Entrepreneurship Midterms Reviewer PDF

ENTREP MIDTERMS REVIEWER Entrepreneurial Process Entrepreneurial Characteristics & Mindset Characteristics of an Entrepreneur Types of Entrepreneurs Generating Ideas Recognizing, Assessing, and Exploiting Opportunities...

ENTREP MIDTERMS REVIEWER Entrepreneurial Process Entrepreneurial Characteristics & Mindset Characteristics of an Entrepreneur Types of Entrepreneurs Generating Ideas Recognizing, Assessing, and Exploiting Opportunities Forms of Business Ownership Entrepreneurial Activities Business Ethics  Entrepreneurial Process Introduction to Entrepreneurship Entrepreneur [DEF] - Starts his own small business ​ “Entreprendre” = to undertake ​ Attempt to make value out of things that, to some, have none ​ Hope of profit Entrepreneurial Process 1.​ Idea Generation -​ Intangible idea to tangible -​ Decide what industry to be part of -​ Aha moment -​ Personal experience, skills, training 2.​ Development of Concept -​ Concretizing your idea -​ Analyzing the potential of a product -​ Catering to what people want -​ Objectives, how to sell -​ Business plan 3.​ Organizing Resources -​ Check if the plan will work -​ Materials, financial, sources, workforce -​ Everything you need is there, reading, and affordable 4.​ Implementation -​ Putting the plans into action 5.​ Reaping the Returns -​ Return on investment (ROI) -​ Profit, satisfaction -​ Expanding and benefits of business ★​ Importance: Makes or breaks the business Characteristics of Entrepreneurs Empathy (May Passion (Pinoy Creative Motivated Attention to detail pagmamalasakit) Pride) Humility Servant leadership Adaptable Innovative Persistent (Mapagkumbaba) (Marunong makisama) Curious Risk taker Disciplined Resourceful (Pagkamausisa) Types of Entrepreneurs Micro Macro/Mega ​ Start or operate a small business venture ​ Change the industry and become a dominant ​ Most common force ○​ The backbone of the economy (even if ​ Network and build an empire you lose your main job, you can easily open your own business) ​ Work on their own ​ Operate in industries that are underserved ○​ Businesses that require special knowledge/skill ​ Flexible, autonomous, low ongoing overhead cost, personal fulfillment, low initial investment, social impact, investment Generating Ideas Decision-Making 1.​ Strategic -​ Short-term goals to achieve bigger goals 2.​ Operational -​ Day to day -​ All areas 3.​ Financial -​ Capital, funds, investments, rewards 4.​ Marketing -​ Target market → who will buy -​ Target audience → those interested Sources of Ideas 1.​ Product or services -​ Variation of a product 2.​ Process of production and distribution -​ Offered in different manners 3.​ Person -​ Person’s own skills, hobbies, likes 4.​ Relationship -​ Family Methods of Generating/Testing Ideas 1.​ Logical thinking -​ Systematic and rational 2.​ Statistical analysis -​ How many people still want the product 3.​ Market analysis -​ Factors that affect demand 4.​ Delphi analysis -​ People who need something ★​ Creative Thinking: The thought process that does not follow logical thinking Factors 1.​ Problem-solving -​ How good they process 2.​ Motivational factors -​ You think you can’t but you can motivate 3.​ Situational factors -​ Situations that make you do it 4.​ Organizational -​ Confluence approach of creativity Methods 1.​ Brainstorming -​ Unstructured discussion of a group 2.​ Problem inventory analysis  -​ Identify all possible problems then give alternative solutions 3.​ Checklist method -​ List all ideas that can be connected, reprocessed, and associated with 4.​ Free association -​ Unconscious thoughts of individuals -​ Expressing thoughts associated with words and ideas given by the therapist SCAMPER Method 1.​ Substitute (meat to veggie meat) 2.​ Combine (milk + tea) 3.​ Adapt (vinegar for cleaning and for food) 4.​ Magnify (small cupcake to big cupcake) 5.​ Put together to use (drive through) 6.​ Eliminate (sugar free cookie) 7.​ Rearrange (open face sandwich) Recognizing, Assessing, and Exploiting Opportunities Recognizing Opportunities ★​ Logical → Reasons as to why you have it ★​ Creative → Existing but look got things/modifications to better present it Business Ideas Business Opportunities A concept that could be used to make money A situation/occasion that makes it possible to do ​ Crucial to avoid wasting significant time something that you want to do and money ​ Situation/market gap that can be exploited ​ Concept for a new product or service for a potential profit ​ Example: ○​ Fits the market gap Normal Person: Go to the forest, you see ​ A concept that has proven commercial trees value Businessman: Go to the forest, you see ○​ Ensures that you make profit furniture * Sometimes, you have an idea but no opportunity and vice versa 🙁 5 Stages of Opportunity Recognition 1.​ Precondition → Valuable information on the market one wants to enter ​ There’s business everywhere (Keep your eyes open → Easier to see) ​ “What kind of business is the most accessible and interesting to me?” 2.​ Conception → Idea generation ​ Phase when intentions and ideas are generated ​ “What do I do with my idea?” 3.​ Visioning → Entrepreneurial hunch ​ Clearer ideas that connect with logic leading to a new idea ​ Future of the product in the longrun ​ “Will this product still sell in the future?” ○​ Logic with new idea 4.​ Assessment → Feasibility ​ Evaluation whether the idea could be realized or not ​ Part where resources are considered ​ “Can resources be realistically allocated?” 5.​ Realization → Production/testing of a prototype 5 CHARACTERISTICS Characteristic Definition Examples ​ Clear and well-defined business ​ Development of insulated opportunity bags to maintain food ​ Helps understand its potential temperature Clarity value ➔​ Goal is Clear: Customers receive cold food ◆​ Addresses the problem ​ Addressing existing problems ​ Growing trend in Relevance ​ Reach its potential and customer sustainable materials, so a expectations company integrates this into their current product ​ Realistic and achievable with ​ A local business takes Feasibility available resources, skills, and advantage of the rich soil manpower and farming skills to sell fresh fruits & vegetables.  ​ Potential to generate revenues ​ A Coffee shop opens at a Profitability ​ Ability to capitalize on available busy spot, seeing that other resources cafe’s generate lots of profit from the same area. Scalability ​ Grow and expand into new ​ Growing from a local to an markets international business Factors in Opportunity 1.​ Market Awareness -​ Understand what the market needs (Trends, customer needs, and opportunities) -​ Know and offer to people what they need -​ Go out and observe people or conduct surveys -​ “What is the current market?” -​ “Does my product fit the market?” 2.​ Entrepreneurship Readiness -​ Factors that allow one to determine if they are ready to start a business -​ Having the right mindset, skills, and resources to be prepared for such venture -​ Effectively seize and act on opportunities when they arise -​ Ex. Your resources and potential encourage you to start a business 3.​ Connections -​ Learning from experts and the experiences of other entrepreneurs -​ Surround yourself with people who can initiate aid -​ Strong network of industry, contacts, mentors, and partners -​ For valuable insights, support, and opportunities -​ Enhances the ability to recognize and capitalize on potential ventures Assessing & Exploiting Opportunities Opportunity Assessment Ensuring success Evaluating the likelihood that the opportunity can be realized (Convert to profit) Market Opportunity ​ Understanding the potential Different Market Opportunities What is the demand? demand 1.​ Identified Gaps - Exists but ​ Gaps & needs it’s not found in your local area ​ Looking forward (Not the present) ​ Size and growth potential of the market  ○​ Identify potential demand 2.​ Customer Need - Make them for the product want it even though they don’t ○​ Assess its impact/demand need it on the needs of the Ex. Samgyupsal restaurants make their consumers customers crave for it ​ Sufficient demand to sustain 3.​ Size & Growth Potential - business ○​ Insufficient demand → Product becomes well-known less profit → business may to the public so you begin not last in the long run building up on it Costing & Pricing ​ Expenses (Materials, labor, Resources to Operate Total expense overhead) 1.​ Raw Materials - Resources to ➔​ Costing - Fees to ​ Covers cost and achieves profit produce a product produce the product ➔​ Price - Based on the ​ A valuable product may not be 2.​ Labor - Amount paid by an costing of the affordable to the consumer employer (Human labor) product 3.​ Overhead - Factors that are Pricing not directly linked to the ​ Process of setting the price based business but ensure that the on cost business remains operational ​ Factors are considered: Costing of (Maintenance) resources, competition (when others have higher prices so you Example: lower them), market conditions, Resto A → Good quality food for 100 etc. Pesos ​ “Best way to keep the prices of Resto B → Same food for a lower cost commodity is competition” but it’s not that good ○​ If costing is higher than * Resto A still profits more compared to profit, then that is not a Resto B business ○​ Goal: Balanced costing + quality Profitability ​ Generate more revenue than the ​ Ensure that you are earning Earn something back cost profit ​ How the market receives your ○​ If not, that’s monkey product business ​ Cost of producing it Resource Requirement ​ Resources needed to operate a ​ Businesses would need inputs business ○​ Inputs → Resources to get started with production ​ Intermediate inputs → Raw materials ​ Factor inputs → Labor, capital,  technology Risks ​ Mitigate and address potential ​ Assess, identify, and eliminate threats risks that may harm the ​ Market, financial, and operational company’s performance/image risks ​ Considers market competition ​ Analyze the opportunity through (negative impact), financial the SWOT analysis aspect (losing profit), ○​ Strengths, weaknesses, operational aspect (failure in opportunities, and threats business operations), and legal risks (contracts, laws, and litigation) Entrepreneurial ​ Dedication despite challenges ​ Pursue business and stay Commitment ​ Investment of time, effort, and committed despite trials resources ○​ Assess yourself ○​ “Can I really do this even in the longrun?” ○​ “How much am I willing to sacrifice to make this business possible?” Opportunity Pathways 1.​ Rational Approach ​ Identify, evaluate, and pursue business opportunities ○​ Logical reasons ​ Approach to opportunity identification ​ Problem → Several solutions backed up by rational reasons ​ Systematic, analytical, and data-driven approach ○​ Basing on statistics than intuition ​ Considered as the best alternative ​ For entrepreneurs who prefer structured processes and evidence-based decision-making Example: Launching a new product by seeing the current trend/demand of the consumer market “Oh this will make a lot of profit because according to experts…” “Ano ang pwede? Subukan ko nga”  Advantages Challenges 1.​ Risk Mitigation 1.​ Time-consuming 2.​ Predictability 2.​ Analysis Paralysis 3.​ Scalability 3.​ Limited Flexibility 2.​ Traditional Approach ​ Based on established practices, conventional wisdom, and proven methods ○​ Relies on tried-and-true strategies ○​ Have been used over time ○​ Passed down → Expected to remain in the market for a while ​ Deep understanding of industry norms ○​ Gained through experience or mentorship ​ Scared of change ​ For entrepreneurs who value stability, reliability, and adherence to conventional wisdom ​ Example: A family-owned business that is passed down ➔​ Wisdom is shared and proven ➔​ Cannot innovate as much as it has been established “Why would I change my ways when I’m used to this already?” “Kailangan ba ‘to? Subukan ko nga” Advantages Challenges 1.​ Stability & Reliability 1.​ Limited Innovation 2.​ Lower Learning Curve 2.​ Resistance to Change 3.​ Cultural Fit 3.​ Market Saturation (Ex. Mcdonald’s menu that differs per country) (Commonly seen in the market) 3.​ Intuitive Approach ​ Heavily relies on gut feeling, instincts, and personal experience ○​ Trust in oneself & confidence ​ Ability to recognize patterns and opportunities ​ Grab it directly because you know that it will work out ○​ Make quick decisions without extensive data ○​ Very very risky  ​ For entrepreneurs who trust their instincts and can quickly adapt to changes ​ Example: Friends who were just hanging out and suddenly thought of a business idea ➔​ Spontaneous & impulsive ➔​ Yolo mindset “Whatever let’s just try this out & make this work” “Pwede kaya ‘to? Subukan ko nga” Advantages Challenges 1.​ Speed 1.​ Higher Risk 2.​ Creativity 2.​ Subjectivity 3.​ Adaptability 3.​ Dependence on Experience Forms of Business Ownership Business Organization [DEF] - How businesses are structured and how their structure helps them meet their goals. ​ Designed to focus on either generating profit or improving society Forms of Business Ownership 1.​ Sole proprietorship ​ Owned and operated by a single person ​ Sari-sari stores, online shopping ​ Full control and authority ​ Exclusively owns all assets and profits of the business Advantages Disadvantages ​ Ease of formation ​ Unlimited liability ​ Full control ​ Limited capital ​ Profit entitlement ​ Limited skills and expertise ​ Tax benefits ​ Continuity risk  ​ Privacy ​ Workload and stress ​ Flexibility ​ Difficulty in expansion Unique Selling Proposition ​ What makes the business different from competitors ​ Secret sauce a.​ Value proposition -​ Benefits of business to customers -​ Why they will keep coming back b.​ Importance of USP and value proposition for sole proprietors ○​ Builds identity ○​ Attracts loyalty ○​ Drive differentiation 2.​ Partnership ​ Legal associate of two or more persons as coworkers ​ Eliminate some disadvantages of sole proprietorship ​ Shared responsibility and pooled resources ​ Requires strong communication, trust, and clear agreement Advantages Disadvantages ​ Shared responsibility ​ Unlimited liability ​ Combined resources ​ Profit sharing ​ Ease of formation ​ Potential for conflict ​ Flexibility ​ Lack of continuity ​ Better decision making ​ Difficulty in decision making General vs. Limited Partnerships General Limited ​ All partners share responsibilities, profits, ​ At least on general (manage and liable for and liabilities debts) and one or more limited (only liable ​ No separation of personal and business for up to their investment) liability ​ General → manage business and have unlimited liability  ​ Easy to form with minimal legal ​ Limited → produce funding and are not requirements involved in daily management Types of Partnerships Active Actively participates in daily operations, management, and decision-making Silent/Sleeping Invests in business but does not participate in management Share in profits but remind behind the scenes Secret Participates in business and shared profits and losses but involvement is not publicly disclosed Does not participate in decision-making or interfere with running Nominal Allows their name to be associated with business but does not invest or manage ​ Do not share profits or losses ​ Have no real ownership or operational involvement ​ Enhance reputation or visibility ​ Personal relationship with actual partners Partner by Estoppel Creates the impression of being a partner and third parties rely on that impression in dealing with the business Not an actual partner but is treated as one due to actions or representation  Content of Partnership Agreement Purpose of business Goals of partners and Distribution of profits Provisions for admitting partnership partners Terms of partnership Financial contribution Management of powers Provisions for expelling a and responsibility partner Provisions for continuing Methods of setting Duration of the agreement the business in the event disputes of a partner’s death, illness, disability, or withdrawal 3.​ Corporation ​ Legally chartered enterprise with legal rights of a person ○​ Right to conduct a business, own and sell property, borrow money, sue and be sued ​ Separate and distinct from its owners ​ Limited liability ○​ Shareholders are not personally responsible for the company’s debts ​ May be created to achieve a goal and it is not always for making a profit Public Private Owned by shareholders and shares ​ Owned by a small group of individuals openly on the stock exchange ​ Shares are not traded on stock exchanges ​ Ownership is limited to select stakeholders ​ Limited liability ○​ Corporate loss will not exceed the amount invested in a partnership or limited liability company ○​ Investors and owners’ private assets are not at risk if the company fails ​ Shareholder ○​ Owns at least one share of a company’s stock or in a mutual fund ○​ Increased stock valuation or financial profits ​ Stock  ○​ Equities ○​ Share of ownership Advantages Disadvantages ​ Limited liability ​ More expensive and complicated to ​ Ease of expansion organize ​ Ease of transferring ownership ​ Double taxation ​ Relatively long life ​ More extensive government restrictions ​ Greater ability to hire specialized and reporting requirements management ​ Employees lack personal identification Entrepreneurial Activities Entrepreneurial Activities [DEF] ​ Enterprising human action in pursuit of the generation of value ​ Creation or expansion of economic activity ​ Identifying and exploiting new products, processes, or markets * Entrepreneurship is the phenomenon associated with entrepreneurial activity. Retailing Retailing [DEF] ​ Set of business activities that add value to the products and services sold to consumers for their personal or family use ​ Any business that directs its marketing efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution ​ Etymology: French word “re-tailler” which means “to cut, trim, or divide” ○​ To sell goods in small quantities ​ Covers tangible goods and sale of services to individual customers ​ Now evolving into a global high-tech business ​ Could offer entertaining and educational experiences for their customers Evolution of Retailing 1.​ Barter systems and open-air markets 2.​ Rise of small family stores (Sari-sari stores) 3.​ Emergence of department stores (19th century) 4.​ Supermarkets, malls, and chain stores (20th century) 5.​ E-commerce and omnichannel retail (21st century) Classifications of Retail 1.​ Store-based - Stores that have physical shops/branches 2.​ Non-store Retailing - Stores that are sold through magazines and catalogs 3.​ Online Retailing - Businesses that function online Elements in Retail Strategy Products [DEF] Retailers must choose the right mix of goods (selection of products) that appeal to their target customers. Product Variety Quality Branding Offers a wide range of products or Ensures product quality meets customer Selling well-known brands, private specializing in specific niches expectations labels, or a combination of both Price [DEF] Pricing strategies are crucial in positioning the retailer in the market, hence the different pricing approaches. Competitive Pricing Premium Pricing Discount Pricing Setting prices similar to competitors to Setting higher prices for exclusive or Using sales, promotions, and lower price attract price-conscious shoppers luxury products points to drive volume Place [DEF] The location of retail stores or the availability of online shopping platforms is vital for reaching customers. Physical Location E-commerce Presence Distribution Channels Businesses having physical stores or Online means of selling to reach a wider Network of businesses branches to cater to their consumers scope of audience Promotion [DEF] Communicating with customers and encouraging them to buy.  Advertising Sales Promotions Loyalty Programs Using traditional media, digital ads, and Offering discounts, coupons, or special Creating incentives for repeat purchases social media to raise awareness deals to entice purchases by rewarding customer loyalty Innovations & Limitations Innovations Limitations ​ E-commerce platforms ​ Supply chain disruptions ​ AI and data analytics ​ High cost of technology integration ​ Cashless payments ​ Increasing competition ​ Augmented reality Current Marketing Activities in Retail 1.​ Digital Marketing ​ Social Media Campaigns ​ Email Marketing ​ Search Engine Optimization 2.​ Omnichannel Marketing ​ Seamless integration of online and offline shopping experiences ​ Customers can browse, buy, and return products across multiple platforms ○​ Website, app, physical store ​ Ex. BOPIS: Buy Online, Pick Up in Store; Consistent marketing messages across all platforms 3.​ Influencer and Affiliate Marketing ​ Social retailers collaborate with influencers and bloggers to promote products to specific target audiences ○​ Leveraging their followers to drive traffic and sales ​ Affiliate marketing allows bloggers and websites to earn commissions by driving sales to the retailer’s site ○​ Ex. TikTok Affiliates 4.​ Loyalty Programs and Memberships ​ Offering points, discounts, and exclusive deals ​ Repeat customers to build long-term loyalty 5.​ In-store Promotions and Events ​ Flash sales, seasonal discounts, and in-store events ​ Product demos, influencer appearances, and product launch parties to attract foot traffic  6.​ User-generated Content (UGC) ​ Encouraging customers to share their own photos, videos, and reviews of products ​ Repurposed for marketing to build trust and authenticity 7.​ Sustainability & Social Responsibility Campaigns ​ Highlighting eco-friendly initiatives, sustainable products, and corporate social responsibility (CSR) efforts ○​ Targets to resonate with ethically-conscious consumers ​ Products with sustainable materials ​ Donating a portion of sales to social causes 8.​ Collaborations & Limited-Edition Products ​ Retailers partner with celebrities, designers, or influencers ○​ Often attracts media coverage and boost brand visibility ​ Release limited-edition products ○​ Creates excitement and urgency for consumers to make purchases Impact of Retail in the Economy 1.​ Job Creation -​ Retail sector is one of the largest employers globally -​ Offers jobs in various roles such as sales, marketing, management, and logistics -​ Provides income for millions of households -​ Supports local communities 2.​ Consumer Spending -​ Drives consumer spending which is a major factor in economic activity -​ Consumers purchasing goods and services creates demand for production, distribution, and innovation across multiple industries 3.​ Urban Development -​ Serve as anchors for urban development -​ Contributes to the growth of shopping districts, malls, and commercial spaces -​ Fosters infrastructure improvements -​ Attracts further investment 4.​ Tax Revenue -​ Significantly contribute to local and national tax revenues -​ Sales taxes, corporate taxes, and payroll taxes -​ Funds public services such as education, transportation, and healthcare 5.​ Innovation & Competition -​ Competitive nature of retail pushes businesses to innovate, adopt new technologies, and improve customer experiences  -​ Benefits the economy by enhancing productivity and driving growth in related industries Manufacturing Manufacturing [DEF] ​ Creation of goods from raw materials ​ Assembly of parts to produce a finished product ​ Manufacturers sell their goods to wholesalers who pass it to retailers Make-to-order Make-to-stock Make-to-assemble - Based on a customized order that - Type of manufacturing done based - All parts required to make a someone places on predictions and data regarding product are made first - Manufacturer starts the sales - Assembled only after an order is production based on the number & placed instructions - Mixture of the safe and the risky approach * Manufacturing actually produces the goods * Wholesale and retail businesses merely sells the goods Wholesale Business ​ Wholesaler fixes up the price of a product and sells it to a retailer ​ Keep more lucrative pricing than the retailers and increase their chances of selling a.​ Merchant Wholesalers - Buys the products in bulk and sells them by dividing them into small quantities b.​ Agents - Representatives of the wholesaler who bargain for the product from the manufacturer Example: 1.​ A beverage manufacturer sells the goods in bulk to a wholesaler (The price paid is the wholesaler’s acquisition price). 2.​ The wholesaler bundles an assortment of beverage flavors and resells the beverages to a retailer (The price paid is the wholesaler’s price received). 3.​ The retailer displays the beverages in its grocery section (The price received by the wholesaler is also the retailer’s acquisition price). 4.​ The retailer sells the beverages to its shoppers (The price paid is the retailer’s price received). Material Processing  ​ Transformation of raw materials into finished or semi-finished products through various manufacturing processes ​ Involves physical, chemical, or mechanical methods to alter the form, structure, or properties of raw materials (ex. metals, plastics, wood, textiles) ​ Goal: Create components or products that can be sold directly to consumers or used in further production Manufacturing Material Processing ​ End-to-end production process ​ Transforming raw materials into usable ​ Assembling raw or processed materials forms into finished products ready for market ​ Uses methods like cutting, molding, or ​ Covers a broader scope refining ​ Ex. Electronics, cars, or clothing ​ Focuses specifically on changing the physical or chemical properties of materials ​ Part of the overall production workflow (Under manufacturing) Service Service [DEF] ​ Company that performs tasks for the benefit of their customers ​ Transportation, cleaning, traveling, hospitality, maintenance, consulting, etc. Service Retail ​ Service sector ​ Sales of tangible goods to customers ​ Sales of intangible products ​ For resale, use, and consumption Business Ethics Business Ethics [DEF] - The moral principles, policies, and values that govern the way businesses and individuals engage in business activity. ​ Appropriate business policies and practices regarding potentially controversial subjects  ​ Beyond the moral code of right and wrong ​ Attempts to reconcile what companies must do legally vs. maintaining a competitive advantage over other businesses Corporate Governance Discrimination Insider Trading Corporate Social Responsibility Bribery Fiduciary Responsibilities History of Business Ethics ​ Started in 1960s ​ Awareness of consumer-based society ○​ Environmental and social causes ○​ Corporate responsibility Code of Ethics [DEF] - Set of rules and principles designed to encourage ethical conduct among a group of professionals. ​ Conduct business honestly and with integrity Principles of Business Ethics 1.​ Leadership ​ Conscious effort to adopt, integrate, and emulate the other 11 principles ​ Guide decisions and behavior in all aspects of professional and personal life 2.​ Accountability ​ Holding yourself and others accountable for their actions ​ Commitment to following ethical practices ​ Ensuring others follow ethics guidelines 3.​ Integrity ​ Doing what is right even if no one sees you ​ Honesty, trustworthiness, reliability ​ Avoid tainting one’s business image 4.​ Respect For Others ​ Foster ethical behavior and environments in the workplace 5.​ Honesty ​ Truth in all matters is key to fostering an ethical climate 6.​ Respect For Laws ​ Ethical leadership = enforcing all kinds of laws  ​ If there is a legal grey area, leaders should err on the side of legality rather than exploiting a gap 7.​ Responsibility ​ Promote ownership within an organization ​ Allow employees to be responsible for their work ○​ Delegate tasks (Do not work on everything when you have other people) ​ Be accountable for yours 8.​ Transparency ​ Companies should ensure that significant information are available to those interested in the business’ success ○​ Financials, price changes, hiring and firing practices, wages and salaries, and promotions ○​ Without divulging trade secrets (Confidential information/deals/contracts) 9.​ Compassion ​ Everyone should be treated with concern for their well-being even in the workforce ○​ Employees, the community surrounding a business, business partners, and customers 10.​ Fairness ​ Everyone should have the same opportunities and be treated equally 11.​ Loyalty ​ Inspiring loyalty in employees and management ​ Ensures that they are committed to best practices 12.​ Environmental Concern ​ All employees should be encouraged to discover and report solutions for practices that can add to existing damages Corporate Social Responsibility (CSR) [DEF] - A self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public ​ Concentrated effort to operate in ways that enhance rather than degrade society and the environment ​ Helps improve various aspects of society ​ Promotes a positive brand image of companies ​ Great way to raise morale in the workplace ​ Can be labeled as the company’s advocacies Environmental Impacts Philanthropic Endeavors  Ethical Responsibility Financial Responsibilities Common Initiatives Reducing carbon footprint Charitable global giving Improving labor policies Community and virtual volunteering Participating in fairtrade Corporate policies that benefit the environment Diversity, equity, and inclusion Socially and environmentally conscious investments Famous Brands and Their CSR 1.​ Johnson & Johnson → Renewable Innovation 2.​ Coca-cola → Sustainability 3.​ Google → Social issues 4.​ Ford → Carbon neutral & pay equity 5.​ Netflix → Employee rights 6.​ Toms → Grassroots campaign 7.​ Starbucks → Workplace diversity and inclusion Determining & Writing CSR 1.​ Understand your business’ CSR goals a.​ Identify why your business wants to engage in CSR b.​ Align CSR initiatives with your company’s values c.​ Ex. Food company → Reduce food waste or support local farmers 2.​ Structure your CSR section clearly a.​ Introduction: A brief statement on your commitment to CSR b.​ Focus Area: Specific initiatives (Ex. Sustainability, ethical sourcing, community outreach) c.​ Implementation Strategy: How you plan to achieve these initiatives d.​ Impact Measurement: How success will be tracked and measured 3.​ Focus on key CSR areas a.​ Environmental Responsibility: Sustainable packaging, waste, reduction, energy-efficient operations b.​ Social Responsibility: Fair wages, employee well-being, diversity, and inclusion c.​ Community Engagement: Charitable donations, scholarships, local employment programs d.​ Ethical Business Practices: Transparency, fair trade, customer protection 4.​ Be authentic & realistic a.​ Avoid vague or exaggerated claims (Ex. We will save the planet) b.​ Reachable, feasible, realistic goals c.​ Ex. Startup may start small by using biodegradable packaging before expanding CSR efforts