Lesson 2 Business Ethics PDF

GRADE 12
Business Ethics and Social

Responsibility
LEARNING OBJECTIVES
At the end of the lesson, learners are able to:

• define socio-economic development;
• explain the role of each form of business organization
in socio-economic development; and
• appreciate the role of business organizations in socio-
economic development.
Let us have a recall!
CONCEPT WEB
Socio-economic
Development
What is socio-economic
development?
Socio-economic development is a process that seeks to
identify both the social and the economic needs within a
community, and seek to create strategies that will address
those needs in ways that are practical and in the best
interests of the community over the long run.
What is socio-economic development?
The Role of Each Form of Business
Organization in the Economy
Business organizations regardless of what form it is share
common purpose and role in socio-economic
development, in principle they should help in the
promotion of common good and in the protection of
persons’ rights and interests.
1. Sole/Single Proprietorship
a. Create Job
Probably the most important way in which a Sole owner helps improve an
economy is through the creation of jobs. Sole owner business organizations
provide employment opportunities to less educated and uneducated workers
and help minimize unemployment problem in the society. They move quietly,
offer jobs to few people.
Employing people at each local business contributes to the success to the

locality, as with the wages they earn, people buy property, shop and invest freely
in where they live. Small businesses also serve as training ground to workers
before they can be hired to large business organizations.
1. Sole/Single Proprietorship
For instance, Bakeries, cake shops, repair shops, law

offices and dental services create jobs that bring money
for residents who then spend their wage at other local
businesses which develop the local economy.
b. Help Small Producers
Most of the goods sold by sole owners are purchased locally
from local producers, thus local producers are benefited by sole
owners. Typically, it offers a larger number of locally produced
goods compared to larger, national or global chains. A large
amount of money spent at local business stays in the locality. This
is a distinct benefit for the other local business, families and
workers in the area.
c. Provide Investment Avenues
▪ Sole owner organization provides a chance for small investors who has
small amount of capital to utilize their savings to engage new business.
Anybody can start their own business as long as they have capital.
Small business can give an individual a chance to gain experience,
which the person may use later on a larger scale.
▪ For instance, an accountant can start a small business in the comfort

of her own home, using the laptop and internet connection she
already has without paying a lease for space, then gradually add
staff as they grow.
d. Help Consumers
Sole owners deliver the merchandise to consumers at their
doorsteps. So, time and energy of the consumers are saved. They
offer convenience to buyers wherein buyers can easily purchase
products.
For instance, Online selling, Customers can purchase what

goods/products they need and want quickly and efficiently at
their convenience. if someone needs a product, they can easily
order it and delivered.
e. Supply Quality Goods
Sole owners sell goods of high quality to maintain their reputation, thus
accepting return of defective merchandise. This ensures the safety and
welfare of the public.
For instance, A sari-sari store owner sells quality products encourage

customers to buy more and keeps them coming back as they say “Go
above and beyond for customers” and you will be rewarded with
repeat business.
2. Partnership
a. Provide Employment
Providing employment opportunities for all is the single most
effective means of tackling poverty and social exclusion, thus
improve individual’s standard of living. Residents in town and
cities should share in higher living standards through
employment.
2. Partnership
b. Produce of Goods and Services
Businesses are designed to serve a particular need that people have,
and to provide trusted goods and services related to that need. Without
partnership business production of some of the goods and services will
be inefficient. However, partners will bring out their technical and
managerial skills during the production of goods and services which has
more quality and also increase the qualities of such goods. Likewise,
partnership business will allow individuals with limited capital to team
up together to produce necessary goods for the teaming population.
2. Partnership
c. Increase Government’s Revenue
Partnership business helps to increase governments
revenue through the payment of taxes hence, without
partnership business, there would not be much private
Companies which will on the other hand affect the
government’s revenue generation.
For instance, Chef Tobz and Pastries register the business

with the Bureau of Internal Revenue (Bir) which requires an
annual registration fee and each of the partners will be
taxed upon his/her share of the income from the
partnership hence, increasing government’s revenue.
3. Corporation
a. Offer Better Jobs in terms of Compensation and Stability
Corporation pays higher salaries ang wages to employees which
makes them stay in the company until they retire. Corporations
seek employment stability as a means of achieving high
commitment, high involvement and flexibility among their
employees.
Employment stability may also have a positive impact on the

reputation of the organization, which in turn, may help in
attracting and retaining employees. Employment stability helps
organizations avoid procyclical hiring. Given all the potential
benefits of employment security people has no reason to leave.
3. Corporation
b. Increase Tax Revenue
The increased presence of companies in the region
translates to increased tax revenue for community projects
and local infrastructure. Taxes that are collected by the
government will be used to fund government expenditures
and programs.
For instance, 7-Eleven Philippines organized as corporation

are made to settle their income tax liabilities and submit
their income tax returns (tax form) to the Bureau of Internal
Revenue (BIR) consequently, money received increases tax
revenue.
3. Corporation
c. Improve Quality of Life
Corporation is becoming a tool to improve quality of life. Better

infrastructure and more jobs improve the economy of the region
and raises the standard of living for its residents. Corporation
produces personal products and technology that are rapidly
growing in popularity that make people’s lives easier and faster.
For instance, your smart-phone it allows you to stay connected to

your friends and family members at all times and also you have
access to an infinite amount of information right at your
fingertips.
Technology is there to make people’s lives easier and improve
their quality of life.
3. Cooperative
ABC
Abc
ABC
Abc
ABC
Abc
3. Cooperative
a. Provide Employment
Cooperatives are significant in providing
jobs, aside from giving salaries and wages
to employees, they also provide
opportunities to upgrade the skills of their
employees through workshops and
courses. They also offer employment to
students on casual-appointment basis
during long vacations.
3. Cooperative
b. Pay Local Taxes
Cooperatives need to meet local tax obligation
to stay in good legal standing. Taxes are used to
maintain infrastructure of a city, such as roads,
bridges, public transportation, libraries and
other public buildings and services. It is also
used for the salaries of public employees such
as teachers, nurses, doctors, agriculturist,
policemen and many more.
3. Cooperative
c. Respond to Production and Consumption
Responsive production and consumption are “Doing more and
better with less” increasing net welfare gains from economic
activities by reducing resource use, degradation and pollution
along the whole lifecycle of the corporation, while increasing
quality of life.
The production and consumption of healthy food is envisioned to

create healthy consumers, reduce the cost of health
maintenance, and increase the allocation of financial resources
to productive activities.
It also promotes resource and energy efficiency, sustainable
infrastructure, and providing access to basic services, green and
a better quality of life for all.
What I Have Learned
THANK YOU

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GRADE 12

Business Ethics and Social

At the end of the lesson, learners are able to:

Employing people at each local business contributes to the success to the

For instance, Bakeries, cake shops, repair shops, law

▪ For instance, an accountant can start a small business in the comfort

For instance, Online selling, Customers can purchase what

For instance, A sari-sari store owner sells quality products encourage

For instance, Chef Tobz and Pastries register the business

Employment stability may also have a positive impact on the

For instance, 7-Eleven Philippines organized as corporation

Corporation is becoming a tool to improve quality of life. Better

For instance, your smart-phone it allows you to stay connected to

The production and consumption of healthy food is envisioned to

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