Entrepreneurship Ethics Presented By Mrs. Bowden

Ethical and Social Issues Goals Define ethics. Recognize the need for ethical practices in business. Discuss an entrepreneur’s social responsibilities. List ways to meet a business’s environmental responsibilities. Chapter 13

Terms ethics code of ethics business ethics (social responsibility) Chapter 13

What is Ethics? ethics the study of moral choices and values choosing between right and wrong Chapter 13

Culture and Ethics Ethical behavior varies by culture. bribes treatment of employees Chapter 13

Codes of Ethics code of ethics a set of standards or rules that outlines the ethical behavior demanded by: an individual a business a culture Chapter 13

Ethics and Business business ethics Set High Standards the application of the principles of right and wrong to issues that arise in the workplace Set High Standards Treat business associates fairly and ethically. Inform your customers of your ethical business practices. Chapter 13

Establish an Ethical Workplace Create a Written Code of Ethics Establish procedures to guide employee behavior in various situations. Chapter 13

Ethical Awareness Code of Conduct: Formal statement that defines how the organization expects and requires employees to resolve ethical questions.

How Organizations Shape Ethical Conduct

On-the-Job Ethical Dilemmas Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. Employee’s disclosure of illegal, immoral, or unethical practices in the organization. Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise.

Business Approach to Ethics and Social Responsibility Sarbanes-Oxley Act A 2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations. Engage in traditional corporate philanthropy, which involves giving to worthy causes. Anticipate and manage risks. Identify opportunities to create value by doing the right thing.

Areas of Responsibility

Responsibilities to the General Public Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, vaccines, and steroids. Protecting the Environment. Using resources efficiently, minimizing pollution. Green marketing Sustainability Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives. Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.

Social Responsibilities Responsibilities to Customers Treat all customers with respect. Be honest. Avoid exaggerating the merits of your products or services. Inform customers of possible product dangers. Resolve disputes fairly. Chapter 13

Responsibilities to Suppliers Treat all suppliers with respect. Avoid spreading rumors about suppliers. Give suppliers time to fill your order. Handle all disputes fairly. Let your current supplier know the reason for your decision if you change suppliers. Chapter 13

Responsibilities to Creditors and Investors Never conceal risks you are facing. Contribute Money Donate Products or Services Get Involved Responsibilities to Your Community Chapter 13

Responsibilities to Employees Workplace Safety. Monitored by Occupational Safety and Health Administration. Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993. Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by the Equal Employment Opportunity Commission. Age Discrimination. Age Discrimination in Employment Act of 1968 protects workers age 40 or older. Sexual Harassment and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.

Responsibilities to the Environment Protect the environment from pollutants. Conserve nonrenewable resources, such as coal and oil, by using them efficiently. Chapter 13

Reduce waste and dispose of waste responsibly. Use environmentally safe and sustainable energy sources to meet your business needs. Sell products that cause as little damage to the environment as possible. Chapter 13

Laws Governing the Environment Environmental Protection Agency (EPA) enforces federal law concerning clean air and water Chapter 13

Things to consider when determining ethical versus unethical: Are there any potential legal restrictions that can result from the action? Does the company have a specific policy on the action? Is the activity customary in the industry? Would this activity be accepted by co-workers? How does this activity fit in with your own beliefs and values? Chapter 13