Business Ethics and SENIOR

Social Responsibility HIGH

SCHOOL

Business Ethics and Social Responsibility

Business Ethics and Social Responsibility- Grade 12
Quarter 4 – Module 15: Importance of Establishing and Sustaining
Business Enterprises
First Edition, 2020

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Published by the Department of Education - Schools Division of Pasig City

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Business Ethics
and Social SENIOR
HIGH
Responsibility SCHOOL
Introductory Message

For the Facilitator:

Welcome to the Senior High School – on Importance of Establishing and Sustaining

Business Enterprises!

This Self-Learning Module was collaboratively designed, developed, and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC)in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st - century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator, you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
 For the Learner:

Welcome to the Business Ethics and Social Responsibility Self

Learning Module on Importance of Establishing and Sustaining Business
Enterprises!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an
active learner.

This module has the following parts and corresponding icons:

Expectations – This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson- This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up- This section summarizes the concepts and

application of the lesson.

Valuing- This part integrates a desirable moral value in the

lesson.

Post-test - This measures how much you have learned from

the entire module.
 EXPECTATIONS

After going through this module, you are expected to:

1. identify the sustainable company and financial freedom;

2. describe ideas that will lead you to financial freedom; and

3. develop an approach to apply financial freedom while growing

your business

PRETEST

Directions: Identify the following. Write the answer on your answer sheet.

1. It refers to a person that will assist you in maintaining adequate

insurance coverage.

2. One non-conventional business whose job includes conducting market

research and collaborating with the sales and design teams.

3. These are the two core qualities of today's entrepreneurs.

4. It determines its activities, behavior, products, and services through a

detailed understanding of the environmental and social context.

5. It refers to a new entrepreneurial enterprise established to make a profit.

RECAP

At the last meeting, we discussed the importance of establishing and

sustaining business enterprises as a source of job opportunities.

Now, in this module, we will discuss the importance of establishing

and sustaining business enterprises as a source of financial freedom
 But before we proceed, I want you to discuss the role of social
enterprise in job creation.

LESSON

Sustainable Company
A sustainable company determines its activities, behavior, products, and
services through a detailed understanding of the environmental and social
context in which it operates. As a result, it works within understood
environmental and social limitations and reflects the demands and
requirements of society. It also ensures that its impact upon the
environment and society is either neutral or positive.

Financial Freedom
Financial freedom is about taking ownership of your finances. You have a
dependable cash flow that allows you to live the life you want. You aren’t
worrying about how you’ll pay your bills or sudden expenses. And you aren’t
burdened with a pile of debt.

It’s about recognizing that you need more money to pay down debt and
maybe increasing your income with a side hustle – we’ll get to that in just a
minute. It’s also about planning your long-term financial situation by
actively saving for a rainy day or retirement.

Business Ideas That Will Lead You to Financial Freedom

1. Use The Free Space that You Have

If you have a big house with free space you can use it in several ways. You
may welcome a tenant and enjoy monthly rent.

If you do not wish to bear the trouble of dealing with a tenant, you may use
the space as a warehouse and rent it out. Several companies and individuals
are looking at hiring space to keep their goods or just to hold business
meetings. You will not have much trouble finding people interested in your
space.

And not just this, you may even use your porch. If you live in a populated
area, you may rent out your parking space at an hourly rate. This is a
quickly growing business that doesn’t require much from you.

2. Provide Training

If you are good at anything, you can use it to earn money. People all around
the world are willing to learn, all they need is a tutor and you can be one.

For example, if you are good at makeup, you can start to teach makeup at
your place or even online. This is a fast-growing industry and some makeup
artists are making millions.

3. Start a Virtual Business

The Internet has billions of users, and the best thing is that you’re not
limited in any way. It doesn’t matter where you live, you can reach
everywhere with the help of the internet. All you have to do is come up with
a saleable idea and go with it online.

These three small business ideas are non-conventional and anybody can
start them. However, don’t get confused, concentrate on one that you think
you can do the best.

For example, if you like to be on the web then you should consider going
online and start doing something in the virtual world, and if things go great
you should consider streamlining your business by setting up a sole trader
or limited company, but before that, you should be aware of advantages and
disadvantages of forming a company, and be sure of what works for you in a
given situation.

Lastly, if you think you work better as an entrepreneur, then consider other
options. They may not look like major ideas, but they have the potential to
be big if you work hard.
Build Financial Freedom while Growing your Business
Financial success often results from the ability to effectively run your
business and implement a long-term, personal financial strategy.

Keep your finances separate from your business finances.

Early in a business venture, it is difficult to draw a distinct line between
your business and personal expenses. For example, meeting payroll in the
early years may mean forgoing a paycheck yourself to continue building the
business. However, understanding your current financial situation for both
your business and your personal life will enable you to define clear
objectives for your money.
Select a financial advisor that will help you develop a comprehensive
financial plan for your business and personal objectives.

Entrepreneurs are faced with many decisions to make each day. We

surround ourselves with competent and loyal professionals to help operate
our business, with the intent of creating an effective team. Engaging a
financial planning professional should be no different. As a part of your
team, they should provide objective and comprehensive advice for your
needs and objectives.
Diversify your investment portfolio while maintaining a level of
liquidity for new business opportunities.

Quite simply, business ownership = equity = risk.

A diversified portfolio, especially in times of stock market or business
volatility, takes on added importance for achieving your long-term financial
goals. Having a consistent approach to investing requires that your portfolio
is diversified into different asset classes and not simply comprised of just
one asset class, i.e. stocks.
Maintain the proper insurance coverage for your family and business to
protect your success.

Entrepreneurs do not plan for failure because, in their minds, it is not an

option. For this reason alone, seeking qualified advisors for guidance on
maintaining adequate insurance coverage will provide a more objective
perspective on protecting the financial future of your business and family.
Create a pool of personal liquidity.

An entrepreneur’s innate passion for success, matched equally by their

tolerance for risk, motivates them to work hard every day to grow a
successful business.

Continue to redefine your purpose as your business grows.

Flexibility and vision are two core qualities of today’s entrepreneurs. While
growing your business, you strive to remain open to new ventures, redefine
your products and services to the changing needs of the consumer and
maintain a pioneering vision for the future growth of your organization.

ACTIVITIES

Imagine that upon graduation, you have the good fortune to face
entrepreneurial opportunities.

Your business plan is in place. Now is the time to have an effective financial
plan, Give at least 3-5 sentences on how do you manage your financial
freedom in creating your business plan.

WRAP-UP

Let’s wrap up by answering the following questions:

1. What are the sources of funds that can be used in establishing a business?
2. Why is financial freedom important to businesses?
3. How will you determine the financial requirements of a business?

VALUING

Imagine after the success of being an entrepreneur, How do you handle the
following situations:

1. How will your wealth be distributed in your estate?

2. Do you intend to help support a charitable mission or leave a financial
legacy for your children?
3. What do you plan to experience during your retirement years?

POST TEST

Directions: Identify the following. Write the answer on your answer sheet.

1. It refers to a person selling products using the website/offline

means to earn a commission.
2. It refers to a person who has reached a wide audience to spend in online
marketing and provide users with quality content.

3. In times of stock market or business volatility, this collection takes

on added importance for attaining long-term financial goals.
4. Business idea/s that provide services, some of these jobs may require
proper education and licenses.

5. Business idea/s where you can use your free space in your house to
welcome a renter and enjoy monthly rent.
 KEY TO CORRECTION

PRE -TEST POST-TEST

1. Qualified Advisor 1. Affiliate
2. Advertiser 2. Influencer
3. Flexibility and vision
3. Diversified Portfolio
4. Sustainable Company
5. Business Venture 4. Provide training
5. Use The free space that you
have

References
Racelis, Aliza. Business Ethics and Social Responsibility. Manila: Rex Book
Store, 2017.

Ferreira, Nicole Martins. “Financial Freedom: 10-Step Formula to Achieve It

in 2021.” , Oberlo, 12 Mar. 2021, www.oberlo.com.ph/blog/financial-
freedom.

“Entrepreneurs: Six Steps to Build Financial Freedom While Growing...”

McKinley Carter Wealth Management. Accessed June 6, 2021.
https://mckinleycarter.com/insights/6-steps-to-financial-freedom-
for-todays-entrepreneur.

“Sustainable Business Strategy: The Pathway to a Sustainable Future.”

Terrafiniti, May 17, 2021. https://www.terrafiniti.com/sustainable-
business-strategy/.