L1: THE WORKPLACE: BASIC ISSUES E.

TERMINATION
Civil Liberties in the Workplace: Four types of discharge
a. AUTHORITARIANISM IN THE WORKPLACE: The rise of professional 1. Firing- is for-cause dismissal
management and personnel engineering during the turn of the 20 th 2. Termination- results from employees’ poor performance
century, following the emergence of large corporations, shaped the 3. Layoff- refers to the temporary unemployment experienced by
attitudes of companies towards their employees in a way hardly hourly employees and implies that they are subject for
conducive to respecting their rights. The other historical factor is that “recall.”
the law has traditionally given the employer a free hand in hiring and 4. Position elimination- designates the permanent elimination of
firing of employees. a job as a result of workforce reduction, plant closing or
b. COMMON LAW: This requires an employee to be loyal to an departmental consolidation.
employer, acting solely for the employer’s benefit in matters connected F. WAGES
to work. The employee is duty bound to not act or speak disloyally,
except when in pursuit of his or her own interest outside work. A Living Wage is the amount of money a full-time employee needs
to afford necessities of life, support family, & live above poverty
Current Trends: line.
A. COMPANIES THAT LOOK BEYOND THE BOTTOM LINE- Companies LABOR UNION
that respect employee rights and ensure a fair workplace tend to
outperform other companies. Employees are guaranteed that the A labor union’s goal is to increase the security and standard of
company will respect the rights and dignity of their employees, in living of working people and contributes to the social stability and
particular by acknowledging their civil liberties and guaranteeing them economic growth of the country. In recent years, unions have been
due process. on the defensive because employers are doing their best to abolish
labor unions in the company. Working people struggled for decades
B. HIRING- In making hiring decisions, employers must be careful to to form unions and win their legal recognition. Although unions are
treat job applicants fairly. To bring out and study the moral issues responsible, directly or indirectly for many of the benefits
regarding the hiring process, let us examine the principal steps it employees today enjoy, a changing economy, hostile political
involves: Screening, Testing and Interviewing. environment & aggressive anti-union policies have weakened
1. Screening - Goal is to attract qualified applicants who have a good them.
chance of succeeding at the job and to weed out applicants or UNION TACTICS:
potential applicants who are unlikely to workout.
 Job Screening ensures a pool of competent candidates and 1. Direct Strikes occurs when an organized body of workers
guarantees that everyone gas been dealt with fairly. withholds its labor in an effort to pressure the employer to
 Job Description lists all pertinent details about the content of comply with its demands. The following conditions must be
a job, including its duties and responsibilities, working met to justify a strike: just cause, proper authorization and last
conditions and physical requirements. resort.
 Job Specification describes the qualifications an employee 2. Sympathetic strike occurs when workers who have no
needs, such as skills, background, education and work grievance of their own decide to strike in support of others.
experience. Issues such as wrongful discrimination (age, race, 3. Boycotts and Corporate Campaigns- besides strikes unions
national origin, religion or sex), language used (may be also use boycotts to support their demands. A primary boycott
discriminating on the basis of national origin), physical occurs when union members and their supporters refuse to
appearance, lifestyle, educational requirements, and gap in buy products from a company being struck. A secondary
employment history. boycott occurs when people refuse to patronize companies
2. Testing - In order to hire someone who fits the job, a company that handle products of struck companies. A relatively new
must test the applicant’s verbal, quantitative and logical skills. To pressure tactic by organized labor is the so-called corporate
hire a successful candidate for the position, the test given must be campaign, in which unions enlist the cooperation of a
valid. company’s creditors to pressure the company to allow its
 Test Validity refers to whether test scores correlate with employees to unionize or to comply with other union
performance in some other activity- that is, whether the test demands.
measures the skill or ability it is intended to measure. Just as
important, test must be reliable. L2: THE WORKPLACE: TODAY’S CHALLENGES: ORGANIZATIONAL
 Test Reliability refers to whether test results are replicable- INFLUENCE IN PRIVATE LIVES
that is, whether a subject’s scores will remain relatively
consistent from test to test (so that the test taker will not Importance of Privacy/Three Important Aspects of Privacy
score high one day and low on the next).
1. We want to control intimate or personal information about
3. Interviewing- Interviewers should try to free themselves from
ourselves and not permit it to be freely available to everyone.
unconscious biases, stereotypes, and preconceptions.
2. We wish to keep certain thoughts, feelings and behavior free
C. PROMOTIONS from the scrutiny, monitoring, or observation of strangers.
3. We value being able to make certain personal decisions
Key moral issues common in the workplace: autonomously. We seek to persevere and protect a sphere in
which we can choose to think and act for ourselves, free from
Seniority- refers to the longevity in a job or with a firm. Frequently job illegitimate influence of our employers or others.
transfers or promotions are made strictly in the basis of seniority.
Testing and Monitoring - Should have informed consent which
Inbreeding- All the cautions about seniority apply with equal force to involves deliberation and free choice. Workers must understand
inbreeding, the practice of promoting exclusively from within the firm. what they’re agreeing to, including full ramifications, and
The managers must fill positions based on competence- that is ability voluntarily Ex: Polygraph Test, Personality test, Drug Testing, etc.
to perform the job in question regardless of whether the candidate it
inside or outside the firm. Working Conditions

Nepotism- (from the Latin word for nephew) is the practice of shoeing 1. Health and safety
favoritism to relatives and close friends. 2. Occupational Safety and Health Act (In a bid to improve the
workplace environment for workers, the Philippines has
D. DISCIPLINE AND DISCHARGE implemented a new Occupational Safety and Health Standards
(OSHS) law to replace the previous 1989 OHSS, PD442 laws.
Just Cause - requires that reasons for discipline or discharge deal Under the new OSHS act / RA 11058, employers are now
directly with job performance required to comply with occupational safety and health
 Due Process- refers to the fairness of the procedures an organization uses to impose sanctions on employees.

L3: RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS Entrepreneurs play a crucial role in shaping the ethical landscape of
their businesses. Their responsibilities and accountabilities in the
Responsibility - refers to the duty or obligation to satisfactorily
realm of business ethics include:
perform or complete a task that one must fulfill, and which has a
consequent penalty for failure. 1. Setting the Ethical Tone:
Accountability Responsibility: Entrepreneurs are responsible for establishing
a strong ethical culture within their organizations.
- refers to the obligation of an individual or organization to account for
Accountability: They are held accountable for fostering an
its activities, accept responsibility for them, and to disclose the results
environment where ethical behavior is not only encouraged
in a transparent manner. but also rewarded.

Accountability VS Responsibility 2. Decision-Making:

• Responsibility can be shared while accountability cannot. Responsibility: Entrepreneurs are responsible for making
ethical decisions that consider the impact on all stakeholders,
• Accountability is answerability, blameworthiness, liability, and the
including employees, customers, suppliers, and the
expectation of account-giving, while responsibility may refer to community.
being in charge, being the owner of an event. Accountability: They are held accountable for the
consequences of their decisions, both positive and negative.
Stakeholders - is any person, organization, social group or society at
3. Corporate Social Responsibility (CSR):
large that has stake in the business. It can be internal or external to the
Responsibility: Entrepreneurs should actively engage in
business. activities that contribute positively to society and the
environment.
Entrepreneurs have a moral obligation to reconcile and balance the
Accountability: They are accountable for the social and
rights obligations of their stakeholders such as customers, employees, environmental impact of their business operations.
suppliers and other stakeholders. Conflict of interest is also an
important issue which concerns both employer and employees. 4. Transparency and Integrity:
Responsibility: Entrepreneurs are responsible for maintaining
transparency in business practices and promoting integrity
Intellectual property rights also affect stakeholders because
throughout the organization.
intellectual property consists of all original works and inventions which Accountability: They are held accountable for any lack of
any of the stakeholders may possess. transparency or unethical conduct within the business.

Responsibility & Accountability of Entrepreneur to Stakeholder 5. Employee Treatment:

Responsibility: Entrepreneurs should ensure fair treatment of
A. Social Responsibility to Customers employees, providing a safe and inclusive work environment.
One of the most critical stakeholders are customers. Business Accountability: They are accountable for addressing issues of
discrimination, harassment, or any other unethical behavior
organizations should practice fairness and honesty in all dealings with
within the workplace.
them. There should be no illegal practices just to gain control of the
industry or market where the company operates. All transactions 6. Customer Relations:
should be legal and in accordance with ethical standards and practices. Responsibility: Entrepreneurs must ensure that their products
 Companies should be honest in disclosing the potential harm that or services meet ethical standards and are marketed
truthfully.
a product may cause.
Accountability: They are accountable for any harm caused by
 Companies should also be truthful about the safety aspect of their their products or services and for addressing customer
products. Labels indicate warnings and harmful effects concerns in an ethical manner.
 It is the social responsibility of manufacturers or service provider
7. Compliance with Laws and Regulations:
to honor or comply with the provision of sales contracts. They
Responsibility: Entrepreneurs are responsible for ensuring
should inform the customers of the terms and conditions of the
that their business operations comply with all relevant laws
purchase such as product features, price, warranties for and regulations.
equipment or appliances as well as after sales service and Accountability: They are held accountable for any legal
delivery. violations and may face legal consequences for non-
compliance.

Eight Basic Rights of The Customers 8. Financial Integrity:

Responsibility: Entrepreneurs should maintain financial
1. Right to Basic Needs Customers must not be deprived of the basic
integrity, ensuring accurate reporting and avoiding fraudulent
needs for survival. They should be made available at affordable activities.
prices. Accountability: They are held accountable for the financial
2. Right to Safety. Consumers should be safeguarded against goods health and honesty of their business practices.
and services that are hazardous to human health.
9. Continuous Improvement:
3. Right to Information. Consumers have to right to be properly
Responsibility: Entrepreneurs should strive for continuous
informed and not be misled by dishonest advertisements, labels improvement in ethical standards, adapting to changes in
or packaging. They are entitled to honest and truthful information societal expectations.
so they can select the best products and services. Accountability: They are accountable for implementing and
4. Right to Choose Consumers are free to select from the line overseeing ethical improvements within the organization.
up/array of quality products & services available in market.
10. Community Engagement:
5. Right to Representation Consumers have the right to participate Responsibility: Entrepreneurs should engage with and
in the formulation and execution of policies and guidelines on contribute positively to the communities in which they
consumer welfare and protection. operate.
6. Right to Redress. Consumers have the right to be compensated or Accountability: They are accountable for the social impact of
reimbursed on any purchase or availment of goods and services their business on local communities.
which do not meet the expected standards of quality. In summary, entrepreneurs bear the responsibility of creating and
maintaining an ethical business environment. Their accountability
extends to the outcomes of their decisions and the overall ethical
standing of their organizations.
7. Right to Education Consumers have the right to acquire the skills needed to always be an informed customer.
8. Right to Healthy Environment Consumers have the right to safe
& conducive place to live & work free from any form of danger Categories of Intellectual Property
B. Social Responsibility to Employees
Employees are the most important asset in an organization. One A.) Industrial Property – includes trademarks or service marks,
of their basic rights is a good working condition. The term layout designs of integrated circuits, commercial names and
working condition refers to the physical environment, designations, as well as geographical indications and
particularly the physical set up of the work area, as well as the protection against unfair competition. It usually consists of
procedures and practices that are relevant in performing a task. signs that inform consumers regarding the products and
services offered in the market. The protection comes from
Employees should not be exposed to dangerous process or
the prohibition in using these signs to mislead or misinform
activities which will inflict harm or endanger life. Another consumers and cautioning companies from misleading
dimension of working condition is equal opportunities. practices.
Employees have the right to due process. No employee can be B.) Copyright – refers to all artistic creations like poems, novels,
dismissed from work without the due process. music, paintings and cinematographic works. The term
 Equal employment opportunity - an employment practice copyright is used for the act itself in terms of literary and
wherein employers do not discriminate the applicants or the artistic creations. This means that it is only the author who
employees. can make copies of a literary or artistic work such as a book,
 Due Process is the employee’s right to be heard before a painting, a sculpture, a photograph, or a motion picture. The
decision for termination is made. It ensures a fair and authors right include the prevention of reproduction of such
impartial hearing on employee’s violation or a management literary or artistic work except when there is an authorization
decision. obtained from him/her

C. Social Responsibility to Suppliers Why Do They Need to Protect Intellectual Property?

Suppliers should be treated as the company’s partner. Despite  It is an expression and protection of the moral and economic
the supposed partnership between entrepreneurs and supplier, rights of creators and authors in their pieces of work.
there are malpractices that suppliers may commit in order to seal  This can promote creativity as well as support economic and
a deal. Bribery - is the giving gifts or favors to influence a person’s social development.
or a company’s decision. Both the person who bribes and the one
who accepts the bribe commit on unethical action. Patent is a right given to an inventor to exclude anyone from
using or benefitting from the invention for a period of 20 years.
D. Conflict of Interest Within this period, the inventor is given benefits like the
exclusivity of use of his/her invention, provided that there is full
Conflict of Interest is defined as an international and deliberate disclosure of the said invention for public consumption so that
action or decision that results in getting personal gain, while others can benefit and at the same time be given the chance to
adversely affecting the company. further develop the said invention.
Conflict of interest can be prevented by establishing formal PATENT
ethical standards and policies on unethical behavior. Violations
- is a right given to an inventor to exclude anyone from using
should be dealt with accordingly. Example of this are becoming a
or benefitting from the invention for a period of 20 years.
competitor to his/her own employer through business, employee
in charge of recruitment hires a relative who is not qualified for Within this period, the inventor is given benefits like the
the position & Employees who post negative comments against exclusivity of use of his/her invention, provided that there is
their employer full disclosure of the said invention for public consumption
so that others can benefit and at the same time be given the
E. Payment of Taxes chance to further develop the said invention.
Taxation - is an orderly and compulsory manner of raising money - refers to the act of filing for a patent application through the
to finance government projects for better delivery of services to national or regional patent office to justify that the said
the people. There are various forms of taxes and the most invention is new and is completely different from existing
popular among them is income tax, which is the tax imposed by technologies in the same field.
the government on the business and individuals.
TRADEMARK - is a sign or a combination of signs in the form of
Both corporation and individual taxpayer should pay their income words, numerals, pictures, shapes and colors which differentiate
taxes promptly. There are two ways to face the responsibility of one product or service from another. A trademark is used in the
paying taxes: marketing of goods.
1. Tax evasion is the deliberate failure to pay taxes due to a TRADE NAME - identifies a company or an organization. The
business. This is intentional and is therefore illegal protection given under intellectual property is that the name
because this deprives the general public of the projects
cannot be used by another organization. In many countries, trade
which could have been realized if payment were made.
names may be registered in a government office like the
2. Tax avoidance is a tactic of deliberately finding a way to
Department of Trade and Industry in the Philippines.
avoid payment of taxes or pay lower taxes by using
methods such as transferring to a city where taxes are TRADE SECRET
lower.
- is a formula, practice, process, design, instrument, pattern,
Taxable income can be legally reduced through claims in meals,
commercial method, or compilation of information not
travel and entertainment expenses that are deemed necessary in
the conduct of the business. Companies can also provide benefits generally known or reasonably ascertainable by others by
to employees which can be deducted from the company’s which a business can obtain an economic advantage over
taxable income. competitors or customers.
- include information that has economic value and is not
F. Intellectual Property Rights publicly known.
- not registered with a governmental body. All you need to do
Intellectual Property is defined by the World Intellectual
to establish your information as such is to treat it as a trade
Property Organization (WIPO) as the knowledge, creative ideas or
secret. Only those with a need to know should have access to
your trade secret information.
expressions of human mind that have commercial value and are protectable under copyright, patent, service mark or trademark or trade
secrets laws from imitation, infringement and dilution.

Intellectual property includes brand names, discoveries, inventions, knowledge, registered designs, software and works of artistic, literary or
musical nature.

L4: WHAT IS SUSTAINABILITY? WHY IS SUSTAINABILITY IMPORTANT?

In the broadest sense, sustainability refers to the ability to Beyond helping curb global challenges, sustainability can drive
maintain or support a process continuously over time. In business business success. Several investors today use environmental,
and policy contexts, sustainability seeks to prevent the depletion social, and governance (ESG) metrics to analyze an organization’s
of natural or physical resources, so that they will remain available ethical impact and sustainability practices. Investors examine
for the long term. Some investors are actively embracing factors such as a company’s carbon footprint, water usage,
sustainability investments, known as "green investments." community development efforts, and board diversity.
How Sustainability Works Research shows that companies with high ESG ratings have a
lower cost of debt and equity, and that sustainability initiatives
Accordingly, sustainable policies emphasize the future effect of
can help improve financial performance while fostering public
any given policy or business practice on humans, ecosystems, and
support. According to McKinsey, the strongest motivating factors
the wider economy. The concept often corresponds to the belief
to adopting a sustainable mindset in 2017 were to align with a
that without major changes to the way the planet is run, it will
company’s goals, missions, or values; build, maintain, or improve
suffer irreparable damage.
reputation; meet customer’s expectations; and develop new
As concerns about anthropogenic climate change, biodiversity growth opportunities.
loss, and pollution have become more widespread, the world has
Overlap between social and environmental progress and financial
shifted to embrace sustainable practices and policies, primarily
gain is called the shared value opportunity. In other words,
through the implementation of sustainable business practices
“doing good” can have a direct impact on your company’s ability
and increased investments in green technology.
to “do well.” Due to this opportunity, it’s clear why many
3 PILLARS OF SUSTAINABILITY businesses have adopted these practices.
DO WELL – make money DO GOOD – solve social & environment prob
The idea of sustainability is often broken down into three pillars:
economic, environmental, and social—also known informally as HOW TO CREATE A MORE SUSTAINABLE BUSINESS STRATEGY
profits, planet, and people. 1. Assess the Problem and Define Objectives
In that breakdown, the concept of "economic sustainability" Driving change is assessing what sustainability means to your
focuses on conserving the natural resources that provide physical team, company, industry, and client. Consider the big problems
inputs for economic production, including both renewable and each of these groups thinks is a priority.
exhaustible inputs.
To guide this process, consider asking questions, such as:
A growing number of organizations are integrating sustainability
into their business strategy—realizing they can do well by doing  How much waste is the organization creating?
good. In a recent McKinsey survey, 70 percent of respondents  Is our company culture struggling?
said their companies have a formal governance of sustainability  Are our hiring practices attracting diverse job candidates?
in place. But what exactly does it mean to be “sustainable” in  Is our product targeted to help a certain audience?
business?  What impact does our company have on the local community?

WHAT DOES "SUSTAINABILITY" MEAN IN BUSINESS? Tip: “SMART”—specific, measurable, achievable, relevant, and
time-bound—in this early stage can save you time in the future.
In business, sustainability refers to doing business without
negatively impacting the environment, community, or society as a 2. Establish Your Mission
whole. An effective mission statement outlines your company’s focus on
Sustainability in business generally addresses two main “doing.” It should capture your organization’s values and purpose
categories: and serve as a guiding light of why you do what you do. In other
words, your mission statement should define your company’s
 The effect business has on the environment five Ws: who, what, when, where, and why.
 The effect business has on society
Tip: objectives can be extrapolated from your mission statement.
The goal of a sustainable business strategy is to make a positive
3. Craft Your Strategy
impact on at least one of those areas. When companies fail to
assume responsibility, the opposite can happen, leading to issues it’s important to ensure your company remains profitable. You
like environmental degradation, inequality, and social injustice. can’t help your cause if you can’t stay in business. As proven, your
sustainability efforts may help you become more profitable.
Sustainable businesses consider a wide array of environmental,
economic, and social factors when making business decisions. Realign your organization with a sustainable business strategy.
These organizations monitor the impact of their operations to Consider the triple bottom line, which refers to how a company’s
ensure that short-term profits don’t turn into long-term liabilities. actions impact profit, people, and the planet. Explore industry-
specific strategies that can increase your operational efficiency
Examples of Sustainability in Business
while driving social and internal value.
Many successful organizations participate in sustainable business
4. Implement Strategy and Assess Results
practices; however, no two strategies are exactly the same.
It’s one thing to talk about a newfound motivation to do well and
Sustainable business strategies are unique to each organization
do good, but it’s another to take a public stance, pledge
as they tie into larger business goals and organizational values.
quantifiable results, and actually achieve them. With your mission
For instance, sustainability in business can mean: and strategy solidified, you’re ready to make strides toward
reaching your objectives.
 Using sustainable materials in the manufacturing process
As you’re implementing your strategy, remember to revisit your
process periodically to assure your objectives, mission, and
progress remain aligned.
 Optimizing supply chains to reduce greenhouse gas emissions
 Relying on renewable energy sources to power facilities
 Sponsoring education funds for youth in the local community

L5: IMPORTANCE OF DOING BUSINESS BEYOND PROFIT THE IDEA OF A SUSTAINABLE SOCIAL ENTERPRISE
MOTIVATION

SOCIAL RESPONSIBILITY Social Enterprise: Businesses that are changing the world for the
better. It also tackles social problems, improves communities,
The obligation of an organization’s management to make a decision people's life chances, or the environment. A proper business that
and take actions that enhance the welfare and interest of society as a makes its money in a socially responsible way. It also exists to make a
whole. Managers today must be responsive to a broad spectrum of direct positive social or environmental impact on the world.
societal group and the society plays an integral role on the success of
their business.
SOCIAL ENTERPRISE IS INNOVATIVE AND UNIQUE BECAUSE:
RESPONSIBLE BUSINESS ENTERPRISE (RBE) is to improve its business
performance, to return a profit to its owners and investors, and to 1. It aims to make a profit, and then use these profits to support its
increase the prosperity of its community by meeting the reasonable charitable, social or environmental goals. Definitely, social
expectations of its stakeholders, the RBE should nevertheless be enterprises is not a charity.
concerned about the quality of life in its communities. Its employees 2. It also provides products and provides services but further this
and agents should also care about the communities in which they charitable, social or environmental goals.
and their families live. 3. It also has social aims and ethical values.

WHAT IS SOCIAL ENTERPRISE?

SUSTAINABILITY ISSUES:
A Social Enterprise - is a business that trades for a social and/or
environmental purpose. It will have a clear sense of its social mission. It is vital to any business, and social enterprise is not an
It will know what difference it is trying to make, who it aims to help, exception. It means that the business can sell its product or
and how it plans to do it. It will also have clear rules about what it service for more and the demand can grow in the medium to long
does with its profits, reinvesting these to further the social mission. term basis. Another point of view in social enterprise is that some
social projects and social enterprises may have a limited life.
Social enterprises compete alongside other businesses in the same
marketplace but use business principles to achieve social aims. A EXAMPLES - Climate change - Energy - Food production - Water
social enterprise is a business that exists to make a direct positive scarcity - Biodiversity - Changing demographics - Geopolitical
social and/or environmental impact on the world. instability - The global development agenda - Inequality and
global equity
BUSINESS BEYOND PROFIT MOTIVATION
SOCIAL ENTERPRISES ADVANTAGES
1. Profit is an output, not a purpose - A business must have reason
to exist beyond that of making money and maximizing 1. Financial Freedom - the most understandable of social
shareholder value. Profit cannot be the goal, vision, or the enterprise's potential benefits is the opportunity to get
purpose of an organization. An organization that posts great financial sustainability and freedom.
yearend results doesn't automatically earn the title of being a 2. Growth of scope and size of services to community - under
great company. Seeking profit as a primary business purpose is traditional models of funding through grants and donations,
like building a house of cards or building a house on sand-it will
organizations have a hard time growing the size or scope of
eventually lead to collapse. Profit is too temporary to guide a
their services.
business by.
3. Business can contribute to the mission - beyond providing
2. Companies with a purpose beyond profit tend to make more
money - One of the paradoxes of business is that the most entirely financial resources; social enterprise also gives
profitable companies are not those that are most profit-focused. organizations opportunities to discover noble ways of
Because satisfied customers are the only source of long-term achieving their mission.
success, measures need to be related to purpose as defined 4. Perceptions of the organization by staff and donors - under
from a customer point of view. When they are, employees can taking social enterprise may also have an impact on how an
see how well they are doing and how they might do better. organization is perceived.
3. Business needs Purpose than Profit to Make It Through - Many 5. Marketing and Promotion for these organizations is also
corporate and business strategies now include sustainability. In very easy - since a social problem is being tackled with a
addition to the traditional environmental 'green' sustainability solution it is easier to draw attention of the people and
concerns, business ethics practices have expanded to include media.
social sustainability. 6. Services can be customized - services in whichever section
Social sustainability - focuses on issues related to human capital they may be offered are customized better to go with the
in the business supply chain, such as worker's rights, working needs of the individual or the problem.
conditions, child labor, and human trafficking. Incorporation of 7. Cost effectiveness is another advantage of a social
these considerations is increasing, as consumers and enterprise - the solutions offered by these organizations in
procurement officials demand documentation of a business' the form of either products or services are realistic compared
compliance with national and international initiatives,
to the same service provided by a profit-making organization.
guidelines, and standards.
8. Job creation - small social enterprises are often manage by
4. What is the purpose of doing business if it is not being
profitable? The starting point of great companies is Purpose.
people with passion for locality and the issues surround it.

4 Main types of purposes according to Nikos Mourkogiannis, the ESSENTIAL TRUTHS ABOUT SOCIAL ENTERPRISE & JOB
author of Purpose: The Starting Point of Great Companies. CREATION:

a) Discovery has rooted in intuition that life is a kind of adventure. 1. Social Enterprises have huge potential - not only can social
Example: Apple and their goal to always come up with the new/ enterprises offer more employment; they can act as
most innovative products. campaigners and advocate for employing people from outside
the usual suspects.
2. Recycling is excellent for creating jobs - there are potentially
lots of opportunities in home care, green industries and in
manufacturing as well.
b) Excellence implies standards and purports the belief that excellent performance in our role in life represents the supreme good.
Example: Warren Buffet
c) Altruism is a purpose built in serving its customers in a way that is beyond standard obligation. Example: Body Shop.
d) Heroism demonstrates achievement, often with a charismatic and visionary leader. Example: Ford, Microsoft.

5. Business with a strong sense of purpose are more successful - Stand for something beyond simply increasing profits. A true vision for a business
rest on foundations of both purpose and values.

L6: THE RESPONSIBILITIES OF AN EMPLOYEE FORMS OF CONFLICT OF INTEREST:

A. INTRODUCTION BRIBES AND KICKBACKS - a bribe is a consideration for the
performance of an act that is inconsistent with the work contract
As most of us are Roman Catholics we know that in our church, or the nature of the work one has been hired to perform.
for every group of priests, there is a bishop. To pursue the best Kickbacks is a practice which involves a percentage payment to a
interests of their organization, the two must frequently interact person able to influence or control a source of income.
with each other. The issues, problems and solutions they are
EXTORTION- this exist when a man demands payment of any sort
involved with are numerous, varied and often complex. Often
for the execution (or nonexecution) of acts which he is obliged to
ethical considerations are involved. In some cases, managers will perform or to omit under the terms of his work contract. It is also
address and resolve ethical issues together. In other instances, a demand of payment for the execution (or nonexecution) of acts
they will disagree on what to do. which a man has no right to perform or to omit by his position.

B. THE EMPLOYEES’ OBLIGATIONS TO THE FIRM GIFTS AND ENTERTAINMENT - factors to consider in whether a
conflict of interest exists:
The contract of employment creates obligations for an employee
as well as the employer. The employee is bound to give an honest a) What is the value of the gift?
b) What is the purpose of the gift?
day’s work for an honest day’s wages. By the work contract, the
c) What are the circumstances under which the gift was
employee agrees to give a more or less specified amount of time, given or received?
energy and intelligence to the business in return for income. d) What are the position and sensitivity of influence of the
While he does not subordinate himself as an individual, he does person receiving the gift?
not contract away some of his minor rights and agrees that these e) What is the accepted business practice in the area?
will be used for the benefit of the company which employs him. f) What is the company’s policy?
g) What is the law?
Providing that the employer lives up to his side of the agreement,
the employee, whether he be the president or the office boy, FINANCIAL INVESTMENT - conflict of interest can be present
may not use the firm to gain personal advantages not provided when employees have financial investments in suppliers,
for in the contract. customers or distributors with whom their organization do
business.
C. CONFLICTS OF INTEREST
USE OF OFFICIAL POSITION - it is the use of one’s official position
It is a given that the reward (in the form of wages), autonomy for personal gain.
and self-fulfillment that workers seek are not always compatible
with the worker productivity that the organization desires. EXAMPLES OF CONFLICTS OF INTEREST AT WORK
Sometimes this clash of values can take a serious form as in what
1. Hiring unqualified relative to provide services in company needs
is termed a conflict of interest. In business, a conflict of interest 2. Starting a company that provides services similar to your full-
arises when employees at any level, have an interest in or are time employer
parties to an interest in a transaction in a transaction substantial 3. Failing to disclose that you’re related to a job candidate the
enough that it does or reasonably might affect their independent company is considering hiring
4. Making arrangements to work for a vendor or client at a future
judgement on its behalf at another way around. Conflicts of
date while continuing to do business with them
interest arise when employees jeopardize this independent 5. Posting to social media about your company’s weaknesses
judgement. 6. Offering paid services on your time off to a company customer
7. Working part-time at a company that sells a competing product
When a person is hired, he or she agrees to discharge contractual or service as your full-time employer
obligations in exchange for pay. Thus, the employee does 8. Accepting payment from another company for information
concrete work, puts in prescribed hours and spends energy in about your employer
return for renumeration. Implicit in any contract of employment 9. Failing to investigate a subordinate or coworker’s wrongdoing
because they are a friend
is that employees will not use the firm for personal advantage. 10. Sharing confidential info about your employer with competitor
Individuals should not seek to benefit from being employed by a 11. Dating/ romantic relationship with supervisor or subordinate
company. 12. Making a purchase or business choice to boost a business that
you have a stake in
Conflicts of interest may be either be actual, potential or 13. Accepting a favor or a gift from a client above the amount
perceived: specified as acceptable by the company
14. Owning part of business that sells goods or services to employer
Actual conflict of interest arises when employees allow their 15. Reporting to supervisor whose also close friend/family member
interest in a transaction to becloud their independent judgement 16. Doing business or work for a competitor
17. Accepting consulting fees and providing advice to another
on behalf of the firm.
company for personal gain
18. Sharing information in an interview about your employer’s
Potential conflict of interest arises in cases in which employees
activities or plans
might reasonably be expected to sacrifice independent 19. Taking advantage of confidential information learned on the job
judgement on behalf of the organization. for your own benefit
20. Cashing in on a business opportunity that your company might
have pursued.
Perceived conflict of interest arises when an individual or institution may reasonably be understood as having two competing interests, one
of which is likely to interfere or undermine his position’s ability to fulfill their responsibilities for the company/firm.