Week 5 Lesson - Social Responsibility of Entrepreneurs to Customers PDF

Social Responsibility of Entrepreneurs to Customers What Is an Entrepreneur?  An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship....

Social Responsibility of Entrepreneurs to Customers What Is an Entrepreneur?  An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship.  Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate needs and bring new ideas to market. Entrepreneurship that proves to be successful in taking on the risks of creating a startup is rewarded with profits and growth opportunities. Entrepreneurs have a moral obligation to reconcile and balance the rights and obligations of their stakeholders such as customers, employees, suppliers, creditors, government, the general public, and other stakeholders. Responsibility refers to the duty or obligation to satisfactorily perform or complete a task (assigned by someone, or created by one’s own promise or circumstances) that one must fulfill, and which has a consequent penalty for failure(“What is responsibility? definition and meaning”, 2016). Accountability refers to the obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. It also includes the responsibility for money or other entrusted property (“What is accountability? Definition and meaning”, 2016). Responsibilities and Accountabilities of Entrepreneurs to Stakeholders Stakeholders Stakeholders are individuals, organizations, or societies with a stake in a business, either internal or external. Entrepreneurs have a moral obligation to balance the rights of their stakeholders, including customers, employees, and suppliers. Conflict of interest is a significant issue, and intellectual property rights also affect stakeholders, as they may possess original works and inventions. A. Customers One of the most critical stakeholders is the customers. Business organizations should practice fairness and honesty in all dealings with them. All transactions should be legal and in accordance with ethical standards and practices. Customers should be given the time to think and choose the product or service intelligently and not be coerced, forced, or threatened to buy a product. Eight (8) Basic Rights of Customers 1. Right to Basic Needs Customers must not be deprived of basic needs for survival. They should be made available at affordable prices. 2. Right to Safety Consumers should be safeguarded against goods and services that are hazardous to human health. 3. Right to information They are entitled to honest and truthful information so they can select the best products and services. 4. Right to choose Consumers are free to select from an array of quality products and services available in the market. 5. Right to Representation They have the right to participate in the formulation and execution of policies and guidelines on consumer welfare and protection. 6. Right to Redress Consumers have the right to be compensated or reimbursed for any purchase or availing of goods and services which do not meet the expected standards of quality. 7. Right to Education Consumers have the right to acquire the skills needed to always be an informed customer. 8. Right to a Healthy Environment Consumers have the right to a safe and conducive place to live and work free from any form of danger. A business cannot work without the consumer. The survival and growth of a business depend on consumer satisfaction, service and support. 1. Ensure Quality of Products and Services 2. Ensure Consumer’s Health and Safety 3. Provide Easy -to-Use Products 4. Provide Free Training 5. Be Fair with Prices 6. Be Honest in Advertising and Marketing 7. Be Honest in Dealings A business cannot work without the consumer. The survival and growth of a business depend on consumer satisfaction, service and support. 8. Attend to Complaints 9. Service Even After Sales 10. Respect Customers’ Time 11. Treat Customers well 12. Ensure Regular Supply 13. Research and Develop to Increase Customer Satisfaction 14. Avoid Monopolistic Competition Customers are the most important factors of the business. Thus, it is only important that entrepreneurs should take care of them. The following are the responsibilities of the entrepreneurs to the customers. 1. Determination of Fair Prices Entrepreneurs should identify just process for the goods and services so that customers will develop trust on the product and in the long run, they also develop loyalty to the business as well as to the product. 2. To Render Good and Economic Services Good customer service is very important in a business. It is the responsibility of the entrepreneurs to provide good and cheaper services to the customers. 3. Standardization of Goods The entrepreneurs should make sure that the product or the goods bought by the customers are in good condition so that it will not provide danger to the customers when they use it. Goods and services should pass the quality standards set by the company as well as the government. 4. Best and Economic Packing of Products Packaging is an important marketing strategy. The goods and services should be packed well to prevent damage of the product. 5. Right and Truthful Advertising Truthful and honest in advertising are very essential in marketing the product. It is a moral and a social responsibility of the entrepreneurs. 6. To Avoid Adulteration, Low Weight and Measurement of Products Products should be produced following the specific designs set by the quality standards of the company. Tarnishing of live-saving goods such as medicines are harmful to life. Social Responsibility of Entrepreneurs to Employees Responsibility and Accountabilities of Entrepreneurs  Entrepreneurs and businesses rely on society for markets, human resources, and skills, providing sustenance and encouragement. They also have responsibilities towards various sectors, stakeholders, government, suppliers, and the environment. The following are beliefs that guide socially responsible business practices 1. People do their best with a balance of work and family life. 2. Organizations perform best in healthy communities. 3. Organizations gain by respecting the natural environment 4. Organization must be managed and led for long- term success. 5. Organization must protect their reputations. B. Employees- Employees are crucial assets in an organization, and good working conditions are a fundamental right, encompassing the physical environment, procedures, and practices necessary for task performance. The responsibility of business towards employees is in the form of:  1. Pay wages and Taxes  2. Create and Maintain a Safe Workplace  3. Facilitate Workers’ Compensation Insurance  4. Enforce Anti-Discrimination Law (EEO)- EEO stands for Equal Employment Opportunity  5. Create and Maintain a Favorable Working Environment 6. Respect Human Rights 7. Support Career Development 8. Train and Educate Employees 9. Manage Performance 10. Give Rewards and Benefits Due Process isthe employee’s right to be heard before a decision for termination is made.  According to Investopedia there are a lot of responsibilities of an entrepreneur to his employees. Among of these are the following: 1. Sensible and Attractive Salary  The company should offer attractive compensation packages to attract talent and motivate employees to achieve long- term goals, ensuring they perform their assigned tasks according to the organization's plans. 2. Assignment of Right Jobs  Thecompany ensures that employees are assigned to jobs based on their technical and educational background, preventing any mismatch between job qualifications and employees' abilities. 3. Provide Security of Employment  Entrepreneurs should ensure job security for employees, motivating them to work hard and commit to the organization, fostering a higher degree of faith in their employer. 4. Provide Best Working Environments  Entrepreneursare responsible for maintaining a comfortable work environment by providing good lighting, temperature, and workable space for their employees. 5. Assumption of Welfare Arrangements  Entrepreneurs are responsible for employee welfare, providing financial support during sickness, old age, accidents, and death, even during health crises and unemployment. 6. Humane Behavior towards employees  Entrepreneurs should create a compassionate and enjoyable workplace for employees, allowing them to practice their rights and enjoy their work. 7. Formation of Small Business Relations  Good industrial relations are crucial for protecting the interests of all employees and ensuring effective communication within an organization. 8. Participation in Profits and Management  Employers often share profits with employees, recognizing that the organization's profit is not solely the owner's responsibility but also extends to all employees. 9. Definite Service Surroundings  Employees should be fully informed about service conditions, including promotions, appointments, penalties, suspensions, dismissals, retirements, and service periods, with a clear and well-defined structure in place. 10. Espouse Incentives Wages Structure  Offering incentives and salaries can motivate employees to improve work quality, benefiting both the workers and the enterprise. Entrepreneurial Responsibilities to EMPLOYEES Workplace Safety  TheDepartment of Labor and Employment (DOLE) enforces Rule 1000 to ensure workplace safety for workers in all sectors. The goal is to protect workers from injury, sickness, or death, preserving manpower resources, and preventing loss or damage. The Quality of Life Issues  (QWL) focus on balancing work and family through flexible schedules, subsidized child care, and regulations like the Family and Medical Leave Act of 1993. Equal Job Opportunities  The policy aims to ensure equal job opportunities for all employees without discrimination, through skill matching and through regular trainings and seminars. Age Discrimination  The Department of Labor and Employment's "Anti- age Discrimination in Employment Act" protects workers aged 40 or older, promoting employment based on skills and qualifications. REPUBLIC ACT NO. 10911 Sec. 5  It shall be unlawful for an employer to: (1) Print or publish, or cause to be printed or published, in any form of media, including the internet, any notice of advertisement relating to employment suggesting preferences, limitations, specifications, and discrimination based on age; (2) Require the declaration of age or birth date during the application process; (3) Decline any employment application because of the individual's age; (4) Discriminate against an individual in terms of compensation, terms and conditions or privileges of employment on account of such individual's age; (5) Deny any employee's or worker's promotion or opportunity for training because of age; (6) Forcibly lay off an employee or worker because of old age; or (7) Impose early retirement on the basis of such employee's or worker's age. REPUBLIC ACT NO. 10911 Sec. 6  Age is a bona fide occupational qualification reasonably necessary in the normal operation of a particular business or where the differentiation is based on reasonable factors other than age; - The intent is to observe the terms of a bona fide employee retirement or a voluntary early retirement plan consistent with the purpose of this Act: Provided, That such retirement or voluntary retirement plan is in accordance with the Labor Code, as amended, and other related laws; or - The action is duly certified by the Secretary of Labor and Employment in accordance with the purpose of this Act. Sexual Harassment  RA No. 7866 “Anti-Sexual Harassment Act of 1995” defines and penalizes the crime of sexual harassment in workplaces and educational or training institutions in public and private sector. Sexism − Prejudice and or discrimination based on gender especially against women and girls. − They are protected by the: 1987 Philippine Constitution Art. II Sec 14. that recognizes the role of women in nation building and shall ensure the fundamental equality before the law of women and men. Racism − Discrimination against individuals based on their racial or ethnic group, often marginalized, is based on the belief that different races possess distinct characteristics, abilities, or qualities.