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Business Ethics and, Social Responsibility, Formulate a Morally Defensible, Position on Ethical Issues in, Entrepreneurship, , Business Ethics and Social Responsibility, , SENIOR, HIGH, SCHOOL, Module, , 5, Quarter 4

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Business Ethics and Social Responsibility- Grade 12, Quarter 4 – Module 5: Formulate a Morally Defensible Position on Ethical, Issues in Entrepreneurship, First Edition, 2020, Republic Act 8293, Section 176 states that no copyright shall subsist, in any work of the Government of the Philippines. However, prior approval of, the government agency or office wherein the work is created shall be necessary, for the exploitation of such work for a profit. Such agency or office may, among, other things, impose as a condition the payment of royalties., Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand, names, trademarks, etc.) included in this module are owned by their respective, copyright holders. Every effort has been exerted to locate and seek permission, to use these materials from their respective copyright owners. The publisher, and authors do not represent nor claim ownership over them., City, , Published by the Department of Education - Schools Division of Pasig, Development Team of the Self-Learning Module, , Writer: Anna lyn A. Pintes, Content/Language Validator: Dennis T. Alex, Edna D. Camarao, Reviewers: Hedelita B. Calonia, Cheska Telan, Eunice H. Mariposque, Dennis T. Alex, Edna D. Camarao, Illustrator: Name, Layout Artist:Name, Management Team:, , Ma. Evalou Concepcion A. Agustin, OIC-Schools Division Superintendent, Carolina T. Rivera, EdD, OIC-Assistant Schools Division Superintendent, Victor M. Javeña EdD, Chief, School Governance and Operations Division and, Manuel A. Laguerta EdD, Chief, Curriculum Implementation Division, , Education Program Supervisors, Librada L. Agon EdD(EPP/TLE/TVL/TVE), Liza A. Alvarez(Science/STEM/SSP), Bernard R. Balitao(AP/HUMSS), Joselito E. Calios (English/SPFL/GAS), Norlyn D. Conde EdD(MAPEH/SPA/SPS/HOPE/A&D/Sports), Wilma Q. Del Rosario (LRMS/ADM), Ma. Teresita E. HerreraEdD(Filipino/GAS/Piling Larang), Perlita M. IgnacioPhD(EsP), Dulce O. Santos PhD(Kindergarten/MTB-MLE), Teresita P. TagulaoEdD(Mathematics/ABM), , Printed in the Philippines by the Department of Education – Schools Division of, Pasig City

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Business Ethics, and Social, Responsibility, , SENIOR, HIGH, SCHOOL, Module, , 5, Quarter 4, , Formulate a Morally Defensible, Position on Ethical Issues in, Entrepreneurship

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Introductory Message, For the Facilitator:, Welcome to the Senior High School – on Formulate a Morally Defensible, Position on Ethical Issues in Entrepreneurship!, This Self-Learning Module was collaboratively designed, developed, and, reviewed by educators from the Schools Division Office of Pasig City headed by, its Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion, A. Agustin, in partnership with the City Government of Pasig through its, mayor, Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards, set by the K to 12 Curriculum using the Most Essential Learning Competencies, (MELC)in developing this instructional resource., This learning material hopes to engage the learners in guided and, independent learning activities at their own pace and time. Further, this also, aims to help learners acquire the needed 21st - century skills especially the 5, Cs, namely: Communication, Collaboration, Creativity, Critical Thinking, and, Character while taking into consideration their needs and circumstances., In addition to the material in the main text, you will also see this box in, the body of the module:, , Notes to the Teacher, This contains helpful tips or strategies that, will help you in guiding the learners., , As a facilitator, you are expected to orient the learners on how to use, this module. You also need to keep track of the learners' progress while, allowing them to manage their learning. Moreover, you are expected to, encourage and assist the learners as they do the tasks included in the module.

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For the Learner:, Welcome to the Business Ethics and Social Responsibility Self-Learning, Module on Formulate a Morally Defensible Position on Ethical Issues in, Entrepreneurship!, This module was designed to provide you with fun and meaningful, opportunities for guided and independent learning at your own pace and time., You will be enabled to process the contents of the learning material while being, an active learner., This module has the following parts and corresponding icons:, , Expectations – This points to the set of knowledge and, skills that you will learn after completing the module., Pretest - This measures your prior knowledge about the, lesson at hand., Recap - This part of the module provides a review of, concepts and skills that you already know about a previous, lesson., , Lesson- This section discusses the topic in the module., , Activities - This is a set of activities that you need to, perform., , Wrap-Up- This section summarizes the concepts and, application of the lesson., Valuing- This part integrates a desirable moral value in the, lesson., Post test - This measures how much you have learned, from the entire module.

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EXPECTATIONS, After going through this module, you are expected to:, 1. describe workplace challenges in an entrepreneurial, culture;, 2. distinguish between reactive and proactive approaches to, managing ethics;, 3. describe the foundations and framework of an organizational, culture of ethical excellence, , PRETEST, Directions: Identify the correct answer. Write the answer on your, answer sheet., ____________________1. It enables an entrepreneur to identify and, address reckless behavior, irresponsible actions, and ethical deviations, as they occur., ____________________2., , It, , strives, , to, , prevent, , reckless, , behavior,, , irresponsible actions, and ethical deviations., ____________________3. It, , enables a company to continually grow its, , intellectual resources, enables individuals to develop ethical capabilities,, strengthens individual creativity, and organizational innovation., ____________________4. It enables an entrepreneur to systematically add, the greatest value to society, and to do so responsibly., ____________________5. It should convince individuals to find the best, ideas, leverage diversity, grow new solutions, gain wholehearted support.

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RECAP, At the last meeting, we discussed the ethical and legal issues in, entrepreneurship. Now, in this module, we will discuss on how to, develop a workplace culture of ethical excellence and accountability., But before we proceed, I want you to discuss on how to be an, ethical entrepreneur?, , LESSON, Entrepreneurial Culture, A fairly common characteristic of successful startups is charismatic,, driven founders with competitive mentalities. After all, it takes a thick, skin and powerful ego to get through the inevitable disappointments that, confront a startup leader. Often, however, companies discover that a, different, , leadership, , ethos, , is, , necessary, , as, , they, , grow., , Could, , entrepreneurs still succeed if they also embraced a humanistic, leadership style at the outset, or would this invariably undermine the, already low initial odds of success? It is a difficult problem with which, many firms wrestle. Dedicated employees may be put off by demanding, leaders who are harsh, giving little back to loyal workers even after, achieving success. New employees may decide the working climate is, less congenial than they anticipated and simply leave., , Proactive versus Reactive Approaches, Creation of an ethical workplace environment has both reactive and, proactive components. The reactive side enables an entrepreneur to, identify and address reckless behavior, irresponsible actions, and ethical

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deviations as they occur. However, there may be times that a reactive, approach, which can be heavy-handed, may not be the best approach for, addressing ethical deviations., In contrast, a proactive approach to developing an ethical workplace, strives to prevent reckless behavior, irresponsible actions, and ethical, deviations, , by, , establishing, , and, , nurturing, , a, , culture, , of, , ethics,, , responsibility, and compliance. It also demands that you establish a, workplace environment of ethics where every member of the organization, is able to proactively develop, internalize, and apply a moral compass., This approach serves to rationalize popular but often silent or nebulous, concepts such as truthfulness, fairness, trust, integrity, commitment,, innovation,, , and, , excellence,, , leading, , to, , a, , sustained, , competitive, , advantage., , Developing the Foundation and Framework of an Ethically, Responsible Organization, An entrepreneur must build a foundation for developing an organization, grounded in ethics and responsibility. Foundational building blocks, enable an entrepreneur to systematically add the greatest value to, society, and to do so responsibly. Additionally, for entrepreneurs, modifying their businesses or taking over new ventures, building a, foundation of ethical conduct should neither disrupt normal business, operations nor add significant overhead, since the main concepts are, infused into the fabric of the organization., , Develop a Grander Purpose, Once the entrepreneur has designed and configured the organization to, develop a sustained competitive advantage in a responsible manner,, he/she needs to develop a higher vision or a grander purpose for the, organization. This grander purpose is not the same as a mission or, vision (although they may overlap). It is not financially motivated, it is

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not product/service, and it is not shareholder driven. Instead, the, grander purpose defines and highlights the reasoning for a firm’s longterm existence and success; it provides guidance and direction during, decision-making, problem solving, and conflict resolution; it provides the, motivation for individuals to achieve excellence and the sense of urgency, for social change; and it enables individuals to be part of a larger cause., , Develop a Culture of Collaborative Excellence, The establishment of a framework and foundation for ethical behavior, opens up the organization for effective and meaningful teamwork and, collaboration., , Many, , existing, , approaches, , to, , collaboration,, , while, , demonstrating successes and benefits, also are sometimes inadequate in, addressing, , complex, , group, , interactions, , dealing, , with, , mistrust,, , competition, politics, and ideological differences. A successful culture of, collaboration should convince individuals to find the best ideas, leverage, diversity, grow new solutions, gain wholehearted support, develop, champions of change, nurture a safe environment, and encourage people, to express all ideas., , Human Resources Development, A human resources development plan enables a company to continually, grow its intellectual resources, enables individuals to develop ethical, capabilities,, , strengthens, , individual, , creativity, , and, , organizational, , innovation, provides a steady stream of capable human resources for its, leadership pipelines, and enables the firm to leverage and harvest those, human resources to advance society in a responsible manner. This is, achieved by providing a new employee assessment process where every, member of the organization is given the needed opportunities and is, expected to collaborate with their superior(s) to own and manage, their lifelong development plan (LDP). At a minimum, an LDP should:, •, , Include short-term and long-term career goals and objectives

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•, , Help, , identify,, , continually, , develop,, , and, , leverage, , individual, , strengths, •, , Enable individuals to identify and measurably close gaps in, deliverable, behavior, and professional improvement, , •, , Clarify major deliverable and success indicators, , Develop Ethical and Responsible Leadership/Management, Significant research shows that the culture of the organization is mostly, shaped by its leadership values by how leaders develop the bonds of, trust, by how they motivate their people, by their responsible decisions, and actions, and by how they empower, delegate, and monitor tasks., , Develop Internal/External Organizational Alignment and, Cohesion, Key to ethical organizational success is the alignment and cohesion, between individuals, groups, and the enterprise as a whole. This, alignment starts with the development of a grander purpose that enables, the entrepreneur and the organization to serve, add value, and advance, the society in which it operates., , Develop a Culture of Creativity and Innovation, The next building block is developing a culture of creativity and, innovation. This means going beyond a spark of creativity from select, individuals or business units, and instead nurturing a culture where, every member of the organization is continually creative and the, organization is innovative., , Develop a Culture of Delivering Responsible Results, Measurable results compose the final building block of a framework for, ethics, , and, , responsibility., , This, , involves, , developing, , systems, , and, , indicators that will demonstrate how your business is achieving ethical

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standards and progressively improving as it adds value to society. While, the details of which indicators to select is left up to the discretion of the, entrepreneur, this building block defines success in terms of ten, dimensions of business excellence,, , Creating, , an, , Ethical, , and, , Responsible, , Workplace, , Environment, A safe, healthy, and productive workplace is an environment in which an, individual has a high level of trust and confidence that if they give their, best, they will see a number of results and be afforded a number of, things in exchange for their hard work. This concept resembles an, employer-employee contract. This contract includes the following, employee expectations:, 1. They are treated with the respect, dignity, and courtesy they, deserve as a human being., 2. They are given the needed support, equal opportunities, and, resources to excel., 3. They are given what they deserve and what they are due in a fair, and equitable way., 4. They are provided a safe, secure, and prejudice-free work, environment., 5. They, , are, , not, , pushed,, , pressured,, , or, , expected, , to, , behave, , irresponsibly., This type of workplace environment enables individuals to continually, grow and develop to their full potential and then leverage that potential, to add value to their own lives, careers, and society. This type of, environment is one in which individuals are not afraid to speak their, mind; they feel safe to discuss problems and concerns, and feel free to, question and reject that which is wrong., , Trust and Ethical Accountability

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Finally, the development of safe environments also deals with an, environment where individuals are able to develop unbreakable bonds of, trust, where they don’t feel they have to constantly watch their backs,, where individuals are free to point out misconduct without being, reprimanded, and where individuals feel they will be given what they are, due or deserve. This dimension of the development of a safe work, environment deals with making sure individuals feel they are being, treated in a fair and equitable manner and that their need for the, development of an ethical and moral work environment is being met., , If You Make a Mistake, If you or your organization makes a mistake or misstep, you must decide, how to address it. In general, you are faced with the choice of paying, now or paying a hundredfold later. For the most part, these corporate, failures have been caused by one or more ethical deviations on behalf of, leadership. Once that first step is taken, they need to take immediate, steps to proactively address the problems they have caused. Many, leaders or entrepreneurs have learned the hard way that they need to be, open and transparent with their stakeholders at the outset. Failure to, rapidly admit mistakes can and has resulted in paying a very steep price, when exposed. The actions that an entrepreneur needs to take include:, -, , Admitting, , their, , mistakes,, , failures,, , and, , shortcomings, , to, , all, , stakeholders, - Effectively communicating the nature of the problem to major, stakeholders, - Informing the stakeholders of the impact, side effect, and causes of the, problem, - Taking necessary and immediate steps to address the issue and stop, the bleeding

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- Conducting a thorough and unbiased root-cause analysis to identify, the underlying cause, - Addressing any people and systemic gaps that caused the problem in, the first place, - Putting in place measures that will prevent the repeat of the same, mistakes, To summarize, the best approach is that you admit your mistakes and, shortcomings, pay the price, fix and uproot the problem, and, systematically prevent the repeat of the same mistakes., , ACTIVITIES, WORK IT OUT, Growing Collaboration and Creativity, Entrepreneurs are entrusted with the growth and development of their, people. This growth and development should not be stopped, delayed, or, marginalized in any shape or form. Instead, an entrepreneur needs to, learn how to use the available resources to systematically train, develop,, and deliver a steady stream of responsible individuals who are able to, grow within the company as well as grow the company. List three, strategies an entrepreneur could use to achieve the following major, objectives:, 1. Develop the best, the brightest, and most creative and motivated, people who have a strong sense of right and wrong, 2. Develop individuals who have a strong sense of ownership,, responsibility,, , and, , competitive edge, , commitment, , to, , achieve, , and, , sustain, , a

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3. Leverage these intellectual forces and the synergy within the, organization to generate the greatest value and wealth for all, stakeholders., , WRAP-UP, Let’s wrap up by answering the following questions:, 1. Explain why diversity is something that should matter to an owner., What would you do to try to achieve it?, 2. Some small entrepreneurs do not have the budget for a full-fledged, human resources department;, , however, that makes compliance, , with employment laws challenging. What steps would you take to, comply with the state employment law if you do not have a fulltime attorney or human resources specialist on staff?, , VALUING, 1. If an entrepreneur values sustainability and environmental, awareness,, , does, , that, , mean, , the, , bottom, , line, , will, , suffer?, , Alternatively, is there a way to protect the environment and still, make a profit?, 2. How can an entrepreneur maximize the benefits of a diverse, workforce to develop a competitive advantage?, , POST TEST, Directions: Choose the letter of the best answer. Write the answer on, your answer sheet.

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1. LDP Stands for?, A. Long life development plan, B. Lifeline development plan, C. Lifelong development plan, 2. It means going beyond a spark of creativity from select individuals or, business units., A. Tradition of creativity and innovation, B. Culture of creativity and innovation., C. Foundational building blocks, 3. It strives to prevent reckless behavior, irresponsible actions, and, ethical deviations by establishing and nurturing a culture of ethics,, responsibility, and compliance., A. Nonactive Approach, B. Reactive Approach, C. Proactive Approach, 4. It enables an entrepreneur to systematically add the greatest value to, society, and to do so responsibly., A. Foundational Building Blocks, B. Internal/External Organizational Alignment and Cohesion, C. Culture of creativity and innovation., 5. This alignment starts with the development of a grander purpose that, enables the entrepreneur and the organization to serve, add value,, and advance the society in which it operates., A. Internal/External Organizational Alignment and Cohesion, B. Culture of creativity and innovation., C. Foundational Building Blocks

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KEY TO CORRECTION, , EXPECTATIONS, POST-TEST, , PRE -TEST, 1. Reactive Approach, 2. Proactive Approach, 3. Human Resources, Development Plan, 4. Foundational, Building Blocks, 5. Culture of, Collaboration, , 1., 2., 3., 4., 5., , C, B, C, A, A, , References, Racelis, Aliza. Business Ethics and Social Responsibility. Manila: Rex, Book Store, 2017., “Ch. 1 Introduction - Entrepreneurship.” OpenStax,, openstax.org/books/entrepreneurship/pages/1-introduction., “Ch. 2 Suggested Resources - Entrepreneurship.” OpenStax,, openstax.org/books/entrepreneurship/pages/2-suggestedresources.