Ethics and Entrepreneurship

ENTREPRENE UR
An entrepreneur is a person who perceives a need and then brings together manpower, material and capital required to meet that need. In other words an entrepreneur is an individual or team that identifies the opportunity, gathers the necessary resources, creates and ultimately responsible for the performance f the organization.

ENTREPRENEURSHIP
Entrepreneurs are people that notice opportunities and take the initiative to mobilize resources to make new goods and services Entrepreneurship is a process of action of an entrepreneur who is a person always in search of something new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the enterprise

CHARATERSTICS
1.Economic and dynamic activities 2.Related to innovation 3.Profit potential 4.Risk bearing

What Are Ethics?

. . . moral principles that derive from beliefs about right and wrong used to judge concrete actions . . .
Ethical Perspectives e.g., Utilitarian Moral rights Justice Others . . . ?

The owners value system is critical to the ethical considerations that surround a business decision (Hornsby et al., 1994: 14)

What, then, are ethics?

A set of principles outlining a behavioral code that lays out what is good and right or bad and wrong May outline obligations and appropriate moral actions for both the individual and the organization Ethics does not just apply to business It may be difficult for individuals or groups in society to agree upon what is right and wrong

Ethics within businesses

Many businesses develop their own codes of ethics or conduct These codes outline what employees are to do in order to carry out what the company sees as the right thing to do in various circumstances

Key Takeaways . . .
Ethics in entrepreneurship is increasingly important for two reasons:
Entrepreneurial ventures are increasingly becoming a larger portion of businesses in general. Large firms are increasingly focusing on developing entrepreneurial competencies (i.e., becoming increasingly entrepreneurial in nature)

Outline for a Code of Ethics

Over all, a code of ethics should be a formal statement of a businesss values concerning ethics and social issues. It commonly speaks to acceptable norms of behavior, guided by six areas of concern:

1. Honesty: to be truthful in all your endeavors; to be honest and forthright with one another and with customers, communities, suppliers, and other stakeholders. 2. Integrity: to say what you mean, to deliver what you promise, and to stand up for what is right.

3. Respect: to treat others with dignity and fairness, appreciating the diversity of the people you deal with and their uniqueness

4. Trust: to build confidence through teamwork and open, candid communication. 5. Responsibility: to speak up without fear of retribution and report concerns in the workplace and elsewhere, including violations of laws, regulations, and company policies. 6. Citizenship: to obey all laws of the countries where you do business and to improve the communities where you live and work.

Being Socially Responsible

It is not enough to be ethical, or do the right thing anymore (thankfully) Businesses are now expected to act in a socially responsible manner they need to be good citizens as well as give back to the societies (including global) in which they exist.

Responsibilities to the General Public

The Right to Be Safe. Safe operation of products, avoiding product liability.

The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. The Right to Choose. Ability of consumers to choose the products and services they want. The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties.

Responsibilities to Employees
Workplace Safety Quality-of-Life Issues Ensuring Equal Opportunity on the Job. Age Discrimination Sexual Harassment and Sexism