Responsibilities and Accountabilities to the Environment
Business is also responsible for protecting and improving the country’s fragile environment.
1. Comply with Environmental Laws
There is a range of environmental rules the business may have to follow:
✓Comply with legislation regarding emissions into the air
✓Store waste safely and securely, make sure it is treated appropriately, ensure it is collected by an authorized
organization and complete a waste transfer note or consignment note when waste is handed over.
✓Manage the business waste for recycling by separating paper, card, plastic, metals, and glass prior to collection
✓Make sure that the company comply with restrictions on the storage and use of hazardous substances.
2. Dispose Waste Properly
Appropriate steps should be taken to prevent environmental pollution and to preserve ecological balance. The
industrial waste should be disposed of carefully or if possible, can be recycled to minimize pollution. The toxic waste,
excessive noise, chemical pesticides, automobile exhaust need to be checked from time to time.
3. Recycle
Businesses are required to separate the following forms of commercial waste for recycling. It is illegal to dispose
food waste directly or indirectly into a public drain or sewer.
4. Conserve and Protect Biodiversity
Biodiversity refers to all species of plants and animals, including any genetic variations within those species, and the
complex ecosystem they live in. The world is losing biodiversity at an increasing rate as a result of human activity. All
types of business operating near protected areas should be aware of their responsibilities for conservation and
protect biodiversity.
Protected areas include:
✓ Local nature reserves – places with wildlife or geological features that are of special interest locally✓ National
Scenic Area – areas of particular natural beauty in need of conservation
✓ National Parks – tracts of the countryside that have been given protection for the conservation and enhancement
of their special qualities
✓ Natural nature reserves – important areas of wildlife habitat.
✓ Sites of special scientific interest – good examples of the natural heritage for the conservation and enhancement
of their special qualities
✓ Special areas of conservation – strictly protected sites for habitat types and species that are most in need of
conservation
✓ Special protection areas – strictly protected sites classified for rare and vulnerable animals
✓ UNESCO Biosphere – areas of terrestrial and coastal/marine ecosystems which are internationally recognized
under UNESCO’s Man and the Biosphere program.
5. Report an incident
➢ damage or danger to the natural environment
➢ Pollution to water or land
➢ Poaching or illegal fishing
➢ Dead fishes of fish in distress
➢ Illegal dumping of hazardous waste or large amount of industrial waste
➢ Illegal abstraction from water courses
➢ Collapsed or badly damaged river or canal banks
6. Use Scarce Natural Resources Sparingly
Scarce natural resources should be used very carefully as these are depleting at a very fast rate. Start by recycling
paper. Separate garbage dumps and avoid using disposable plates especially Styrofoam. Implement energy saving
systems such as LED lighting, turn off lights and equipment when not in use. (Major Ethical Issues in
Entrepreneurship (as cited in Jerusalem, Palencia, & Palencia, 2017)
G. Other Stakeholders
 Stakeholders are individuals with a vested interest in the running of the company, or a share.
 Stakeholders provide resources that are critical to a firm’s long-term success.
 Primary stakeholders are those whose continued association is necessary for a firm’s survival; these include
employees, customers, investors, and shareholders, as well as the governments and communities that
provide necessary infrastructure. Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.
 Secondary stakeholders do not typically engage in transactions with a company and thus are not essential
for its survival; these include the media, trade associations, and special-interest groups.
All the Entrepreneurs should consider ethics and social responsibility as their part of life. Doing business legally and
ethically will lead a development to the country. The entrepreneur should do business without affecting the society.
We all have an image of our better selves-of how we are when we act ethically or are “at our best”. We probably
also have an image of what an ethical community, an ethical business an ethical government, or an ethical society
should be Creating ethical organizations and governments makes our society ethical in the way it treats everyone.
The government also should take necessary steps for the development and welfare of Entrepreneurs.
DISCUSSION
Entrepreneurship is the process of identifying opportunities in the marketplace marshalling the resources required
to pursue these opportunities and investing the resources to exploit the opportunities of long-term gain. The
successful entrepreneur should maintain a strict discipline in their business. It is necessary for an entrepreneur to
know the values and important of business ethics. Doing business ethically means holding right things right and
wrong things wrong in business. Frederick and Lawrence define business ethics as “application of general ethical
ideas in business”. Business ethics are centrally concentrated with the business conduct. A value is something that
has worth or importance to an individual, it contains a judgment elemental in that it carries individual, ideas as to
what is right, good, or desirable. Corporate Social Responsibility is the continuing commitment by the business to
behave ethically and contribute to economic development while improving the quality of life of the workforce and
their families as well as the local community and society at large. This paper defines the detailed view of Business
Ethics, Values and Corporate Social Responsibility, and its importance for an Entrepreneur.
This module will provide you with information and activities that will help you understand the responsibilities or
duties of entrepreneurs as well as their accountabilities or liabilities.
A. Responsibilities and Accountabilities to the Employees
Responsibilities are the duties or obligations to satisfactorily perform or complete a task that one must fulfill, and
which has a consent penalty for failure.
1. 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 Phil Health, Social Security, taxes out of
employee wages for each employee working their business.
2. 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.
3. 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 is 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.
4. 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.
5. 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 exists and is profitable and that as better feel, the better they will do their
job.
6. Respect Human Rights
The Mitsubishi Electric Group 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.
7. Support Career Development
Mitsubishi Electric provides a human resources development system that supports the careers of employees, a selfdevelopment support program, and transfer opportunities for willing employees.
8. 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.
9. 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 is 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, based
on business goals, through three main performance areas profit, process, and people.
10. Give Rewards and Benefits
We reward our 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 that our reward structures remain competitive. Our
reward system is well structured and transparent in its application. It:
• Allocates appropriate people to appropriate job positions
• Set requirements and standards, outcomes, and measures
• Provides effective orientation, education, and training
• Provides ongoing coaching and feedback
• Designs a foundation for effective systems that reward people for their contributions
• Provides promotional/career development opportunities for employees
B. Responsibilities and Accountabilities to the Government
In any country, the government tries to preserve the community and improve its conditions. In that respect, the
business must extend its cooperation to the government. If the business discharges its responsibilities the
government sincerely and effectively, the government can function more efficiently.
1. 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, pay taxes honestly
and in time, make services of executives available for government, suggest measures and send proposals to enact
new laws for the business.
2. Pay Taxes
Businesses must pay taxes and fees to the government while carrying out their operations. These can include taxes
on revenues, tariffs on imported products, and several administrative fees necessary to register the business.
Withholding these payments, particularly taxes, is considered a crime.
3. 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.
4. 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.
5. 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.
6. 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.
7. Avoid Corruption
The commercial organization should not take any type of favor from government officials by bribing or influencing
them.
8. Assist in Implementing Socio-Economic Policies
The government expects co-operation and help from the business sector to help in implementing programs and
policies relating to social and economic development.
9. 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.
10. Advise the Government
The business organization has to provide timely advice to the government in respect of framing important policies
such as Industrial policy, Import & Export policy, Licensing policy, etc.
11. Contribute to Government Treasury
The commercial organization must contribute the funds to the government during emergencies and natural
calamities like floods, earthquakes, etc.
12. 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.
C. Responsibilities and Accountabilities to the Creditors
Various plans are prepared for development and expansion of the business and for that various projects are also
formulated. For their completion, capital is the foremost requirement, which is fulfilled through loans from the
individuals, Financial Institutions and Banks.
1. To Obtain Loans on Reasonable Conditions
Some certain conditions are required to be fulfilled to obtain any type of loan. These conditions should be
reasonable, both for the creditors and the business organization. The entrepreneur should follow these conditions.
2. To Follow Mortgage Rules
The creditors provide loans in secured and unsecured forms. If the creditor has provided the secured loan on the
mortgaged property, the entrepreneur should follow the rules of mortgaged property should be safeguarded and
should be handed over the creditor, if so required under the rules.
3. To Follow Business Ethics
Both the entrepreneurs and creditors should follow the business ethics in providing loans and in repayment of loans.
The loan procedures should be honestly complied with.
4. Proper Utilization of Debt Capital
Loans are obtained for particular objectives. Hence, entrepreneurs should utilize the loan amount only for the
desired objectives. Not only that, but loan capital should also be invested only for objectives and projects specified
for the loans. Loan capital should be utilized with the utmost economy.
5. Regular Payment of Installment and Interest
The entrepreneurs should pay loan installments and interest regularly, according to repayment conditions. If
installments and interests are not paid timely, the loan burden goes on increasing and it also has an adverse effect
on the reputation of the business organization.
6. Repayment of Loan
Loans should always be paid in on the maturity date, which facilitates regular capital flow in the business society and
saves the Banks and Financial Institutions from adverse effects.
D. Responsibilities and Accountabilities to the Suppliers
The manufacturers / producers are mainly responsible for supplying or providing the raw materials and services that
a company needs in the production of products under a strict business framework. On the other hand,
entrepreneurs also have responsibilities to their suppliers and creditors. Entrepreneurs are accountable of the
following:
1. Pay Fair Prices of Goods at A Reasonable Time
Entrepreneurs have the responsibility to pay for the agreed prices with the suppliers. This helps in the establishment
of good relationship with the suppliers. On the other hand, it is also the responsibility of the entrepreneurs to pay
their creditors at an agreed term. Companies must seek fairness and truthfulness in all dealings with suppliers
especially on pricing and licensing.
2. Inform About Changes in Market
Information on the changes in the market should be provided by the entrepreneur to his supplier especially on the
demands of the commodities.
3. Give Guarantee of Minimum Price
The entrepreneurs should give the assurance of lowest prices to the suppliers so that the certainty of the price will
be sustained.
4. Provide Technical Advice
The entrepreneur has the responsibility to provide procedural assistance his suppliers for the creation of new and
replaced supplies.
5. Inform Suppliers of Future Developments
Provision of information on future growths to the suppliers so that suppliers will be aware of these circumstances
and that they will develop themselves in line with the changes of the business environment.
6. Promote Healthy Competition
Any unhealthy and hostile competitions among suppliers should not be allowed by the entrepreneur. This is one of
the accountabilities of an entrepreneur to his creditors and suppliers.
7. Avoid Coercion and Litigation
Companies should guarantee that all transactions with suppliers must be free from bribery and unnecessary charges
of any manner.
8. Maintain Stability
In their partnership with suppliers, the organization must facilitate long- term relationship to pay back the good
value, quality and efficiency they have earned.
9. Maintain Confidentiality
Dealing properly with suppliers means communicating with them facts and making them part of the planning
processes. They must keep their consumers and buyers up to date on any latest knowledge on new technologies and
new raw materials. Confidentiality must be observed strictly. It implies no unauthorized disclosure of information
exchanged by the organization and its operations.
10. Pay on Time
One of the easiest ways to negotiate with suppliers is to be responsible, according to the negotiated terms and
conditions of exchange, for making tily payment.
11. Select Suppliers with Discernment
In choosing suppliers, an organization that wants to thrive must have a strong discernment. Every organization
requires legal precise specifications from its suppliers such as (a)legal enforcement, (b) quality management; and (c)
environmental protection.
E. Responsibilities and Accountabilities to the Consumers
Entrepreneurs also have responsibilities and accountabilities to their clients. 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. Without customers, a company does not function. Customer
loyalty, quality and support depend on the sustainability and development of a business. The commercial company
should win the customer’s confidence. This is done by adopting customer’s optimistic attitudes and upholding their
social obligations.
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. The customers
should not be cheated by charging high prices. It is not possible to fool the customer at all time. Thus, fair price
converts a customer into a permanent customer.
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
Entrepreneurs should guarantee that the items or products purchased by consumer s are in good shape so that
when they use it, it will not compromise the health of the consumers. Goods and services should comply with the
quality requirements set by both the organization and the law.
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 every entrepreneurs. A good businessman is truthful and offers a good price. Never use an advertisement to
confuse or sell false expectations.
6. To Avoid Adulteration, Low Weight and Measurement of Products
Products should be manufactured according to the particular designs set by the company’s quality standards.
7. Ensure Quality of Products and Services
The duty of the entrepreneurs is to provide the highest quality customers with the best treatment of your goods and
services and never cheat to get a sale.
8. Ensure Consumer’s Health and Safety
Consumers need specific direction, including assembly and maintenance, for healthy product use.
9. Provide Free Training
The business organization can plan to train clients either free of charge or for a fee.
10. Be Fair with Prices
11. Be Honest in Dealings
Never lie to the customers.
12. Attend to Complaints
Consumer complaints must be promptly answered.
13. Service Even After Sales
It is expected that the company will provides after-sale service during the warranty period for the maintenance of
goods. Effective and efficient after-sale service helps to create a strong customer-company relationship.
14. Respect Customers Time
Value your customers. Do not specify the time and place according to your availability and comfort. Neither comes
too early or too late. Do not leave your clients waiting.
15. Treat Customers Well
Treat customers as kings and do not think of them only if you are pressured within the defined timeline to achieve
your goals. It is the organization’s duty to provide consumers with correct advice and reviews.
F. Responsibilities and Accountabilities to the General Public
To maintain a positive public image and attract new clients, a company must understand its corporate
responsibilities to the public. Any business that encounters the public has responsibilities.
1. Be Fiscally Responsible
According to RR Donnelley, one of the acts that caused businesses to collapse happened when executives gave
themselves loans using company funds. To prevent abuse of company assets, a company needs to implement and
enforce its own rules that comply with the law.
2. Consider Public Inputs
A company should be able to operate under its own rules and ideals, but it should also consider the inputs of its
customers to remain competitive according to the World Bank Institute’s report titled” Public Policy for Corporate
Social Responsibility.” It should reach out to its clients and benefit from consumer feedback for product
enhancements. The company is responsible for being accountable to its clients, otherwise, it will lose its clients and
cease to exist.
3. 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
uses. The company has a responsibility to give back to the community that supports it with tax breaks and a labor
force.