ETHICS AND SOCIAL RESPONSIBILITY FOR AN ENTREPRENEUR

1. Public Image

• The activities of an entrepreneur towards the welfare of the society earn goodwill and
reputation for the business.

• People prefer to buy products of a company that engages itself in various social welfare
programs. Again good public image also attracts the honest and competent employees to work with
such employers.

Responsibility Towards Public in General

• Help the weaker section of the society

• Creation of job opportunities.

• Improvement in living standards.

• Building of basic infrastructure like roads, sewerage.

• Health and educational development schemes.

• To make best use of society’s resources for their welfare.

2. Employee Satisfaction

• Employees are the part of the society. If you satisfy your needs, then you are doing social work.

Responsibility Towards Employees

• Fair wages and salaries

• Adequate Basic Facilities like safe drinking water, electricity, canteen, hygienic toilets.

• Skill development programs.

• Good and safe working environment.

• Retirement benefits and pension schemes

• Collective bargaining

• Insurance cover

• Medical facilities

3. Ethical Leadership

• It is the belief that what entrepreneur does has a strong influence on employees. If manager
cheats, Lies, steals or manipulates, then they are sending wrong signals to employees.

Responsibility Towards Shareholders

• A fair return on investment.

• Safety of invested capital

• Regular and complete information about the performance and progress of the company.

• Regular Payment if dividend

Responsibility Towards Suppliers and Creditors

• Maintain healthy and co-operative inter-business relationship between different businesses.

• Provide accurate and relevant information to creditors.

• Payment of price of materials on time.

• Prompt payment of interest on borrowed funds.

• Producing original documents for credit processing.

4. Consumer Awareness

• Consumers have become very conscious about their rights. If you are giving high quality
products at cheap rate, that is kind of social Responsibility

Responsibility Towards Customers

• Charge reasonable price for products or services.

• Supply of right quality of goods in right quantity.

• No use of manipulated or false advertisements.

• Avoid unfair selling practices.

• Fair guarantee of product

5. Environment Management

• Managers and Organizations can do many things to protect and preserve the natural
environment which includes plastic less business by giving paper bag, creating eco-friendly product, by
eliminating production.