SLM WK 1-2 Bus Ethics
SLM WK 1-2 Bus Ethics
21 st
Ethics
Century
ABM Literature
and Socialfrom the
Philippines and the
Responsibility
World
Table of Contents
Introductory Message 4
Lesson 1 – Nature and Forms of Business Organization
I. Overview 5
II. Presentation 6
III. Application 11
IV. Generalization 13
V. Post Assessment 13
Lesson 2 - Fairness, Accountability, Transparency and
Stewardship
I. Overview 15
II. Presentation 17
III. Application 21
IV. Generalization 22
V. Post Assessment 22
Page 2 of 22
Business Ethics and Social Responsibilities
Alternative Delivery Mode
First Edition, 2021
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
exploitation of such work for 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 book 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.
EUGENIO S. ADRAO
EPS in-charge of LRMDS
RONALDO V. RAMILO
EPS in charge in LRMS
RONALDO V. RAMILO
Division ADM Coordinator
Page 3 of 22
Introductory Message
This Self- Learning Module, SLM, is based on Deped Order nos.1 series
of 2021. It is prepared so that you, our dear learners, can continue your
studies and learn while at home. Activities, questions, directions, exercises,
and discussions are carefully stated for you to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in each
SLM. This will tell you if you need to proceed on completing this module or if
you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning.
In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.
Page 4 of 22
LESSON 1 - The Nature and Forms of Business Organization
I. Overview
a. Instructional Objectives
At the end of the lesson, the learners are expected to:
a. define and describe business and business organization;
b. identify and describe the various forms of business organizations;
c. compare and contrast the advantages and disadvantages of various form of
business; and
d. illustrate the role of each form of business organization in the economy.
b. Pre-assessment
Test 1
Directions: True or False. Write TRUE if the statement is correct and FALSE if it is
not. Write your answer on your notebook, take photo, and send it through
messenger.
Page 5 of 22
10. Among forms of business, sole proprietorship has the total undivided
authority.
Test 2
Directions: Arrange the jumbled letters to form the correct word/s as described by
the given clues. Write your answer on your notebook, take photo, and send it
through messenger.
2. The difference between the resources input and the total revenue
TORFIP
3. Kind of business that turn inputs, raw materials, into output, products
GUINFUNCTAMAR
c. Recall
What’s new?
All answers will be considered. Write your answer on your notebook, take
photo, and send it through messenger.
1. Are you aware of online selling?
2. Have you been selling or buying through online shopping/selling?
3. What are the items have you been selling/buying?
4. How do you find online-selling as profitable business?
5. Do you think online-selling will continue to flourish even after this
pandemic?
II. Presentation
a. Concept Development
What is it?
Page 6 of 22
Three types of business organizations are generally operated for profit -
service, merchandising, and manufacturing businesses:
Manufacturing businesses turn basic inputs into products which are sold to
consumers.
Examples: shoe manufacturing, baked goods, candle manufacturing, cosmetics
manufacturing, wine production, etc.
Advantages:
a. Tax preparation is faster. Simply file an individual income tax return including
losses and profits to your business. Your personal and business income is
considered the same and the tax implications for self-employed individuals
would apply.
b. Sole proprietorship has lower start-up costs.
c. Handling money for the business is easier.
d. Sole proprietorships have the least government rules and regulations that
affect them.
e. The sole proprietor can own the business for as long as he/she wants, and
when he/she wants to move out, he/she can cash in and sell the business.
f. Even in common practice, the sole proprietor can pass the business down to
his/her heir.
Disadvantages:
a. The sole proprietor is personally liable for all debts and actions of the
enterprise.
b. There is lack of financial control because of looser structure of sole
proprietorship.
c. There could be difficulty in raising capital.
Advantages:
a. Partnership business lacks formality as compared with managing a limited
company or corporation.
Page 7 of 22
b. It is easy to start. The partnership may be created either verbally or in writing.
c. You share the burden. You have companion and support.
d. Every partner would add his/her own expertise, skills, experience, and
connections to the business, thus giving it a greater chance of success.
e. There is better decision-making. Two heads are better than one.
f. There is privacy. The business deals may be kept confidential by the partners.
g. The partners own and control the business.
h. The more partners there are, the more funds are available in the company,
which can be used for possible expansion. Its borrowing capacity is also likely
to be higher.
i. There is an easy access to profits in a business partnership. The partners just
have to divide the profits.
Disadvantages:
a. The business does not have any independent legal status.
b. The business has no separate legal personality, so the partners are personally
liable for the debts and losses incurred.
c. The partnership business often seems to lack the sense of prestige more
closely associated with a corporation.
d. A partnership will often find it more difficult to raise money than a corporation.
e. There is a potential of differences and conflicts.
f. Decision-making can be slower because there is a need for consultation among
partners.
g. The profit must be shared among the partners.
h. It may require a lot of time and energy thus may affect life-work balance.
i. The profits earned by the partnership will be translated to income on the
individual partners. Thus, they are subject to income tax in the financial year
in which they are made.
j. There are limits on business development like unlimited liability, lack of
funding opportunities, and a lack of commercial status, etc.
Advantages:
a. The liability of the shareholders of a corporation is limited up to the amount of
their investments.
b. A publicly held corporation may sell shares or issue bonds to raise substantial
amounts.
c. It is easy for a shareholder to sell shares in a corporation.
d. A corporation’s life has no limit, ownership can pass through many
generations.
Disadvantages:
Page 8 of 22
a. The corporation pays taxes on its income depending on its type and the
shareholders pay dividend taxes, so income gets taxed twice.
b. The management team of a corporation can operate the business without any
real oversight from the owners.
2. Create Jobs: Entrepreneurs are by nature and definition job creators, as opposed
to job seekers. The simple translation is that when you become an entrepreneur,
there is one less job seeker in the economy, and then you provide employment
for multiple other job seekers. This kind of job creation by new and existing
businesses is again is one of the basic goals of economic development.
Every new business that locates in a less developed area will create both direct
and indirect jobs, helping lift regional economies in many different ways. The
combined spending by all the new employees of the new businesses and the
supporting jobs in other businesses adds to the local and regional economic
output.
4. GDP and Per Capita Income: India’s MSME sector, comprised of 36 million units
that provide employment for more than 80 million people, now accounts for over
37% of the country’s GDP. Each new addition to these 36 million units makes
use of even more resources like land, labor and capital to develop products and
services that add to the national income, national product and per capita income
of the country. This growth in GDP and per capita income is again one of the
essential goals of economic development.
Page 9 of 22
stakeholders in the community. For example, automation that reduces
production costs and enables faster production will make a business unit more
productive, while also providing its customers with the same goods at lower
prices.
6. Exports: Any growing business will eventually want to get started with exports
to expand their business to foreign markets. This is an important ingredient of
economic development since it provides access to bigger markets, and leads to
currency inflows and access to the latest cutting-edge technologies and
processes being used in more developed foreign markets. Another key benefit is
that this expansion that leads to more stable business revenue during economic
downturns in the local economy.
b. Activities
What’s more?
The learners will be given a work sheet, which they were expected to perform within
their notebooks, then photos of the activity will be send through the Facebook
messenger.
Activity 1: Complete the table below. Within the City of Tanauan, give atleast 5
example of business under each type.
Name of business
Types of business Description
within the community
1. Service Business
2. Manufacturing
Business
3. Merchandizing
Buisiness
Activity 2: In your own words, described and identify the advantages and
disadvantages of each forms of business. Then answer the questions below.
Page 10 of 22
Forms of
Description Advantages Disadvantages
Business
Proprietorship
Partnership
Corporation
c. Formative Assessment
Test I: Directions: Identify the letter of the correct answer that correspond to each
item, on the notebook. Take photos and send through Fb messenger.
Test II: Directions: In your own words, enumerate and describe the roles of business
in economic development. Write your answer on your notebook, take photos
and send through Fb messenger.
III. Application
a. Performance Task
Learners will be ask about their business perspective within the community.
Group activity will be applied for collaborative work. (Integration of research and ICT
will be introduced)
Page 11 of 22
Directions: Make a survey about the community needs and record your observation.
Analyze the data collected and propose a business plan. Identify the type and forms
of business to be proposed. Present your output using slides presentation then
upload it in our Facebook page.
Page 12 of 22
consistent the topic.
manner. Effects and
transitions
were applied
in some
slides
IV. Generalization/Synthesis
Answer the following. Write your answer on your notebook, take photo, and send it
through messenger.
1. What are the types of business? Enumerate and describe.
2. What are the forms of business? Enumerate and describe.
3. What are the advantages and disadvantages of forms of business?
4. How would explain each of the role of business in economy?
V. Post-Assessment
Test 1
Directions: True or False. Write TRUE if the statement is correct and FALSE if it is
not. Write your answer on your notebook, take photo, and send it through
messenger.
Test 2
Directions: Arrange the jumbled letters to form the correct word/s as described by
the given clues. Write your answer on your notebook, take photo, and send it
through messenger.
2. The difference between the resources input and the total revenue
TORFIP
Page 13 of 22
3. Kind of business that turn inputs, raw materials, into output, products
GUINFUNCTAMAR
Keys:
1. T; 2. T; 3. F; 4. F; 5. T; 6. F; 7. F; 8. F; 9. T; 10. T
Test 2:
1. WEALTH MAXIMIZATION
2. PROFIT
3. MANUFACTURING
Page 14 of 22
LESSON 2 – The Core Principles of Good Governance
I. Overview
a. Instructional Objectives
At the end of the lesson, the learners are expected to:
b. Pre-assessment
Directions: Identify what is defined or described by choosing the letter of your
answer. Write your answers on a separate sheet of paper.
1. It is the explication and justification process.
a. accountability c. transparency
b. fairness d. efficiency
2. It is giving to a person what is due to him/her.
a. accountability c. transparency
b. fairness d. efficiency
3. This act should be done accurately to the company’s investors.
a. hiring c. organizing
b. reporting d. auditing
Page 15 of 22
4. This approach makes a person more honest and sincere.
a. accountability c. transparency
b. fairness d. efficiency
5. This means that the standard of judging is free from bias.
a. accountability c. transparency
b. fairness d. efficiency
c. Recall
What’s new?
Answer the following. Write your answer on your notebook, take photo/s, and then
send through Face book Messenger.
1. Have you been blamed for something you did not do? Explain what
happened.
2. Have you gotten a grade that you think you did not deserve? Explain what
happened.
3. Have you lost somebody else’s property which you just borrowed? Explain
what happened.
What’s in?
Directions: Read the text below and follow the given instructions. Write your answer
on your notebook, take photo, and send it through messenger.
Page 16 of 22
Miguel works as an accountant in a big corporation. For 2019, the tax payable
by his company to the Bureau of Internal Revenue (BIR) is more than Php
10,000,000.00 pesos. Since he is assigned to transact business with the BIR, he
connived with the revenue officer where they both agreed to lower the tax to Php
5,000,000.00 only. Then, the Php 2,000,000.00 was given to the collecting officer
and the Php 3,000,000.00 went to Miguel’s own pocket.
Supposing you work with Miguel at the accounting department and you
suddenly discovered what he did, what would you do?
II. Presentation
a. Concept Development
What is it?
Fairness
This is the standard of judging which is exempted from bias or prejudice.
When someone displays fairness in making decision, he/she pleases all involved
parties and offers a solution that is beneficial to everyone. In business context,
fairness means balancing the interests involved in all decision-making including
those related to hiring, firing, and the compensation and reward system. Employees
think of their organizations as just when the rewards and the way they are
distributed are fair.
Fairness is giving to a person what is due to him/her. It has something to do
with justice because the employer checks whether the members have the benefits
and burdens distributed evenly to them.
Examples of fairness:
1. A boss listening to both sides of the story before judging who is right and who
is wrong.
2. An employer giving 13th month pay to all his/her employees.
3. A person paying the right price for a product purchased or for a service received.
Page 17 of 22
Accountability
Examples of accountability:
1. A cashier admits he/she lost the company’s collection and it is his/her
mistake.
2. An engineer who is assigned on a project is the one to be blamed if the
project did not meet the deadlines.
3. Employee A recommended his cousin to be their company janitor, but the
latter stole the cellular phone of their secretary. Therefore, Employee A may
be blamed for recommending his/her cousin and should pay or replace the
lost cellphone.
Transparency
Page 18 of 22
Stewardship
b. Activities
What’s in?
Activity 1
Directions: Classify each situation below whether it shows fairness, accountability,
or transparency. Write which core principles may be demonstrated in the
situations below.
1. While fixing his table, Arthur accidentally dropped the electronic calculator
provided by the company.
2. XYZ Enterprises gave all its employees 13th month pay.
3. Sonia and Rita fought inside the office. Hence, both were suspended for
three days.
4. The cashier took her noon break but forgot to lock her drawer. To her
dismay, all her collections the whole morning were stolen.
5. The book of sales of XYZ Corporation is open for those who are interested.
6. The employee discovered that his/her salary was short by P1,000 and asked
the payroll officer who, in turn, showed him/her the records.
7. The purchaser of the company paid the exact amount for the supplies.
8. The teller was short by P2,000.
9. The driver forgot to get the baggage.
10. The boss shows the receipt to the accountant.
Key: 1.a; 2.f; 3.f; 4.a; 5.t; 6.t; 7.f; 8.a; 9.a; 10.t
c. Formative Assessment
What I Have Learned?
Page 19 of 22
a. Education
b. Time
c. Health
d. All of the above
5. All of the following are considered abusive conduct in the workplace EXCEPT
a. Invading the personal space of co-workers.
b. Insulting co-workers.
c. Receiving a performance review from a supervisor.
d. Giving nasty gestures at co-workers.
Test II: DIRECTIONS: Construct a short paragraph for each number below
beginning with the given phrase. Write your answers on a separate sheet of paper.
1. I could show fairness by …
2. I could show accountability by …
3. I could show transparency by …
Rubric:
Criteria 4 points 3 points 2 points 1 point
Organization Idea were The idea The idea Idea can’t be
discussed were were recognized
comprehensively. discussed. present.
The discussion The
can be composition
understood and were easy to
easily followed. read and
follow.
Contents The citation were 80-99% of 60-79% 59% and
100% accurate. the citations accuracy of below
Samples were were correct; citations. No accuracy of
given. All sample were Practical shared
information given and an samples insights.
given were evidence of were given
practical and thinking in
with in-depth doing task
thoughts. were noticed.
Page 20 of 22
III. Application
Performance Task
Case Study: Mang Eugenio Ventura: Filipino Taxi Driver With A Golden Heart
The story of Mang Eugenio Ventura, an extraordinary cab driver, went viral in
the social media when a passenger spread the good work about him, not rejecting
passengers (despite heavy traffic in Metro Manila) and declining tips. Apart from
being fair and honest, he is the jolly type – he just laughs off the congestion on the
main roads of the city. He got featured in an episode of the TV Program “Mission
Possible.”
Questions:
1. What do you think has molded the fair, honest and cheerful behavior of Mang
Eugenio?
2. What lesson have you learned from the good example of Mang Eugenio?
3. How can you demonstrate and motivate others in fair, honest and ethical
behavior?
Rubric:
IV. Generalization/Synthesis
Directions: Identify what principle (Accountability, Fairness or Transparency) is
being applied in the following situations.
1. The teacher uses rubrics in evaluating students’ task performance.
2. The school implements guidelines in conducting school activities like field trip.
Page 21 of 22
full details.
V. Post-Assessment
Directions: Identify what is defined or described by choosing the letter of your
answer. Write your answers on a separate sheet of paper.
1. It is the explication and justification process.
a. accountability c. transparency
b. fairness d. efficiency
2. It is giving to a person what is due to him/her.
a. accountability c. transparency
b. fairness d. efficiency
3. This act should be done accurately to the company’s investors.
a. hiring c. organizing
b. reporting d. auditing
4. This approach makes a person more honest and sincere.
a. accountability c. transparency
b. fairness d. efficiency
5. This means that the standard of judging is free from bias.
a. accountability c. transparency
b. fairness d. efficiency
Page 22 of 22