BE- 06 SEM I - 2014-2015.doc

7/17/2019 BE- 06 SEM I - 2014-2015.doc

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BUSINESS ETHICS NOTES

Nizwa College of Technology

Ministry of Manpower, Directorate eneral of technological E!"cation

O"tco#e $ (Embed and develop the entrepreneurial spirit of self employment

among students through identifying the important entrepreneurial ethics (ethics of

entrepreneurship))

Entreprene"r

The word entrepreneur

originates from the French

word, entreprendre , which

means "to undertake".

In a business context, it meansto start a business.

Entreprene"r is an individual

who takes risks and starts

something new.

Entreprene"rship (The dream of self employment )

Entreprene"rship is the

process of creating something

new and assuming the risks and

rewards.

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O"r !e%nition of entreprene"rship in&ol&es fo"r aspects:

'. Entrepreneurship involves the

creation process.

2. It requires the devotion

(commitment of the necessary

time and effort.

3. It involves assuming the

necessary risks.

(. The rewards of being an entrepreneur are

independence , personal satisfaction , and monetary reward .

Class )cti&ity

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Question: Write the four aspects of the denition of entrepreneurship in

your own words.

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Characteristics of an ethical Entreprene"r

*rofessionalis# !ersonal commitment to contribute throughhard wor" to the delivery of high #uality of wor" ethics.

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Integrity $he entrepreneur has a clear sense of values andbeliefs that strengthen the creative and business decisions thatthey ma"e. $hey sho"l! ha&e co"rage% +e honest and fair in

their wor .&ntegrity is the policy of acting on the basis of what onebelieves to be true and good. &t is translating thought intopractice. $hat is% one-s tho"ghts are integrate! with one-sactions' or one-s +eliefs a+o"t what wo"l! +e goo! areintegrate! with one-s actions to +ring that goo! intoe.istence.

)cco"nta+ility Taing responsi+ility is the core elementbehind accountability% Entrepreneur has the responsibility

towards the society so they should be responsible for theiractions.

/le.i+ility an! Creati&ity Entrepreneur should have thewillingness to learn% to develop new s"ills% to ta"e on newresponsibilities and to recogni*e the value of innovation "eepingin view the ethical co!es.

Tolerance an! Tea#wor Entrepreneur should have thereadiness to wor" e+ectively with others% regardless of bac"ground. $hey must recogni*e and welcome cultural diversity.

Ethical Co##"nication Entrepreneur must have thecommitment to the e+ective e,change of information% to fostergoodwill% and to support e-ciency by following the code of ethics. Co!e of ethics re#uires business communicators to betr"thf"l and acc"rate and to personally correct anyinacc"racies.

company that aims to be socially and ethically responsible

must ma"e a priority of ethical communication both inside thecompany and outside the company (its interactions with thepublic).

/imply, the #essages sent an! recei&e! +y a +"sinessnee! to follow ethical nor#s that !on0t o1en! 2hurt somebody’s feelings3 or #ae in!i&i!"als feel"nco#forta+le.

Econo#ic !e&elop#ent an! in!i&i!"al !e&elop#ent of a %r# is

!e%nitely the responsi+ility of an entreprene"r4lea!er +"t itshall ne&er +e !one at the cost of ethics or #orality5 Ethics an!#orals are% in fact% the foundation of every good entrepreneur.

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Question: Write the entrepreneurial ethics in your own words.

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6hy entreprene"r act in an "nethical way7

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Entrepreneurs may face moral challenges di+erent from those of non

entrepreneurs. $hey feel more pressure to engage (involve) in unethical

behavior than the managers in large corporations. $he entrepreneur mayand should see" positive ways of competing.

0or the person who actually starts his or her own business there is a

high failure rate. 1ecause of failure% the entrepreneur may involve

himself in unethical practices. $he failure may occur due to the following

reasons:

2. *oor sales

3. Intense 2strong3 co#petition4. 8ac of capital(5 lac of #anagerial a+ility

/ocially responsible entrepreneur must establish (create) a balance

between ethical e,igency (demand, constraint, restriction)% economic

e,pediency (suitability, practicality )% and social responsibility.

Entreprene"rs Ethical Decision Maing *rocess

$he entrepreneurs can be guided through these seven important layers%

which can be helpful in the decision ma"ing.

2. 1egin by discussing the legal and regulatory standards for truth

and transparency in nancial statements and in advertising'

3. 5oo" at any contracts that would have bearing on what information

needs to be revealed'

4. 5oo" at 6odes of Ethics for those team members in various

professions7codes that promote open and honest

communications'

8. 9iscuss the business environment the entrepreneur wishes to

create and the industry and its standards% including those of

competitors'

. 9iscuss the standards of their community of investors'

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;. 9iscuss personal relationships (often includes friends and relatives

who are investors and employees)'

<. 9iscuss team members= own personal moral values. >ence% the personal integrity of the entrepreneur is very important%

because

$he entrepreneur is see"ing to create wealth through innumerable

ways and if he or she authentic?the results achieved will be the

conse#uence of his or her virtuous conduct. (@achan% 2AAA).

1y reinforcing (support, strengthened, underline) the notion (idea,

concept ) of the entrepreneur being dened by his or her integrity

(honesty, truthfulness)% we can emphasi*e the importance of the

entreprene"r9as9#oral9conscience (ethics, morality, sense of right

and wrong) of the enterprise.

Class )cti&ity

:"estion; Write any three reasons that why sometimes entrepreneurs

behave unethicallyB

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:"estion; Write the seven layers of the decision ma"ing for

entrepreneurs.

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Ceference:

0errill% Dune. ( 38) 9eveloping EFteam 6ultures to /upport Ethical Cesponsibility.

!aper presented at the annual conference of the Gational 6ollegiate &nventors and

&nnovators lliance% /an Dose% 6%

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BE- 06 SEM I - 2014-2015.doc