ETHICAL AND SOCIAL RESPONSIBILITIES OF THE ENTREPRENEUR

Question 1

The role of the entrepreneur in propagating ethics and social responsibility in business cannot be overemphasized.

Answer 1

TRUE

Question 2

The study of moral obligation involving the distinction between right and wrong. As a consequence, the study of ethics paved the way for the adaption of the general rules of conduct in society.

Answer 2

Ethics

Question 3

The rules about how entrepreneurs ought to behave

Answer 3

Business ethics

Question 4

The ethical behavior required of entrepreneurs is determined by the ff:

Answer 4

1. the public;
2. interest groups
3. business organizations; and
4. the individual’s personal morals and values

Question 5

Factors influencing ethical behavior:

Answer 5

1. situation;
2. reward system;
3. individual differences; and
4. other factors

Question 6

Circumstances vary, and the reactions of firms or individuals also vary. For instance, a firm that behaves ethically during prosperous times may act unethically in times of financial hardships.

Answer 6

TRUE

Question 7

If entrepreneurs adhere to ethical standards

Answer 7

• Establishment of trust
• Smooth flow of business exchanges

Question 8

The expectation of high rewards for committing unethical behavior motives a person to do it.

Answer 8

TRUE

Question 9

If the entrepreneur believes that business success requires good ethical behavior, his next concern would be to encourage his people to adapt good ethical behavior.

Answer 9

TRUE

Question 10

There are certain ways of encouraging ethical behavior among employees. These are the ff :

Answer 10

1. adaption of a code of ethics;
2. institution of rewards and punishments concerning ethical behavior;
3. adaption of internal programs for resolving conflicts;
4. creation of ethics review committees;
5. provision of training in ethics for employees; and
6. top management support

Question 11

A formal document indicating the entrepreneurship’s adapted principles of appropriate behavior. It serves as a basic reference for employees who make big or small decisions.

Answer 11

Code of ethics

Question 12

A code of ethics can be made effective if the ff requirements are met :

Answer 12

1. It should refer to specific unethical practices like receiving gifts, avoiding warranty claims, bid-rigging, making fictitious claims
2. it must be supported by top management. Support comes in various forms such as providing sufficient funds for its implementation and assigning specific employees to handle ethical infractions of other employees

Question 13

If the entrepreneurship wants to have some measure of control over the behavior of its personnel, a system of reward and punishment must be instituted.

Answer 13

TRUE

Question 14

Punishments could take the form of dismissal, demotion, suspension, or reprimand. Rewards may be given in the form of cash gifts, promotion, or citation.

Answer 14

TRUE

Question 15

This c0mmittee is usually composed of company employees as well as some who are not employed by the company. The committee provide advice to the entrepreneur and his staff concerning sensitive ethical issues.

Answer 15

Ethical review committee

Question 16

Ethics training is more appropriate for persons occupying sensitive positions in purchasing, waste disposal, personnel, research and development, sales, and manufacturing.

Answer 16

TRUE

Question 17

Ethical issues facing entrepreneurships :

Answer 17

1. between the company and the customers;
2. between the company and its personnel and employees;
3. between the company and its business associates; and
4. between the company and the investors and the financial community

Question 18

When ethical abuses are committed, the most probable victims are customers. This is expected because of the high frequency of transactions between the company and the customers.

Answer 18

TRUE

Question 19

Entrepreneurs are expected by society to treat their customers fairly and not to act in ways that will be harmful to them. Entrepreneurs should provide support for consumer rights which are as follows :

Answer 19

1. the right to be safe
2. the right to be informed
3. the right to choose; and
4. the right to be heard

Question 20

Consumers expect that the products and services taht they buy will do them no harm. They also expect to be free from bodily harm when they are inside the entrepreneur’s business premises. This concern brought about the passage of laws intended to protect the consumer.

Answer 20

The Right to Be Safe

Question 21

The quality of their decision , will depend on whether or not they are property informed. Advertisements and information printed on labels are some of the ways of providing information to consumers aboiut products and services.

Answer 21

The right to Be Informed

Question 22

Firms that intend to adhere to business ethics should strive to protect consumers right to choose, what products and services they need and intend to purchase.

Answer 22

The Right to Choose

Question 23

Customers have the right to communicate their concerns to entrepreneurship they patronize. THIS RIGHT MAY BE USED TO EXPRESS APPRECIATION ABOUT WHAT THE COMPANY IS DOING, OR TO PROVIDE INFORMATION about defects in the products the customer bought. To support the customer’s right, some companies install a system of receiving and processing complaints.

Answer 23

The Right to Be Heard

Question 24

Good ethical conduct requires entrepreneurs to be aware of their responsibilities to employees. These are the ff :

Answer 24

1. workplace safety;
2. quality of life issues;
3. avoiding discrimination; and
4. preventing sexual harassment

Question 25

The ethical entrepreneur sees to it that adequate measures are adapted tp prevent accidents from happening in the factory and in the office.

Answer 25

Workplace Safety

Question 26

Progressive companies provide day-care facilities for the children of employees. Housing is provided near the work sites. If measures like those are not feasible, entrepreneurships can still provide assistance in locating or facilitating arrangements with private day-care and housing facilities. Entrepreneurships can go further in helping its workers improve their quality of life by offering flexible work arrangements.

Answer 26

Quality of Life Issues

Question 27

Factors like age, sex, race, religion, political beliefs, and the like must not be allowed to affect any person’s chance of getting employed or promoted.

Answer 27

Avoid Discrimination

Question 28

Sexual harassment refers to unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature. Entrepreneurs have the moral responsibility of keeping the workplace free from sexual harassment and where everybody is treated fairly.

Answer 28

Preventing Sexual Harassment

Question 29

The country’s financial system survives partly because investors and other players have placed a certain degree of trust in firms they deal with.

Answer 29

TRUE