4

IMPORTANCE OF ESTABLISHING
AND SUSTAINING BUSINESS
ENTERPRISES
for Business Ethics and Social Responsibility
Senior High School (ABM)
Quarter 2-Week 5
 FOREWORD

This Self-Learning Kit for Business Ethics and Social

Responsibility explores all concepts necessary to help
learners know the importance of establishing and
sustaining business enterprise as a source of job
opportunities and financial freedom.
This gives students a strong foundation which will be
used when they will choose to start their own business or
choose business courses in the future.
It is aligned with the BEC of the Department of
Education following the prescribed MELCs (Most Essential
Learning Competencies.
It has the following features proven to be valuable
aids to learning BESR even at home.
What happened?
This section contains pre-activities like a story that will
give them motivation to study and read the module.
What You Need To Know? (Discussion)
This section includes the definition of terms and
explanation of the importance of establishing and
sustaining business enterprise as a source of job
opportunities and financial freedom.
What Have I Learned? (Evaluation/Post Test)
The exercises contained in this section are
guaranteed to build comprehension, skills, and
competence. These serve as a diagnostic tool to identify
the learners’ areas of strengths and difficulties.
 OBJECTIVES
K: Identify the different business enterprises that gives
job opportunities and financial freedom to people;
S: Discuss the importance of establishing and sustaining
business enterprises as a source of job opportunities and
financial freedom;
A: Appreciate the importance of establishing and
sustaining business enterprises as a source of job
opportunities and financial freedom.

LEARNING COMPETENCY:

Explain the importance of establishing and sustaining

business enterprises as a source of job opportunities and financial
freedom. (ABM_ESR12-IVm-p-4.1)

I. WHAT HAPPENED

Nestle “Good Food, Good life”

In a recent Sustainable Agriculture Forum sponsored by the European
Chamber of Commerce themed “Towards a Sustainable and Responsible
Agricultural Supply Chain,” Nestlé Philippines Chairman and CEO Kais
Marzouki underscored the value of public-private sector partnerships (PPPs) in
supporting agriculture because these harmonize public and private
resources.
In pursuit of sustainability, Nestlé is actively committed to two
agricultural PPPs, namely the NESCAFÉ Plan which assists Robusta coffee
farmers, and supporting sugar farmers through the Responsible Sourcing from
Smallholders (RSS) Program.
The NESCAFÉ Plan produces high-quality coffee plantlets, provides
farmers with capacity building and technical training by professional
agronomists, connects farmers to the market through buying stations, is pilot
testing a mobile payment system (GCash) with farmers in Bukidnon, and
works with specific coffee communities to increase yield and income.

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 With regard to sugar, Nestlé is a participant in the RSS Program in
Negros Occidental, one of the biggest sugar-producing provinces in the
country with an estimated 35,000 sugarcane smallholders earning an
average monthly income per household of USD 80.
“The goals of PPPs in agriculture are to elevate farmers from
subsistence farming to agripreneurship, increase farmer incomes through
better yields, and make farming profitable to inspire future generations of
farmers, Mr. Marzouki said, “Nestlé is committed to helping coffee and sugar
farmers sustainably improve the quality and quantity of their yields.
The positive impact on their livelihood helps us realize our purpose at Nestlé to
enhance the quality of life of Filipinos and contribute to a healthier future.”
https://www.nestle.com.ph/media/newsfeed/nestle-supports-coffee-sugar-farmers

PRE-TEST
Direction: Read each statement below and evaluate whether it is true or
false. Write your FIRST NAME if the statement is TRUE and LAST NAME if the
statement is FALSE.

____________1. Financial Freedom is having residual income to cover your

living expenses.
____________2. Sustainability is increasingly important in the business world.
____________3. Establishing business does not create jobs.
____________4. Having debt-free can achieve financial freedom.
____________5. Social enterprise helps disadvantaged population to human
development and economic prosperity.

II. WHAT YOU NEED TO KNOW

DISCUSSION

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.

https://www.co2australia.com.au/why-is-sustainability-important-for-business/
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 Environmental Sustainability
Environmental sustainability can be applied in many ways, such as
creating alternative routes in a production process to reduce waste
generation and increase water and energy efficiencies. Investment in
renewable energy is also growing momentum among big organizations, with
many building their own solar or wind farms, in order to phase out the
consumption of fossil fuels and reduce their carbon emissions.
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. This builds loyalty within the organization, benefiting the
company through increased productivity and creativity, as well as lower
levels of fraud and mismanagement. 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.

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.
https://brainly.ph/question/2637290#:~:text=New%20technologies%20are%20created%20and%20utilized&text=Henc
e%2C%20building%20a%20business%20is,for%20workers%20also%20gets%20high.

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 According to David Jones and Chelsea Willness, there are 3 Reasons
why sustainability attracts job seekers. Among these are as follows:
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.
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.
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.

David Jones and Chelsea Willness. Published June 7, 2013

https://www.nbs.net/articles/three-reasons-job-seekers-prefer-sustainable-

Socially Responsible Investment (SRI)

The social enterprise movement is growing and gathering supporters
across the globe as an innovative approach to business activity offering
disadvantaged populations a path to human development and economic
prosperity. There is increasing recognition among businesses, governments,
and non-governmental organizations (NGOs) that their participation in these
initiatives can lead to substantial benefits for disadvantaged and
underserved populations, while simultaneously providing opportunities for
income generation (Nielsen and Samia, 2008).
The SRI movement can be said to have taken off in 1970, when the first
shareholder resolutions were filed against companies investing or working
under the apartheid regime in South Africa. By the 1980, billions of dollars had
been diverted from South Africa related companies. They were forced to sell
their operations in South Africa. The US government enacted statutes, such as
the Comprehensive Anti-Apartheid Act of 1986, banning new investments in

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South Africa. All over the world similar actions were taking place. In response
to the growing concern about environmental issues, “green” unit trusts
arrived in 1988 with the launch of the Merlin Ecology Fund (now the Jupiter
Ecology Fund). Other environmental funds soon followed. In the beginning of
the 1990s the first social index was created by the social research firm of
Kinder, Lydenberg, Domini & Co., Inc. (KLD): Domini 400 Social Index. In
creating the Index, KLD started by screening the companies in the Standard
& Poor’s 500 Index at that time, eliminating those companies that failed to
qualify under the exclusionary and qualitative screens. The Co-operative
Insurance Society (CIS), part of the Co-operative Movement, was the first
financial service organization in the UK that adopted an ethical policy for all
its funds, the so-called Responsible Shareholding Scheme. In the United
States, there are about 230 mutual funds that follow SRI strategies in their
investment process. Additionally, the rise of social indexes as counterparts to
the traditional, exclusively financial indices will give ethical investment a
further boost. In 1999, the Dow Jones Sustainability Group Indexes (one global
index, three regional indexes and one country index covering the US) were
launched and in 2001, the arrival of the FTSE4GOOD index marks a further
move of SRI into mainstream investment (Broadhurst et al., 2005).
Socially responsible investments, thus have a special role to play in
alleviating poverty, creating empowerment, and establishing entitlement at
the grassroots level of socioeconomic development. They require easily
accessible, low cost, and amenable funds and technology that can be
sustained in the long-term rather than be some quick-fix solution. The end
point of many social enterprises is a participatory socioeconomic
transformation in which not only the non-competing poor and needy
cooperate with each other, but also meaningful relations are created
between the resourceful and the needy to enhance community well-being
(Choudhury et al., 2008).

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.”
Nowadays, it is so difficult for us to achieve financial freedom although
we are earning money especially if we are burdened with growing debt,

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unexpected cash emergencies, wildly extravagant spending, medical
emergencies and other issues that hampers us to achieve it.
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.

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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. Other companies have a limited sick days and others will even mark
you absent which will lead to loss of income. Ailments make insurance
premiums skyrocket and poor health may force earlier retirement with a
lower monthly income.

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Case Study

Gawad Kalinga (GK) Enchanted Farm

The GK Enchanted Farm is Gawad Kalinga’s platform to raise social

entrepreneurs, help local farmers, and create wealth in the countryside. As
we learned that the road out of poverty is a continuing journey and
therefore, providing homes is merely the beginning, we also realized that our
country is abundant with resources (land included) that we can harness for
every Filipino to continuously lead a life with dignity.
What Filipino entrepreneurs need today, especially young and rising
ones, is an environment that will help bring their ideas to life and challenge
them to aspire for the greatest social impact. This means keeping connected
to community and gaining access to good mentoring, value-added
networking, and basic facilities and resources. As a Village University,
classrooms are connected to communities, making it an ideal site for any
university student. Here, students will be exposed to how to start social
enterprises and communities.
Currently the following social enterprises can be found on the GK
Enchanted Farm:

a. First Harvest (Peanut Spread)

b. Golden Ducks (Golden Eggs/Duck Burger)
c. Gourmet Keso (Cheese/Gatas)
d. Herb Planting
e. Kara and Beaus (Ice Cream)
f. Mushroom Magic
g. Plush and Play (Stuff Toys)
h. Theo and Philo Artisan Chocolate
Aliza Racelis, Business Ethics and Social Responsibility First Edition, 2018

Guide Questions:
1. Do you think the GK social enterprise above are sustainable? Why or why
not?
2. Do you think that GK social enterprises help in poverty alleviation or
reduction?
3. Does it create financial freedom to its employees? Why or why not?
4. Why is establishing a business can help the community? Can it create jobs?
5. Why is it important for businesses to think beyond profit?
6. How about in your local community, does the local community benefit
from the business enterprises? In what way? Does these businesses create
jobs to your neighbors?

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 III. WHAT HAVE I LEARNED

EVALUATION/POST TEST:
Direction: Choose the best answer for each of the following questions. Write
your answer in a separate sheet of paper.
1. Why do people attracts more on sustainable business enterprises?
a. It is because they feel embarrass to work for a prestigious
organization.
b. It suggests 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.
c. It is because no matter what the values of the
work/management is, as long as the job seeker has a work,
he/she will still work.
d. No matter how tiring the work is, he/she will just say repeatedly “I
love my job”.
2. What are the importance of establishing and sustaining business
enterprises?
a. It can increase poverty.
b. More jobless and unemployment.
c. There is an increase of force labor.
d. It can alleviate poverty.
3. What do you mean by socially resposible investment or SRI?
a. It will not mind whether there are lots of unemployed people.
b. It alleviates poverty but will not creat empowerment.
c. They require easily accessible, low cost, and amenable funds
and technology that can be sustained in the long-term rather
than be some quick-fix solution.
d. It gives advantage populations a path to human development
and economic prosperity.
4. Who will benefit more in socially responsible investment (SRI) ?
a. The disadvantage population.
b. The advantage population.
c. The elites.
d. All of the above.
5. Below are the habits that help achieve financial freedom except:
a. Set life Goals
b. Pay off Credit Cards in staggered basis
c. Create Automatic Savings.
d. Watch your credit

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

FAY C. LUAREZ, TM, EdD, PhD

OIC - Assistant Schools Division Superintendent
Acting CID Chief

NILITA L. RAGAY, EdD

OIC - Assistant Schools Division Superintendent

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ARNOLD R. JUNGCO
Education Program Supervisor – (SCIENCE & MATH)

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

KRISTA MARIE P. ALMOGEN

Writer

CHRISTY BLEZEILLE L. POCONG

Lay-out Artist
_________________________________

ALPHA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO

BETA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
GIL S. DAEL
MARIA SOLEDAD M. DAYUPAY
MARIA ACENITH D PASTOR
JEE LIZA T. INGUITO
MERCYDITHA D. ENOLPE
RONALD G. TOLENTINO

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible learning
modality to the teachers and learners of the Division of Negros Oriental. The contents of this module are carefully researched,
chosen, and evaluated to comply with the set learning competencies. The writers and evaluator were clearly instructed to give
credits to information and illustrations used to substantiate this material. All content is subject to copyright and may not be
reproduced in any form without expressed written consent from the division.

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 REFERENCES

Racelis, Aliza. Business Ethics and Social Responsibility. 856 Nicanor Reyes, Sr.
St. Sampaloc, Manila: Rex Printing Company, Inc., June 2017: 93,131-
132,141.

Online Sources:

https://www.google.com/search?ei=VQesX_67MLCmmAXz74SwBQ&q=job+c
reation+definition&oq=job+creation&gs_lcp=CgZwc3ktYWIQAxgAMgwIABDJ
AxBDEEYQ-
QEyBAgAEEMyAggAMgIIADICCAAyAggAMgIIADICCAAyAggAMgIIADoJCAA
QQxBGEPkBOgUIABCxAzoLCC4QsQMQxwEQowI6CAgAELEDEIMBOggILhCxA
xCDAToKCAAQkQIQRhD5AToFCAAQkQI6BwgAELEDEEM6CAgAELEDEJECOg
gIABDJAxCRAjoHCAAQyQMQQzoICC4QxwEQrwFQ-6UPWKW2D2D-
1w9oAHABeACAAcsBiAHWC5IBBjAuMTEuMZgBAKABAaoBB2d3cy13aXrAAQE
&sclient=psy-ab

https://brainly.ph/question/2637290#:~:text=New%20technologies%20are%20
created%20and%20utilized&text=Hence%2C%20building%20a%20busin
ess%20is,for%20workers%20also%20gets%20high.
Published: April 7, 2020
https://www.etmoney.com/blog/what-is-financial-freedom-and-ways-
toachieveit/#:~:text=So%2C%20what%20is%20financial%20freedom,thin
gs%20just%20to%20earn%20money.

Published: August 30, 2019

https://www.nestle.com.ph/media/newsfeed/nestle-supports-coffee-
sugar-farmers

Published: December 07, 2013 by Rebecca Enright

https://www.co2australia.com.au/why-is-sustainability-important-for-
business/

Publised :June 7, 2013 by David Jones and Chelsea Willness.

https://www.nbs.net/articles/three-reasons-job-seekers-prefer-
sustainable-companies

Published: September 30, 2020 by Matt Daniellson

https://www.investopedia.com/articles/personal-
finance/112015/these-10-habits-will-help-you-reach-financial-
freedom.asp

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 SYNOPSIS AND ABOUT THE AUTHOR

SYNOPSIS ANSWER KEY

This SLK (Self-Learning Kit) is

about explaining the importance
of establishing and sustaining
business enterprises as a source of
job opportunities and financial
freedom.

There is an inspiring story that will

help you appreciate the
importance of establishing and
sustaining business enterprises as a
source of job opportunities and
financial freedom.

Find enjoyment in learning this SLK

and go over the discussion and
examples if you have not yet
mastered a concept.

AUTHOR
The Author: Krista Marie Pastidio Almogen,
graduated at St. Francis College – Guihulngan with
a degree of Bachelor of Science in Business
Administration major in Banking and Finance.
Studied Bachelor of Secondary Education – Crash
Program at Foundation University. Studied Master of
Arts in Teaching Mathematics at CTU Moalboal
campus in 2016. She worked at Semigire
Corporation from 2009-2016. She is currently
teaching at Sibulan National High School Balugo
Extension as grade 11 STEM Adviser.