Chapter 02

• Competency 2.0


  Inquires how businesses consider the social responsibilities and business ethics in order to adapt to the business environment
• Competency Level 2.1


  Evaluates the importance of fulfilling social responsibilities by businesses
• No. of periods: 08
• Learning outcomes


  • Introduces the social responsibility of the business through accepted definitions
  • Explains the necessity of fulfilling social responsibilities by businesses
  • Lists the parties to whom businesses should fulfil their social responsibilities
  • Presents the social responsibilities to be fulfilled by a business to each party with examples
  • Shows how social responsibilities are fulfilled to each party by taking a business as an example
  • Lists the benefits obtained by a business by fulfilling its social responsibilities
  • Explains how social responsibilities can be fulfilled to achieve the expectations of all parties
• Instructions for lesson planning

  1. Inquire the students about the social responsibilities that businesses should fulfil in order to perform their business activities successfully

  2. Lead a discussion highlighting the following facts

  3. Form a definition for business social responsibilities from the responsibilities that businesses fulfil

  4. Make the students engage in the following activity by grouping them in a suitable manner
• Parties to whom a business should fulfil its social responsibilities

  • Owners
  • Customer
  • Employee
  • Society
• Social responsibility


  To perform business activities in an unbiased way to all the stakeholders
• Definitions of business social responsibility

  • "Business social responsibility is the continuous commitment by the business to act ethically and contribute to the economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large." - World business council for sustainable development -
  • "Business social responsibility is about how companies manage the business processes to produce an overall positive impact on society." - Mallen Baker -
  • "Business social responsibility is to create maximum value for shareholders while performing justly to all interrested parties such as consumers,employees,society,government and environment" - Narayan Moorthy -
• Definitions of business social responsibility in different countries

  • Business social responsibility is about accepting personal responsibility for the actions and its impact on society - USA -
  • Business social responsibility is about business giving back to the society - The philippines-
• There is a great awareness at present about the necessity of fulfilling business social responsibilities
• Developing forces that will have an impact on the stakeholders and the society in general


  • Business competition
  • Globalisation
  • Electronic business
  • Environmental pollution
• Main parties to whom the business has to fulfil its social responsibility


  • Customer
  • Employees
  • Owners
  • Society
• Fulfilling social responsibilities to each party

  1. When providing quality products at a reasonable price, harmless goods/ services to consumers

  2. Giving a reasonable earning/ profit to owners

  3. Providing job rights and other facilities to employees

  4. Performing in an eco friendly manner to the society
• Benefits obtained by a business by fulfilling its social responsibilities


  Ensure the existence of business<|>Develop business goodwill / image<|>Ensure business trust<|>Satisfy customers<|>Acheive the business objectives
• Competency 2.2


  Evaluates the contribution of businesses to the sustainable development by acting in an environment friendly
• No. of periods: 06
• Learning outcomes


  • Explains sustainable development
  • Explains how a business can contribute for the sustainable development
  • Shows how a business contributes to the sustainable development by using an existing business as an example
  • Explains how a consumer can contribute to the sustainable development
  • Presents the proposals to minimize the adverse effect of business activities
• Seattle - Red Indian leader: '"When the last tree is cut and all the rivers have dried out and the last fish has been caught man will understand that money cannot be eaten."'
• Sustainable development


  Development which meets, the needs of the present, without compromising the ability of future generations to meet their own needs
• Three pillars of sustainable development

  • Economic sustainability
  • Environment sustainability
  • Social and cultral sustainability
• Fulfilling sustainable development


  1. Economic sustainable development: Improve human welfare by enhancing the quality of life, and reducing the consumption of resources

  2. Environment sustainable protection: Satisfy the basic human needs such as air, water, food and shelter through environment sustainable protection

  3. Social sustainable development: Ensure a sustainable future by satisfying human needs and wants equally/fairly without violating the needs of future generations
• Sustainable development cannot be done only by one business working for it alone, rather consumers including total world - economic community should actively contribute for that
• Contribution of businesses for economic sustainability

  • There are some facts that a business should concentrate on working towards economic sustainability
• Sustainable


  Able to be maintained at a certain rate or level
• Sustainable development


  Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
• Diagram 2.2.1 shows the Sustainable development concept
• How businesses can contribute to sustainable development

  1. Develop and protect natural and human resources for future needs

  2. Fulfill needs and wants of the business itself and its stakeholders
• Sustainable development cannot be achieved by one business alone, the entire economic community must contribute
• Contribution of businesses for economic sustainability

  • Economic development and stability
  • Efficiency (Use of resources)
  • Competition
  • Production and consumption
  • Employment
  • International trade
• Steps businesses can take for economic sustainability

  • Job designing
  • Empowering skills
  • Efficient use of resources
  • Efficient usage of capital
  • Risk management
  • Empower economic development
  • Growth in benefits of stakeholders
  • Investment for national economic growth
• Contribution of businesses for environmental sustainability

  • Consumption of resources
  • Raw materials and waste management
  • Risk management
  • Protection of natural and cultural heritages
• Activities businesses can do for environmental sustainability


  • Buying eco friendly products
  • Retaining resources in production
  • Practicing 3R, 4R, 5R in waste management
  • Using eco friendly transport
  • Safe use of dangerous substances
  • Minimising pollution
  • Protecting biodiversity
  • Following environmental regulations
  • Using renewable energy
• Contribution of businesses for social and cultural sustainability

  • Enhance standard of living
  • Provide equal opportunities
  • Create social integrity
  • Encourage international participation
  • Maintain human capital
  • Protect local traditions and customs
  • Protect cultural environment
  • Minimise poverty
  • Maintain good employee relationships
• Steps businesses can take for social and cultural sustainability

  • Respect for human diversity
  • Contribute to human rights
  • Act with equity and provide equal opportunities
  • Contribute to essential facilities
  • Contribute to social assurance activities
  • Contribute to protect cultural diversity
  • Contribute to protect law and peace
• 4R concept for sustainability

  Recycle<|>Reuse<|>Reduce<|>Replace
• Recycle


  Waste is separated to form a material to produce another product, changing the physical state
• Recycle


  • Producing paper from hay (upcycle)
  • Making irons by crushing vehicles (downcycle)
• Reuse


  Using products that can be used over and over in production and consumption activities
• Reuse


  • Using lunch boxes instead of lunch sheets
• Reduce


  Reducing the amount of waste released to the environment, by eliminating, avoiding or not using harmful products