1. Entrepreneurship
Ethics
Presented By
Mrs. Bowden

2. 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.
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3. Terms ethics code of ethics business ethics (social responsibility)
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4. What is Ethics? ethics the study of moral choices and values
choosing between right and wrong
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5. Culture and Ethics Ethical behavior varies by culture. bribes
treatment of employees
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6. 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
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7. 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.
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8. Establish an Ethical Workplace
Create a Written Code of Ethics
Establish procedures to guide employee behavior in various situations.
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9. Ethical Awareness
Code of Conduct: Formal statement that defines how the organization expects and requires employees to resolve ethical questions.

10. How Organizations Shape Ethical Conduct

11. 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.

12. 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.

13. Areas of Responsibility

14. 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.

15. 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.
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16. 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.
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17. Responsibilities to Creditors and Investors
Never conceal risks you are facing.
Contribute Money
Donate Products or Services
Get Involved
Responsibilities to Your Community
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18. 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.

19. Responsibilities to the Environment
Protect the environment from pollutants.
Conserve nonrenewable resources, such as coal and oil, by using them efficiently.
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20. 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.
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21. Laws Governing the Environment
Environmental Protection Agency (EPA)
enforces federal law concerning clean air and water
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22. 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?
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