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Asian Institute of Computer Studies
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MODULE 9
Lesson 1: Corporate Social Responsibility ………...................2-3
Lesson 2: Ethics and Social Responsibility for
an Entrepreneur …………………….……………………………………………………….3
Lesson 3: Social Responsibility of an Entrepreneur towards
Different Section of the Society ………………….…………………………….4
Lesson 4: Major Ethical Issues in Entrepreneurship.……….4-6
Lesson 2: Models and frameworks of Social
Responsibility…………………….……………………………………………….…………….6-7
Activities and Assessment ………….………………………….…………….……9-10
MODULE 10
Lesson 1: Beyond Profit ….……….…………………...….…………….………….11-12
Lesson 3: Social Enterprise ………………………….…………………………12
Activities and Assessment ………….………………………….…………….…15-16
4th
Quarter Project ……………….………….……………………………………...…21
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At the end of this module, you are expected to:
• Classify and appreciate social responsibility principles in
business environments.
• Communicate the value of participants in social
responsibility programs.
• Craft a simple “Codes of Ethics” or “Codes of Right Conduct”.
• Explain the different models and framework of social
responsibility.
Social Responsibility of an Entrepreneur
Overview:
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. The
study and examination of moral and social Responsibility in relation to business
practice and decision making in business is known as “Business Ethics”. The term
“business” is commonly referred to the commercial activities achieved at making
profit, but gradually there is a substantial change in the way in which people viewed
the business. In the past primary objective of a business was profit maximization
but the present perspectives on business objectives are not maximization. Besides
profit maximization the entrepreneur needs to fulfil the ethics in the business
Corporate Social Responsibility
Corporate Social Responsibility (CSR) is a term used to describe a
company’s obligation to be sensitive to the needs of all the stakeholders in its
business operations. The company stakeholders include the following:
1. Owners 4. Customers
2. Investors 5. Employees
3. Suppliers 6. Community
The community stakeholder may include the government and
environment that the companies operate in. For companies with business
investments in different countries, the communities take account of a variety of
governments and environment.
Corporate Citizenship
Corporate Citizenship is often used interchangeably with CSR. Its concept
states that the long-term interest of business is best served when its profitability
and growth are accomplished alongside its social responsibilities. These social
responsibilities are ethical obligations toward the aforementioned stakeholders.
Some of these ethical obligations include the improvement of communities, the
safeguard for and sustainability of the environment, and the enhancement of the
quality of life of its stakeholders.
Manifestations of the practice of CSR include the following:
1. Social commitment to programs beyond the immediate community of
the enterprise.
2. Rapport between the business and the community.
3. Health and safety, family welfare and equal opportunity programs
inclusive of reward systems and legal reasonable working hours.
4. Sustainable environment programs.
Some benefits accrued from the practice of CSR include the enhancement of the
following:
UNIT TWO
MODULE
9
Inclusive dates:
WEEK 9-11
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1. The business reputation and goodwill
2. Awareness for the enterprise
3. Product recognition
4. Loyalty from clients
5. Efficiency and dedication of employees
6. Provision of tax benefits
The aforementioned benefits of product recognition and corporate awareness are
seen in the following examples of enterprises that have reached out to
communities through their CSR programs:
1. School building construction by Chevron (Caltex).
2. Supplementary feeding programs of CDO-Food sphere, United
Laboratories, and Odyssey Foundation, Inc.
3. Collection and distribution of toys by Jollibee.
4. Waste management programs of Nestlé.
5. Book donations of the SM Foundation.
6. Center of excellence in education support from the Ayala Foundation.
7. Red Schoolhouses of Coca-Cola.
8. ‘Carry-all-tiangge’ at the Greenhills Shopping Mall through Henry Babiera,
a former seaman, with his “business with conscience” concept.
9. Recycling projects of Tetra Pak Philippines with partner schools.
Selected qualified donees or beneficiaries of CSR programs include the following:
1. Philippine government
2. Academe
3. Foreign institutions or international organizations, in compliance with
agreement under the Philippine government
4. Philippine Council for nongovernmental organization (NGO) certification
(PCNC) and/or PCNC-certified organizations.
5. Other nonstock, nonprofit organizations
Ethics and Social Responsibility for an Entrepreneur
Social Responsibility means eliminating corrupt, irresponsible, or unethical
behavior which might harm to the community, its people, and the environment.
1. Public Image
- The activities of an entrepreneur towards the welfare of the society
earn goodwill and reputation for the business. People prefer to buy
products of a company that engages itself in various social welfare.
programs. Again, good public image also attracts the honest and
competent employees to work with such employers.
2. Employee Satisfaction.
- Employees are the part of the society. If you satisfy their needs, then
you are doing social work.
3. Ethical Leadership.
- It is the belief that what entrepreneur does have a strong influence on
employees. If manager cheats, lies, steals, or manipulates, then they
are sending wrong signals to employees.
4. A social Entrepreneur is an individual or organization who seeks out
opportunities to improve society by using practical, innovative, and
substantial approaches.
5. Environment Management.
- Managers and Organizations can do many things to protect and
preserve the natural environment which includes plastic less business
by giving paper bag, creating eco-friendly product, by eliminating
production.
6. Consumer Awareness.
- Consumers have become very conscious about their rights. If you are
giving high quality products at cheap rate, that is kind of social
Responsibility.
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Social Responsibility of an Entrepreneur Towards
Different Sections of The Society
1. Responsibility Towards Employees:
✓ Fair wages and salaries
✓ Adequate Basic Facilities like safe drinking water, electricity,
canteen, hygienic toilets.
✓ Skill development programs.
✓ Good and safe working environment.
✓ Retirement benefits and pension schemes
✓ Collective bargaining
✓ Insurance cover
✓ Medical facilities
2. Responsibility towards Customers
✓ Charge reasonable price for products or services.
✓ Supply of right quality of goods in right quantity.
✓ No use of manipulated or false advertisements.
✓ Avoid unfair selling practices.
✓ Fair guarantee of product
3. Responsibility towards shareholders
✓ A fair return on investment.
✓ Safety of invested capital.
✓ Regular and complete information about the performance and
progress of the company.
✓ Regular Payment if dividend
4. Responsibility towards Suppliers, Creditors
✓ Maintain healthy and co-operative inter-business relationship
between different businesses.
✓ Provide accurate and relevant information to creditors. o
Payment of price of materials on time.
✓ Prompt payment of interest on borrowed funds.
✓ Producing original documents for credit processing
5. Responsibility towards Public and General
✓ Help the weaker section of the society.
✓ Creation of job opportunities.
✓ Improvement in living standards.
✓ Building of basic infrastructure like roads, sewerage.
✓ Health and educational development schemes.
✓ To make best use of society’s resources for their welfare.
6. Responsibility towards Government
✓ Payment of corporate tax in correct amount with no
manipulation of profit figures.
✓ To avoid corrupting public servants by offering bribe.
✓ To encourage fair trade practices.
✓ To avoid monopoly practices.
✓ To improve national income.
Major Ethical Issues in Entrepreneurship
1. Basic Fairness
- Fairness in business refers to the value of treating people with a
standard of performance that is consistent and equal based on your
commitments. It means giving customers a fair value for their money.
2. Personnel and Customer relations
- Customer relations describes the ways that a company will engage
with its customers to improve the customer experience. It aims to
create a mutually beneficial relationship with the customer that
extends beyond the initial purchase. On the other hand, personnel
relation refers to an organization’s efforts to create and maintain a
positive relationship with its employees. By maintaining positive,
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constructive employee relations, organizations hope to keep
employees loyal and more engaged in their work.
- Functions that customer relations includes:
a. Reactive functions – Efforts made by your team to solve issues
performed by your customer service teams.
b. Proactive functions – Measures taken to ensure a long-term
relationship with customers.
3. Fraud
- Employees and customers are just a few people who might take
advantage of your small business. Recognize types of fraud in business
and learn how to protect yourself.
a. Identity Theft - Fraudsters could steal your business’s identity and
use it to access your credit.
b. Payroll Fraud - Employees asking for pay advances without paying
back. Or employees lying about hours worked on their timesheets.
Employees could also get co-workers to clock in for them even if
they are not at work.
c. Money Fraud - Because there’s so much illegal cash, you might
come across fake bills. Money fraud can happen without you or the
customer even noticing.
d. Return Fraud - Some customers might purchase a product, use it,
then return it even though nothing is wrong with it. Or, you might
have fraudsters who steal products from you and attempt to
return them to make a profit.
e. Worker’s Compensation Fraud - As a business owner, most states
require that you purchase workers’ compensation. Workers’
compensation insurance pays your employees if they become
injured or ill at work. Employees might get injured outside of work
and say they got the injury at your business or employees could
make up an illness or injury.
4. Non-respect of agreements
- Types of agreements
a. Intellectual property (Ip) Assignment Agreement - Intellectual
Property lies in ideas, inventions, and concepts therefore it is
necessary for an entrepreneur to protect his IP. The protection of
the expression of ideas and concepts is generally through written
contracts and agreements which provide a contractual remedy for
misuse or disclosure of the idea.
b. Operating Agreement (Founders’ Agreement) - contains the duties
and liabilities of the founders.
c. Non – Disclosure Agreement - agreements which contains the
provisions protecting the information of the company from being
disclosed to any third party.
d. Employee contracts and offer letters - employment agreements
and offer letters which usually contains terms of employment
(compensation, job responsibilities, working hours and grounds for
termination etc.)
e. Shareholder Agreements - defines the rights and responsibilities of
the shareholders.
f. Commercial Leases - lease agreements for the buildings. If an
entrepreneur does not own a land, it is taken on lease. Hence it is
very important to have a lease agreement with the landlord.
g. Independent Contractor Agreement - independently hired by the
company for a particular service and for a particular period of time.
Therefore, it is essential to have a written agreement with these
contractors so that the hassles are avoided.
h. Client/Sale Agreement - define the nature of the services, the date
of commencement and end of services and most importantly
contains disclaimers regarding the services.
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5. Environmental degradation
- The sole objective of business owners was to build a company that would
generate revenues and continuously increases profits. As environmental
issues, their impact on business and the world, and the risks to the future
of all life have become more prevalent across the globe. The effects are
being seen and the need for immediate action is now. It is the responsibility
of business owners to take a full inventory of their choices and examine
how those choices affect the environment. It is time to make modifications
where necessary. Some effects are more subtle than others, but all
modifications contribute to the greater good of our planet.
Models and Frameworks of Social Responsibility
Corporate Social Responsibility (CSR) is a self-regulating business strategy
that helps businesses to be socially responsible and being accountable to their
stakeholders and to the public. Several CSR models have been formulated over the
years. The purpose of these models is to design and execute the CSR process and
to enable its monitoring and control. Businesses by implementing CSR models in
their operations increase their adaptability to internal and external changes in the
environment. This helps to promote positive changes and bringing about progress
in socio-economic parameters. CSR benefits people and entities with few or no
resources (Ivesha, 2008).
1. Caroll’s Pyramid CSR Model
The major focus of the model is to embrace the complete spectrum
of expectations that society has from a business, defining them and
dividing them into different categories. The model can be represented with
the help of diagram-1 shown below.
As shown in the above figure, there are four kinds of social
responsibilities that cohesively constitute the concept of CSR.
a) Economic Responsibility - the responsibility of the business to
be profitable.
b) Legal Responsibility - businesses must comply with the law and
regulations.
c) Ethical Responsibility - companies have a responsibility to act
ethically and morally and to choose the action that causes the
least, if any, harm,
d) Philanthropic Responsibility - the idea that businesses should
give back, either in time, money, or goods, to the community
in which they serve.
2. Intersecting Circle (IC) CSR Model
The IC model refutes the notion that CSR is just a collection of
contingent and externally related topics. Rather, the model states that
different responsibilities are in dynamic interplay with each other. It is the
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responsibility of the corporates to maintain harmony and resolve the
conflicts between different responsibilities. The main idea of the model is
that no responsibility is more important than the other. Rather everything
is a social creation and the existence of everything depends on the
willingness of the society to support them (Ma, 2012).
The major point of
differentiation between
the two models is that:
✓ it recognizes that
there is a possibility of
interrelationships
between the different
domains of CSR and
second and,
✓ it rejects the
hierarchical order of
importance.
3. The Concentric Circle CSR Model
In contrast to the Pyramid model and IC model, the CON model
states non-economic social responsibilities are the one that embraces
core economic responsibilities.
• The inner circle represents the core responsibilities of the business in terms
of CSR. This basically includes responsibilities that focus on the efficient
execution of economic functions such as products, jobs, and economic
growth.
• The second circle represents the legal responsibilities that involve
cooperating with the government on the part of the businesses.
• The intermediate circle which is the ethical circle includes responsibilities
that help to exercise economic functions but with a sensitive awareness of
ethical norms as well as values and priorities.
• The outer circle that represents the philanthropic circle focuses on newly
emerging responsibilities that the business should focus on in order to
become more broadly involved in social responsibilities.
Reference links:
Above image retrieved from: https://www.edx.org/learn/social-entrepreneurship.
https://work.chron.com/important-business-relationships-based-honesty-trust-fairness-
respect-1682.html
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https://blog.hubspot.com/service/customer-
relations#:~:text=Customer%20relations%20describes%20the%20ways,to%20improve%20
the%20customer%20experience.&text=Customer%20service%20teams%2C%20customer%
20support,building%20a%20healthy%20customer%20relationship.
https://www.forbes.com/sites/mikekappel/2017/10/04/5-types-of-fraud-in-business-that-
could-put-you-in-a-bind/?sh=43c8e43a13e5
https://www.bamboohr.com/hr-glossary/employee-relations/
https://blog.ipleaders.in/startup-agreement/
https://ecampusontario.pressbooks.pub/businessfuncdn/chapter/article-carrolls-
corporate-social-responsibility-pyramid/
https://www.unitedworldtelecom.com/news/environmental-issues-their-impact-on-
business/
https://saylordotorg.github.io/text_human-relations/s09-03-social-
responsibility.html#:~:text=There%20are%20four%20levels%20of,the%20action%20that%
20causes%20the
https://www.projectguru.in/corporate-social-responsibility-
models/#:~:text=The%20Intersecting%20Circle%20(IC)%20CSR,the%20hierarchical%20ord
er%20of%20importance.
https://flia.org/wp-content/uploads/2018/11/FLIA-Consulting-Briefing-1-CSR.pdf
http://ijrmbs.com/vol4issue1/nivethigha.pdf
Garalde-Orajo V., Frias S.A., (2016) Business Ethics and Social Responsibility: Principles,
Policies, Programs and Practices. Quezon City, Phoenix Publishing house Inc
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Important Reminders
• Tear this activity sheet and submit on the scheduled date along
with the other activity (ies) the instructor may have asked the students to
do on a separate paper.
• If you are sending something you’ve done online such as MS
presentation (s), pictures, pdfs and alike as an attachment, then you may send
them to my email at ____________________________________________
following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or
send a digital copy from your flash drive together with this activity sheet.
ACTIVITY 1:
CSR Program
Design a CSR program for your chosen stakeholder group within an entertainment
industry enterprise or organization.
Business Name of Entertainment Organization: ____________________________
Assigned Stakeholder Group: ___________________________________________
CSR Program Design: _________________________________________________
ACTIVITY 2:
Vision and Mission
Imagine yourself as a business owner, using the different Social Responsibility, on
an Oslo Paper, create your company’s vision and mission.
ACTIVITY 3:
Short Video
Your subject instructor will group you into 5 groups (Usually based on your
address), create a 2-minute video on how you can solve the major ethical issues
in entrepreneurship.
ACTIVITY 4:
Code of Ethics for ABM students
Create a code of ethics using the format shown. Add definitions to the principles
and describe the rules of conduct for the defined principles.
Principles
1. Integrity
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2. Objectivity
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. Confidentiality
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
4. Competency
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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Principles
1. Integrity
Students in the ABM strand
1.1 shall perform their work with_______________________________________
1.2 shall respect and contribute to the___________________________ of the
ABM strand.
2. Objectivity
Students in the ABM strand
2.1 Shall not participate in any activity or relationship that___________________
2.2 shall not accept anything that may ___________________________________
3. Confidentiality
Students in the ABM strand
3.1 shall be prudent in the use and protection of ___________________________
3.2 shall not use information for ________________________________________
4. Competency
Students in the ABM strand
4.1 shall engage only in those activities ___________________________________
4.2 shall perform ___________________________ with the ABM strand standards.
MODULE 9: Assessment
Test I. Read each statement carefully and choose your answer on the set of choices
below. Write the letter of your chosen answer on the space provided.
_____1. The sacredness or value of each person as an end, not simply as a means
to the fulfilment of others’ purposes, or even the prescription of the majority.
_____2. The production of goods and services that society wants a price that
perpetuates the business and satisfies its obligations to customers.
_____3. A business principle stating that the long-term interests of business is best
served when its profitability and growth are accomplished alongside the
development of communities, the protection and sustainability of the
environment, and the improvement of people’s quality of life.
_____4. The obedience of local, national, and relevant international laws.
_____5. ‘Meeting other expectations not defined by law.’
a. Corporate Social Responsibility b. legal responsibilities
c. Ethical Responsibilities d. Economic responsibilities e. Human dignity
Test II. Essay. In 5-10 sentences, differentiate the different models and Frameworks
of Social responsibility. Your output will be graded based on this rubric:
5 – Excellent 4 – Good 3 – Adequate 2 – Marginal 1 – No credit /
unacceptable
Criteria 5 4 3 2 1
Quality of writing (Informative, well organized
etc.)
Grammar usage and Mechanics (spelling,
punctuations, grammatical errors)
Following the instructions.
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Business Beyond Profit Motivation
Overview:
A business must have reason to exist beyond that of making money and
maximizing shareholder value. Profit cannot be the goal, vision, or the purpose of
an organization. An organization that posts great year end results does not
automatically earn the title of being a great company.
Seeking profit as a primary business purpose is like building a house of
cards or building a house on sand – it will eventually lead to collapse (ably
demonstrated by many financial institutions over the previous months). Profit is
too temporary to guide a business by.
6 good reasons not to use profit as your primary purpose:
• Profit is an output and a symptom of success, not the cause.
• Profit is temporary and can be wiped out in an instant.
• In tough times, profit can be hard to come by.
• You need more purpose than profit to make it through.
• Profit does not motivate the salaried staff who make success happen.
• Customers do not appreciate being seen just for their revenue.
• Consumers are increasingly focusing on values and contribution to society
when choosing who to do business with.
Beyond Profit
A true vision for a business rests on foundations of both purpose and values. The
people within the business have to be passionate about what they do and why they
do it. The business’ goals must then align with this foundation. Without a clear
foundation, a business will never be truly strategic.
Values - A business’ core values are defined internally through a process of
introspection and discovery and are based not on the outside but on what
lies within. Core values do not change with the seasons but are deeply held
values already embedded within the DNA of an organization.
Core values held by a variety of well-known organizations include:
✓ Imagination
✓ product excellence
✓ great customer service
✓ respect for the individual
✓ quality
✓ market focus
✓ teamwork
Purpose - The core purpose of a business is also discovered by
introspection and discovery. A business’ core purpose is its most
fundamental reason for being. By stripping away the layers of what a
business does and what motivates it, any company will discover a deeper
purpose that unifies and motivates. In essence, to discover your business’
core purpose, you could ask, “Why does this business exist?”
UNIT TWO
MODULE
10
Inclusive dates:
WEEK 12-15
At the end of this module, you are expected to:
• Identify reasons for establishing business enterprises
beyond profit.
• Prepare and implement a personal action plan to assist an
existing small business enterprise to practice ethics and
social responsibility in their business operation.
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6 good reasons for your business to look beyond profit.
• Purpose and values motivate and unify management and staff.
• Purpose and values give a company a solid foundation from which to make
decisions.
• Purpose and values provide a navigational compass to all elements of the
business.
• Customers will have more to buy into and engage with.
• Purpose and values encourage loyalty of both staff and customers.
• Purpose and values encourage a strong culture and ethos within a
business.
Social Enterprise
A social enterprise or social business is defined as a business that has
specific social objectives that serve its primary purpose. Social enterprises seek to
maximize profits while maximizing benefits to society and the environment. Their
profits are principally used to fund social programs. Social enterprises are revenue-
generating businesses with a twist. Whether operated by a non-profit organization
or by a for-profit company, a social enterprise has two goals: to achieve social,
cultural, community economic and/or environmental outcomes; and, to earn
revenue.
On the surface, many social enterprises look, feel, and even operate like
traditional businesses. But looking more deeply, one discovers the defining
characteristics of the social enterprise: mission is at the center of business, with
income generation playing an important supporting role. To sum things up:
• A social enterprise is a business with social objectives that serve its primary
purpose.
• Maximizing profits is not the primary goal of a social enterprise as is with a
traditional business.
• Unlike a charity, social enterprises pursue endeavors that generate
revenues, which fund their social causes.
• Regarding employment, preference is given to jobseekers from at-risk
communities.
Social Enterprise vs. Social Entrepreneurship
A social enterprise is not to be confused with social entrepreneurship,
which tends to focus on individuals who develop solutions to social and
environmental problems using existing business techniques and strategies. Social
entrepreneurs seek innovative ways and operate to drive change, whereas social
enterprises form to fulfill a business purpose and solve societal needs through their
commercial activities.
Sustainable Local and Regional Development in the Social Economy
Sustainability contains three main aspects: the economy, the environment,
and society.
1. Economic perspective - sustainability is the provision of goods and services for
human needs while minimizing environmental damage. Sustainability in the
economic perspective covers all production processes, consumption, and
distribution. In the environmental perspective, sustainability indicates maintaining
the natural mechanism.
2. Environmental perspective - means that the diversity of species is conserved,
the natural resources are maintained for biological systems, and the natural and
human society have self-cleansing properties. In the societal perspective,
sustainability aims to preserve the universal values of liberty, peace, and equity. It
makes human societies sound and healthy.
3. Sustainability in society - aims to eradicate unequal social structure, improve
redistribution of income, promote equality of opportunity, and provide
consideration to socially disadvantaged people.
Social Enterprise in the Philippines
According to a 2015 report by the British Council, social enterprise in the
Philippines is vibrant and growing, and in years to come, will have a much wider
presence and impact.
More than a quarter of the 107 million population live below the poverty,
the country’s strong entrepreneurial culture that includes one million Medium and
Small enterprise, account for 99% of all businesses. According to a survey in 2007
there were 30,000 social enterprises established in the country.
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Below are some social enterprises in the Philippines that reinvests its profits in
humanitarian and/or environmental causes that provide jobs for people and
protect natural resources while helping improve living conditions.
1. Bambike – Hand-Made Bamboo Bicycles
Bambike, is a socio-ecological enterprise based in the Philippines in
partnership with Gawad Kalinga, a movement that aims to address poverty in the
country. Bambike which manufacture hand-made bamboo bicycles, aims to make
the greenest bikes on the planet. Heir bamboo bike builders also known as
bambuilders, are hired local villagers that are provided with sustainable livelihoods.
Before working as bike builders, these craftsmen were doing menial jobs in far
places. Now they are able to work, live, and participate in the development of their
local communities.
2. ANTHILL Fabric Gallery – Fashion and Lifestyle Gallery
ANTHILL (Alternative Nest and Trading/Training Hub for Ingenious/
Indigenous Little Livelihood Seekers) is a fashion and lifestyle gallery and workshop
that specializes in handwoven fabrics and crafts. Its products include special fabrics
woven into accessories, handbags, small gift, jewelry pieces, and handmade dolls,
fashion, and lifestyle. A social enterprise that gives importance to cultural
tradition/ identity. It operates through multiple weaving communities throughout
the country. It buys heir raw materials, and then uses the talents of local designers
to transform these indigenous fabrics into contemporary items that are sold in the
open market.
3. Liter of Light – Sustainable Lightning
The Lighter of Light movement began in the Philippines with one bottle
light. The movement grew to brighten not just homes in the Philippines, but in
India, Indonesia, and even as far away as Switzerland. The Solar Bottle Bulb is made
from transparent 1.5-2L plastic bottle, typically used for carbonated drinks, and
then filled with water and a little bleach then fitted through the roof of a house.
The water inside the bottle refracts sunlight during the day and delivers about 40–
60-watt incandescent light in the interior. If properly installed, the solar bottle can
last up to 5 years.
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4. First Harvest – Eco Food Spreads
A Filipino food brand that uses healthy ingredients to make their crowd-
favorite products that include smooth Peanut Spread, Peanut Crunch, and Salted
Coco Caramel. It is a social enterprise that aims for quality of life through jobs as
well as to enrich agricultural industries. It employs mothers from the Gawad
Kalinga village in Angat Bulacan. Its food production, product development, and
retail sales help provide employment to the socially disadvantaged. First Harvest,
along with its community partners aims to establish food tolling facilities in at least
10 farms in the country.
Reference links:
Above image retrieved from: https://www.creativefabrica.com/product/business-profit-
growth-to-success-vector-4/.
https://www.investopedia.com/terms/s/social-enterprise.asp
https://www.centreforsocialenterprise.com/what-is-social-enterprise/
https://www.stockerpartnership.com/resources/articles/purpose-beyond-profit/
https://www.madmonkeyhostels.com/h2o_blog/social-enterprises-philippines-10-
fantastic-enterprises-2016-21
file:///C:/Users/WS-35Lab2/Downloads/sustainability-09-01427.pdf
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Important Reminders
• Tear this activity sheet and submit on the scheduled date along
with the other activity (ies) the instructor may have asked the students to
do on a separate paper.
• If you are sending something you’ve done online such as MS
presentation (s), pictures, pdfs and alike as an attachment, then you may send
them to my email at ____________________________________________
following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or
send a digital copy from your flash drive together with this activity sheet.
ACTIVITY 1:
The Natural Environment
Using the templates, validate the viability of selected environment
protection practices such as recycling, use of renewable energy, and the reusing of
resources.
Environmental Practices Viability Recommendation
Recycling
Renewable Energy Use
Reusing Resource
Others, please specify
__________________
ACTIVITY 2:
Product Development
Create a sample product that provide jobs for people and protect natural resources
while helping improve living conditions.
Product Name: _______________________________________
Short description (Purpose):
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Materials used and its cost:
-
-
-
-
-
Selling Price: _______________________________
Product Image
Asian Institute of Computer Studies
16
ACTIVITY 3:
Social Enterprise in The Philippines
Research on the given social enterprise above. Draw and/or write
instructions for how it is made, uses, function and importance for each enterprise.
MODULE 10: Assessment
Test I. Identification. Identify the term asked for each statement.
_____________________1. Aims to preserve the universal values of liberty, peace,
and equity. It makes human societies sound and healthy.
_____________________2. Seek innovative ways and operate to drive change,
whereas social enterprises form to fulfill a business purpose and solve societal
needs through their commercial activities.
_____________________3. It covers all production processes, consumption, and
distribution. In the environmental perspective, sustainability indicates maintaining
the natural mechanism.
_____________________4. Defined as a business that has specific social objectives
that serve its primary purpose.
_____________________5. Aims to eradicate unequal social structure, improve
redistribution of income, promote equality of opportunity, and provide
consideration to socially disadvantaged people.
Test II. Essay. In 10-15 Sentences. Explain the importance of establishing and
sustaining business enterprises as source of job opportunities and financial
freedom. Your output will be graded based on this rubric:
5 – Excellent 4 – Good 3 – Adequate 2 – Marginal 1 – No credit /
unacceptable
Criteria 5 4 3 2 1
Quality of writing (Informative, well organized
etc.)
Grammar usage and Mechanics (spelling,
punctuations, grammatical errors)
Following the instructions.
Asian Institute of Computer Studies
17
4th
Quarter Project
In a group of 6 members. Prepare and implement a proposed personnel action
plan to assist an existing small business enterprise to practice ethics and social
responsibility in their business operation. Your instructor will provide you the
criteria.

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ETHICS.pdf

  • 1. Asian Institute of Computer Studies 1 MODULE 9 Lesson 1: Corporate Social Responsibility ………...................2-3 Lesson 2: Ethics and Social Responsibility for an Entrepreneur …………………….……………………………………………………….3 Lesson 3: Social Responsibility of an Entrepreneur towards Different Section of the Society ………………….…………………………….4 Lesson 4: Major Ethical Issues in Entrepreneurship.……….4-6 Lesson 2: Models and frameworks of Social Responsibility…………………….……………………………………………….…………….6-7 Activities and Assessment ………….………………………….…………….……9-10 MODULE 10 Lesson 1: Beyond Profit ….……….…………………...….…………….………….11-12 Lesson 3: Social Enterprise ………………………….…………………………12 Activities and Assessment ………….………………………….…………….…15-16 4th Quarter Project ……………….………….……………………………………...…21
  • 2. Asian Institute of Computer Studies 2 At the end of this module, you are expected to: • Classify and appreciate social responsibility principles in business environments. • Communicate the value of participants in social responsibility programs. • Craft a simple “Codes of Ethics” or “Codes of Right Conduct”. • Explain the different models and framework of social responsibility. Social Responsibility of an Entrepreneur Overview: 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. The study and examination of moral and social Responsibility in relation to business practice and decision making in business is known as “Business Ethics”. The term “business” is commonly referred to the commercial activities achieved at making profit, but gradually there is a substantial change in the way in which people viewed the business. In the past primary objective of a business was profit maximization but the present perspectives on business objectives are not maximization. Besides profit maximization the entrepreneur needs to fulfil the ethics in the business Corporate Social Responsibility Corporate Social Responsibility (CSR) is a term used to describe a company’s obligation to be sensitive to the needs of all the stakeholders in its business operations. The company stakeholders include the following: 1. Owners 4. Customers 2. Investors 5. Employees 3. Suppliers 6. Community The community stakeholder may include the government and environment that the companies operate in. For companies with business investments in different countries, the communities take account of a variety of governments and environment. Corporate Citizenship Corporate Citizenship is often used interchangeably with CSR. Its concept states that the long-term interest of business is best served when its profitability and growth are accomplished alongside its social responsibilities. These social responsibilities are ethical obligations toward the aforementioned stakeholders. Some of these ethical obligations include the improvement of communities, the safeguard for and sustainability of the environment, and the enhancement of the quality of life of its stakeholders. Manifestations of the practice of CSR include the following: 1. Social commitment to programs beyond the immediate community of the enterprise. 2. Rapport between the business and the community. 3. Health and safety, family welfare and equal opportunity programs inclusive of reward systems and legal reasonable working hours. 4. Sustainable environment programs. Some benefits accrued from the practice of CSR include the enhancement of the following: UNIT TWO MODULE 9 Inclusive dates: WEEK 9-11
  • 3. Asian Institute of Computer Studies 3 1. The business reputation and goodwill 2. Awareness for the enterprise 3. Product recognition 4. Loyalty from clients 5. Efficiency and dedication of employees 6. Provision of tax benefits The aforementioned benefits of product recognition and corporate awareness are seen in the following examples of enterprises that have reached out to communities through their CSR programs: 1. School building construction by Chevron (Caltex). 2. Supplementary feeding programs of CDO-Food sphere, United Laboratories, and Odyssey Foundation, Inc. 3. Collection and distribution of toys by Jollibee. 4. Waste management programs of Nestlé. 5. Book donations of the SM Foundation. 6. Center of excellence in education support from the Ayala Foundation. 7. Red Schoolhouses of Coca-Cola. 8. ‘Carry-all-tiangge’ at the Greenhills Shopping Mall through Henry Babiera, a former seaman, with his “business with conscience” concept. 9. Recycling projects of Tetra Pak Philippines with partner schools. Selected qualified donees or beneficiaries of CSR programs include the following: 1. Philippine government 2. Academe 3. Foreign institutions or international organizations, in compliance with agreement under the Philippine government 4. Philippine Council for nongovernmental organization (NGO) certification (PCNC) and/or PCNC-certified organizations. 5. Other nonstock, nonprofit organizations Ethics and Social Responsibility for an Entrepreneur Social Responsibility means eliminating corrupt, irresponsible, or unethical behavior which might harm to the community, its people, and the environment. 1. Public Image - The activities of an entrepreneur towards the welfare of the society earn goodwill and reputation for the business. People prefer to buy products of a company that engages itself in various social welfare. programs. Again, good public image also attracts the honest and competent employees to work with such employers. 2. Employee Satisfaction. - Employees are the part of the society. If you satisfy their needs, then you are doing social work. 3. Ethical Leadership. - It is the belief that what entrepreneur does have a strong influence on employees. If manager cheats, lies, steals, or manipulates, then they are sending wrong signals to employees. 4. A social Entrepreneur is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and substantial approaches. 5. Environment Management. - Managers and Organizations can do many things to protect and preserve the natural environment which includes plastic less business by giving paper bag, creating eco-friendly product, by eliminating production. 6. Consumer Awareness. - Consumers have become very conscious about their rights. If you are giving high quality products at cheap rate, that is kind of social Responsibility.
  • 4. Asian Institute of Computer Studies 4 Social Responsibility of an Entrepreneur Towards Different Sections of The Society 1. Responsibility Towards Employees: ✓ Fair wages and salaries ✓ Adequate Basic Facilities like safe drinking water, electricity, canteen, hygienic toilets. ✓ Skill development programs. ✓ Good and safe working environment. ✓ Retirement benefits and pension schemes ✓ Collective bargaining ✓ Insurance cover ✓ Medical facilities 2. Responsibility towards Customers ✓ Charge reasonable price for products or services. ✓ Supply of right quality of goods in right quantity. ✓ No use of manipulated or false advertisements. ✓ Avoid unfair selling practices. ✓ Fair guarantee of product 3. Responsibility towards shareholders ✓ A fair return on investment. ✓ Safety of invested capital. ✓ Regular and complete information about the performance and progress of the company. ✓ Regular Payment if dividend 4. Responsibility towards Suppliers, Creditors ✓ Maintain healthy and co-operative inter-business relationship between different businesses. ✓ Provide accurate and relevant information to creditors. o Payment of price of materials on time. ✓ Prompt payment of interest on borrowed funds. ✓ Producing original documents for credit processing 5. Responsibility towards Public and General ✓ Help the weaker section of the society. ✓ Creation of job opportunities. ✓ Improvement in living standards. ✓ Building of basic infrastructure like roads, sewerage. ✓ Health and educational development schemes. ✓ To make best use of society’s resources for their welfare. 6. Responsibility towards Government ✓ Payment of corporate tax in correct amount with no manipulation of profit figures. ✓ To avoid corrupting public servants by offering bribe. ✓ To encourage fair trade practices. ✓ To avoid monopoly practices. ✓ To improve national income. Major Ethical Issues in Entrepreneurship 1. Basic Fairness - Fairness in business refers to the value of treating people with a standard of performance that is consistent and equal based on your commitments. It means giving customers a fair value for their money. 2. Personnel and Customer relations - Customer relations describes the ways that a company will engage with its customers to improve the customer experience. It aims to create a mutually beneficial relationship with the customer that extends beyond the initial purchase. On the other hand, personnel relation refers to an organization’s efforts to create and maintain a positive relationship with its employees. By maintaining positive,
  • 5. Asian Institute of Computer Studies 5 constructive employee relations, organizations hope to keep employees loyal and more engaged in their work. - Functions that customer relations includes: a. Reactive functions – Efforts made by your team to solve issues performed by your customer service teams. b. Proactive functions – Measures taken to ensure a long-term relationship with customers. 3. Fraud - Employees and customers are just a few people who might take advantage of your small business. Recognize types of fraud in business and learn how to protect yourself. a. Identity Theft - Fraudsters could steal your business’s identity and use it to access your credit. b. Payroll Fraud - Employees asking for pay advances without paying back. Or employees lying about hours worked on their timesheets. Employees could also get co-workers to clock in for them even if they are not at work. c. Money Fraud - Because there’s so much illegal cash, you might come across fake bills. Money fraud can happen without you or the customer even noticing. d. Return Fraud - Some customers might purchase a product, use it, then return it even though nothing is wrong with it. Or, you might have fraudsters who steal products from you and attempt to return them to make a profit. e. Worker’s Compensation Fraud - As a business owner, most states require that you purchase workers’ compensation. Workers’ compensation insurance pays your employees if they become injured or ill at work. Employees might get injured outside of work and say they got the injury at your business or employees could make up an illness or injury. 4. Non-respect of agreements - Types of agreements a. Intellectual property (Ip) Assignment Agreement - Intellectual Property lies in ideas, inventions, and concepts therefore it is necessary for an entrepreneur to protect his IP. The protection of the expression of ideas and concepts is generally through written contracts and agreements which provide a contractual remedy for misuse or disclosure of the idea. b. Operating Agreement (Founders’ Agreement) - contains the duties and liabilities of the founders. c. Non – Disclosure Agreement - agreements which contains the provisions protecting the information of the company from being disclosed to any third party. d. Employee contracts and offer letters - employment agreements and offer letters which usually contains terms of employment (compensation, job responsibilities, working hours and grounds for termination etc.) e. Shareholder Agreements - defines the rights and responsibilities of the shareholders. f. Commercial Leases - lease agreements for the buildings. If an entrepreneur does not own a land, it is taken on lease. Hence it is very important to have a lease agreement with the landlord. g. Independent Contractor Agreement - independently hired by the company for a particular service and for a particular period of time. Therefore, it is essential to have a written agreement with these contractors so that the hassles are avoided. h. Client/Sale Agreement - define the nature of the services, the date of commencement and end of services and most importantly contains disclaimers regarding the services.
  • 6. Asian Institute of Computer Studies 6 5. Environmental degradation - The sole objective of business owners was to build a company that would generate revenues and continuously increases profits. As environmental issues, their impact on business and the world, and the risks to the future of all life have become more prevalent across the globe. The effects are being seen and the need for immediate action is now. It is the responsibility of business owners to take a full inventory of their choices and examine how those choices affect the environment. It is time to make modifications where necessary. Some effects are more subtle than others, but all modifications contribute to the greater good of our planet. Models and Frameworks of Social Responsibility Corporate Social Responsibility (CSR) is a self-regulating business strategy that helps businesses to be socially responsible and being accountable to their stakeholders and to the public. Several CSR models have been formulated over the years. The purpose of these models is to design and execute the CSR process and to enable its monitoring and control. Businesses by implementing CSR models in their operations increase their adaptability to internal and external changes in the environment. This helps to promote positive changes and bringing about progress in socio-economic parameters. CSR benefits people and entities with few or no resources (Ivesha, 2008). 1. Caroll’s Pyramid CSR Model The major focus of the model is to embrace the complete spectrum of expectations that society has from a business, defining them and dividing them into different categories. The model can be represented with the help of diagram-1 shown below. As shown in the above figure, there are four kinds of social responsibilities that cohesively constitute the concept of CSR. a) Economic Responsibility - the responsibility of the business to be profitable. b) Legal Responsibility - businesses must comply with the law and regulations. c) Ethical Responsibility - companies have a responsibility to act ethically and morally and to choose the action that causes the least, if any, harm, d) Philanthropic Responsibility - the idea that businesses should give back, either in time, money, or goods, to the community in which they serve. 2. Intersecting Circle (IC) CSR Model The IC model refutes the notion that CSR is just a collection of contingent and externally related topics. Rather, the model states that different responsibilities are in dynamic interplay with each other. It is the
  • 7. Asian Institute of Computer Studies 7 responsibility of the corporates to maintain harmony and resolve the conflicts between different responsibilities. The main idea of the model is that no responsibility is more important than the other. Rather everything is a social creation and the existence of everything depends on the willingness of the society to support them (Ma, 2012). The major point of differentiation between the two models is that: ✓ it recognizes that there is a possibility of interrelationships between the different domains of CSR and second and, ✓ it rejects the hierarchical order of importance. 3. The Concentric Circle CSR Model In contrast to the Pyramid model and IC model, the CON model states non-economic social responsibilities are the one that embraces core economic responsibilities. • The inner circle represents the core responsibilities of the business in terms of CSR. This basically includes responsibilities that focus on the efficient execution of economic functions such as products, jobs, and economic growth. • The second circle represents the legal responsibilities that involve cooperating with the government on the part of the businesses. • The intermediate circle which is the ethical circle includes responsibilities that help to exercise economic functions but with a sensitive awareness of ethical norms as well as values and priorities. • The outer circle that represents the philanthropic circle focuses on newly emerging responsibilities that the business should focus on in order to become more broadly involved in social responsibilities. Reference links: Above image retrieved from: https://www.edx.org/learn/social-entrepreneurship. https://work.chron.com/important-business-relationships-based-honesty-trust-fairness- respect-1682.html
  • 8. Asian Institute of Computer Studies 8 https://blog.hubspot.com/service/customer- relations#:~:text=Customer%20relations%20describes%20the%20ways,to%20improve%20 the%20customer%20experience.&text=Customer%20service%20teams%2C%20customer% 20support,building%20a%20healthy%20customer%20relationship. https://www.forbes.com/sites/mikekappel/2017/10/04/5-types-of-fraud-in-business-that- could-put-you-in-a-bind/?sh=43c8e43a13e5 https://www.bamboohr.com/hr-glossary/employee-relations/ https://blog.ipleaders.in/startup-agreement/ https://ecampusontario.pressbooks.pub/businessfuncdn/chapter/article-carrolls- corporate-social-responsibility-pyramid/ https://www.unitedworldtelecom.com/news/environmental-issues-their-impact-on- business/ https://saylordotorg.github.io/text_human-relations/s09-03-social- responsibility.html#:~:text=There%20are%20four%20levels%20of,the%20action%20that% 20causes%20the https://www.projectguru.in/corporate-social-responsibility- models/#:~:text=The%20Intersecting%20Circle%20(IC)%20CSR,the%20hierarchical%20ord er%20of%20importance. https://flia.org/wp-content/uploads/2018/11/FLIA-Consulting-Briefing-1-CSR.pdf http://ijrmbs.com/vol4issue1/nivethigha.pdf Garalde-Orajo V., Frias S.A., (2016) Business Ethics and Social Responsibility: Principles, Policies, Programs and Practices. Quezon City, Phoenix Publishing house Inc
  • 9. Asian Institute of Computer Studies 9 Important Reminders • Tear this activity sheet and submit on the scheduled date along with the other activity (ies) the instructor may have asked the students to do on a separate paper. • If you are sending something you’ve done online such as MS presentation (s), pictures, pdfs and alike as an attachment, then you may send them to my email at ____________________________________________ following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or send a digital copy from your flash drive together with this activity sheet. ACTIVITY 1: CSR Program Design a CSR program for your chosen stakeholder group within an entertainment industry enterprise or organization. Business Name of Entertainment Organization: ____________________________ Assigned Stakeholder Group: ___________________________________________ CSR Program Design: _________________________________________________ ACTIVITY 2: Vision and Mission Imagine yourself as a business owner, using the different Social Responsibility, on an Oslo Paper, create your company’s vision and mission. ACTIVITY 3: Short Video Your subject instructor will group you into 5 groups (Usually based on your address), create a 2-minute video on how you can solve the major ethical issues in entrepreneurship. ACTIVITY 4: Code of Ethics for ABM students Create a code of ethics using the format shown. Add definitions to the principles and describe the rules of conduct for the defined principles. Principles 1. Integrity __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 2. Objectivity __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 3. Confidentiality __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 4. Competency __________________________________________________________________ __________________________________________________________________ __________________________________________________________________
  • 10. Asian Institute of Computer Studies 10 Principles 1. Integrity Students in the ABM strand 1.1 shall perform their work with_______________________________________ 1.2 shall respect and contribute to the___________________________ of the ABM strand. 2. Objectivity Students in the ABM strand 2.1 Shall not participate in any activity or relationship that___________________ 2.2 shall not accept anything that may ___________________________________ 3. Confidentiality Students in the ABM strand 3.1 shall be prudent in the use and protection of ___________________________ 3.2 shall not use information for ________________________________________ 4. Competency Students in the ABM strand 4.1 shall engage only in those activities ___________________________________ 4.2 shall perform ___________________________ with the ABM strand standards. MODULE 9: Assessment Test I. Read each statement carefully and choose your answer on the set of choices below. Write the letter of your chosen answer on the space provided. _____1. The sacredness or value of each person as an end, not simply as a means to the fulfilment of others’ purposes, or even the prescription of the majority. _____2. The production of goods and services that society wants a price that perpetuates the business and satisfies its obligations to customers. _____3. A business principle stating that the long-term interests of business is best served when its profitability and growth are accomplished alongside the development of communities, the protection and sustainability of the environment, and the improvement of people’s quality of life. _____4. The obedience of local, national, and relevant international laws. _____5. ‘Meeting other expectations not defined by law.’ a. Corporate Social Responsibility b. legal responsibilities c. Ethical Responsibilities d. Economic responsibilities e. Human dignity Test II. Essay. In 5-10 sentences, differentiate the different models and Frameworks of Social responsibility. Your output will be graded based on this rubric: 5 – Excellent 4 – Good 3 – Adequate 2 – Marginal 1 – No credit / unacceptable Criteria 5 4 3 2 1 Quality of writing (Informative, well organized etc.) Grammar usage and Mechanics (spelling, punctuations, grammatical errors) Following the instructions.
  • 11. Asian Institute of Computer Studies 11 Business Beyond Profit Motivation Overview: A business must have reason to exist beyond that of making money and maximizing shareholder value. Profit cannot be the goal, vision, or the purpose of an organization. An organization that posts great year end results does not automatically earn the title of being a great company. Seeking profit as a primary business purpose is like building a house of cards or building a house on sand – it will eventually lead to collapse (ably demonstrated by many financial institutions over the previous months). Profit is too temporary to guide a business by. 6 good reasons not to use profit as your primary purpose: • Profit is an output and a symptom of success, not the cause. • Profit is temporary and can be wiped out in an instant. • In tough times, profit can be hard to come by. • You need more purpose than profit to make it through. • Profit does not motivate the salaried staff who make success happen. • Customers do not appreciate being seen just for their revenue. • Consumers are increasingly focusing on values and contribution to society when choosing who to do business with. Beyond Profit A true vision for a business rests on foundations of both purpose and values. The people within the business have to be passionate about what they do and why they do it. The business’ goals must then align with this foundation. Without a clear foundation, a business will never be truly strategic. Values - A business’ core values are defined internally through a process of introspection and discovery and are based not on the outside but on what lies within. Core values do not change with the seasons but are deeply held values already embedded within the DNA of an organization. Core values held by a variety of well-known organizations include: ✓ Imagination ✓ product excellence ✓ great customer service ✓ respect for the individual ✓ quality ✓ market focus ✓ teamwork Purpose - The core purpose of a business is also discovered by introspection and discovery. A business’ core purpose is its most fundamental reason for being. By stripping away the layers of what a business does and what motivates it, any company will discover a deeper purpose that unifies and motivates. In essence, to discover your business’ core purpose, you could ask, “Why does this business exist?” UNIT TWO MODULE 10 Inclusive dates: WEEK 12-15 At the end of this module, you are expected to: • Identify reasons for establishing business enterprises beyond profit. • Prepare and implement a personal action plan to assist an existing small business enterprise to practice ethics and social responsibility in their business operation.
  • 12. Asian Institute of Computer Studies 12 6 good reasons for your business to look beyond profit. • Purpose and values motivate and unify management and staff. • Purpose and values give a company a solid foundation from which to make decisions. • Purpose and values provide a navigational compass to all elements of the business. • Customers will have more to buy into and engage with. • Purpose and values encourage loyalty of both staff and customers. • Purpose and values encourage a strong culture and ethos within a business. Social Enterprise A social enterprise or social business is defined as a business that has specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment. Their profits are principally used to fund social programs. Social enterprises are revenue- generating businesses with a twist. Whether operated by a non-profit organization or by a for-profit company, a social enterprise has two goals: to achieve social, cultural, community economic and/or environmental outcomes; and, to earn revenue. On the surface, many social enterprises look, feel, and even operate like traditional businesses. But looking more deeply, one discovers the defining characteristics of the social enterprise: mission is at the center of business, with income generation playing an important supporting role. To sum things up: • A social enterprise is a business with social objectives that serve its primary purpose. • Maximizing profits is not the primary goal of a social enterprise as is with a traditional business. • Unlike a charity, social enterprises pursue endeavors that generate revenues, which fund their social causes. • Regarding employment, preference is given to jobseekers from at-risk communities. Social Enterprise vs. Social Entrepreneurship A social enterprise is not to be confused with social entrepreneurship, which tends to focus on individuals who develop solutions to social and environmental problems using existing business techniques and strategies. Social entrepreneurs seek innovative ways and operate to drive change, whereas social enterprises form to fulfill a business purpose and solve societal needs through their commercial activities. Sustainable Local and Regional Development in the Social Economy Sustainability contains three main aspects: the economy, the environment, and society. 1. Economic perspective - sustainability is the provision of goods and services for human needs while minimizing environmental damage. Sustainability in the economic perspective covers all production processes, consumption, and distribution. In the environmental perspective, sustainability indicates maintaining the natural mechanism. 2. Environmental perspective - means that the diversity of species is conserved, the natural resources are maintained for biological systems, and the natural and human society have self-cleansing properties. In the societal perspective, sustainability aims to preserve the universal values of liberty, peace, and equity. It makes human societies sound and healthy. 3. Sustainability in society - aims to eradicate unequal social structure, improve redistribution of income, promote equality of opportunity, and provide consideration to socially disadvantaged people. Social Enterprise in the Philippines According to a 2015 report by the British Council, social enterprise in the Philippines is vibrant and growing, and in years to come, will have a much wider presence and impact. More than a quarter of the 107 million population live below the poverty, the country’s strong entrepreneurial culture that includes one million Medium and Small enterprise, account for 99% of all businesses. According to a survey in 2007 there were 30,000 social enterprises established in the country.
  • 13. Asian Institute of Computer Studies 13 Below are some social enterprises in the Philippines that reinvests its profits in humanitarian and/or environmental causes that provide jobs for people and protect natural resources while helping improve living conditions. 1. Bambike – Hand-Made Bamboo Bicycles Bambike, is a socio-ecological enterprise based in the Philippines in partnership with Gawad Kalinga, a movement that aims to address poverty in the country. Bambike which manufacture hand-made bamboo bicycles, aims to make the greenest bikes on the planet. Heir bamboo bike builders also known as bambuilders, are hired local villagers that are provided with sustainable livelihoods. Before working as bike builders, these craftsmen were doing menial jobs in far places. Now they are able to work, live, and participate in the development of their local communities. 2. ANTHILL Fabric Gallery – Fashion and Lifestyle Gallery ANTHILL (Alternative Nest and Trading/Training Hub for Ingenious/ Indigenous Little Livelihood Seekers) is a fashion and lifestyle gallery and workshop that specializes in handwoven fabrics and crafts. Its products include special fabrics woven into accessories, handbags, small gift, jewelry pieces, and handmade dolls, fashion, and lifestyle. A social enterprise that gives importance to cultural tradition/ identity. It operates through multiple weaving communities throughout the country. It buys heir raw materials, and then uses the talents of local designers to transform these indigenous fabrics into contemporary items that are sold in the open market. 3. Liter of Light – Sustainable Lightning The Lighter of Light movement began in the Philippines with one bottle light. The movement grew to brighten not just homes in the Philippines, but in India, Indonesia, and even as far away as Switzerland. The Solar Bottle Bulb is made from transparent 1.5-2L plastic bottle, typically used for carbonated drinks, and then filled with water and a little bleach then fitted through the roof of a house. The water inside the bottle refracts sunlight during the day and delivers about 40– 60-watt incandescent light in the interior. If properly installed, the solar bottle can last up to 5 years.
  • 14. Asian Institute of Computer Studies 14 4. First Harvest – Eco Food Spreads A Filipino food brand that uses healthy ingredients to make their crowd- favorite products that include smooth Peanut Spread, Peanut Crunch, and Salted Coco Caramel. It is a social enterprise that aims for quality of life through jobs as well as to enrich agricultural industries. It employs mothers from the Gawad Kalinga village in Angat Bulacan. Its food production, product development, and retail sales help provide employment to the socially disadvantaged. First Harvest, along with its community partners aims to establish food tolling facilities in at least 10 farms in the country. Reference links: Above image retrieved from: https://www.creativefabrica.com/product/business-profit- growth-to-success-vector-4/. https://www.investopedia.com/terms/s/social-enterprise.asp https://www.centreforsocialenterprise.com/what-is-social-enterprise/ https://www.stockerpartnership.com/resources/articles/purpose-beyond-profit/ https://www.madmonkeyhostels.com/h2o_blog/social-enterprises-philippines-10- fantastic-enterprises-2016-21 file:///C:/Users/WS-35Lab2/Downloads/sustainability-09-01427.pdf
  • 15. Asian Institute of Computer Studies 15 Important Reminders • Tear this activity sheet and submit on the scheduled date along with the other activity (ies) the instructor may have asked the students to do on a separate paper. • If you are sending something you’ve done online such as MS presentation (s), pictures, pdfs and alike as an attachment, then you may send them to my email at ____________________________________________ following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or send a digital copy from your flash drive together with this activity sheet. ACTIVITY 1: The Natural Environment Using the templates, validate the viability of selected environment protection practices such as recycling, use of renewable energy, and the reusing of resources. Environmental Practices Viability Recommendation Recycling Renewable Energy Use Reusing Resource Others, please specify __________________ ACTIVITY 2: Product Development Create a sample product that provide jobs for people and protect natural resources while helping improve living conditions. Product Name: _______________________________________ Short description (Purpose): __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Materials used and its cost: - - - - - Selling Price: _______________________________ Product Image
  • 16. Asian Institute of Computer Studies 16 ACTIVITY 3: Social Enterprise in The Philippines Research on the given social enterprise above. Draw and/or write instructions for how it is made, uses, function and importance for each enterprise. MODULE 10: Assessment Test I. Identification. Identify the term asked for each statement. _____________________1. Aims to preserve the universal values of liberty, peace, and equity. It makes human societies sound and healthy. _____________________2. Seek innovative ways and operate to drive change, whereas social enterprises form to fulfill a business purpose and solve societal needs through their commercial activities. _____________________3. It covers all production processes, consumption, and distribution. In the environmental perspective, sustainability indicates maintaining the natural mechanism. _____________________4. Defined as a business that has specific social objectives that serve its primary purpose. _____________________5. Aims to eradicate unequal social structure, improve redistribution of income, promote equality of opportunity, and provide consideration to socially disadvantaged people. Test II. Essay. In 10-15 Sentences. Explain the importance of establishing and sustaining business enterprises as source of job opportunities and financial freedom. Your output will be graded based on this rubric: 5 – Excellent 4 – Good 3 – Adequate 2 – Marginal 1 – No credit / unacceptable Criteria 5 4 3 2 1 Quality of writing (Informative, well organized etc.) Grammar usage and Mechanics (spelling, punctuations, grammatical errors) Following the instructions.
  • 17. Asian Institute of Computer Studies 17 4th Quarter Project In a group of 6 members. Prepare and implement a proposed personnel action plan to assist an existing small business enterprise to practice ethics and social responsibility in their business operation. Your instructor will provide you the criteria.