What
is the business Ethics?
Is the study of moral obligation involving the distinction
between right and wrong? An enterprise must earn profit for its own survival,
for expansion for bearing the risk and finally for the prestige of its
management. But profit cannot be the sole objective of the entrepreneur. It is
a means and not an end. No enterprise can last long unless along with earning
profits, it continues to fulfill its obligation to the society. The ultimate
objective of every enterprise has to be the good of the people. Business must
be run by the people through the people and for the people. An entrepreneur
must take risks with his or her own capital in order to sell and deliver
products and services while expending greater energy than the average
businessperson in order to innovate.
The of Adherence to
ethical standards
Adherence to Ethical to Establishment of Trust Smooth
flow
Ethical
Standards Between
buyers and sellers of
business
Between lenders and borrowers
exchanges
The ethical behavior required of entrepreneurs is
determined by the following
·
The public
·
Interest groups like the Society of
Prevention of Cruelty to animals
·
Business organization
·
The individual’s personal morals and
values
Factors influencing Ethical behavior
·
Situation
·
Reward system
·
Individual difference and other factors
Rewards and punishments concerning Ethical Behavior
·
Punishments could take the form of
dismissal demotion, suspension, or reprimand.
·
Rewards may be given in the form of cash
gifts, promotion, or citation.
Ethical issues facing entrepreneurships
·
Between the company and customers
·
Between the company and its personnel
and employees
·
Between the company and its business
associated
·
Between the company and the investors
and financial community
Social
responsibility of an entrepreneur
·
Sell Quality product at fair price.
·
Job creation and environmental
observation.
·
Be fair with his supplier by paying them
on time as agreed upon.
·
Promote the welfare of his employees.
·
Must pay the correct amount of taxes to
the government.
Social responsibility is an ethical theory, in which
individuals are accountable for fulfilling their civic duty; the actions of an
individual must benefit the whole of society. In this way, there must be a
balance between economic growth and the welfare of society and the environment.
If this equilibrium is maintained, then social responsibility is accomplished.
Social responsibility in business is also known as
corporate social responsibility, corporate responsibility, corporate
citizenship, responsible business, sustainable responsible business, or
corporate social performance. This term refers to a form of self-regulation
that is integrated into different disciplines, such as business, politics,
economy, media, and communications studies.
Entrepreneurship v/s Ethics and
social responsibility
Ethics
and social responsibility are very important values in entrepreneurship
ventures. This is particularly essential in decision making process. Ethical
conscience reminds entrepreneurs to make trustworthy and profitable
entrepreneurship decisions. Likewise, the social responsibility component
sought entrepreneurs to make entrepreneurial decisions that can enhance
benefits and repelling harms to the stakeholders.
Link
between Ethics and Social Responsibility
You
will probably note the link between business ethics and corporate social
responsibility (CSR). The two concepts are closely linked:
·
A socially responsible firm should
be an ethical firm
·
An ethical firm should be socially
responsible
However
there is also a distinction between the two:
·
CSR is about responsibility to all
stakeholders and not just shareholders
·
Ethics is about morally correct behavior
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