BUSINESS ETHICS AND

SOCIAL RESPONSIBILITY
(GRADE 12)
The course deals with the fundamental concepts, principles, and practices
of ethical standards in the business environment. It combines the
theoretical foundations of setting up business enterprises with the conduct
of entrepreneurial activities in the context of one’s accountability and social
responsibility.

Specifically, the course aims to:

(1) provide students with a basic understanding of the mechanisms whereby companies can
be made to act in the best interest of shareholders, other stakeholders, and society as a whole;
(2) provide students with knowledge of general ethical principles as applied to the special
situations of business and the ability to make informed judgments through case analyses; and
(3) equip students with the ability to formulate basic strategies in relation to corporate ethics
and governance.
Questions?
1) What is a Business?
2) Purpose of Business
3) Forms of Business Organizations (Review)
What is BUSINESS?
 “The activity of making, buying or
selling goods and providing service in
exchange for money.”
(Merriam-Webster Dictionary)

What is BUSINESS?
 According to Online Etymology Dictionary,
business comes from the word bisignes which
originally means “care, anxiety, occupation”.

The adjective is bisig which used to mean

“careful, anxious, occupied, diligent.”
Original usage and/or original etymology
According to Duska and Ragatz, two business
ethics scholars, the original and primary
meaning of business is:

“TO ENGAGE IN PURPOSEFUL ACTIVITY”

 Businessperson -VS- Entrepreneur

BUSINESSPERSON ENTREPRENEUR
 Concerned with  Concerned with the
“Business Aspect” of an “Insight Aspect” of an
enterprise ~ how can enterprise ~ how new or
activities be arranged private ideas can be
and organized in such a applied so that it may
way that it guarantees have more social utility.
profit.
 Businessperson -VS- Entrepreneur

BUSINESSPERSON ENTREPRENEUR
 Imitators  Innovators
 Play-safe  Risk-taker
 Motivated by financial  Goes beyond the profit
reward motive
“Businesspersons can also possess the
entrepreneurial behavior as well.

The businessperson must try his or her best to

become an entrepreneur by never letting go of the
entrepreneurial mind, that is, to regain the
characteristics of innovativeness, creativity, and
daring risk-taking to create valuable contributions
not only to himself but to the society at large.”
“The entrepreneur must guard himself or herself
lest he or she may end up as a plain and pure
businessperson who has forgotten to take risks
just because of the singular pursuit of financial
gain.”
What is the purpose of
business?
 Subjective -VS- Objective

Subjective Reasoning Objective Reasoning

 Desire to make more income  Let's explore the ideas of
 You want more independence
three scolars:
 Continuing the legacy of the
family 1. Milton Friedman
 You want to try a unique idea 2. Paul Camenisch
 Desire for competition 3. Ronald Duska
 Desire to help a small community
 You enjoy dealing with people
(Customers, employees, etc.)
 Objective Purpose: Milton Friedman

Friedman: The main responsibility of business is to

increase its profits, with due consideration to the existing
laws and ethical norms.

Camenisch: The profit-motive and the social motive are

two essential elements of business. However, the social
motive takes precedence over the profit motive.

Duska: the purpose of business must be distinguished from

the motive of business.
 Are you convinced that the
main purpose of business is to
gain profit or to respond to the
needs and wants of society?

Defend your answer.

 Do you think it is reasonable to
expect businesspersons to help
society or the country?
Why or why not?

Defend your answer.

Forms of Business
Organizations
Let's have a short review...
What are the different forms
of Business Organizations?
What are the different types of
Entrepreneurial/Business
Activities?
 Activity

1. Discuss the advantages and disadvantages of the

various forms of business organizations.

2. Give examples of successful business establishments

that represent the various forms of business organizations
in the Philippines.

3. Discuss other ways through which business institutions

can help in solving the country's social and economic
problems in our society.