BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Quarter 4- LESSON 5
Explain the Importance of establishing and sustaining business: Enterprises as a source of
job opportunities and financial freedom

ESTABLISHING AND SUSTAINING A BUSINESS

Sustainability of business has been an important issue for many people, especially in the business
world. Businesses must be aware of the issue at hand and understand how important it is to make
changes.
Sustainability in business practices, pushed by growing demands from consumers for products
and services that cause minimal effects to the ecosystems, corporations have shown interest in
bringing sustainability aspects to the core of the business.
Sustainability and Employment- Businesses with strategies that are sustainable in the long run
pay their workers’ salaries and benefits that allow them to live a sustainable life within their
community. Besides, when organizations look to improve the health and well-being of
communities, they are able to motivate employees who are genuinely interested in contributing
to the success of the business.
A. Importance of establishing and sustaining businesses as a source of job opportunities:
• Investors invest on your products which are the necessities of people: Upon investment on
products, there is a need to manufacture more and keep up with the demands of the investing
company, thus, there is a need to hire more people for the industry.
• Commerce and regional economic integration: When new businesses export goods and
services to nearby regions, these enterprises contribute directly to a region’s productivity and
earnings. Having this type of production and rise in services, it promotes job considering that
businesses involve needs more people for production
• New technologies are created and utilized: In the height of progress in some businesses,
technology always earns it place. We need modernization for the fast-pace production and
efficiency of labor. In this thought, more skilled and knowledgeable workers from the field are
needed to sustain the demands of technology.
Reasons why sustainability attracts job seekers
According to David Jones and Chelsea Willness, there are 3 Reasons why sustainability attracts
job seekers. Among these are as follows:
1. Sustainability draws job seekers because it’s a source of employee’s pride: Sustainability
actions often lift a company’s reputation and status, leading many job seekers to believe they’d
feel proud to work for a prestigious organization admired for its sustainability. Reinforce that
anticipated sense of pride by creating and celebrating a distinctive reputation for sustainability.
2. Sustainability draws job seekers because it implies the company cares about its
employees: To some job seekers, sustainability initiatives suggest that if a company genuinely
cares about the well-being of the greater society, it would therefore stand to reason that it likely
treats its employees well. Reinforce the belief that the company cares about society and the
planet more generally, and link this to your people practices.
3. Sustainability connects organizational values to job seekers' personal values: Job seekers
want an employer whose values are a good fit with their own. More than three decades of
research shows that the match a person feels with an organization is a major driver of job choice
decisions. Clearly link your sustainability initiatives to specific organizational values and
demonstrate their authenticity.

Socially Responsible Investment (SRI)

An investment strategy where investors consider not only potential financial returns but also the
social, environmental, and ethical impact of a company when making investment decisions,
aiming to align their investments with their personal values while still seeking financial gain.
B. Enterprises as a source of financial freedom
Job creation, good investments, sustainability will always lead to financial freedom of every
people, local community and the whole society. Financial freedom according ETMONEY Blog
is, “having enough residual income to cover your living expenses. It is not about being rich and
having tons of money but having enough to cover your expenses so that you can spend your
precious time doing what you like rather than doing things just to earn money.”
According to Matt Danielsson, there are 12 ways to help us in achieving financial freedom.
Among of these are as follows:
1. Set Life Goals: Every person must have a clear plan of his/her life and that includes checking
your bank account, what the lifestyle entails, and at what age this should be achieved. Your goals
must be written down so that you can prepare and establish a financial milepost at regular
intervals.
2. Make a Budget: Most of us fail in making a budget. What you will do is to list down all your
monthly dues and make a monthly budget for all your expenses. You must stick to your budget
and do not make unnecessary purchases.
3. Pay Off Credit Cards in Full: Credit Cards are toxic to wealth – building. When you go to
malls although you do not have money, you will be tempted to swipe because of your existing
credit card. See to it that those purchases must be paid in full at the end of the month to avoid
any interests and fees.
4. Create Automatic Savings: There are retirement plan, insurances, and other contribution
benefits. Enroll in these benefits so that you can have an automatic withdrawal in case of
emergencies.
5. Start Investing Now: Take note that there has been no better way to grow your money than
through investing. The beauty of compounded interest can make your money grow exponentially
over time, but you need to wait to achieve meaningful growth.
6. Watch Your Credit: Do not acquire what you cannot afford. Always keep track of all your
credits so that you will have no burden in paying all of them.
7. Negotiate: You must know how to negotiate things especially in buying stuff from small
businesses. Sometimes, spending huge money in big groceries is not practical compared in
spending money in markets. All you need to do is negotiate in buying bulk or repeated orders so
that you can avail discounts.
8. Continuous Education: Knowledge is always the greatest defense against fraud. If you have
knowledge, they cannot just fool you. You will know how to track your transactions, you will
know how to audit, and you will also know that will help protect your rights.
9. Proper Maintenance: Taking good care of your properties can make them last long.
Maintaining the properties is better and more practical than buying a new one.
10. Live Below Your Means: Being economical while living a life to the fullest is not a hard
thing to do. Live like a poor but earn like a rich. Do not wish for something you cannot afford
especially if you want it right away. Patience is always a virtue.
11. Get a Financial Advisor: If you have lots of money yet they are not as readily available to
convert to cash- get a financial advisor to educate and help you make decisions.
12. Take Care of Your Health: Health will always be a wealth especially in this time of
Pandemic. Many wealthy people, companies go bankrupt because the owner got sick and the
money that is intended for the business is now used as buying the maintenance. Invest in good
health with regular check-ups to doctors and dentists.

Check for Understanding:

Instructions: Answer the following questions based on your understanding. You
can based your answers on the concept notes or you can Google it and provide
the source address for reference. Note: Do not copy and paste; just gather some
ideas. (Write on your activity notebook)

1. Discuss the benefits of establishing and sustaining a business based on

your own words. Provide real life examples to illustrate its significance.
2. Explain how businesses are considered as a source of job
opportunities and financial freedom.
3. Choose at least 3 ways in achieveing financial freedom
according to Matt Danielsson. Explain how they help in us in
attaining financial freedom.