Social Responsibility

Social responsibility means that businesses, in addition to maximizing shareholder value, must act in
a manner that benefits society. Social responsibility has become increasingly important to investors
and consumers who seek investments that are not just profitable but also contribute to the welfare
of society and the environment.

Responsibility of Entrepreneur Towards Local Community

Encouragement to Healthy Competition

The entrepreneur should encourage healthy competition among the local community and make
good quality commodities available to the public at fair prices.

To Save Local Environment from Pollution

Risks of pollution of the environment at the factories sites, due to the smoke of the coal, polluted
water and manufacturing process cannot be ruled out.

To Help in Activities of Public Utility

The entrepreneur should cooperate in providing facilities for the public utility to the local community
like Education, entertainment, medical, housing, libraries, etc.

To Provide Employment to Local Community

The entrepreneur should provide more and more employment to the local people of the place
where he is establishing his business unit or is performing the business activities.

Responsibilities and Accountabilities to the Employees

Pay Wages and Taxes

Entrepreneurs have the responsibility to pay their employees of their business at least the minimum
hourly wage in their locality and to pay each employee money owed from working per pay period
including overtime, sick leave and vacation wages.

Create and Maintain a Safe Workplace

Entrepreneurs must also make employees aware of areas in their business that have a high risk for
injury and train their employees in safety procedures to minimize the risk of injury.

Facilitate Workers' Compensation Insurance

Despite business owners' best efforts to maintain a safe working environment, accidents will
happen.

Enforce Anti- Discrimination Law (EEO)

It is illegal to discriminate against anyone according to their culture. EEO stands for Equal
Employment Opportunity which means that employees cannot be disadvantaged, dismissed, or
not given employment for any of these reasons.
Create and Maintain a Favorable Working Environment

You should try to provide a healthy working environment which respects each person and their
opinion is considered.

Support Career Development

Provides a human resources development system that supports the careers of employees, a self-
development support program.

Train and Educate Employees

Promoting knowledge is important in changing the business environment.

Give Rewards and Benefits

Reward your employees fairly and attractively in line with the prevailing conditions on the local
market.

Responsibilities and Accountabilities to the Environment

Comply with Environmental Legislation

Store waste safely and securely. Make sure it is treated appropriately.

Recycle
Businesses are required to separate commercial waste such as paper, card, plastic, metals and glass.

Report an Incident

Incidents like gas leaks, damage or danger to the natural resources, pollution to water or land, illegal
fishing, collapsed or badly damaged river or canal banks and etc.
FORMS OF SMALL BUSINESS OWNERSHIP

Sole Proprietorship - a type of business entity owned and operated by a single person
Advantages
1. Ease and Cost of Formation - requires only the sole owner's resolve to start operating and
getting the needed permits and licenses
2. Secrecy - not required by law to share information with anyone
3. Distribution and Use of Profits - freedom to use profits in any way desired
4. Control of the Business - sole authority which is important especially under critical
competitive situations
5. Government Regulation - spared from government rules and charter restrictions on
operations
6. Taxation - net income treated as personal income of the sole owner
7. Closing the Business - can be dissolved by the owner at will

Disadvantages
1. Owner's Lack of Ability and Experience - need for a "generalist" skilled in various
specializations
2. Difficulty in Attracting Good Employees - good employees tend to get employment in a
more stable enterprise
3. Difficulty of Raising Capital - depending on the financial resources of the sole owner
4. Limited Life of the Firm - depending on the physical well-being of the owner
5. Unlimited Liability of the Proprietor - possibility that liabilities made may affect personal
assets

Partnership - legal association of two or more persons as co-owners of an unincorporated business

Advantages
1. Ease of Formation - requires only the agreement of partners on basic aspects
2. Pooling of Knowledge and Skills - different individuals and complementary skills sets
3. More Funds Available - combined resources
4. Ability to Attract and Retain Employees - offering of partner status to valuable employees
5. Tax Advantage - company's income not taxed separately from the partners' incomes
Disadvantages
1. Unlimited Liability - burden still to be carried by the other partner/s, even if they opted to
have limited liability
2. Limited Life - depending on the health and willingness of the partners
3. Potential Conflict Between Partners - for example disagreement on ways of operating, new
product lines and employees, and employees' welfare benefits.
4. Difficulty in Dissolving the Business - Whatever assets are left and liabilities remain unpaid
are not easy for the partners to share.

Types of Partnership

1. General partnership - two or more persons, each with unlimited liability, actively involved in the
business

2. Limited partnership - when liability of one or more partners is limited to the amount of assets
invested

Corporation - an enterprise chartered by law, with most of the legal rights of a person, including the
right to conduct a business, to own and sell property.. to borrow money, and to sue or be sued;
owners = stockholders

Advantages
1. Limited Liability - few shareholdings = few liabilities
2. Ease of Expansion-attracts even the smallest investor because price per share of stocks can be
made low enough
3. Ease of Transferring Ownership - disassociation of stockholder made by selling or donating his
shares to another person
4. Relatively Long Life - may last for up to 50 years and may be extended indefinitely through
renewals of documents
5. Greater Ability to Hire Specialized Management - can divide overall job into smaller specialized
positions due to expanded operations

Disadvantages
1. More Expensive and Complicated to Organize - takes months or years before it can
operate; can start operation only after receiving a certificate of incorporation from
the Securities and Exchange Commission (SEC)-which, alone, has nine
requirements- and upon submission of the treasurer's affidavit indicating payment
of minimum subscribed capital stock
2. Double Taxation - first, when the corporation realizes profits; second, when
individual stockholders declare the dividends received as part of personal income
3. More Extensive Government Restrictions and Reporting Requirements - for example –
prohibition of certain actions without SEC's approval and annual submission of financial
statements which should be made available to the public
4. Employees Lack Personal Identification With and Commitment to Corporate Goals –
because stockholders are often detached from daily operations and most employees do not
own stocks
Modifications of the Corporate Form of Ownership
Cooperative - composed of individuals or small businesses that have banded together to reap the
benefits of a larger organization; not built for profit but to make every member profitable

Types of cooperative
1. Credit Union - accepts deposits from and lends money to members at a reasonable
interest rate
2. Producers Cooperative - members collaborating to procure raw materials, machinery,
equipment, and other time-saving devices
3. Marketing Cooperative - assists members in marketing their produce
4. Consumers Cooperative - provides members quality goods and services at reasonable
prices
5. Service Cooperative - makes services readily available and at a lower price

Mutual Company - a financial-service firm owned by its policyholders or depositors

Types of mutual company

1. Mutual Savings Bank - depositors; savings and mortgage loans
2. Mutual Insurance Company - policyholders voting controlled by the insured

Other Forms of Business Organization

1. Joint Stock Company - wherein the capital is divided into small units permitting a number of
investors to contribute varying amounts to the total, profits being divided between stockholders in
proportion to the number of shares they own

Advantages

similar to a corporation plus fewer taxes, greater ease of formation, mobility, and freedom from
government regulation

Disadvantages

lacks legal personality to enter into contracts and hold title for property: unlimited liability

2. Joint Venture - partnership established for a specific undertaking (e.g., producing a movie or a
concert, mining or oil exploration, projects such as dam or an airport, underwriting, or selling of
securities)

3. Business Trust - when a trustee is appointed to manage the business under a trust agreement -
the owners convey their property, securities, or other assets to a trustee in exchange for
transferable trust certificates entitling the owners to participate in the profits and transferring
the liability to the trustee
Chapter 3: ETHICS AND SOCIAL RESPONSIBILITY

What is Business Ethics?

• Ethics - the study of morals and moral choices of human beings

 Business ethics - the moral principles defining right and wrong behavior of businesspersons
and their agents

The Need for Ethical Behavior - to make the "playing field" free and orderly

Areas of Concern for Business Ethics

1. Laws and regulations promulgated by the government.
2. Specific ethics required but not yet passed into law.

Concerns relating to laws and regulations requiring ethical behavior:

1. Product safety and quality

2. Fair employment practices
3. Fair marketing and selling practices
4. Use of confidential information for personal gain
5. Community involvement
6. Bribery
7. Illegal payments to foreign governments to obtain business

Current Issues in Ethics

1. Owners of food stalls serving spoiled food to customers.
2. Business owners making fictitious insurance claims.
3. Schools awarding diplomas to undeserving persons.
4. A contributor bribing a government official to manipulate the bidding of contracts.
5. A drug manufacturer making false claims regarding the efficacy of his product.
6. A television station copying format of a rival station's show.
Coverage of Company Sponsored Ethics Program
1. Drug and alcohol abuse
2. Employee theft
3. Conflicts of interest
4. Quality control
5. Misuse of proprietary information
6. Abuse of expense accounts

PURPOSES OF ESTABLISHING A BUSINESS ENTERPRISE

There are thousands and one reasons why people create a business or an enterprise: Here are
some common reasons:
• To make Money and Have Financial Independence
• To be your own boss
• To self-Actualize/ fulfill Own Interest and Enjoyment
• To Make Dreams come True
• To use your skills and knowledge for yourself
• To have variety of works
• To create opportunities
• To employ relatives, friends and community members
• To take up a challenge
• To be efficient at work
• To set and meet own deadlines
• To avid commuting
• To create a customer
• To offer value
• To have more life, more freedom
• To solve problems
• To move society, to change the world, to make the world better
• To build our future
Outline: Core Principles in Business Operation
A. Core Principles in Business Operations
1. Fairness
2. Accountability
3. Transparency
4. Stewardship

B. Samples of Core Principles in Business Operations of Companies

1. UN Global Compact
2. Shell Global
3. Bank of America

The following are some of the Core Principles in the Operation of any business.
1. Fairness- refers to the level of even-handedness in dis justice whereby claims are recognized
in order of their leg contractual priority,
2. Justice means giving each person what he or she deserves or, in more traditional terms,
giving each person his or her due (Velasquez, Andre, Shanks, & Meyer, 2014)
3. Justice and Fairness are closely related terms that are often today used interchangeably.

There have, however, also more distinct understanding of the two terms. While Justice usually has
been used with reference to a standard of rightness, Fairness often has been used with regard to an
ability to judge without reference to one's feelings or interests; Fairness has also been used to refer
to refer to the ability to make judgements that are not overly general but that are concrete and
specific to a particular case. (Velasquez, Andre, Shanks, & Meyer, 2014)

a. Principle of Justice

“Equals should be treated equally and unequals unequally". The most fundamental
principle of justice - and one that has been widely accepted since it was first defined
by Arestotle. In its contemporary form, this principle is sometimes expressed as
follows. "Individual should be treated the same, unless they differ in ways that are
relevant to the situation in which they are involved.

b. Different kinds of Justice

1. Distributive Justice refers to the extent to which society's institutions ensure that
benefits and burdens are distributed among society's member in ways that are fair
and just.
2. Retributive or Corrective Justice refers to the extent to which punishments are fair
and just.
3. Compensatory Justice- refers to the extent to which people are fairly
compensated by their injuries by those who have injured them, just compensation
proportional to the loss inflicted on a person.

2. Accountability
 Is the obligation of an individual or organization to account for its activities, accept
responsibility for them, and to disclose the results in a transparent manner.
 It includes the responsibility for money or other entrusted property.
 In organizations, accountability is a management control process in which responses are
given for a person's actions.
  These responses can be positive or negative. Depending on the response, the person might
need to correct his or her error

In other words, Accountability refers to an individual responsibility for the work performed and
answering to peers and superiors for performance.

Corporate Accountability
Refers to the act of being accountable to the stakeholders of an organization, which include
shareholders, employees, suppliers, customers, the local community, and even the particular
country that the firm operates in.

Accountability is often synonymously with responsibility, blameworthiness, and liability.

3.Transparency
 Refers to the lack of hidden agendas and conditions, accompanied by the availability of
full information required for collaboration, cooperation, and collective decision-making.
 It refers also to the minimum degree of disclosure to which agreements, dealings,
practices, and transactions are open to all for verifications.
 It is essential condition for a free and open exchange whereby the rules and reasons
behind regulatory measures are fair and clear to all participants.

Corporate transparency
 Describes the extent to which a corporation's actions observable by outsiders.
 This is a consequence of regulation, local norms, and th set of information, privacy, and
business policies concerning corporate decision-making and operations openness to
employees, stakeholders, shareholders, and general public.
 From the perspective of outsiders, transparency is simply as the perceived quality of
intentionally shared information from the corporation

-Transparency in a business or governance context, is honesty and openness.

-Transparency and accountability are generally considered the two main pillars of good corporate
governance.
-In general, transparency is the quality of being easily seen through.

4. Stewardship
 Stewardship encompasses the ethical responsibility to act on behalf of others and
to honor the responsibilities of service, rather than to pursue one's own self-
interest.
 Stewardship is an ethic that embodies the responsible planning and management of
resources

- The concepts of Stewardship can be applied to environment and nature, economics, health,
property and information theology.
- Stewardship responsibilities were eventually expanded include everything the domestic,
service and managemen needs of the entire household.
- Stewardship is now generally recognized as the acceptance or assignment of responsibility
to shepherd and safeguard the valuables of others.

In business, it has been used by CEOs to denote the concept that "as a stewards, you try to leave the
company in better shape for your successor than it was handed over you by your predecessor.
Product Stewardship refers to the understanding, controlling, and communicating a product's
environmental, health, and safety-related effects throughout its life cycle, from production(or
extraction) final disposal or reuse.

Business around the world are designing and implementing business ethics programs to address
the legal, ethical, social responsibility, and environmental issues they face. By addressing these
issues in a systematic way, enterprises can improve their own business performance, expand
opportunities for growth, and contribute to the development of social capital in thr markets. They
can realize specific business benefits:

Such benefits are the following:

1. Enhanced reputations and good will.
2. Reduced risk and costs.
3. Protection from their own employees and agents.
4. Stronger competitive positions.
5. Expanded access to capital, credit and foreign investment.
6. Increased profits.
7. Sustained long term growth.
8. International respect for enterprises and emerging markets.

Enterprises that excel in these areas create a climate excellence for their employees, shareholders,
an communities, and contribute to the economic well- being of their countries. Enterprises may use
a different set of values to determine what i ethical.

Many Philosophers and educators who have spent their lives thinking about ehics have concluded
that there are some universal moral imperatives or obligations that form the basis of civilized
behavior and are necessary for any society to function.

Michaell Josephson is an attorney and founder of the Joseph and Ed Josephson Institute for the advancement
of Ethics, a non-profit institut that has been in the forefront of defining ethical behavior in business.

He believes that most people have a built-in sense of what is right or wrong. The proof, he says, is that we feel
guilty and shame when we do the wrong thing. Despite the knowledge, we often ignore our ideals about what
constitute the proper behavior. We have become a rights-oriented society. Sometimes we feel we have a right
to certain things, nut we have forgotten that with those rights come certain responsibilities. Too often, says,
Josephson, we measure our lives by what we get, wha acquire, and who we know.

"It is the need to win, to be clever, and to be successful in other people's eyes that sometimes causes people
to sacrifice the fundamental ideas., "he says. Sometimes business people feel that the only way to be
competitive and win is to be completely selfish- put their own interests above those of everyone else. Some
justify the philosophy of putting our own interests ahead of everyone else by saying life is like having your
hand in a bucket of water- when you remove it, the water settles down within moments and no one knew you
ever lived, therefore, you should try to get everything for yourself because it will make no difference to anyone
else in the long

1. UN Global Compact The Ten Principles of the UN Global

Compact(www.unglobal.compact.org) The UN Global Compact's Ten Principles are derived
from: The Universal Declaration of Human Rights, The International Labor Organization's
Declaration on Fundamental Principes and Rights at Work, The Rio Declaration on
Environment and Development, and the United Nations Convention Against Corruption.
 - Corporate sustainability starts with a company's value system and a principled approach
to doing business. This means operating in ways that, at a minimum, meet fundamental
responsibilities in areas of Human Rights, Labor, environment, and corruption.
Responsible businesses enact the same values and principles wherever they have a
presence, and know that good practices in one area do not offset harm in another. By
incorporating the Global Compact Principles into strategies, policies and procedures, and
establishing a culture of integrity, companies are not only upholding their basic
responsibilities to people and planet, but also setting stage for long term success.

On Human Rights
Principle 1: Business should support and respect the protection of internationally proclaimed
human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.

On Labor
Principle 3: Business should uphold the freedom of association and the effective recognition of the
right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labor;
Principle 5: The effective abolition child labor;
Principle 6: The elimination of discrimination in respect of employment and occupation.

On Environment
Principle 7: Business should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Encourage the development and diffusion friendly technologies.

On Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and
bribery.

2. Shell Global
As a global energy company operating in a challenging world, we set high standards of
performance and ethical behaviors. We are judged by how we act-our reputation is upheld
by how we live up to our core values of HONESTY, INTEGRITY, AND RESPECT
FOR PEOPLE. Our eight Business Principles are based on these core values and
indicate how we promote trust, openness, teamwork and professionalism, and pride in
what we do. They were one of the first global companies to state and share their beliefs
by publishing their General Bus ss Principles in 1976. Part of these Principles, they
commit to contribute to sustainable development, balancing short- and long-term interests
and integrating economic developmental, and social contributions into their decision-
making. All employees and contractors, those at joint ventures they operate are expected
to understand and behave according to their business principles at all times.

Shell is guided by their core values and business principles that covers the following areas:
economic; competition; business integrity; political activities; health, safety, security and the
environment; local communities; communication and engagement; and compliance. They are all
underpinned by the core values of honesty, integrity and respect for people.
 3. Bank of America
Bank of America is guided by Operating Principles that define how we operate the company
and serve the financial needs of our customers and clients.

Common Practices in Business Organizations

Business Strategy
Plan, Teamwork, Marketing, Opportunity
Business Practices- is a method, procedure, process, or rule employed or followed by a company in
the pursuit of its objectives.

A. Decorum
 When working in the Philippines, there are a few guidelines one oug to follow in order to
avoid alienating one's colleagues and basmess partners.
 In general it takes time to establish strong business relationships. Be patient and stick to
these tips on business etiquette.
 An individual who exhibits politeness and decorum is often reward with success in his
chosen field.
 There are, however additional formalities he must learn to assure that he is viewed by
superiors, peers and customers alike as a pleasant and cultivated professional.

Adherence to the proper etiquette for a business meeting establishes respect among meeting
participants, helps the meeting begin and end on time, and fosters an atmosphere of cooperation.
 A lack of etiquette and poor planning are two of the main reasons why many business meetings
fail.
 Managers must teach their employees business meetings etiquette ensu hat there business's
meetings are effective.
 Poor business etiquette can cost him the trust of his workers and his customers, and loss of
valuable business opportunities.

DECORUM-Propriety and good taste in conduct and appearance, polite behaviors.

 On time and Promptness -The fact or habit of being on time; punctuality
 On Preparation Something done to get ready for an event or undertaking; The action or
process of making ready or being made ready for use or consideration.
 On Attire and Appearance
-The clothing you wear to your interview should make you look like you fit in at your
prospective employer.
-Personal appearance. Means the outward appearance of any person irrespective of sex
with regard to hairstyle, beards, or manner of dress.
 On Agenda
An agenda is a list of the items that have to be discussed at a meeting. Is a list or
outline of things to be considered or done. The things that a person or organization
considers to be important and wants to solve or achieve, or their reasons for wanting to do
something
 On Decorum behavior that is socially correct, calm, and polite
- a particular requirement of good taste and propriety.
-behavior that is controlled, calm, and polite: As young ladies we were expected to
act/behave with proper decorum.
 On Basic Courtesy and Respect Courtesy refers to being polite. Respect refers to admiration
for someone because of their qualities or achievements.
One of the basic elements of business etiquette is courtesy, or respect, which should be displayed to
the people you work with, including your customers, no matter what. You should consider the
feelings of others and address conflicts in a straightforward and impersonal manner.
 Raising your voice
 Using bad language
 And interrupting others are discourteous and show disrespect to others.
People who are disrespect may find themselves losing credibility and the respect of their peers.

Good etiquette involves showing respect not only to your superiors but also to your peers and
subordinates, in other words, to everyone.
 If you treat everyone with respect, you will avoid making costly mistakes and experiencing
discomfort by accidentally treating a superior in a disrespectful way.
 A consistently respectful attitude will also build your credibility within the business and
industry.
 Showing respect also means refraining from gossip and from being critical negative to or
about others.

 On Greetings
-a polite word or sign of welcome or recognition.
-the action of giving a sign of welcome or recognition.
- "she raised her hand in greeting"
Standard greetings are an exchange of handshakes and a smile.
 Informal situations, the oldest or the most important person is greeted first.
 Women who knew each other well may embrace.
 Converse with your Filipino colleagues before and after meetings and try to relationships
with them. establish personal
 Prepare to be asked a lot of a personal questions.

 On Handshakes "she raised her hand in greeting"

o The rules of handshakes are about the same as in the West, although Filipinos may
use a little more contact( a pat on the side of the arm as a gesture of hospitality or
friendship.)
o It there is a clear status differential, or you are meeting a senior executive, it may be
best to let him/her offer the handshake first.
 On body language
 Filipinos have a fascinating nonverbal language, much of it involving facial expressions.
 Lifting the eyebrows without smiling means no- but lifting the eyebrows while smiling is
used to greet a friend.
 Filipinos often point by pursing their lips.
 Pointing your finger is a definite no-no, and you should avoid "too direct" eye contact.
 Direct or continuous eye contact as staring is considered rather rude and
confrontational.

On Appropriate Communication
Business etiquette involves communicating effectively. This includes always returning phone calls
and emails. When calling or receiving a call, you should always identify yourself and your
department, and speak in a polite and considerate manner. Personalize the conversation with a
short question about the other person rather than rushing straight into business., This will help you
to make connection with your caller. When communicating with colleagues and customers via email,
a professional should always use the same greetings and salutations she would use in standard
correspondence. "Dear," "Sincerely", "please" and "thank you" go along way in ingratiating herself in
the receiver's good graces. Additionally, never type emails in all capital letters, as this is akin to
yelling to someone.

On Bargaining
 Bargaining is a part of the Filipino's way of life, and it has become natural for the region's
businessmen to negotiate and bargain in order to obtain better commercial conditions.
 Do not get angry and avoid shouting or imposing unreasonable deadlines for decision-
making.
On Bringing Guests
 Do not bring unannounced guests to a meeting. If you have someone you would like to bring
to a meeting, then contact the chairperson for permission to bring your guest. If permission
is not granted, then do not bring him.
On building relationships
 Show others that you value their work by taking the time to visit and talk with them.
 This can include not only your immediate colleagues but also people who work under you,
such as secretaries and janitorial staff.
 These people can help you look more professional and will go the extra mile for you if you
treat them with respect.
 Make time to actually talk to people; do not rush off immediately after exchanging greetings.
You can also create a database of your colleagues and contacts, in which you list their
birthdays, spouses' names and birthdays, etc. Send a card or word of congratulations when
an important event occurs in their lives.
 Such thoughtfulness will help you build better relationships.
On Business Meals and Recreation
 Entertainment in the business world takes place in restaurants, bars, and hotel lounge bars,
at homes and sometimes in night clubs. Karaoke is popular and if you are invited to a
karaoke bar, you must expect to be invited to sing. In general, in restaurants the person who
issues the invitation is the one who pays.
On Gift-giving
 Imported brandy and whiskey are prized gifts, even if the recipient does not drink alcohol. If
your given a small gift, accept it amiably, but do not open it in front of other guests or only
do so after you have left. Gifts are generally not opened

B.PROTOCOL
 In general, protocol means the unwritten rules or guidelines that are peculiar to every
culture or organization, and are supposed to observe by all parties in the conduct of
business, entertaining, negotiating, politics,etc. Business protocol is a general term that may
define several aspects of business. Everything from behavior and dress to task execution is
defined under a business's protocols. These guidelines are typically defined for each
employee upon being hired.
Employees might be asked to provide written proof that they have read, understood and agree to
the terms of their company's protocol.(Monet 2016)

1. THE BASICS OF PROTOCOL

The purpose of business protocol is to encourage all employees in a company to act
in a unifm manner. Business etiquette can be developed for face-to-face meetings and
conferences, and phone calls or e-mails with the public, partners, donors or the media and
provide employees with positive ways to answer these challenges. Business protocols helps
ensure that all employees understand their role in the company, the tasks and challenges
they face, and how to execute them as quickly and accurately as possible. (Monet,2016)
2. TRAINING IN PROTOCOL
A business may provide business protocol and etiquette training for its employees.
These training may occur at another location or on- site where the business itself is located.
 Etiquette Expert notes that an increasingly diverse workforce requires such training to help
people from all walks of life communicate with each other and work together,
 Protocol and etiquette may help bridge economic, cultural, knowledge and language gaps.
( Monet, 2016)
3. BENEFITS OF PROTOCOL
 Business protocol helps present uniform, professional face to face to the public, to
partners and donors. Business protocol may unite employees under common goals
and ensure the tasks executed to the preferences of the company's owner.
 Confusion is eliminated and employees may be trusted to perform tasks quickly and
independently employees who are presented with a business's protocol and
etiquette up front will be able to make informed decisions about whether the
company is right for them. (Monet,2016)
4. INTERNATIONAL BUSINESS PROTOCOL When doing business sin a foreign
country executives and managers are considered acceptable in social and professional
relationships. The culture and traditions of each country make people behave
differently and if international managers do not know how to adapt to business culture
differences, they can cause rejection in the other party and even jeopardize the success
of negotiations. Some Aspects related to international business protocol are: Greetings
and Introductions Business Attire
 Names and Titles
 Tipping Tips
 Organizing meetings
 Punctuality and Time Gift Giving Business Cards Preliminary conversations
Verbal communications Non-Verbal communication Business Meals
5. Examples of Protocols in the Philippines
Do not be taken in by the veener of Western culture n on the Philippine way of life: in spite
of the mixture of cultural influences and its usual tolerance, Philippine society remains
attached to traditional Asian values. The importance of network, is not necessarily in charge
of meetings, but rather prefers to lket technical experts negotiate details. Sometimes you
have to be prepared to deal with both levels.
a. FILIPINO FAMILY-MODELED BUSINESS The different working relationships and
roles of individual employees often resemble the structure of a Filipino Family. The boss
plays paternalistic role and heads a hierarchical management. In this type of business world,
which is prevalent in most Southeast Asian countries, a high status, mutual respect, and a
good reputation are essential to success. Therefore, age and status demand high levels of
respect.
Do not underestimate the influence of the family unit and the effect it has on
business. In general, businesswomen do not face more difficulties than their masculine
counterparts.
b. BUSINESS IS PERSONAL
The Philippine business environment is highly personalized and it is good to deal with
business matters on a face-to-face basis.
c. STATUS-CONSCIOUSNESS Filipinos are very status-conscious, and the use of formal titles
is an important way of showing respect to your business partners and colleagues.
d. POLITENESS AND AMBIGUITY For Filipinos, the word "no" is almost non-existent. Given
the culture value of pakikisama and the importance of maintaining social harmony,
disagreement or interpersonal tension of any sort is distasteful.
C.POLICIES
It defines the scope and spheres within which decisions can be taken by the subordinates in an
organization. It permits the lower level management deal with the problems and issues without
consulting top level management every time for decisions.
Business policies are guidelines developed by an organization to govern its actions. It is also a study
of the roles and responsibilities of top level management, the significant issues affecting the
organizational success and the decisions affecting the organizations in long run.

Features of Business Policy

 Specific: Policy should be specific/definite. It is uncertain, then the implementation Il be
difficult.
 Clear: Policy must be unambiguous. It should avoid the use of jargons and connotations.
There should be no misunderstandings in following the policy.
 Reliable/Uniform: Policy must be uniform enough so that it can be efficiently followed by the
subordinates.
 Appropriate: Policy should be appropriate to the present organizational goal.
 Simple: a policy should be simple and easily understood by all in the organization.
 Inclusive/Comprehensive: In order to have a wide scope, policy must be comprehensive.
 Flexible: Policy should be flexible in operation/application. This does not ni8mply that a
policy should be altered always, but should be wide in scope so as to ensure that the line
managers use them in repetitive/routine scenarios.
 Stable" Policy should be stable else it will lead to indecisiveness and uncertainty in minds of
those who look into for guidance. 9Business Policy Definition and Features" 2016)

Differences between Policy and strategy

The term Policy should not be considered as synonymous with the term Strategy.
a. Policy is a blue print of the organizational activities which are repetitive routine in nature. While
strategy is concerned with those organizational decisions which have not been dealt/faced before in
the same form.
b. Policy Formulation is the responsibility of top level management. While strategy formulation is
basically done middle-level management.
C. Policy deals with routine/daily activities essential for the effective and efficient runn of an
organization. While strategy deals with strategic decisions.
d. Policy is concerned with both thought and actions. While strategy is concerned mostly with
action.
e. A Policy is what is, or what is done. While strategy is a methodology used to achieve a target as
prescribed by a policy.("Business Policy-Definition and Features; Differences between Policy and
Strategy." 2016)

MARKETING-refer -refers to the process of product development as well as sales promotion, and
distribution. It is often confused with promotion or advertising

F. BOOKKEEPING- Accounting, simply put, is keeping track of money. This applies to an individual's
personal finances as well as a huge firm's accounting books.
The most basic activity in accounting is bookkeeping.
Bookkeeping-is the process of recording all financial transactions to keep track the cashflow. It is
usually an entry level job for accountants. They can also be used as a basis for decisions during
mergers and acquisitions. (Ryan, 2010)
Single-entry bookkeeping is an accounting system under which every transaction is recor d in a
single line only.
Double-entry bookkeeping is a kind of bookkeeping is a kind of accounting system governed by
certain rules which ensure that each transaction that takes place is reflected in two separate
accounts.

H. DOCUMENTATION- refers to the process and items which serve as evidence for the validity or
truth of a certain claim or statement. As the name suggests, this involves the use of documents or
tangible records, whether in physical or electronic format. Documentation is necessary for the
conduct of any business, transaction, or project. It serves as a record of every official action taken
and may come in very handy in the future, should a chronological account of events be necessary for
legal or business purposes. It is also an indispensable tool which actually allows transaction to take
place, assets to be recorded, profits and obligations to be tracked, and for transactions to be
validated, among many others.

K. Why is a Code of Ethics Important?

Must there Be a formal Code of Ethics
There is ample evidence to suggest tha
just make decisions without thinking out of all ethical implications or potential pitfalls.

Sample Code of Ethics

Code of Ethics, also code a code of conduct or ethical code, sets out the company's values, ethics,
objective, and responsibilities. A well written code of ethics should also give guidance to employees
on how to deal with certain ethical situations.

Every code of ethics is different and should reflect the company's ethos, values and business style.
Some codes are short, setting out only general guidelines, and others are large manuals,
encompassing a huge variety of situations.

Ends
Means
Intent