DYNAMIC OF A BUSINESS FIRM

“Transaction” resulting from Business Operations

ownersinvestor

s

govern-ment workers

business

organi-zation

custo-mers

suppliers

capital

infrastructure

Taxes, leviesTariffs, other fees

goods & servicces ofthe expected quality

paymentsfees

paymentsFees, “product orBrand loyalty”

goods & services of the expected quality

salaries, wages benefits, bonuses “care”

incomedividendsprestige

loyaltylaborskillsexpertise

For the conduct of business towards employees:

For salary policy should be based on the right of the employees

Fore fair recruitment practice For adequate compensation for employees For safe and healthy atmosphere For condition in which human potentials and

relationships can be developed at all levels of the work force

For participative element so that the knowledge; experience and creativity of all who work may contribute to the decision-making process

For the conduct of business towards customers:

Strive after a qualityAvoid anything that would be

detrimental to the healthy and safety of the user

Seek to apply or make use of technologies

In its marketing arrangements, business shall:Deliver the product or serviceEstablish an after-sales and

complaints serviceEnsure that all mass media,

promotional and packaging communications be informative and true

Good community relations are vital because:

Keep the system of free enterprise alive and healthy

Business survival depends on good community relations

The welfare of individual business operation depends on good community relations

Unethical practices of management represented by employers:1. Bawling or shouting at employees in

public.2. Using profane language.3. Making employees scapegoats.4. Encouraging employees to spy on one

another.5. Entertaining gossips and ill-founded talks.6. attendance

7. Pirating officials and employees of other companies.8. Paying workers and employees less than what the minimum wage law prescribes.9. Failing to remit contributions.10. Keeping workers in the dark.

Unethical practices of employees:

1. Always with a complaint or grievance.

2. Arrogant salesladies.3. Some workers report for work

only when they are in a good mood.

4. Bringing home things that belong to the company.