Chapter 3: The Ethical And Social Responsibilities Of The Entrepreneur Flashcards
It is the study of moral obligation involving the distinction between right and wrong.
Ethics
The rules about how entrepreneurs ought to behave are referred to as
Business Ethics
Ethical behavior of entrepreneurs is determined by:
- The public
- Interest groups
- Business organizations
- Individual’s personal morals and values
Factors Influencing Ethical Behavior:
- Situation
- Reward system
- Individual differences
- Other factors
A formal document indicating the entrepreneur’s adapted principles of appropriate behavior.
Serves as a basic reference for employees who make decisions.
Code of Ethics
Code of Ethics is effective when:
- It refers to specific unethical practices
- It is supported by top management
If the entrepreneurship wants to have some measure of control over their personnel’s behavior, a system of _____ must be established.
Reward & Punishment
Conflicts arise, even when ethical conduct of personnel is concerned. It is important for entrepreneurs to adapt an:
Internal Program for Resolving Conflict
Committee that undergo special training in ethics and provide advice to enterprises concerning sensitive ethical issues.
Ethics Review Committee
Company personnel who are exposed to activities that are ethically charged must have:
Provision of Training in Ethics
Their support is needed for ethical programs or activities to succeed
Top Management Support
Ethical issues in entrepreneurship arise from these relationships:
- Between company and customers
- Between company and personnel/employees
- Between company and business associates
- Between company and investors / financial community
Rights of Customers:
- Right to be safe
- Right to be informed
- Right to choose
- Right to be heard
Entrepreneurs’ responsibilities to employees:
- Workplace safety
- Quality of life issues
- Avoiding discrimination
- Preventing sexual harassment
