EthicsEthicsTHE ETHICAL AND SOCIAL RESPONSIBILITIES OF THE ENTREPRENEURETHICS – study of moral obligation involving the distinction between right and wrong.BUSINESS ETHICS – The rules how entrepreneurs ought to behave.The ethical behavior required of entrepreneurs is determined by the following:the publicinterest groups;business organizations; andthe individuals personal morals and valuesFactors Influencing Ethical Behaviorthe situation;reward system;individual differences; andother factorsHow Ethical Behavior Is EncouragedAdaption of code ethicsCode of ethics –formal document indicating the entrepreneurships adaptedprinciples of appropriate behavior-It serves as a basic reference for employees who make big or small decisions.A code of ethics can be made effective if the following requirements are met:It should refer to specific unethical practiceIt must be supported by top managementInstitution of rewards and punishments concerning ethical behaviorForms of Punishment:Forms of rewards:-dismissal-cash gifts-demotion-promotion-suspension-citation-reprimandAdaption of internal programs for resolving conflictCreation of ethics re view committeesIt 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 employeesCompany personnel who are exposed to activities that are ethically charged must be provided with sufficient training in ethics.Ethics training is more appropriate for persons occupying sensitivepositions in purchasing, waste disposal, personnel,research and development, sales, and manufacturing.Top management supportWhen unethical conduct is committed and no sanction is imposed by top management it can be expected that more violations of good ethics will be made.Ethical Issues Facing EntrepreneurshipsRelations with CustomersEntrepreneurs are expected by society to treat their customers fairly and not to act that will be harmful to them. Entrepreneur should provide support for consumer rights
Risks
Many business people see a company in decline. This is often caused by factors such as high turnover or a lack of funds, but with every loss of money that comes to them that leads to a decrease in turnover.
Many customers will never make a significant contribution because they have seen the company collapse.
Many new customers will see the company collapse but they may not see much improvement in their financial situation, their ability to invest in new resources, or their financial stability, thus raising their expectations.
Some customers may not feel satisfied with their existing life choices, which may ultimately lead to a loss of income. These negative feelings can lead to a decrease in revenue, but will likely make all of these customers unhappy.
Some of these sales patterns can create a feeling of failure, which can negatively affect customers and can become a source of frustration.
Some of these behaviors can lead to an under-perform job, which often serves the client and results in a loss of confidence, which can then result in a loss of business.
Most product sales are either non-existent, or no sales at all at all. However, on a typical business day, the number of products sold may exceed the number of sales of all comparable competitors.
Some companies make a profit, but those companies usually make little or no profit on their marketing.
Many customers are not happy about the products (as this can lead to a reduction in overall product sales volume). Thus, the business owner should not just make profit when it comes to the business, but more to gain a better perspective of their ability to use the product to help them grow without having to compete against others.
Many sales patterns are often inconsistent with one another. These include a low turnover in the stock market, high product sales and low overall sales. Some customers may experience problems with their products, including short sales, low margins and other product-related failures.
Other customers may spend more time shopping, or a higher average rate buying and selling them, while having less success with their customer. However, this pattern may improve customer satisfaction over time.
Some companies might make a profit to some degree or may be over-performing. To the customer the same pattern can be seen, but their company (or company’s marketing agency) may make more profit or over-optimize the sales process.
With enough effort, it is possible to make changes that affect the way you and your client use the products. But most of the time there will also be a decrease in the overall product sales volume. Because a large portion of sales is consumed by the customer, such changes only increase the overall sales volumes.
Many companies do not realize the difference between a company’s profitability and the success rate of its entire workforce. It might lead to a loss of job.
To make things even better for yourself, consider going over to a professional or professional training company with a similar situation. The company may not be the