Professional Documents
Culture Documents
Ethics in Entrepreneurship
Ethics in Entrepreneurship
DEFINING “ETHICS”
- THE DISCIPLINE DEALING WITH WHAT IS GOOD & BAD WITH MORAL DUTY & OBLIGATION
- MORAL PRINCIPLES THAT WERE DERIVED FROM BELIEFS ABOUT RIGHT & WRONG THAT WERE
USED TO JUDGE CONCRETE ACTIONS
ETHICS ARE THE MORAL VALUES & BEHAVIORAL STANDARDS BUSINESSES & PEOPLE DRAW ON AS THEY
MAKE DECISIONS & SOLVE PROBLEMS. IT PROVIDES THE BASIC RULES OR PARAMETERS FOR CONDUCTING ANY
ACTIVITY IN AN “ACCEPTABLE” MANNER.
BUSINESSES DEVELOP THEIR OWN CODES OF ETHICS OR CONDUCT OF CONDUCT. THESE OUTLINE WHAT
EMPLOYEES ARE TO DO IN ORDER TO CARRY OUT WHAT THE COMPANY SEES AS THE “RIGHT THING TO DO” IN
VARIOUS CIRCUMSTANCES.
ETHICAL CHALLENGES
Facing today’s entrepreneurs are decades of erosion of general ethical standards in the society.
Entrepreneurs work under many pressures, especially time pressure, which leaves little time for
reflection to check the ethical standards of their actions & make rectifications when necessary.
Entrepreneurs are constantly bombarded with the idea that they are the driving force in the economy &
thus must act fast in managing, overcoming risks, & creating novelty all the time.
A deliberate effort should be made by the entrepreneur to develop & actively promulgate a code of
ethics.
Code of ethics is the basis for the company to define what is moral, ethical, & fair. It spells out the norms
to be followed in transacting business honestly.
Moreover, entrepreneurs have to define the values they will consider when aiming for their
entrepreneurial success. Examples of ethical values to be considered are: (1) improved quality & quantity of old
or new products/services, (2) increase in market share, (3) growth in profits, & (4) contribution to the
community.
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POSITIVE RESULTS OF ETHICAL PRACTICE
The practice of ethics within and outside the company projects the reputation of the entrepreneur as a
good partner in business. The entrepreneur's ethical decisions will make others trust him and the business he
runs. And suppliers are very happy when they are paid promptly for goods ordered or money owed. Positive
and healthy community relations also result from ethical entrepreneurship.
(1) Identify the general principles that would lead the enterprise to fair business practices.
(2) Check with pertinent government agencies, industry associations, & business chambers for ethical
standards to review & use as pattern.
(3) Allow for the fact that ethical questions do not always have a unique, perfect answer.
(4) Write out specific statements that will assist everyone including the entrepreneur, & all the stakeholders,
in making day-to-day ethical decisions.
(5) Meet with groups of stakeholders according to the interest, role, or function & present the draft of the
Code of Ethics.
(6) Ask for opinions, suggestions, & recommendations for improvement from the stakeholders.
(7) Make a final draft of the Code of Ethics taking into consideration all the gathered suggestions &
recommendations.
(8) Apply the accepted Code of Ethics throughout the enterprise through written policies & procedures.
(9) Train everyone involved to make ethical decisions.