Responsibilities and

Accountabilities of
Entrepreneurs
BY: GROUP 1
EDWARD FREEMAN’S (1984)
STAKEHOLDERS THEORY
supports this need to give attention to the interrelationship
between the business and its clients, resource providers,
workers, and community it belongs.
This theory claims that, to keep the business successful, a
company should consider the importance of all stakeholders and
their interests and not just its shareholders.
OBJECTIVE:
Identify specific stakeholders of business to whom
the entrepreneurs are held responsible and
accountable,
Determine the responsibilities and accountabilities of
entrepreneurs to its stakeholders; and
Discuss ways to maintain a good relationship
between the business organization and its
stakeholders
different responsibilities
and accountabilities of
entrepreneurs to their
stakeholders.
A. EMPLOYEES
1. Employees should be given fair compensation by their employers.
They must be:
Paid on time and at least receive the minimum wage, including overtime pay.
Provided with mandatory benefits such as:
Sick leaves and vacation leaves
Health and medical insurance
Retirement plans and pensions as mandated by the government
Employers must remit health and insurance payments on time.
Taxes withheld from salaries should be properly remitted to the government.
Example: A company could provide a detailed breakdown of its compensation
structure, including base salary, overtime rates, and benefits packages, to demonstrate
its commitment to fair compensation.
A. EMPLOYEES
2. Employees should be ensured of a safe and comfortable workplace.
Employers should:
Provide Personal Protective Equipment (PPE), tools, and equipment to reduce risks
of injuries.
Conduct regular occupational health and safety training.
Perform facility inspections to maintain workplace safety.

3. Employees must be treated fairly and with respect, regardless of:

Age, gender, religion, ethnicity, or disability.
Any form of discrimination or harassment should be addressed immediately.
Companies should enforce policies to prevent workplace harassment and protect
employee rights.
A. EMPLOYEES
Example #2: The company could also highlight its investment in
workplace safety measures, such as providing PPE, conducting
regular safety training, and implementing safety protocols, to
showcase its commitment to employee well-being.

Example #3: The company could further demonstrate its commitment

to fair treatment by outlining its anti-discrimination and anti-
harassment policies, including procedures for reporting and
addressing such issues, to ensure a respectful and inclusive work
environment.
B. GOVERNMENT
1. Entrepreneurs should cooperate and fulfill their responsibilities with
the government.
Securing necessary permits and licenses to operate legally.
Adhering to business laws and workplace regulations.
Avoiding violations and malpractices in business operations.

2. Entrepreneurs are responsible for paying the required taxes and fees to the
government. They should:
Pay taxes on time and declare income accurately and honestly.
Ensure that taxes withheld from employees’ salaries are remitted properly.
Understand that government programs and services rely on business tax
contributions.
B. GOVERNMENT

Example #1: Before opening, Anna secured all necessary permits

and licenses for The Cozy Corner. She maintains strict adherence
to business laws and workplace regulations, avoiding any potential
violations.

Example #2: CodeCraft accurately reports its income and

expenses, ensuring timely tax payments. They also remit
employee taxes promptly, understanding their contribution to
government services.
B. GOVERNMENT
3. Entrepreneurs should ensure that their business operations do not
harm or pollute the environment.
They must:
Implement sustainable business practices to minimize
environmental impact.
Ensure that pollutants emitted remain within legal limits.
Adopt eco-friendly solutions to reduce waste and carbon
footprints.
Example: GreenClean uses eco-friendly products and minimizes water/energy
use, keeping pollutants within legal limits. They also recycle and compost,
reducing waste and their carbon footprint.
C. CREDITORS AND SHAREHOLDERS
Entrepreneurs should provide correct and updated information regarding the
company's:
Operations and financial status, helping shareholders and creditors assess
investment opportunities.
Profitability and stability, ensuring transparency and trust with
stakeholders.
Example: A company publishes an annual financial report detailing its revenue,
expenses, and profit to help potential investors make informed decisions.
C. CREDITORS AND SHAREHOLDERS
Entrepreneurs must ensure that shareholders and creditors receive
accurate financial information regarding the company's performance.
Shareholders should receive fair returns on their investments in the
form of dividends.
Creditors must be repaid on time, including interest payments on
business loans.
Example:
A business that borrowed capital from a bank pays its loan
installments and interest on schedule to maintain a good credit score.
 D. SUPPLIERS
- provide raw materials and resources essential for the production of
goods and services.

Entrepreneurs should negotiate prices fairly, ensuring that suppliers

are not placed at a disadvantage.
Example: A bakery owner negotiates with a flour supplier for bulk
discounts but ensures the agreed price is fair for both parties.
 D. SUPPLIERS
Entrepreneurs must establish trust and confidence with suppliers by
maintaining good business relationships.
Example: A clothing manufacturer builds a long-term relationship with a fabric
supplier by consistently placing orders and ensuring clear communication.

Entrepreneurs must pay suppliers on time and adhere to agreed terms and
conditions.
Example: A supermarket chain pays its local vegetable suppliers within the
agreed 30-day credit period, ensuring continued supply and good business
relations.
 E. CUSTOMERS
1. Quality of Products and Services
- Businesses should provide safe, high-quality products and
services to gain customer trust and loyalty. Listening to customer
feedback helps in building long-term relationships.

Example: A smartphone company releases software updates based

on customer complaints about battery performance, ensuring a better
user experience.
 E. CUSTOMERS
2. Fair Pricing
- Customers are aware of product value and can recognize
overpriced goods or services. Entrepreneurs should set reasonable
prices to attract loyal customers.

Example: A local coffee shop sets prices based on costs and

competitor analysis, ensuring affordability while maintaining profit.
 E. CUSTOMERS
3. Honest Advertising and Marketing
- Entrepreneurs should provide truthful and accurate information
about their products and services to avoid misleading customers.

Example: A skincare brand lists all active ingredients and

possible side effects on product labels to maintain transparency.
 E. CUSTOMERS
4. Steady Supply of Products and Services
- Businesses must ensure a consistent and reliable supply of their
products and services. Creating an artificial shortage to
manipulate prices and take advantage of customers is unethical.
Example : A grocery store ensures that essential items like rice,
milk, and toiletries are always in stock, even during peak
shopping seasons, to prevent panic buying.
F. GENERAL PUBLIC
- Businesses thrive because of the community and customers they
serve. Since they benefit from public infrastructure and resources, they
have a responsibility to give back and support community welfare.

1. Community Welfare
Entrepreneurs should actively participate in social and mora
responsibilities to support the community where they operate.
Example : A company organizes a tree-planting program in partnership
with local environmental groups to promote conservation.
F. GENERAL PUBLIC
- Businesses thrive because of the community and customers they serve.
Since they benefit from public infrastructure and resources, they have a
responsibility to give back and support community welfare.

1. Community Welfare
Entrepreneurs should actively participate in social and moral responsibilities
to support the community where they operate.
Example : A company organizes a tree-planting program in partnership with
local environmental groups to promote conservation.
A large corporation funds scholarship programs for underprivileged
students to support education.
G. ENVIRONMENT
2. Environmental Legislation
Entrepreneurs must comply with environmental laws to ensure their
business operations do not harm the environment. This includes managing
waste properly, reducing pollution, and conserving natural resources.

Example 1: A factory installs air filtration systems to reduce carbon emissions

and meet government environmental standards.
Example 2: A retail company uses biodegradable and recyclable packaging
instead of plastic bags to minimize waste.
Example 3: A mining company conducts reforestation efforts after extracting
minerals to restore the natural environment.
Quiz time!
1. ) Which of the following is NOT a mandatory benefit that employers
should provide to their employees?
a) Sick leaves and vacation leaves
b) Health and medical insurance
c) Retirement plans and pensions
d) Company car
2. ) To maintain workplace safety, employers should:
a) Conduct regular occupational health and safety training.
b) Perform facility inspections.
c) Provide Personal Protective Equipment (PPE).
d) All of the above.
3.) Entrepreneurs' responsibilities to the government include:
a) Securing necessary permits and licenses.
b) Adhering to business laws and workplace regulations.
c) Avoiding violations and malpractices in business operations.
d) All of the above.
4.) To minimize environmental impact, entrepreneurs should:
a) Implement sustainable business practices.
b) Ensure pollutants emitted remain within legal limits.
c) Adopt eco-friendly solutions to reduce waste and carbon footprints.
d) All of the above.
5.) What should employers do with taxes withheld from employees'
salaries?
a) Keep them for company expenses.
b) Properly remit them to the government.
c) Distribute them as bonuses to employees.
d) Invest them in the stock market.
6.) What crucial information should entrepreneurs provide to shareholders
and creditors?
a) Only their profits
b) Their personal contact details
c) Operations and financial status, helping assess investment opportunities
d) The names of their competitors
7.) What is a key aspect of maintaining a positive relationship with
creditors?
a) Ignoring interest payments
b) Repaying loans on time, including interest
c) Borrowing excessively
d) Delaying loan repayments
8.) How should entrepreneurs ideally negotiate prices with suppliers?
a) By always demanding the lowest possible price
b) By only dealing with one supplier
c) Fairly, ensuring suppliers aren't disadvantaged
d) By ignoring the agreed price
9.) What is one way entrepreneurs can build trust with suppliers?
a) By consistently placing orders and ensuring clear communication
b) By never paying on time
c) By only communicating via email
d) By frequently changing suppliers
10.) What is an example of a positive business practice concerning
suppliers?
a) A supermarket chain delaying payments to their vegetable suppliers.
b) A bakery owner negotiating a price that is unfair to the flour supplier.
c) A clothing manufacturer ignoring communication with their fabric
supplier.
d) A supermarket chain paying its local vegetable suppliers within the
agreed 30-day credit period.
11.) What is a key element of building long-term customer relationships?
a) Ignoring customer feedback.
b) Providing low-quality products.
c) Providing safe, high-quality products and services and listening to
customer feedback.
d) Charging excessively high prices.
12.) How should entrepreneurs set prices to attract loyal customers?
a) By charging the highest possible price.
b) By ignoring competitor analysis.
c) By setting reasonable prices based on costs and competitor analysis,
ensuring affordability while maintaining profit.
d) By randomly setting prices.
13.) What is crucial for honest advertising and marketing?
a) Misleading customers.
b) Providing truthful and accurate information about products and services.
c) Exaggerating product benefits.
d) Hiding potential side effects.
14.) Why is creating an artificial shortage of products unethical?
a) It benefits customers.
b) It increases supply.
c) It manipulates prices and takes advantage of customers.
d) It improves business reputation.
15.) What is an example of a business ensuring a consistent and reliable
supply of essential items?
a) A grocery store allowing essential items to run out during peak seasons.
b) A clothing store only stocking trendy items.
c) A grocery store ensuring essential items like rice, milk, and toiletries are
always in stock, even during peak shopping seasons.
d) A bookstore only ordering books once they are sold.
16.) Businesses have a responsibility to support community welfare
because:
a) They are required by law to do so.
b) It increases their profits significantly.
c) They thrive because of the community and resources they use.
d) It is a purely charitable act.
17.) What is an example of entrepreneurs actively participating in social
and moral responsibilities to support their community?
a) Ignoring community needs.
b) A company organizing a tree-planting program in partnership with local
environmental groups.
c) Focusing solely on profit maximization.
d) Ignoring environmental concerns.
18.) To fulfill their environmental responsibilities, entrepreneurs must:
a) Ignore environmental laws.
b) Comply with environmental laws to ensure their business operations do
not harm the environment.
c) Increase pollution.
d) Waste natural resources.
19.) What is an example of a company minimizing its environmental
impact?
a) A factory that does not install air filtration systems.
b) A retail company that uses non-biodegradable packaging.
c) A mining company that does not conduct reforestation efforts.
d) A retail company that uses biodegradable and recyclable packaging
instead of plastic bags.
20.) What is one way a large corporation can contribute to community
welfare?
a) By ignoring educational needs.
b) By funding scholarship programs for underprivileged students.
c) By focusing solely on internal growth.
d) By not supporting education initiatives.
Thank you