LESSON 6

• entrepreneurs:

  have a moral obligation to reconcile and balance the rights of their stakeholders
• CUSTOMERS:

  the most CRITICAL stakeholders
• DECEPTIVE PRACTICES:

  illegal acts that mislead a person or group to believe what is untrue or disbelieve what is true
• RESPONSIBILITIES TO CUSTOMERS:

  • Companies should be honest in disclosing the potential harm that a product may cause.
  • Companies should be truthful about the safety aspect of their products.
  • Entrepreneurs should be honest with their labels, packaging, and other product information.
  • Manufacturers or service providers should honor or comply with the provisions of sales contracts.
• Eight (8) basic rights of customers:

  • Right to Basic Needs
  • Right to Safety
  • Right to Information
  • Right to Choose
  • Right to Representation
  • Right to Redress
  • Right to Education
  • Right to a Healthy Environment
• RIGHT TO BASIC NEEDS:

  • food, clothing, shelter, education, healthcare
  • ØSHOULD be made available at affordable pricesØ
• RIGHT TO SAFETY:

  the right to be safeguarded against goods and services that are hazardous to human health
• RIGHT TO INFORMATION:

  the right to be properly informed and not be misled by dishonest ads, labels, or packaging
• RIGHT TO CHOOSE:

  the right to freely select from an array of quality products and services available in the market
•  right to representation:

  the right to participate in the formulation and execution of policies and guidelines on consumer welfare and protection
• Right to redress:

  the right to be compensated or reimbursed on any purchase or availment of goods and services which do not meet the expected standards of quality
• Right to education:

  The right to acquire the skills needed to be always an informed customer
• Right to a healthy environment:

  the right to have safe and conducive place to live and work free from any form of danger
• WORKING CONDITION

  • physical environment, procedures, and practices that are relevant in performing a task
• Responsibilities to employees

  • Provide safe work area with proper seats, good lighting and ventilation, adequate passageways, exits, fire-fighting equipment
  • Not expose to distracting noise, dangerous and toxic materials that may harm health
  • Not expose to dangerous processes or activities which will inflict harm or endanger life
  • Ensure workloads are not beyond what employees can undertake
  • Provide equal employment opportunities for all
  • Provide right to due process or right to be heard before termination decision
• Employees should be provided with a safe work area with proper seats, good lighting and ventilation, adequate passageways, exits, fire-fighting equipment, separate facilities for men and women, gear, masks, safety shoes, coats and uniforms, medical supplies, and first aid kits.
• Due process:

  the right to be heard before a decision for termination is made
• •Common unethical practice:

  • BRIBERY- giving of gifts or favors to influence a person’s or company’s decision
• Ethical practice to address bribery:

  • having clear rules on acceptance of gifts and how to set aside personal interests; upholding the company’s welfare

   
• Consequence of bribery: 

  awarding of  contracts to suppliers of inferior products or services
• CONFLICT OF INTEREST:

  an intentional and deliberate action or decision that results in getting personal gain while adversely affecting the company
• ex. of Conflict of Interest:

  • Employee who works for a company but also owns a business similar in nature to his/her employer;
  • hiring a relative who is not qualified for a position;
  • posting negative comments against their employer;
  • working part time in a competing company;
  • getting involved in a romantic relationship with his/her superior
• PAYMENT OF TAXES:

  TAXATION:

  orderly and compulsory manner of raising money to finance government projects for better delivery of services to the people (e.g. income tax)
• PAYMENT OF TAXES:

  TAX EVASION:

  deliberate failure to pay taxes due to a business
• PAYMENT OF TAXES:

  TAX AVOIDANCE:

  a tactic of deliberately finding a way to avoid  payment of taxes or pay lower taxes
• • Sole and partnerships are not taxed separately as a business;
  • corporations- taxed as businesses
• Intellectual property rights:

  INTELLECTUAL PROPERTY:

  • knowledge, creative ideas, or expressions of human mind that have commercial value and are protectable under copyright, patent, service mark, or trade secret laws from imitation,  infringement, and dilution
  • (World Intellectual Property Organization or WIPO)
• Intellectual Property:

  CATEGORIES:

  • Industrial Property
  • Copyright
• Industrial Property- trademarks or service marks, layout designs of integrated circuits commercial names and designations, as well as geographical indications, and protection against unfair competition
• Copyright- refers to the legal right of the owners to copy or reproduce their artistic creations (e.g. poems, novels, music, paintings, and cinematographic works)
• Patent: a govt. authority or license conferring a right or title for a set period; the sole right to exclude others from making, using, or selling an invention.
• Service Mark: a legally registered name used in the manner of a trademark to distinguish an organization’s services from those of its competitors
• Trade Secret Laws: the right to prevent company confidentialities from others’ interests
• Infringement: the action of breaking the terms of a law, agreement etc.; violation
• Dilution: The act of making something weaker in force, content, or value by modification
• Nepotism: the act of granting an advantage, privilege, or position to relatives or friends in an occupation or field

   
• INDUSTRIAL PROPERTY:

  trademarks or service marks, layout designs of integrated circuits commercial names and designations, as well as geographical indications, and protection against unfair competition
• COPYRIGHT:

  the legal right of the owners to copy or reproduce their artistic creations

  (e.g. poems, novels, music, paintings, and cinematographic works)
• PATENT:

  a right given to an inventor to exclude anyone from using or benefitting from the invention for a period of 20 years
• INDUSTRIAL DESIGN:

  the aesthetic aspect of a material

  Aesthetic:

  • shape, pattern, or color of the object or material
  • granted to protect the nonfunctional features of the product which constitute its visual appeal that can attract customers to purchase the product 
  • maximum holding period: 10-25 years