Name: Gelay, Camille Duhaylungsod Date: November 20, 2021

Subject: Business Ethics and Social Responsibility Grade Level: Grade 12 ABM

For Basic Education

School Year: 2022 - 2023

Subject Code: ABM_ESR12-IIIa-d-1.1; ABM_ESR12-IIIa-d-1.2; ABM_ESR12-IIIa-d-1.3 ______
Learning Area: Senior High School__
Grade level: Grade 12 ABM________
Content: Business Ethics and Social Responsibility
Quarter: Quarter 3________
Week: Week 1__________
Competency:

Lesson/ Topic
Content Standards: The learners demonstrate an understanding of:

- The nature and forms of business organizations.

- The purposes of socioeconomic development in business organizations.

Performance Standards: The learners shall be able to:

a. Identify forms of business organizations and their characteristics.

b. Explain the purpose of business organizations and their role in

socioeconomic development.

Learning Competencies The learners should be able to:

1. Differentiate the forms of business organizations.

2. Give examples of the forms of business organizations.

3. Show how these organizations contribute to socioeconomic

development.
Target Specific Learning At the end of the lesson, 100% of the learners should be able to:
Objectives/Outcomes (AMT)
- Identify the different forms of business.

- Explain the purpose of socio economic in business organization.

- Creating a business organization

Essential Question What is Business?

(The term business refers to an organization or enterprising entity engaged in

commercial, industrial, or professional activities. Businesses can be for-profit entities
or they can be non-profit organizations that operate to fulfill a charitable mission or
further a social cause. Businesses range in scale from sole proprietorships to
international corporations and can range in size from small to large.

 The term business can also be used to define the efforts and activities of
individuals to produce and sell goods and services for profit.

- A business is defined as an organization or enterprising entity engaged in

commercial, industrial, or professional activities.
- Businesses can be for-profit entities or non-profit organizations.
 - Business types range from limited liability companies, sole proprietorships,
corporations, and partnerships.
- There are businesses that run as small operations in a single industry while
others are large operations that spread across many industries around the
world.
- Apple and Walmart are two examples of well-known, successful businesses.

What is Organization?
- Organization refers to a collection of people, who are involved in pursuing
defined objectives. It can be understood as a social system which comprises
all formal human relationships. The organization encompasses division of
work among employees and alignment of tasks towards the ultimate goal of
the company.

What is Business Organization?

- The term business organization describes how businesses are structured and
how their structure helps them meet their goals. In general, businesses are
designed to focus on either generating profit or improving society. When a
business focuses on generating profits, it is known as a for-profit
organization. When an organization focuses on improving the social good
through the arts, education, health care, or some other area, it is known as a
nonprofit (or not-for-profit) organization and is not typically referred to as a
business.
Values Integration The learners are expected to demonstrate the value of:

- Honesty
The old adage, "honesty is the best policy" is true today more than ever. It's
not just lip service. Employee manuals from most scandalized corporations
are likely to contain slogans touting its commitment
to honesty. Claiming to be honest in an employee manual is passé. You're
either honest or not. Even if you haven't got caught yet, most people know
who is and who isn't.

- Integrity
Integrity connotes strength and stability. It means taking the high road by
practicing the highest ethical standards. Demonstrating integrity shows
completeness and soundness in your character and in your
organization.

- Responsibility
Blaming others, claiming victimhood, or passing the buck may solve short-
term crises, but refusal to take responsibility erodes respect and cohesion in
an organization. Ethical people take responsibility for them actions. Likewise,
actions show the ability to be responsible both in the little and big things.

- Quality
Quality should be more than making the best product, but should extend to
every aspect of your work. A person who recognizes quality and strives for it
daily has a profound sense of self-respect, pride in accomplishment, and
attentiveness that affects everything. From your memos to your
presentations, everything you touch should communicate professionalism
and quality.
- Trust
There's no free ride. Trust is hard to earn and even harder to get back after
 you've lost it. Everyone who comes in contact with you or your company
must have trust and confidence in how you do business.

- Respect
Respect is more than a feeling, but a demonstration of honor, value, and
reverence for something or someone. We respect the laws, the people we
work with, the company and its assets, and ourselves.

- Teamwork
Two or more employees together make a team. It is a business necessity to
work openly and supportively in teams whether formal or informal.

- Leadership
How many hardworking, honest employees have been tainted and led astray
by corporate leadership
failings? Managers and executives should uphold the ethical standards for
the entire organization. A leader is out front providing an example that
others will follow.

- Corporate Citizenship
A foundational principle for every company should be to provide a safe
workplace, to protect the environment, and to become good citizens in the
community.

- Shareholder Value
Without profitability, there is no company. Every employee should
understand how he or she fits into the profitability picture. Everyone's
common goal should be to build a strong, profitable company that will last.
Time Allotment 6 days ( 12 hours )
Remarks N/A

Lesson Development Outline

Resources/Materials
Lesson’s Outline Lesson Procedure
Motivation Explore:

Act. No. 01
Hook Activity:

“True or False “
Kahoot.it
Knowledge about business.
Online learning
Score may base on who’s the fastest in selecting their answers via activity
use of Kahoot!

Introduction A. Daily Routines

1. Prayer
2. Checking of Attendance

B. Preparation
1. Greet the students Students:
Also greet their
Good morning students! teacher as a sign of
(Introduce yourself to the students.) respect to their
respective teacher.)
 2. Ask them if its okay to start the class.

C. Motivation:

A short clip about “3,000 Years of Business History” to

introduce students in the Business Subject. Also, to refresh
their knowledge about business.

Quick Activity to activate their thinking skills.

“True or False “

Kahoot.it is online activity that made for students, company

etc. to test their skills and knowledge by clinking the correct
answer in their phone, laptop, or pc.

D. Lesson Proper

Introduce the topic then start the discussion

Business Organization

The term business organization describes how businesses

are structured and how their structure helps them meet
their goals. In general, businesses are designed to focus on
either generating profit or improving society. When a
business focuses on generating profits, it is known as a for-
profit organization. When an organization focuses on
improving the social good through the arts, education,
health care, or some other area, it is known as a nonprofit
(or not-for-profit) organization and is not typically referred
to as a business.

There are 4 types of Business Organization

 One of the first decisions that you’ll have to make as a

business owner is how your business should be
structured. You need to know the advantages and
disadvantages of each of the different forms of business
organization to make sure you’re making the right
decision for your new business.

All businesses must adopt some legal configuration that

defines the rights and liabilities of participants in the
business’s ownership, control, personal liability, lifespan
and financial structure. The form of business determines
which income tax return form to file and the company’s
and owners’ legal liabilities.

When you’re forming your new business, you will want to take
into account the following:

 Your (practical) vision regarding the size and nature of

your business.
 The level of control you wish to have.
 The level of “structure” you are willing to deal with.
 The business’s vulnerability to lawsuits.
 Tax implications of the different organizational
structures.
 Expected profit (or loss) of the business.


- SOLE PROPRIETORSHIP

The vast majority of small businesses start out as sole

proprietorships. These businesses are owned by one person, usually,
the individual who has day-to-day responsibility for running the
business. Sole proprietors can be independent contractors,
freelancers or home-based businesses.

SOLE PROPRIETORSHIP ADVANTAGES

 Owner receives all the profits

 Profits are taxed only once
 Owner makes all decisions and is in complete control of the
company (could also be a disadvantage)
 Easiest and least expensive form of ownership to organize

SOLE PROPRIETORSHIP DISADVANTAGES

 Unlimited liability if anything happens in the business. Your

personal assets are at risk (including your home in Missouri)
 Limited in raising funds and may have to acquire consumer
loans
 No separate legal status

Tip: When looking at setting up a sole proprietorship, assess what

type of liability you have. If you’re selling advice or services, you may
need an errors and omissions insurance policy to cover yourself
against claims for negligence. Determine what you have to lose. Do
you own a home or savings account? Your personal assets could be
at risk in the case of a lawsuit.

- Partnerships

In a Partnership, two or more people share ownership of a single

business. Like proprietorships, the law does not distinguish between
the business and its owners. The partners should have a legal
agreement that sets forth how decisions will be made, profits will be
shared, disputes will be resolved, how future partners will be
admitted to the partnership, how partners can be bought out or
what steps will be taken to dissolve the partnership when needed

 If you’re establishing a partnership, it is extremely important

to make sure everything is outlined in case things go sour,
 especially in the case of starting a business with a loved one
or friend. Seek legal advice to create a partnership operating
agreement to hash out all business decision possibilities
including succession or exit plans. There are several legal
services in Missouri ready to assist you every step of the
way.

PARTNERSHIP ADVANTAGES

Easy to establish (with the exception of developing a partnership

agreement)

Separate legal status to give liability protection

Profits taxed only once

Partners may have complementary skills

PARTNERSHIP DISADVANTAGES

Partners are jointly and individually liable for the actions of the other
partners

Profits must be shared with the partners

Divided decision making

Business can suffer if the detailed partnership agreement is not in

place

- Limited Liability Company

A limited liability company or LLC is a hybrid business structure

that provides the limited legal liability of a corporation and the
operational flexibility of a partnership or sole proprietorship.
However, the formation is more complex and formal than that
of a general partnership.

 LIMITED LIABILITY COMPANY ADVANTAGES

Most common business structure and specifically created for

small businesses

Must have insurance in case of a suit

Separate legal entity

Usually taxed as a sole proprietorship

Unlimited number of owners

 LIMITED LIABILITY COMPANY DISADVANTAGES

Can be costly to form

Yearly administrative costs

Personal tax liability

Legal and accounting assistance is recommended

Tip: Forming an LLC requires the business owner to file legal

paperwork. You may want to consult an attorney to assist you
with the process. Here is a list of service providers in Missouri
that provide legal assistance

- Corporations

A corporation is considered by law to be a unique entity,

separate from those who own it. A corporation can be taxed,
sued and enter into contractual agreements. The corporation
has a life of its own and does not dissolve when ownership
changes.

There are three types of corporations: C-corporation, S-

corporation and Limited Liability Company.

 C-corporation

A C-corporation is a corporation that is taxed separately from

its owners. It gives the owners limited liability encouraging
more risk-taking and potential investment.

C-CORPORATION ADVANTAGES

 Limited liability
 Transfer of ownership, shareholders can sell their
shares
 Capital is easier to raise through the sale of stock
 Company paid fringe benefits
 Tax benefits

C-CORPORATION DISADVANTAGES

Double taxation (corporation and shareholder earnings taxed)

Can be costly to form

More administrative duties - required by law to have annual

meetings, notify stockholders of the meeting, must keep
minutes of meetings and turn in
Pay corporate taxes at a different time than other forms of
business

 S-Corporation

An s corporation also known as subchapter S-corporation

offers limited liability to the owners. S-corporations do not pay
income taxes rather the earnings and profits are treated as
distributions. The shareholders must report their income on
their individual income tax returns.

- S-CORPORATION ADVANTAGES

 Limited liability
 Avoids double taxation
 Profits taxed only once
 Capital is easier to raise through the sale of stock
 Transfer of ownership

- S-CORPORATION DISADVANTAGES

 Can be costly to form

 Stockholders limited to individuals, estates or trustees
 Required administrative duties
 Cannot provide company paid fringe benefits
 Stockholders are limited to citizens or resident aliens of
the United States

Roles of Business Organizations in Economic Development

- The role of business in social and economic

development cannot be overstated. Business plays a
vital role in the economic development and wealth of a
country. Success in business translates to the economic
well-being of a company and its residents through job
creation and offering improved quality of life for the
country’s citizens.

 Economic Development and Business

Small and large businesses drive economic stability and growth by

providing valuable services, products and tax dollars that directly
contribute to the health of the community. They also provide jobs,
strengthening the economic health of each community where a
business is based.

 World Economy and Business

The success of business as a whole directly affects the world’s

economy. At its core, businesses are designed to serve a particular
need that people have, and to provide trusted goods and services
related to that need.
When consumer confidence or trust dips in business, it isn’t just
sales that are negatively affected. This mistrust has a ripple effect
and can result in a decline in a country’s general economy,
weakening the strength of its currency and buying power.

 Business and Chambers of Commerce

A chamber of commerce is essentially a local networking

organization designed to foster business and professional
memberships in the community. Being a business that’s a member of
a chamber of commerce lends an air of legitimacy to your business
and can offer growth opportunities through advertising and
sponsorship opportunities with the chamber.
Membership fees can be steep for small businesses, but you have to
evaluate what the benefits might be that would make the fees
worthwhile, such as increased sales, networking opportunities and
better name recognition for your business.

 Corporate Responsibility and Economic Health

As businesses and corporations grow, their role in corporate

responsibility and social development can become as important as
that of their contributions to economic health.

It’s thought that a business shouldn’t just serve as an economic

machine, but also have stewardship in issues that affect society as a
whole, such as environmental concerns, human and worker rights,
support of local and national charities, schools, and a variety of non-
profit organizations that offer benefits to the community and make
the quality of life higher for its members.

 Role of Business in Development

Business is vital to a country’s economy. Success of businesses can

drive the success of an entire country, including through
contributions to the gross domestic product, or GDP, of a nation,
which affects their world standing. If a country supports businesses
with goods and services that are in demand, everyone in the country
benefits.

From job creation that results in money being put back into the
community to taxes that help the government smoothly run and
provide maintenance and improvements to the country’s
infrastructure, or in other ways that are helpful for its citizens, there
are dozens of ways business success translates to economic
development.
Delivery FIRM UP: -

Activity No. _2_

Title: The forms of Business Organization

In the different forms of Business Organization, can you differentiate

each of them? In your own understanding.

DEEPEN:

Activity No. _3_

Title: Roles of Business Organizations in Economic Development

Do you think business organization is important in our today

economic?

Practice/ Application TRANSFER (Scaffolding for Performance Task)

The class will be divided into 6 groups. They will demonstrate the
given form of business organization on how does it work by creating
a graph. And they will present it in front of the class.

Evaluation/ Formative Assessment: -

Assessment
Students will write a short piece of the topic for discussion for every
class. Some classes may involve quizzes & presentations.

Summative Assessment: -

Method Percentage

80%
Written activities including
essay

Performance Task
20%

Closure Activity
Assignment:

Look of the Core Principles of fairness, accountability and

transparency in the socioeconomic development of the country.

Elaborate each of the said principles.

Technology/ Textbook, Presentation, pc or mobile hardware, Internet

Materials
References: 1. What is Business?
https://www.investopedia.com/terms/b/business.asp
2. What is Organization?
https://businessjargons.com/organization.html
 3. What is Business Organization?
https://www.encyclopedia.com/finance/encyclopedias-
almanacs-transcripts-and-maps/business-organization
4. Values in Business Ethics
file:///C:/Users/KYLE%20GELAY/Downloads/Documents/047-
ICHSC2012-B10075.pdf
5. Forms of Business Organization
https://www.mosourcelink.com/guides/start-a-
business/register-your-business/forms-of-business-
organization
6. https://bizfluent.com/info-7745795-roles-business-
organizations-economic-development.html
7. file:///C:/Users/KYLE%20GELAY/Desktop/Camille/K-to-12-
MELCS-with-CG-Codes-1_2.pdf

Prepared by:

Camille D. Gelay 11/21/2021

Name of the Student/Date

Submitted to:

Prof. Lilian L. Legson

Name of the Professor