Entrepreneurship Skills: Topic 7B Ethics, Social Responsibility and the Startup Venture
The moral values and behavioral standards guiding business decisions and
Business Ethics
actions.
Origin of Business Ethics Comes from a commitment to do what is right; starts with the entrepreneur
Influence of Entrepreneur's Values Personal beliefs shape company policies, decisions, and actions from day o
Sources of Ethical Values Family upbringing, faith traditions, mentors, and communities.
Building Ethical Reputation Takes a long time to build but can be destroyed quickly; its effects last long
Nature of Ethical Issues Can appear in everyday decisions and routine business activities.
May lack clear right or wrong answers, often involving conflicting stakehold
Ethical Dilemmas
interests.
Stakeholders Groups or individuals who affect and are affected by a business's actions.
An employee knows about internal fraud but fears retaliation or career dam
Whistleblowing
conflict between ethical responsibility and self-protection.
A company collects large amounts of user data; must decide between
Data Privacy vs. Business Intelligence protecting user privacy and boosting profits; conflict between consumer ri
and business growth.
An employee discovers harmful environmental practices; conflict between
Employee vs. Company Loyalty
personal integrity and loyalty to employer.
, Entrepreneurship Skills: Topic 7B Ethics, Social Responsibility and the Startup Venture
Exaggerating claims may increase sales but misleads customers; conflict
Truth in Advertising
between honest communication and persuasive marketing.
Outsourcing to factories with poor labor conditions reduces costs; conflict
Profit vs. Social Responsibility
between maximizing profit and ensuring fair labor practices.
Ethical and Legal Decisions that are both morally right and comply with the law.
Unethical and Illegal Decisions that violate both moral and legal standards.
Violating confidentiality agreements to expose wrongdoing (whistleblowin
Ethical and Illegal Example:
ethical but against company policy or law.
Actions that are legal but harmful, such as polluting the environment or
Unethical and Legal Example:
pressuring suppliers unfairly.
Some individuals are corrupt or dishonest; eliminating unethical behavior
An Unethical Employee
requires removing such "bad apples."
A culture that rewards results over ethics pressures employees into unethic
An Unethical Organizational Culture
acts; strong ethical cultures reduce violations.
Failing to recognize an ethical dilemma or misunderstanding the moral
Moral Blindness
implications of actions.
Intense competition can make unethical options seem acceptable for busin
Competitive Pressures
survival.
The moral values and behavioral standards guiding business decisions and
Business Ethics
actions.
Origin of Business Ethics Comes from a commitment to do what is right; starts with the entrepreneur
Influence of Entrepreneur's Values Personal beliefs shape company policies, decisions, and actions from day o
Sources of Ethical Values Family upbringing, faith traditions, mentors, and communities.
Building Ethical Reputation Takes a long time to build but can be destroyed quickly; its effects last long
Nature of Ethical Issues Can appear in everyday decisions and routine business activities.
May lack clear right or wrong answers, often involving conflicting stakehold
Ethical Dilemmas
interests.
Stakeholders Groups or individuals who affect and are affected by a business's actions.
An employee knows about internal fraud but fears retaliation or career dam
Whistleblowing
conflict between ethical responsibility and self-protection.
A company collects large amounts of user data; must decide between
Data Privacy vs. Business Intelligence protecting user privacy and boosting profits; conflict between consumer ri
and business growth.
An employee discovers harmful environmental practices; conflict between
Employee vs. Company Loyalty
personal integrity and loyalty to employer.
, Entrepreneurship Skills: Topic 7B Ethics, Social Responsibility and the Startup Venture
Exaggerating claims may increase sales but misleads customers; conflict
Truth in Advertising
between honest communication and persuasive marketing.
Outsourcing to factories with poor labor conditions reduces costs; conflict
Profit vs. Social Responsibility
between maximizing profit and ensuring fair labor practices.
Ethical and Legal Decisions that are both morally right and comply with the law.
Unethical and Illegal Decisions that violate both moral and legal standards.
Violating confidentiality agreements to expose wrongdoing (whistleblowin
Ethical and Illegal Example:
ethical but against company policy or law.
Actions that are legal but harmful, such as polluting the environment or
Unethical and Legal Example:
pressuring suppliers unfairly.
Some individuals are corrupt or dishonest; eliminating unethical behavior
An Unethical Employee
requires removing such "bad apples."
A culture that rewards results over ethics pressures employees into unethic
An Unethical Organizational Culture
acts; strong ethical cultures reduce violations.
Failing to recognize an ethical dilemma or misunderstanding the moral
Moral Blindness
implications of actions.
Intense competition can make unethical options seem acceptable for busin
Competitive Pressures
survival.
