2/27/2020 Entrepreneur Ethics and Importance of Ethics in Key Areas of Business

ENTREPRENEUR ETHICS AND IMPORTANCE OF

ETHICS IN KEY AREAS OF BUSINESS
By Desi_admin - July 2, 2018

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ENTREPRENEUR ETHICS AND IMPORTANCE OF

ETHICS IN KEY AREAS OF BUSINESS
Successful entrepreneurs operate on sound business ethics which are approved and
accepted in any society.

Entrepreneurial Ethics are those codes of conduct, employed by entrepreneurs which impact
society positively, thereby increasing the entrepreneur’s chances for greater success. 

Entrepreneurial ethics would lead to positive attitudes towards raising successful

entrepreneurs, who would, in turn, build entrepreneurial institutions for societal growth and
advancement.

When entrepreneurial ethics are practiced and visible, the entrepreneurs and their team,
work with great zeal, dedication, and purposefulness, to achieve the organization’s objectives,
and together, they work for the common good of all.

It can be clearly seen that when good entrepreneurial ethics are demonstrated, businesses
can handle or tackle di culty when they arise. 

A healthy entrepreneurial spirit is certainly a viable option for many countries facing
unemployment crisis, especially in the third world countries. Entrepreneurial ethics,
combined with integrity and all the right motives, would allow for economic growth and
gradual development throughout the primary, secondary and tertiary sectors in the
economy. 

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 Sound Entrepreneurial ethics helps to develop relationships built on mutual trust and
respect. Without this trust, businesses will not survive; investments will not be made.
Successful business empires have gained credibility and reliance as a result of their sound
ethical entrepreneurial practices. 

2
Shares Ethical Entrepreneurial practices bring forth positivity with the vision and mission of an
organization. It, therefore, necessitates a great sense of self-discipline and humility which
grows small businesses into successful empires. 

Related: What is social entrepreneurship and top successful social entrepreneurship

example

THE IMPORTANCE OF ETHICS IN KEY AREAS OF

BUSINESS 

Integrity :

Hand in hand with entrepreneurial ethics is integrity in business.

It is important that entrepreneurs today don’t get caught up in moneymaking schemes and
lose sight of the importance of doing the right thing for the common good.

Any entrepreneur who willfully and dishonestly engages in business activity with the motive
of ripping people o or pro ting at the expense of others, creates a harmful business
environment of distrust and antagonism.

When you build a business on integrity, and set o with an attitude of nobility, humility and
service, and the intention of making a living by providing your community with needed goods
and services, you contribute to, rather than detract from, the general good. An early and
consistent stand against questionable con icts of interest is an important aspect of any
entrepreneur’s ethics e ort. 

Labour :

How a company treats its workers is a good indication of its ethical practices. An
entrepreneur who sets out to cheat or underpay his employees will inde nitely cause his
organization to su er and be subject to high sta turnover, low morale, dishonesty among
other negative things that could cause the downfall of the business.

It is important to treat all employees well as they represent the business daily, but it will also
bene t the entrepreneur because most people are more likely to reciprocate what
behaviours and attitudes they receive. It goes without saying, that when good work habits are
developed and practiced by all within an organization, a special bond is formed and a loyalty
to the company becomes apparent. Entrepreneurs who manage to keep open lines of
communication with their employees, grow to understand their feelings about things taking
place within the workplace, and they work together to ensure that everyone is in alignment to
bene t from their association with the organization.

Related: Inspirational Steve Jobs quotes for entrepreneurs

Clientele :

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Your clients are your key stakeholders and it should be quite obvious as to how dependent
your business is on its customers. The entrepreneur today should seek out the opportunity
to personally treat all clients well, and express great and humble appreciation when they
support your business.

2
Shares The ideal way to do this is to always strive to provide goods and services that are of the best
quality and service, as good as you can make or get them, for your clients. An entrepreneur
with an honest motive and good ethical sense will realize that doing and giving the best to
clients every day is not only a good business decision, but a wise and ethical choice as well.

Environment :

It is di cult, and possibly unavoidable, to engage in business while having no impact on the
environment. Even if you’re in the craft business, your clients are looking on to see how you
utilize resources or recycle products. If you are truly invested in reducing your business’s Eco-
footprint, then you can have a much greater impact, not just in the business world, but in the
community and environment as a whole.

The ethical entrepreneur today should explore, welcome, and employ the many ways that a
business can reduce its Eco-footprint on the environment, including recycling, reducing
energy waste, carpooling, minimizing paper packaging and usage, and reducing wasteful
business practices among other things.

While all of these activities have a practical basis, in that they protect the environment and
the public reputation of your business, they also have a great impact and in uence on others.
When entrepreneurs model environmental ethics and encourage Eco-friendly practices,
others are likely to follow suit. 

Organizational Ethics should not only be practiced by larger businesses. In fact, the
entrepreneur today can consciously choose to make ethics a part of their business plan.
Start-ups can create and e ectively commit to sound ethical practices.

Related: Top most powerful inspirational Larry page quotes

ETHICS REALITY CHECK FOR THE ENTREPRENEUR ETHICS

1. Entrepreneurs must rst recognize that there are ethical dilemmas surrounding them
within the culture of entrepreneurship. 

2. They must decide to make ethics a principle value of their business’s objectives and
mission. The entrepreneur today should embrace doing business ethically in order to
improve their standards.

Good business ethics should be visible to all who come into contact with the business. Ethical
policies should be included in business plans, in the business’s mission statements, and in all
other business documents. 

3. The ethical entrepreneur ought to seek out favourable opportunities to make his or her
ethical commitment bona de. It is the business of an entrepreneur to communicate clearly
to all, from the initial stages of business, the ethical standards they employ. This
entrepreneur will no doubt enjoy both nancial success and a superb reputation. 

4. The ethically made entrepreneur should be un-naively aware of the inevitable and
unavoidable tensions in the business world, and anticipate these tensions not with fear, but
with resilience, and so be able to put in place, a reasonable action plan that helps the entire

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team to deal with these tensions before the situations are actually encountered. This practice
should be included in the business’s plan and mission and become part of a more formal
“ethics training” for all.

5. Not every situation can be anticipated, but the ethical entrepreneur must always keep an
2
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6. The ethical entrepreneur looks for opportunities to engage the business as a whole and
align them to the community and its needs. This aids in team building and strengthening
interpersonal relationships

7. The ethical entrepreneur thinks and talks about the ethical values that matter at any given
opportunity. The frantic and elaborate, rapid growth of start-ups makes it easy to submit to
the temptations of malpractices in order to stay alive in this highly competitive business
world. Always keep your objectives clear in front of you and visible for all to see and
acknowledge. 

Related: Powerful Quotes of Entrepreneurs That Will Motivate Your Entrepreneurial Pursuits

8. The ethical entrepreneur challenges growth and renews the commitment to ethical
practices. Businesses change as they grow, and so to, do their objectives. As the
entrepreneur and his/her business grows, re-valuation is important and needed where ethics
is concerned.  Ethical values and the commitment to continued ethical practices must be
reworked and re-communicated every time change occurs, thereby preparing all involved in
the business to deal with the changing and evolving ethical dilemmas. 

9. The ethical entrepreneur looks for opportunities to engage the business as a whole and
align them to the community and its needs.  

The rewards of being an ethical start-up are many. Personal and business success is
accomplished, and client and team satisfaction is the most prominent bene t for all.
Everyone feels better about themselves and the butter y e ect happens magically as
everyone freely and satisfyingly chose to act ethically in their dealings with others.  

For the individual entrepreneur, a reputation for much needed ethical practices can place
your business on the top lists of ethical businesses with which others will unhesitatingly
choose to do business with, increasing your opportunities for successful business
partnerships.

It is imperative, that the entrepreneur today understand that the business they run has
responsibilities to everyone. 

Author:

Cherise Castle-Blugh

Note: Cherise Castle-Blugh is the Author of THE TIMELY ENTREPRENEUR & the Key Educator
at Downer’s Educational Institute in the eld of Business and Entrepreneurship. 

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