EDNAMAE L.

CONOL ABM-12

ENTREPRENEURSHIP
1O COMPANIES AND ITS FOUNDER

COMPANY FOUNDER LAUNCHED

Larry Page and
Google Sergey Brin January 1996
Steve Jobs, Steve
Wozniak, and
Apple Ronald Wayne
2007
Bill Gates and
Microsoft Paul Allen April 1975
Jerry Yang and
Yahoo! David Filo 1994

Facebook Mark Zuckerberg February 2004

Jimmy Wales and

Wikipedia Larry Sanger January 2001

Ben Silbermann,
Paul Sciarra, and
Pinterest March 2010
Evan Sharp
Amazon Jeff Bezos July 1994
C
Samsung Lee Byung-Chul 1938
Ednamae L. Conol ABM-12

BUSINESS ETHICS

Business Role in poverty Alleviation

Poverty reduction, or poverty alleviation, is a set of measures, both

economic and humanitarian, that are intended to permanently lift people out
of poverty. ... The dawn of industrial revolution led to high economic growth,
eliminating mass poverty in what is now considered the developed world.

HOW THE BUSINESS COMMUNITY CAN HELP ALLEVIATE?

POVERTYPoverty can have adverse effects on business operations. Poverty
is often associated with illiteracy, which can affect productivity. Employees with
poor literacy skills may struggle to fully understand workflow instructions.
Consequently, they are prone to making work-related mistakes, resulting in
lost profits and reduced customer confidence.
 Poverty can also have a
profound impact on the community in which businesses operate. The lack of
stable income may drive people to turn to illegal activity to survive. In addition,
areas with rampant criminality can render a location unsuitable for business,
which may cause companies to move to safer areas, perpetuating the cycle of
poverty and crime in a community.
This negative cycle can be countered with a positive one: businesses can
avoid these scenarios by helping to alleviate poverty. Businesses can have a
positive impact on communities, and healthy communities are good for
business.
Invest in Expertise- and Capacity-Building
One root cause of poverty is the lack of access to markets and resources.
Businesses can address this by providing skills training and financing options
to disadvantaged people and communities. Skills training helps citizens
acquire the abilities to qualify for quality jobs. Financing helps poor
communities set up cooperatives and enterprises to lift them out of poverty.
A bank, for instance, can offer microloans to people who want to start their own
business. Some may not qualify for conventional bank loans because they
have no collateral, steady employment or a verifiable credit history. As a result,
they may be forced to borrow money from other sources, with extremely high
interest rates that will take up a significant portion of their income. Microloans,
in contrast, are small short-term loans with flexible repayment schedules.
Microloans allow less fortunate business owners to earn more without risking
defaulting on loans.
Invest in Women
Providing women with economic opportunities is another opportunity for
companies to help alleviate poverty. If women are trained to be entrepreneurs,
they can achieve financial stability independent of their husbands. In the event
their husbands are unable to work, they can continue providing for their
families, and their children’s quality of life will not be compromised.
Investing in women makes good business sense. If women have enough
money for food, healthcare, education and other benefits for their family, their
children have better opportunities to grow into healthy, educated and
competent adults, translating to a highly productive workforce and viable
consumer base.

Address Water Scarcity and Unsafe Sanitation

Water scarcity and unsafe sanitation lead to public health problems. A lack of
clean water can drive people to utilize unsafe sources, leading to water-borne
diseases such as diarrhea, hepatitis and cholera. Inadequate sanitation can
result in ailments such as intestinal parasitic infections. These illnesses can
lead to work absences and decreased employee productivity.
Businesses are addressing water scarcity and unsafe sanitation by helping
communities obtain access to municipal water supplies, and by building safe
and clean private toilets. Water is also essential for the maintenance of
business facilities, so it follows that adequate water supply and safe sanitation
will translate to healthier and more productive employees, as well as
fully-functioning business facilities.
Businesses can help alleviate poverty with programs and projects that aim to
improve the living conditions in underdeveloped communities. With the
alleviation of poverty, people become more capable workers and professionals
able to take advantage of the goods and services that businesses have to offer.
When businesses thrive, so does the entire community.
The role of small businesses in poverty alleviation, economic growth and
job creation has emerged as an important topic not only for policy
makers but also for academic research. The importance of small
businesses arises in view of the dismal performance of previous policies
that emphasized large scale industrialization. Recent economic reforms
have also created opportunities for the fledgling small businesses, and
thus generated interest in small business research initiatives. It is
generally agreed that encouraging the development of small businesses
is an effective way of fostering growth and alleviation poverty, despite
conflicting evidence obtained in several studies."

Corporation Social Responsibility

Law of the ethical dimension
Social responsibility is the assumed obligation of business to society. Being socially
responsible means to maximize the positive effects and minimize the negative effects
on society (customers, owners, employees, community, suppliers, and government).
There are four kinds of social responsibility: legal, ethical, economic and
philanthropic.
  is the duty of business to do no harm to society. In other words, in their daily
operations, businesses should be concerned about the welfare of society and
mindful of how its actions could affect society as a whole.
Economic aspects. Companies need to maintain strong economic interests so they
can stay in business. Being profitable and providing value to shareholders is part of a
company being socially responsible.
Legal aspects. A company must follow the law and have a legal obligation to do so.
For example, car companies are required to meet a certain level of emissions
standards in car production.
Philanthropic aspects. This is the expectation that companies should give back to
society in the form of charitable donations of time, money, and goods. Some
organizations, such as REI, based in Seattle, Washington, donate 3 percent of profit
and thousands of hours to nonprofit community groups each year.REI Website,
accessed February 25, 2012,Based on these areas, many believe business should go
above and beyond the law to act ethically, meet expectations of society, and even go
beyond by donating profit back to the communities in which the businesses operate.
As we mentioned at the start of this section, businesses are not the only ones who
engage in social responsibility. Since people run businesses, often we see business
social responsibility initiatives that are directly related to individuals in the organization.
For example, the Body Shop founder, Anita Roddick,Lyall, S. (2007, September 12).
Anita Roddick, founder of the Body Shop, dies at 64. New York Times, accessed June
2, 2012,cared deeply for the environment and for animals, and as a result, her
organization (now owned by L’Oreal) focused on environmentally friendly products
and products that did not test on animals. This is an example of how social
responsibility in organizations can be a direct result of the individual’s care and
concern.
Legal dimension of CSR relates to compliance with laws and regulations established
by the authorities, which set standards for responsible behavior – the codification of
what society thinks is right or wrong. Legal regulation of businesses leadership are
made because the society, including consumers, interest groups, competitors and
legislators, cannot be confident that businesses do what is right in a particular field,
such as consumer or environment protection. This lack of confidence is the strength
of legal size. Many ethical and economic issues go to court or legislative debates. In
other words, the laws set rules for responsible businesses activities. They can be
divided into laws that regulate competition, consumer protection laws, environmental
laws and laws that promote safety and fairness.
Ethical dimension of CSR refers to behaviors and activities that are permitted or
prohibited by organization members, community, society, even if they are not codified
by law. Milton Friedman said that “the basic mission of any business is to produce,
with profit, goods and services, making the business to achieve its maximum
contribution to society and, in fact, to be socially responsible.
Acting ethically means going above and beyond the legal requirements and meeting
the expectations of society. In a recent example, Apple Inc. policies were questioned
when it was discovered the high suicide rate of workers producing iPhones in the
Chinese Foxxconn factory. As a result of the newfound awareness, Foxxconn raised
the salary for workers from 900 yuan ($143) to 1,800 yuan.Eaton, K. (2012, February
24). Apple and Foxconn’s ethics hit your gadget prices. Fast Company, accessed
February 24, 2012,In other words, the ethical expectations (and outrage) of society
can encourage companies to act ethically.