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The Ethical and Social Responsibilities of The Entrepreneur: Reported By: Berceles, Manuel, Toledo, Villanueva

The document discusses the ethical and social responsibilities of entrepreneurs. It defines ethics as principles of right conduct or moral values. Adhering to ethical standards establishes trust between buyers and sellers and allows for smooth business exchanges. The ethical behavior required of entrepreneurs is determined by the public, interest groups, business organizations, and an individual's personal morals. Factors influencing ethical behavior include situations, reward systems, individual differences, and other factors. Ways to encourage ethical behavior include adopting a code of ethics, instituting rewards and punishments, creating ethics committees, and providing employee ethics training. An effective code of ethics should refer to specific practices and have top management support.

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87 views3 pages

The Ethical and Social Responsibilities of The Entrepreneur: Reported By: Berceles, Manuel, Toledo, Villanueva

The document discusses the ethical and social responsibilities of entrepreneurs. It defines ethics as principles of right conduct or moral values. Adhering to ethical standards establishes trust between buyers and sellers and allows for smooth business exchanges. The ethical behavior required of entrepreneurs is determined by the public, interest groups, business organizations, and an individual's personal morals. Factors influencing ethical behavior include situations, reward systems, individual differences, and other factors. Ways to encourage ethical behavior include adopting a code of ethics, instituting rewards and punishments, creating ethics committees, and providing employee ethics training. An effective code of ethics should refer to specific practices and have top management support.

Uploaded by

Jojen
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Ethical and Social Responsibilities of the Entrepreneur

Reported by: Berceles, Manuel, Toledo, Villanueva

What is Ethics?

Definition

 A set of principles of right conduct.


 A theory or a system of moral values.
 “Personal Ethics”
 General expectations of any person in any society, acting in any capacity (morality).
 “Business Ethics”
 Focuses on what constitutes right or wrong behavior in the world of business.

The Effect of Adherence to Ethical Standards

Establishment of
Trust
Adherence to Smooth Flow of
-between buyers
Ethical Business
and sellers
Standards Exchanges
-between lenders
and borrowers

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

1. The public;

2. Interest groups like the Society of Pre-vention of Cruelty to Animals;

3. Business organizations; and

4. The individual’s personal morals and values.

Factors Influencing Ethical Behavior

1. Situation;

2. Reward system;

3. Individual difference; and

4. Other factors
How Ethical Behavior is Encouraged?

1. Adoption of a code of ethics

2. Institution of rewards and punishments concerning ethical behavior

3. Adoption of internal programs for resolving conflicts

4. Creation of ethics review committees

5. Provision of training in ethics for employees

6. Top management support

Code of Ethics

 It is a formal document indicating the entrepreneurship’s adapted principles of appropriate


behaviour.

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

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 their employees.

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.

Ethics Committee

This committee is usually composed of company employees as well as some who are not employed by the
company. These persons have undergone special training in Ethics.

Provision of Training in Ethics for employees

Company personnel who are exposed to activities that are ethically changed must be provided with
sufficient training in Ethics.

Relations with Business Associates

Relations with Investors and the Financial Community

Ethics must begin at the top of an organization it is a leadership issue and a chief executive must set
an example
References:

Retrieved from https://prezi.com/wcj840evishp/the-ethical-and-social-responsibilities-of-the-


entrepreneur/

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