Biz Ethics

• Social


  Relating to society or its organization
• Enterprise


  A project or undertaking, typically one that is difficult or requires effort
• Social Enterprise


  A business model with the objective of solving social issues and problems while providing goods and services
• Social Enterprise


  • Due to the popularity of Korean culture in the Philippines, Entrepreneurs adopted the Korean culture by opening Korean restaurants and providing Korean foods
• Principles of Social Enterprise

  • Motivated by a cause
  • Financial and economic sustainability in the long term
  • No dividend for investors
  • Profits generated remain
  • Sensitive to gender and environmental issues
  • Employees are treated fairly
  • Joy in every task
• Motivated by a cause


  A social enterprise does not aim to maximize profit but rather solve or overcome certain issues on health, education, technology access, and environment or poverty
• Financial and economic sustainability in the long term


  The enterprise has to ensure that it can attain financial stability in the long term to sustain its worthwhile projects
• No dividend for investors


  Investors expect a return only on the actual amount they have put in, as the enterprise does not seek to maximize profit
• Profits generated remain


  When investments are returned to investors, whatever profits generated remain in the company for expansion or improvement of operations
• Sensitive to gender and environmental issues

  The social enterprise operates ethically by ensuring no gender discrimination and providing eco-friendly products and services
• Employees are treated fairly


  The workforce is well-taken care of through fair wages and benefits and better working conditions
• Joy in every task

  A social enterprise that strives to work for a cause does it with pleasure
• Types of Social Enterprises

  • Community Enterprises
  • Social Firms
  • Cooperatives
  • Credit Unions
  • Community Development Finance Institutions
  • Development Trusts
• Community Enterprises


  Serve particular communities, with community representatives comprising the board of directors
• Community Enterprises


  • Shops
  • Transport (Ceres, jeep, tricycle etc.)
• Social Firms


  Help people renew their support networks and assist them in finding jobs, particularly those who are disabled and have experienced trauma and mental health problems
• Social Firms


  • BAMBIKE – Hand-made Bamboo Bicycles
  • Fabric Gallery - Fashion
• Cooperatives


  A jointly owned commercial enterprise (usually organized by farmers or consumers) that produces and distributes goods and services and is run for the benefit of its owners
• Cooperatives


  • Agricultural marketing cooperatives
  • Grocery co-ops
• Credit Unions


  Financial institutions that assist by providing savings and loans and other investment facilities for small businesses and start up social enterprises
• Credit Unions


  • BANKS
  • LENDING COMPANY
• Community Development Finance Institutions

  Provide loans and other investment facilities for small businesses and start up social enterprises
• Community Development Finance Institutions

  • Private financial institutions
  • Affordable lending to help low-income
• Development Trusts


  Seek to build a community through the management of property, offering benefits to the local community
• Development Trusts


  • Housing
  • Developing play park and recreational facilities
• Social Enterprises Advantages


  • Financial freedom
  • Business can contribute to the mission
  • Job creation
• Financial Freedom


  The most understandable of social enterprise's potential benefits is the opportunity to get financial sustainability and freedom
• Business can contribute to the mission

  Beyond providing entirely financial resources, social enterprise also gives organizations opportunities to discover noble ways of achieving their mission
• Job creation


  Small social enterprises are often managed by people with passion for their locality and the issues that surround it
• Responsibilities and Accountabilities of Entrepreneurs to Stakeholders

  • Employees
  • Government
  • Creditors
  • Consumers
  • Suppliers
  • General Public
  • Environment
• Train Employees


  Training directly impacts the business because it gives the workers a better understanding of their responsibility and the knowledge and skills to do their jobs better
• Training


  • Leadership Training
• Mandatory employee benefits


  • 13th-month pay
  • Holiday pay
  • Contributions to Social Security System (SSS)
  • Contributions to Philippine Health Insurance Corporation (PhilHealth)
• Reason for mandatory benefits is RA 1161 or An Act to create a social security system providing sickness, unemployment retirement, disability and death benefit for employees
• 7 basic rights of a worker

  • Right to self-organization
  • Right to collective bargaining and negotiations
  • Peaceful concerted activities
  • The right to strike in accordance with law
  • Security of tenure
  • Humane conditions of work
  • A living wage
• Entrepreneurs are responsible to pay wages to employees
• Paying Taxes


  Accurately reporting business income, filing tax returns, and fulfilling tax obligations to contribute to government revenue
• Abide by labor laws

  Providing fair wages, protecting employee rights, and ensuring fair and equitable treatment
• Follow environmental regulations


  Minimising negative environmental impact and promoting sustainable practices
• Giving correct information to creditors


  Sharing financial statements, business performance reports, and other relevant information to build trust