Entrepreneurial Responsibilities & Obligations PDF

Entrepreneurs have a moral obligation to reconcile and balance the rights and obligations of their stakeholders. Conflict of interest is also an important issue which concerns both employer and employees. This unethical behavior is committed by some members across an organization. Intellectual prope...

Entrepreneurs have a moral obligation to reconcile and balance the rights and obligations of their stakeholders. Conflict of interest is also an important issue which concerns both employer and employees. This unethical behavior is committed by some members across an organization. Intellectual property rights also affect stakeholders because intellectual property consists of all original works and inventions which any of the stakeholders may possess. **EMPLOYEES** - Pay Wages and Taxes Entrepreneurs have the responsibility to pay their employees of their business at least the minimum hourly wage in their locality and to pay each employee money owed from working per pay period, including overtime, sick leave, and vacation wages. Paychecks should always be on time and without delay so the workers can meet individual financial obligations. The government also requires entrepreneurs to pay PhilHealth, Social Security, taxes out of employee wages for each employee working their business. - Create and Maintain a Safe Workplace The government requires businesses to create and maintain a safe working environment for their employees as per standards. Entrepreneurs must also make employees aware of areas in their business that have a high risk for injury and train their employees in safety procedures to minimize the risk of injury. Continual inspection of their facilities and employee knowledge of safety standards is necessary to make certain their workplace remains as safe as possible. - Facilitate Workers' Compensation Insurance Despite business owners' best efforts to maintain a safe working environment, accidents will happen. When injuries occur through no fault of their employees, it's their responsibility to file a claim with their workers' compensation insurance provider. This coverage provides for medical care and wage replacement for their injured employee. Businesses must treat their injured employee with respect and file the claim without attempting to cause a delay in processing or attempt to defer the worker from filing a claim at all. This is illegal and can cost the business hefty fines and possible jail time if the entrepreneur refuses to honor their commitment and requirements as a business owner. - Enforce Anti-Discrimination Law It is illegal to discriminate against anyone according to their culture. This means not only race, religion, and country, but also age, gender, sexual preference, disability, a way of life and beliefs. "EEO" stands for "Equal Employment Opportunity", which means that employees cannot be disadvantaged, dismissed, or not given employment for any of these reasons. It is the employer's responsibility to ensure that all staff is trained and aware of their obligations under anti-discrimination laws. - Create and Maintain a Favorable Working Environment As an entrepreneur and employer, you should try to provide a healthy working environment, which respects each person and their opinion is considered. Listen to all your collaborators and worry about their welfare. Remember that they are working for your company exist and is profitable and that as better feel, the better they will do their job. - Respect Human Rights Understands that its business operations are interrelated with a wide range of peoples and societies throughout the world, and implements and enforces a code of conduct that fosters respect for human rights. - Train and Educate Employees Promoting knowledge is important in changing the business environment. Acquisition of new knowledge and skills through the professional and personal development of employees is a prerequisite and a guarantee of business success. - Manage Performance \"What gets measured gets done\" is an expression you will often hear when talking about performance management and the simple meaning behind this statement the key to our philosophy of rewarding and managing performance. We want all our employees to have clearly defined goals, which they defined themselves with their managers, on the basis of business goals, through three main performance areas profit, process, and people. - Give Rewards and Benefits Reward employees fairly and attractively, in line with the prevailing conditions on the local market. We gather data from the labor market on a regular basis, ensuring tha treward structures remain competitive. Our reward system is well structured and transparent in its application. **"GOVERNMENT"** - Observe Laws, Rules, and Regulations A number of legislatives are formed from time to time by the government for proper regulation and control of the business. Businessmen should comply with all legal requirements, execute government contracts, pa taxes honestly and in time, make services of executives available for government, suggest measures and send proposals to enact new laws for the business. - Pay Taxes Businesses must pay taxes and fees to the government in the course of carrying out their operations. These can include taxes on revenues, tariffs on imported products, and a number of administrative fees necessary to register the business. With holding these payments, particularly taxes, is considered a crime. - Follow Environmental Regulations Many companies, particularly those in the industrial and manufacturing sectors, face heavy regulations regarding the number and variety of pollutants that they are allowed to emit. Some companies, feeling a \"social responsibility\" toward the common good, may seek to limit their pollution more than the law requires. - Abide by Labor Laws Businesses that hire employees must abide by a slew of laws relating to how they treat their employees. These include laws related to how much an employee can be paid, how many hours he may work, and the criteria under which he can be hired and fired. Avoid Restrictive Trade Practices Companies are forbidden from engaging in certain kinds of restrictive trade practices that limit competition. For example, most companies may not develop monopolies within a particular sector or provide substantial barriers for new companies to compete with them. Restrictive trade practices of this kind can often reduce the quality of products available to consumers and drive up prices - Disclose Financial Statements Companies must disclose a number of financial statements to the government in the form of tax returns, and, if the company makes ownership of shares of stock commonly available, to the public as well. This financial transparency helps to ensure that the company is not violating any laws, such as withholding taxes and to aid the public in deciding whether to invest in the company. - Avoid Corruption The commercial organization should not take any type of favor from government officials by bribing or influencing them. - Help Earn Foreign Exchange The government also expects from a business organization that it will earn foreign currency by exporting goods in the foreign market. The government requires this foreign currency for importing valuable and important products. - Contribute to Government Treasury The commercial organization must contribute the funds to the government during emergencies and natural calamities like floods, earthquakes, etc. - Contribute to Political Stability The commercial organizations should work towards the political stability of the country. The stable government often brings more return and peace in a democratic country. **"CREDITORS"** - Give Correct Information Shareholders who are the owners of the business should be provided with correct information about the company to enable them to decide about further investments. - Provide Fair Return on Investment The company should provide a fair return on the investment made by shareholders. If shareholders do not get the proper dividend, then they will hesitate to invest additional funds. Shareholders should be kept fully informed about the working of the company for healthy growth of the business. The Companies Act 1956 also requires the company to give full disclosure in the published statements. - Strengthen Share Prices The company should strengthen the share prices by its growth, innovation, and diversification. At the same time, shareholders should also offer wholehearted support and co-operation to the company to protect their own interests. **"SUPPLIERS"** - Practice Fair Pricing and Licensing Companies must seek fairness and truthfulness in all dealings with suppliers especially pricing and licensing. Avoid Coercion and Litigation Companies should make certain that any business transaction with suppliers must be free from any form of coercion and unnecessary litigation. - Maintain Stability Firms must promote long-term stability in their relationship with the suppliers to payback the good value, quality, and reliability they gained. - Maintain Confidentiality Dealing with suppliers properly means sharing information with them and making them part of the planning processes. They must keep their clients and purchasers a breast of any new information on new technology and latest raw materials. Confidentiality must be strictly practiced. This means no unnecessary disclosure of information shared by the company and its activities. - Pay on Time One of the best ways to deal with suppliers is to be responsible for making timely payments according to the agreed terms and conditions of the trade. - Select Suppliers with discernment A business that aims at succeeding must have a good discernment in selecting suppliers. There are three fundamental requirements every company must need from their suppliers: legal compliance, quality control, and environmental conservation. **"CONSUMERS"** - Ensure Quality of Products and Services Your responsibility is to offer customers the highest quality in your products and services provide the best care and never lie to get a sale. A good entrepreneur is honest and gives a good price/ benefit. Never use marketing to deceive or sell false expectations. Quality goods should be produced and supplied. Distribution system should make goods easily available \"to avoid artificial scarcities and after-sales service should be prompt. Buying capacity and consumer preferences should be taken into consideration while deciding the manufacturing policies - Ensure Consumer's Health and Safety A key consumer issue is the quality and safety of products. Customers need clear instructions for safe product use, including assembly and maintenance. To avoid customer harm and danger, anticipate potential risks of your product and services in the design stage and throughout the product lifecycle, from R & D to manufacturing, storage, and distribution, use and disposal, reuse and recycling. Whether or not legal safety regulations exist, products should be safe for their intended use and if mi used in a way that can be foreseen. - Provide Free Training The commercial organization should arrange to train the customers either free or for a fee. It must be in the case of computers, etc. - Be Fair with Prices The customers should not be cheated by charging high prices. It is not possible to fool the customer at all the time. Thus, fair price converts a customer into a permanent customer. - Be Honest in Advertising and Marketing The customers want to know the facts, features, advantages, side-effects, etc., of the product. The advertisement conveys this information. Thus, the company must see that the advertisement is not being misleading and it must be done by providing the true and actual information. - Be Honest in Dealings Never lie to your customers. It is foolish to cook false stories. You will be caught. In today\'s world, where information is just a click away, everyone does his/her thorough research before purchasing something. Unnecessarily you will lose your respect in front of them. If you can\'t deliver something, please mention it clearly. They might not invest in that particular product but believe me, would definitely come back to you in near future just because you were honest, and guided them correctly. It is pointless to bad mouth your competitors. - Attend to Complaints The consumer complaints must be attended immediately. When major issues occur, employ a system for making quick and accurate decisions on steps and measures to take while placing top priority on not inconveniencing the customers. - Service Even After Sales The company is expected to provide after sale service for maintenance of goods during the period of warranty. Efficient and effective after sale service helps to establish a good relationship between the customers and the company. - Respect Customers' Time Respect your customer\'s time. Do not decide the time and venue as per your availability and comfort. If the customer wants to meet you at 6 in the evening, make sure you are there on time. Neither arrives too early nor too late. Do not keep your customers waiting. Do not forget that there are several options available in the market. Your loss is someone else\'s gain. - Treat Customers well Treat your customers as kings and do not think of them only when you have pressure to meet your targets within the stipulated time frame. Understand that a customer buys your products or services only when he/she trusts your brand and most importantly believes in you. Understand the needs and requirements of your clients. Find out as to why they need a particular product and how your product would benefit them. You need to build a strong relationship with your customers for them not only to remain your loyal clients but also bring more people along with them. It is the responsibility of the organization to give correct suggestions and feedbacks to customers. Avoid making fake promises and commitments which you yourself know are difficult to fulfill. **"GENERAL PUBLIC"** - Be Fiscally Responsible When a company is caught up in a scandal caused by executive greed, it can be fiscally fatal for that company. That is why a company needs to enact and enforce guidelines of its own that agree with the law but also apply specifically to the company, to avoid misuse of company funds. There is a bond of trust between a consumer and a company that is broken when fiscal fraud occurs. - Consider Public Input A company should reach out to its customers and benefit from the insight of what customers are looking for in product improvements. A company that creates an advisory board of a cross-section of its target audience gathers recommendations on how to keep in touch with the customer base and how to improve the company\'s public image. It is the responsibility of the company to remain accountable to its customers; otherwise, the company will lose its customers and cease to exist. - Take Care of the Community A company exists because of the customers it serves and the community in which it is located. The community provides most of the employees for the company, and the community provides all the public services the company enjoys, such as electricity and firefighting protection. In some cases, companies are given breaks on their utilities and taxes in order to entice them to establish a location within the community.