Business Ethics and Social Responsibility PDF

**BUSINESS ETHICS AND SOCIAL RESPONSIBILITY** Business organizations exist to serve consumers needs and in return, they make profits when people patronize their products and services. **The Nature of Business Organizations** \- A business organization is an entity that aims to earn a profit by pr...

**BUSINESS ETHICS AND SOCIAL RESPONSIBILITY** Business organizations exist to serve consumers needs and in return, they make profits when people patronize their products and services. **The Nature of Business Organizations** \- A business organization is an entity that aims to earn a profit by providing products to satisfy the needs of the market. **Profit** is the amount of money a business takes in after the expenses needed to operate the business such as salaries, cost of raw materials, etc. have been deducted from the revenue. **Revenue** is the total amount of money a business earns during a given period of time by offering products to the market. **Three types of business organizations** ---------------------------------------------------------------------------------------------- **1. Service businesses** provide services to customers rather than products. **2. Merchandising businesses** sell to customers products they buy from other businesses. **3. Manufacturing businesses** turn basic inputs into products which are sold to consumers. **Forms of Business Organizations** ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Sole Proprietorship** -- It is a one-person business. The owner has full control over the finances and operations and decides alone. **Partnership** -- two or more persons bind themselves to contribute money, property, or industry to a common fund with the intention of dividing the profits and sharing the liabilities among themselves. **Corporation** -- 5 to 15 persons, who are called incorporators, hold at least one share and are bound by the articles of incorporation filed with the SEC. Corporations have an advantage in generating money for the company. It can raise funds by selling shares of stocks. It files taxes separately from its owners. Among the forms of business organizations, corporations have the most number of advantages, among which are as follows: - - - - ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **The Roles of Business Organizations in the Society** ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Providing Goods and Services -** thanks to business organizations, you get to enjoy products and more, so you can live a relatively comfortable life. **Creating Employment Opportunities -** Profit is not the only priority of the business, they also aim to give job for the jobless people. **Investing in Innovation and Excellence**\ Companies often look for a "gap" in the market, a need that is currently not being served, in order to offer a product that would respond to this need. A real entrepreneur will always find ways to innovate and address an opportunity or a demand gap in the market. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Cultural values** - are shared assumption of what is right, good or important in a certain society. **Filipino Values System** - It is treating others with the respect and dignity as an equal and not someone below individual. Basically, in business it is a practical translation of socializing people because the intention is to offer things and services of value to others to get better their standards of living. +-----------------------------------------------------------------------+ | **Mabuting Pakikitungo** | | | | - Hospitality. This is the most common terminology that describes | | how Filipinos welcome foreigners or tourists who visit the | | country. This trait of the Filipinos towards their visitors is | | undeniably exceptional. | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Joy & Humor** | | | | - Business operates and grow not only by means of profit and | | management. An entrepreneur operates business to find joy and | | happiness in his/her life. | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Pagkakabuklod-buklod** | | | | - The Filipinos recognize their family as an important social | | structure that one must take care of. They give importance to the | | safety and unity of one's family. It is also common to find the | | whole clan living in the same area and have extended family | | structure. | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Utang na loob** | | | | - is a technique of reciprocity of debt of gratitude to others | | within the family circle or primary group, sometimes unlimited in | | nature, emotional rather than financial or rational. | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Galang** | | | | - Filipinos are taught to become respectful individuals. This is | | mainly due to the influence of Christianity that tells us to | | honor both our parents and our elders. The use of ''po'' and | | '''opo'' in conversation and "mano". | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Pagkarelihiyoso** | | | | Filipinos are religious. They believe so much in supernatural powers | | and taught them to trust prayers rather than hard work in the | | realization of their dreams. Success is considered a blessing from | | above. | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Damayan/Balikatan** | | | | - Denotes a good relationship among the people in the family or | | within the group or community and connotes helping one another in | | time of need. Filipinos engage themselves in mutual cooperation. | +-----------------------------------------------------------------------+ +-----------------------------------------------------------------------+ | **Malasakit** | | | | - In Filipino Family each of the member have the adherence or the | | willingness to help the other member who is in need more than | | they do, emotional or financial needs. They have this care to | | their family member and this is the way they show their love to | | each other. | +-----------------------------------------------------------------------+