social responsibility and accountability towards creditors,
except _______________.
a. obtain loans on reasonable conditions
b. follow mortgage rules
c. follow business ethics
d. past due loan payments
10. The following are social responsibility and accountability towards customers,
except _______________.
a. providing commodities and services
b. determining of fair price
c. rendering goods and economic services
d. hoarding of products

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 Additional Activities

Directions: Give ten (10) responsibilities that you will apply if you are an
entrepreneur. Write your answer on a separate sheet of paper.

1. ______________________________________
2. ______________________________________
3. ______________________________________
4. ______________________________________
5. ______________________________________
6. ______________________________________
7. ______________________________________
8. ______________________________________
9. ______________________________________
10._________________________________________

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 15
Assessment What I Have
B Learned? What’s New
D
D Responsibility
C Responsibility B
A Accountabilit C
A y G
D Accountabilit I
C y A
D Accountabilit J
D y D
Responsibility E
Responsibility H
Accountabilit F
y
Responsibility
Responsibility
What In What I Know What’s More
TRUE A Create,
TRUE B Maintain a safe
workplace
TRUE C
Respect
FALSE A Human Rights
TRUE A Support Career
TRUE A Development
TRUE B Train and
FALSE C Educate
FALSE D Employees
TRUE A Manage
D Performance
B Give Rewards
and Benefits
B
Pay Wages and
B Taxes
B Facilitate
Worker’s’
Compensation
Supplier
Customer
Answer Key
References

https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-society-
local-community/

https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-
customers/
https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-
employees/

https://www.googlesir.com/responsibility-of-entrepreneur-towards-suppliers-
creditors-and-depositor/

https://www.googlesir.com/social-responsibility-of-entrepreneurs-towards-
government-institutions/
https://www.investopedia.com/terms/b/business-ethics.asp

https://www.investopedia.com/terms/e/entrepreneur

https://simplicable.com/new/accountability

For inquiries or feedback, please write or call:

Department of Education – Region III,

Schools Division of Bataan - Curriculum Implementation Division
Learning Resources Management and Development Section (LRMDS)

Provincial Capitol Compound, Balanga City, Bataan

Telefax: (047) 237-2102

Email Address: [email protected]

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