UNIT 5

RESPONSIBILITIES AND
ACCOUNTABILITIES OF
ENTREPRENEURS

INTRODUCTION LEARNING
Many people believe that the terms “accountability” and
OBJECTIVES
After reading and analyzing the
“responsibility” are synonymous. However, if you break each unit, you should be able to:
concept down, you can see that they have their fair share 1. Understand
of differences, especially when you look at them from an responsibilities to the
entrepreneurial standpoint. business organization
2. Discuss about business
Business owners must be both accountable and responsible, recruitment
but how does one differentiate between the two? Accountability 3. Identify principles of
is about taking the credit for an action, whereas responsibility is responsible business
the action being bestowed upon you. For example: as a business 4. Explain the policies and
owner, you are responsible for making your business grow and practices in all aspects of
business operations
prosper. You are also accountable for what ultimately happens
in the business. If your business saw a lack of sales or was
forced to close down some of its stores, then you would be
held accountable.
Accountability is a more personal concept of a quality that
you must earn. You cannot automatically be accountable for
something. You have to have a say in certain matters and make
an impact in order to be held accountable. Conversely, almost
anyone can be made responsible for completing a task. Your
employees are responsible for upholding their duties and for
doing their assigned jobs. You can be responsible for closing a
sale or marketing a product. Accountability does not come into
play until something happens as a result of what you have done.
 Entrepreneurs must be willing to accept accountability in their
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

endeavors. It is one thing to hold you responsible for undertaking

tasks and duties, but it is a very different notion to be accountable.
Anything can happen in the midst of owning a business, and if
you are not willing to take on accountability, then entrepreneurship
may not be for you. You must uphold your responsibilities and then
accept the results, whether they are positive or negative.
KEY WORD Your accountability is part of your integrity. No matter what
happens, you cannot sacrifice your accountability. Otherwise, your
Business Ethics is a entrepreneurial endeavors may fall flat.
form of applied ethics Here are a few steps you can take to make social responsibility
or professional ethics
that examines ethical
work for you:
principles and moral ►► Set goals: What do you want to achieve? What do you
or ethical problems want your company to achieve? Do you want to enter
that arise in a business
a new market? Introduce a new product? Enhance your
environment.
business’s image?
►► Decide what because you want to align yourself with:
This may be your toughest decision, considering all the
option out there: children, the environment, senior citizens,
homeless people, and people with disabilities--the list goes
on. You might want to consider a cause that fits in with
your products or services. For example, a manufacturer of
women’s clothing could get involved in funding breast
cancer research. Another way to narrow the field is by
considering not only causes you feel strongly about, but
also those that your customers consider significant.
►► Choose a nonprofit or other organization to partner
with: Get to know the group, and make sure it is sound,
upstanding, geographically convenient and willing to
cooperate with you in developing a partnership.
►► Design a program, and propose it to the nonprofit group:
Besides laying out what you plan to accomplish, also include
indicators that will measure the program’s success in tangible
terms.
►► Negotiate an agreement with the organization: Know what
they want before you sit down, and try to address their
concerns upfront.
►► Involve employees: Unless you get employees involved from
the beginning, they would not be able to communicate the
real caring involved in the campaign to customers.
►► Involve customers: Do not just do something good and tell
your customers about it later. Get customers involved, too.
A sporting goods store could have customers bring in used
equipment for a children’s shelter, then give them a 15 %
discount on new purchases. Make it easy for customer to
do well; then reward them for doing it.

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IDENTIFY RESPONSIBILITIES TO

RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

THE BUSINESS ORGANIZATION
Social responsibility, while around for some time, really LEARNING OBJECTIVE
kicked into high gear with the advent of social networking Understand
responsibilities
sites, and the focus was put on saving the environment. Now
to the business
companies have to actively take part in making sure they are doing organization
their part to make the world cleaner and/or working to help society.
Thus, social responsibility can be defined as a company, person or
organization that, during the course of its business dealings, works
with the benefit of society as a whole in mind.
Thankfully, many companies have adopted a socially responsible
stance when they conduct their business. It can be argued some
do it for the positive public relations they receive, but we have to
think that a majority of the companies out there are doing it because
they generally care about the environment and want to make the
world a better place. Thus, the term encompasses a wide variety of
actions and contributions, all designed to make the world cleaner
while also helping individuals or specific causes.
Corporate social responsibility (CSR) can be defined as the
“economic, legal, ethical, and discretionary expectations that
society has of organizations at a given point in time”. The concept
of corporate social responsibility means that organizations have
moral, ethical, and philanthropic responsibilities in addition to
their responsibilities to earn a fair return for investors and comply
with the law. A traditional view of the corporation suggests that its
primary, if not sole, responsibility is to its owners, or stockholders.
However, CSR requires organizations to adopt a broader view of its
responsibilities that includes not only stockholders, but many other
constituencies as well, including employees, suppliers, customers,
the local community, local, state, and federal governments,
environmental groups, and other special interest groups. Collectively,
the various groups affected by the actions of an organization are
called “stakeholders.”
Corporate social responsibility is related to, but not identical
with, business ethics. While CSR encompasses the economic, legal,
ethical, and discretionary responsibilities of organizations, business
ethics usually focuses on the moral judgments and behavior of
individuals and groups within organizations. Thus, the study of
business ethics may be regarded as a component of the larger study
of corporate social responsibility.
The economic responsibilities cited in the definition refer
to society’s expectation that organizations will produce goods
and services that are needed and desired by customers and sell
those goods and services at a reasonable price. Organizations
are expected to be efficient, profitable, and to keep shareholder
interests in mind. The legal responsibilities relate to the expectation
that organizations will comply with the laws set down by
society to govern competition in the marketplace. Organizations
have thousands of legal responsibilities governing almost every
aspect of their operations, including consumer and product laws,

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 environmental laws, and employment laws.
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
The ethical responsibilities concern societal
expectations that go beyond the law, such
as the expectation that organizations will
conduct their affairs in a fair and just way.
This means that organizations are expected
to do more than just comply with the law,
but also make proactive efforts to anticipate
and meet the norms of society even if those
norms are not formally enacted in law.
Finally, the discretionary responsibilities of
corporations refer to society’s expectation
that organizations be good citizens. This may
involve such things as philanthropic support
of programs benefiting a community or the
nation. It may also involve donating employee
expertise and time to worthy causes.
Arguments for and
Against Corporate Social
Responsibility
The “competitive” argument recognizes the
fact that addressing social issues comes at a
cost to business. To the extent that businesses
internalize the costs of socially responsible
actions, they hurt their competitive position
relative to other businesses. This argument is
particularly relevant in a globally competitive
environment if businesses in one country
expend assets to address social issues,
but those in another country do not. The
differences in societal expectations around
the world can be expected to lessen in the
coming years.
Finally, some argue that those in business
are ill-equipped to address social problems.
This “capability” argument suggests that
business executives and managers are
typically well trained in the ways of finance,
marketing, and operations management, but
not well versed in dealing with complex
societal problems. Thus, they do not have
the knowledge or skills needed to deal
with social issues. This view suggests that
corporate involvement in social issues may
actually make the situation worse. Part of
the capability argument also suggests that
corporations can best serve societal interests
by sticking to what they do best, which is
providing quality goods and services and
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selling them at an affordable price to people
who desire them.
There are several arguments in favor of
corporate social responsibility. One view,
held by critics of the corporate world, is that
since large corporations create many social
problems, they should attempt to address and
solve them. Those holding this view criticize
the production, marketing, accounting, and
environmental practices of corporations. They
suggest that corporations can do a better job
of producing quality, safe products, and in
conducting their operations in an open and
honest manner.
A very different argument in favor of
corporate social responsibility is the “self-
interest” argument. This is a long-term
perspective that suggests corporations should
conduct themselves in such a way in the
present as to assure themselves of a favorable
operating environment in the future. This
view holds that companies must look beyond
the short-term, bottom-line perspective and
realize that investments in society today will
reap the benefits in the future. Furthermore, it
may be in the corporate world’s best interests
to engage in socially responsive activities
because, by doing so, the corporate world
may forestall governmental intervention in
the form of new legislation and regulation.
Finally, some suggest that businesses
should assume social responsibilities because
they are among the few private entities that
have the resources to do so. The corporate
world has some of the brightest minds in the
world, and it possesses tremendous financial
resources. Thus, businesses should utilize
some of their human and financial capital
in order to “make the world a better place.”
Stakeholder Concept
Some stakeholders, such as employees and
owners, may have specific legal rights and
expectations in regard to the organization’s
operations. Other stakeholders may not
have specific rights granted by law, but
may perceive that they have moral rights
related to the organization’s operations. For
example, an environmental group may not
have a legal right in regard to a company’s
use of natural resources, but may believe
that they have a moral right to question the
firm’s environmental policies and to lobby
the organization to develop environmentally
friendly policies.
All companies, especially large
corporations, have multiple stakeholders.
One way of classifying stakeholder groups
is to classify them as primary or secondary
stakeholders. Primary stakeholders have some
direct interest or stake in the organization.
Secondary stakeholders, in contrast, are public
or special interest groups that do not have a
direct stake in the organization but are still
affected by its operations.
Contemporary Social Issues
Corporations deal with a wide variety of
social issues and problems, some directly
related to their operations, some not. It would
not be possible to adequately describe all of
the social issues faced by business.
Environmental Issues
Corporations have long been criticized for their
negative effect on the natural environment
in terms of wasting natural resources and
contributing to environmental problems such
as pollution and global warming. The use of
fossil fuels is thought to contribute to global
warming, and there is both governmental and
societal pressure on corporations to adhere
to stricter environmental standards and to
voluntarily change production processes in
order to do less harm to the environment.
Other issues related to the natural environment
include waste disposal, deforestation, acid
rain, and land degradation. It is likely that
corporate responsibilities in this area will
increase in the coming years.
Global Issues
Corporations increasingly operate in a
global environment. The globalization
of business appears to be an irreversible
trend, but there are many opponents to it.
Critics suggest that globalization leads to
the exploitation of developing nations and
workers, destruction of the environment, and
increased human rights abuses. They also
argue that globalization primarily benefits
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the wealthy and widens the gap between the
RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS
rich and the poor. Proponents of globalization
argue that open markets lead to increased
standards of living for everyone, higher
wages for workers worldwide, and economic
development in impoverished nations. Many
large corporations are multinational in scope
and will continue to face legal, social, and
ethical issues brought on by the increasing
globalization of business.
Whether one is an opponent or proponent
of globalization, however, does not change
the fact that corporations operating globally
face daunting social issues. Perhaps the most
pressing issue is that of labor standards in
different countries around the world. Many
corporations have been stung by revelations
that their plants around the world were
“sweatshops” and/or employed very young
children. This problem is complex because
societal standards and expectations regarding
working conditions and the employment
of children vary significantly around the
world. Corporations must decide which the
responsible option is: adopting the standards
of the countries in which they are operating
or imposing a common standard world-wide.
A related issue is that of safety conditions in
plants around the world.
Technology Issues
Another contemporary social issue relates
to technology and its effect on society. For
example, the Internet has opened up many
new avenues for marketing goods and
services, but has also opened up the possibility
of abuse by corporations. Issues of privacy
and the security of confidential information
must be addressed. Biotechnology companies
face questions related to the use of embryonic
stem cells, genetic engineering, and cloning.
All of these issues have far-reaching societal
and ethical implications. As our technological
capabilities continue to advance, it is likely
that the responsibilities of corporations in
this area will increase dramatically.
Corporate social responsibility is a
complex topic. There is no question that the
legal, ethical, and discretionary expectations
placed on businesses are greater than ever
before. Few companies totally disregard social
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 issues and problems. Most purport to pursue
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
not only the goal of increased revenues and
profits, but also the goal of community and
societal betterment.
Ways to Enhance
Employer-Employee
Relationship
Aiming to create a strong employer-employee
relationship within your organization is
commendable. Many positive results arise
when employers and their workers respect
and trust each other. But getting to the point of
reciprocal trust and respect can be challenging
for many companies. Some businesses fear
giving their employees too much buy-in or
power. Other organizations do not realize
that there are several actions they can take
to make their workplace run smoother.
A good employer-employee relationship
requires constant nurturing and set
expectations and results. Although hard work
from both sides of the company is needed,
the benefits are worth it. Here are some of
the top advantages: increased morale and
job satisfaction, high retention rate, less
absenteeism, better customer service and
higher quality products.
Employee relations must be strengthened
in an organization. To do so, following points
must be taken care of:-
►► Employee has expectation of fair and
just treatment by the management.
Thus, management must treat all
employees as individuals and must
treat them in a fair manner. Employee
favoritism should be avoided.
►► Do not make the employees’ job
monotonous. Keep it interesting.
Make it more challenging. This can be
done by assigning employees greater
responsibilities or indulging them in
training programs.
►► Maintain a continuous interaction
with the employees. Keep them
updated about company’s policies,
procedures and decisions. Keep the
employees well-informed. Informed
employees will make sound decisions
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and will remain motivated and
productive. Also, they will feel as a
member of organizational family in
this manner.
►► Employees must be rewarded and
appreciated for a well-done job or for
achieving/over-meeting their targets.
This will boost them and they will
work together as a team.
►► Encourage employee feedback. This
feedback will make the employers
aware of the concerns of employees,
and their views about “you” as an
employer.
►► Give the employees competitive
salary. They should be fairly paid for
their talents, skills and competencies.
►► Be friendly but not over-friendly with
the employees. Build a good rapport
with the employee. The employee
should feel comfortable with the
manager/supervisor rather than
feeling scared.
Utilize the following practices in your
organization to see your employer-employee
relationship flourish:
Communicate Openly
Good communication between an employer
and its employees is imperative for building
a positive workplace culture. As an employer,
do not hide important information from your
staff or only grant the information to a select
group of workers. Being aware of how the
company is performing and what projects
are getting started help employees see how
their role fits into the organization; it also
makes them more likely to respect and trust
their company.
Gratitude and Appreciation
Saying “please” and “thank you” go a long
way at an organization. Be empathetic to
your workforce and appreciate the efforts
that they contribute to your company. When
an employee consistently turns in great work
yet receives no recognition, you can be sure
that his job satisfaction and morale is low.
He might even consider finding a company
that does appreciate his work. To make this and show your appreciation through public

RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

scenario unrealistic at your workplace, be or private recognition, parties, gift cards or
grateful for the work your employees do whatever else would appeal to your team.
WHAT DO YOU ALREADY KNOW?

Understand how much you already know about using appropriate knowledge of
responsibilities and accountabilities of entrepreneurs.

Business Ethics
1. Business ethics is the behavior that a business adheres to in its daily dealings
with the world. The ethics of a particular business can be diverse. They
apply not only to how the business interacts with the world at large, but
also to their one-on-one dealings with a single customer.
2. Many businesses have gained a bad reputation just by being in business.
To some people, businesses are interested in making money, and that is
the bottom line. It could be called capitalism in its purest form. Making
money is not wrong in itself. It is the manner in which some businesses
conduct themselves that brings up the question of ethical behavior.
3. Good business ethics should be a part of every business. There are many
factors to consider. When a company does business with another that
is considered unethical, does this make the first company unethical by
association? Some people would say yes, the first business has a responsibility
and it is now a link in the chain of unethical businesses.
4. Many global businesses, including most of the major brands that the public
use, can be seen not to think too highly of good business ethics. Many
major brands have been fined millions for breaking ethical business laws.
Money is the major deciding factor.
5. If a company does not adhere to business ethics and breaks the laws, they
usually end up being fined. Many companies have broken anti-trust, ethical
and environmental laws and received fines worth millions. The problem
is that the amount of money these companies are making outweighs the
fines applied. Billion dollar profits blind the companies to their lack of
business ethics, and the dollar sign wins.
6. A business may be a multi-million seller, but does it use good business
ethics and do people care? There are popular soft drinks and fast food
restaurants that have been fined time and time again for unethical behavior.
Business ethics should eliminate exploitation, from the sweat shop children
who are making sneakers to the coffee serving staff who are being ripped
off in wages. Business ethics can be applied to everything from the trees
cut down to make the paper that a business sells to the ramifications of
importing coffee from certain countries.
7. In the end, it may be up to the public to make sure that a company
adheres to correct business ethics. If the company is making large amounts
of money, they may not wish to pay too close attention to their ethical
behavior. There are many companies that pride themselves in their correct
business ethics, but in this competitive world, they are becoming very few
and far between.

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 Consistent Feedback
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
In order to improve their work performance,
an employee must receive feedback, both
positive and critical. Employees find it
frustrating when their work has been changed
or a project is not approved but receive
no feedback as to why these actions have
happened. Help your employees grow by
offering them frequent feedback on their
work. Set up monthly or weekly meetings
to check in with them about their progress
and what goals they want to accomplish.
When you take these steps, you will see your
employees more engaged with their work.
Following Through
Nothing makes you lose credibility faster than
when you overpromise and do not deliver
expected results. No matter what the scenario
is, as an employer, you owe it to your staff to
follow through on your commitments. If you
told one employee they can attend a training
to improve their skills, quickly approve the
expense report when they turn it in. If another
employee wants to meet with you to discuss
her future at the company, do not blow her
off for another meeting or lunch date. Evoke
trust and respect from your staff by showing
that your commitment to them is important.
Employee Retention
Employee retention refers to policies and
practices companies use to prevent valuable
employees from leaving their jobs. How
to retain valuable employees is one of the
biggest problems that plague companies in
the competitive marketplace. Not too long
ago, companies accepted the “revolving door
policy” as part of doing business and were
quick to fill a vacant job with another eager
candidate. Nowadays, businesses often find
that they spend considerable time, effort, and
money to train an employee only to have them
develop into a valuable commodity and leave
the company for greener pastures. In order
to create a successful company, employers
should consider as many options as possible
when it comes to retaining employees, while
at the same time securing their trust and
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loyalty so they have less of a desire to leave
in the future.
How to Make Them Stay
Many people love their work, and there are
a multitude of reasons as to why this is the
case. They may like the company atmosphere,
their boss, and their co-workers. An exciting
position, with plenty of opportunity for
growth, learning, and advancement, is always
desirable, as is a meaningful job that has the
potential to make a difference in the lives
of others. Dissatisfaction with one or more
of these things could force the employee to
consider leaving.
A rather obvious way for a company to
better retain their employees is by offering
competitive salaries and bonuses. Everyone
likes to be recognized for a job well done, and
nothing makes someone feel more appreciated
than cold hard cash. It also shows the
employee that the company has some degree
of loyalty towards them, which could in turn
influence them to repay their employers with
some loyalty of their own. Increased benefits,
stock options, more vacation time, company
cars, child care, and other perks do not hurt
either. Financial support for employees who
wish to continue their education would also
most likely be appreciated and rewarded with
employee loyalty.
In many instances, employee retention
starts just as soon as an employee is hired. If a
company sees an unusual amount of potential
in a new hire, management could make them
feel appreciated right off the bat. Interest free
loans to help pay off their college bills or other
debts is one way for an employer to do this.
In order to keep the employee from jumping
ship before the loan is paid off, the employer
can do several things, including staggering
payments or making the loan contingent on
certain performance goals. In a way, this
practice can be considered a combination
of recruitment and retention tools. Similar
programs could also be implemented for
employees that already have tenure built up
with the company.
There are times when an employee wants
to leave a company not for a better job
opportunity, but for the chance to relocate.
Usually if this is a case, the employee’s needs are strictly personal

RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

ones. If possible, a business can offer a relocation allowance to the
employee and still try to keep them in the company in the same
or a different capacity. Again, the details would have to be worked
out on an individual basis so that the employee does not abuse
this privilege.
The implementation of company policies like flextime, job-
sharing, and part-time work may also prove useful in retaining an KEY WORD
employee who wishes to leave their job for personal reasons. By
doing so, a company could gain a reputation as a family-friendly Accountability is
environment and therefore make it more attractive to future potential answerability,
employees. blameworthiness,
liability, and the
Another thing that employees seem to enjoy is casual days. expectation of account-
This allows employees the chance to better express themselves and giving.
creates a more comfortable work environment. In most cases, the
dress code should be clearly defined so that the employees do not
abuse the privilege and promote an unprofessional image about
the company.
A company may also want to spend some time to get to know
their employees better. A thorough understanding of an employee’s
goals, concerns, skill level, values, health, and job satisfaction are just
a few of the areas that can be addressed. By doing so, the employee
could be made to feel more like a prized individual and less like
a cog in a corporate machine. At the same time the company will
educate itself as to which employees are the most valuable in both
a business and personal sense.
When a valued employee leaves, the company can use
information gathered in an exit-interview to find out the reasons
for the employee’s decision and the changes that can be made
within the company to keep others from following suit. This data
can be gathered into a formal report and distributed to management,
members of the human resource team, and other pertinent employees
to be used for this purpose.
Finally, upper-level employees can be trained as retention
managers to help in the seemingly never-ending battle to keep
talent. A successful retention manager must be aware of their
strengths and weaknesses and have a talent for listening, respecting,
and understanding their employees’ concerns. Retention managers
should be individuals who have already proven their loyalty to the
company. Honesty, creativity, and patience are other virtues that
can help in this type of position.

BUSINESS RECRUITMENT
A business recruitment team can identify high potential LEARNING OBJECTIVE
business sectors, compiling information of interest to business Define the business
prospects, and marketing to those prospects. The key is to recruitment
demonstrate that the community is a profitable place to do business.
A recruitment policy governs the way an employer attempts to
fill vacant staff positions. Most large companies have some form of
recruitment policy in place that complies with employment laws,
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 and also provides the company with a cost-
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
efficient method to quickly replace outgoing
employees. Major firms typically have hiring
policies in place that all human resources
personnel and hiring managers must abide
by. Small firms with few employees usually
handle recruitment on a case-by-case basis.
Some companies attempt to fill vacant
positions with internal candidates in order
to speed up the hiring process. External
advertising can be expensive, and firms often
limit external advertising to job postings on
company websites. Companies requiring
employees with specialized skills usually
have full-time human resources personnel
on staff that headhunt qualified candidates
from other firms or from major colleges.
A proactive recruitment policy involves
continuously identifying suitable job
candidates for positions, regardless of
whether the positions are currently filled.
Companies that proactively recruit often hire
surplus employees and put them through
training so that they can immediately step in
to positions that become vacant. This enables
these companies to avoid slowdowns in
production caused by key personnel vacating
positions. Depending on the complexity of
the job it can take weeks or months to hire
a new employee, so proactive hiring enables
firms to avoid extended periods of operating
with staff shortages.
Step-1: Form a Business
Recruitment Team
The founding members of this team are
extremely important for establishing the
enthusiasm, momentum, professionalism and
organization that will be needed. They need
to be problem solvers, and action oriented.
This team and the recruitment process need
effective and enthusiastic leadership to stay
on track and be organized. Funding and
in-kind services will be important to this
committee.
Select the Team
To begin the recruitment process, a proactive
business recruitment team needs to be
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assembled. This team should bring a clear
and realistic understanding of the market
analysis, have skills in economic development
and real estate along with connections to local
decision-makers, and have an ability to sell
and follow through. Training for the team
may be necessary.
A team of five to seven participants could
include:
►► Established (and retired) business
owners;
►► Local real estate professionals;
►► Current building owners who are
interested in exploring various uses
for their property;
►► Bankers;
►► Local entrepreneurship and
development organization
representatives;
►► Elected officials; and
►► Chamber of commerce and visitor
bureau directors.
The team will help serve as a management
entity for recruitment efforts, focusing on
those properties and areas that are critical for
the economic success of the business district.
Through the process, the team will coordinate
efforts with local real estate professionals.
A strong leader is necessary to maintain
momentum of the team.
Develop a Common Purpose
Before beginning a business recruitment effort,
it is important to understand its objectives.
For most districts, the effort should help:
►► Maintain and develop the district as a
mixed-use, multi-purpose center; and
►► Strengthen the businesses and the
business mix to enable the district to
compete successfully in the market.
The purpose of the effort should also
articulate a clear market position statement for
the district that characterizes the type of retail
mix, business opportunities, the shopping
environment, and the target customer market. 
The statement distinguishes your district from
surrounding shopping districts.  Often, a
community’s market position statement will
serve as background for identifying the types
of businesses that could be recruited.
Draft a Work Plan
The first step for this group is to develop an
initial work plan. All work plan action steps
should be listed and prioritized.
Sample work plan components might
include the following:
►► Gather data about the community
from the market analysis;
►► Inventory the real estate in the
various business districts, particularly
the vacant or underutilized buildings;
►► Survey the business situation by
looking at the present businesses
and why they are working, who are
the “anchor” tenants, as well as the
previous failures or relocations;
►► Meet with the property owners
of these buildings to garner their
support in the process;
►► Outline all incentives for business
development, create a simple sales
package; and
►► Develop your prospect list, etc.
Realistic timeframes need to be assigned
to every step. The right team member(s) need
to be assigned to every step (match skills to
tasks). Most importantly, involve the broader
community in your work and seek assistance,
ideas and contacts through the process. This
work plan should be reviewed, updated and
modified as needed.
Step 2: Create a Supportive
Business Environment
Before actual recruitment can begin, the team
must make sure that the district presents
itself as an inviting place to do business.
The commercial center must present a quality
business environment in order to attract
viable businesses and ensure the successful
operation of businesses within the commercial
center. It must appeal to the rational investor
who is seeking to minimize risk and maximize
financial return. Often, this supportive
business environment will include incentives
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to help “level the playing field” with other
RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS
commercial centers including those developed
on the edge of town.
Make the Environment Appealing
To attract retailers, a community must first
make its business district visibly active,
attractive, convenient and safe. This is often
more difficult for non-shopping center
locations including downtowns as they
typically do not operate under a central
management. Before the recruitment process
begins, work with existing business operators
and city officials to ensure:
►► An aesthetically pleasing commercial
environment;
►► A safe and secure commercial center;
►► Adequate and conveniently located
parking and transportation services;
and
►► High business operational standards
and service which project a quality,
unified and consistent image for the
district.
Overcome Barriers to Business
Investment in the District
Many retail and service businesses choose
“edge” locations on the outside of town because
such locations have proven successful and
expansions are easy to replicate. Downtown
and other in-town commercial areas need to
recognize and overcome barriers to business
investment in their districts. Barriers often
include:
►► Higher land costs;
►► More title problems (because of their
history);
►► Permitting that is more complex and
time-consuming;
►► Zoning that may be more restrictive;
►► Site preparation (for new construction)
that is more complex;
►► Construction and renovations that
are more complex;
►► Building footprints that are typically
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 smaller; and
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

►► Parking that is more restrictive.

The recruitment team should understand these barriers, both
perceived and real, and work with business and community leaders
to minimize them. Sometimes creative incentives can be developed
to make the district more competitive from a business investment
perspective.

Step 3: Assemble Recruitment and

Marketing Materials
KEY WORD Attractive recruitment and marketing materials should be developed
to convey the market potential of the business district. Business
Stockholder is an
individual or
recruitment materials must help convince a business operator that
institution (including your district is unique and that it offers a competitive edge over
a corporation) that other locations.
legally owns a share
of stock in a public or
private corporation. General Marketing Materials
Market analysis data already collected earlier in your study will
help potential business operators evaluate the potential for their
venture. When developing marketing materials, provide only relevant
information to avoid information overload.
Consider the following:
►► Letter of introduction including compelling reasons to
consider your district;
►► General information and photos of the community
highlighting its assets;
►► Market position and vision statements;
►► Wish list of new businesses supported by market demand
and supply data;
►► New developments demonstrating investment downtown;
►► Information on past openings and closings of businesses;
►► Trade area geographic definition and demographic and
lifestyle data;
►► Trade area economic data including actual and potential
sales data if available;
►► Nonresident consumer data (including daytime population
and tourism visitation);
►► Descriptions of target market segments served;
►► Major employers and institutions;
►► Vehicle and pedestrian traffic volume;
►► Mix of existing retail, service, dining, housing, office and
lodging in the district;
►► Press coverage and testimonials highlighting success stories;
►► Promotional calendar; and

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 ►► Summary of financial incentives and other business assistance

RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

services available in the business district.

Assemble Maps
Graphs and maps are particularly effective ways to describe the
region, the local area, retail competition, and development trends.
For the business district and trade area, include:
►► Current district vacancy map;
►► Business mix and clustering map displaying information
on all district buildings;
►► Major employers, institutions and points of interest map
of area;
►► Traffic volume map;
►► Trade area maps defined by customer origin and drive-
times; and
►► Consumer spending demand and supply or surplus/leakage
maps. KEY WORD
►► When targeting retail prospects, remember that not all
retailers have the same requirements. A grocery store typically Social Responsibility is
requires a different market than a general merchandise store. an ethical framework
Communities should customize information to fit the needs which suggests
that an entity, be it
of the particular prospect. an organization or
individual, has an
Building/Site Specific Materials obligation to act for
the benefit of society at
In addition to market data, information on specific buildings may large.
also be useful. Secure the cooperation of the building owners and
the real estate brokers if the property is listed for sale or lease.
This information might include:
►► Maps and photos describing the location, building and it
history;
►► Complementary businesses/clusters nearby;
►► Sales and rent per square foot (with comparison market
data);
►► Available commercial and residential space and floor plan;
►► Operating expenses including utility rates and taxes;
►► Zoning and building code conditions or restrictions;
►► Current tenants and how the building could be optimally
reused; and
►► When completed, recruitment and marketing materials
should be assembled in an attractive packet and possibly
offered online. Quality content, graphics and formatting
are required to support your community profile and
image. Develop a simple sales package that is interesting,
informative, honest and current, one that describes your
community as a good place to do business.

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 Step-4: Maximize Your Success
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

When you have been successful in recruiting a new business or

expanding an existing one, all efforts and contributions should be
recognized.
Your work is not complete once you have successfully found
a new business for your community. It is important to generate a
welcome for this business and make sure that they are settled in
and operating according to their plans. Keep up contact with your
business in both good times and bad. Involve the new business in
community activities and organizations, and by all means, involve
them in your future business recruitment efforts! They can speak
about the process and what changes could be made to improve it.

WHAT DO YOU NEED TO KNOW?

Read Information Sheet very well then find out how much you can
remember and how much you learned by doing self-check.

Business Environment Analysis

Business environment analysis is the study of both the internal
and external environmental factors related to a business, with the
aim of finding out how such factors affect the business. The effect
of such environmental factors may either be positive or negative.
This includes such internal factors as the type of corporate culture
in place in the organization and the corporate structure. The external
environmental factors include factors like the competition, consumers,
location and government regulations.
Studying the corporate culture as a part of a business environment
analysis involves an assessment of the type of corporate culture the
company has in place. A corporate culture includes the guiding
principles that a company has instituted, such as the level of formality
in the organization, the dress code of the various employees, and the
way the employees and leadership interact. The purpose of studying
the corporate culture during a business environment analysis is due
to the fact that the corporate culture has an important effect on the
success of a business. An organization with a solid corporate culture
has more chances of doing well in comparison to one with a poor
corporate structure. Employees in companies with good corporate
cultures have a good morale, are more motivated and consequently
more productive.
Internal corporate structure in relation to a business environment
analysis includes a study of the immediate premises of a company,
including the office buildings and other related facilities. External
corporate structures include an analysis of the external environment,
including the location of the company, the structures, and the
location of related factors, such as suppliers and distributors. The
structure of a company as well as the location and structures of
suppliers and distributors are important, because they influence the
effectiveness of the movement of goods and raw materials from one
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section to the other. The size of a distributor’s warehouse matters

RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

because it determines the number of goods that can be stored for
distribution to retail outlets.
Other relevant external environmental factors include the number
of competitors in the business environment and their effect on the
business. A company with too many competitors that produce
the same or similar products can affect a business in a negative
manner. Government policies that are in place in the location also
come into consideration, because favorable government policies may
be considered to be opportunities while unfavorable government
policies may constitute part of the threats to the success and survival
of the business.

PRINCIPLES OF RESPONSIBLE
BUSINESS
Principles of responsible business through policies on human LEARNING OBJECTIVE
rights, environment, supply chain, and in the conduct we Identify principles
uphold and expect of others. of responsible
business

Human Rights Principles

The human rights framework protects civil, political, economic,
social and cultural rights. But no matter what kind of right is at
issue, there are basic principles that are always part of human rights
standards and implementation.
These principles include:
►► Universality: Human rights must be afforded to everyone,
without exception. The entire premise of the framework is
that people are entitled to these rights simply by virtue of
being human.
►► Indivisibility: Human rights are indivisible and
interdependent, which means that in order to guarantee
civil and political rights, a government must also ensure
economic, social and cultural rights. The indivisibility
principle recognizes that if a government violates rights
such as health, it necessarily affects people’s ability to
exercise other rights such as the right to life.
►► Participation: People have a right to participate in how
decisions are made regarding protection of their rights. This
includes but is not limited to having input on government
decisions about rights. To ensure human rights, governments
must engage and support the participation of civil society
on these issues.
►► Accountability: Governments must create mechanisms of
accountability for the enforcement of rights. It is not enough
that rights are recognized in domestic law or in policy
rhetoric, there must actually be effective measures put in
place so that the government can be held accountable if
those rights standards are not met.

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 ►► Transparency: Transparency means that governments
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

must be open about all information and decision-making

KEY WORD
Entrepreneurship is the
process of starting
a business, typically
a startup company
offering an innovative
product, process or
Supplier Conduct Principles
service.
We expect and encourage our suppliers to:
processes related to rights. People must be able to know and
understand how major decisions affecting rights are made
and how public institutions, such as hospitals and schools,
which are needed to protect rights, are managed and run.
►► Non-Discrimination: Human rights must be guaranteed
without discrimination of any kind. This includes not only
purposeful discrimination, but also protection from policies
and practices which may have a discriminatory effect.
►► Adhere to all applicable laws and regulations of the countries,
states and municipalities in which the business operates.
►► Act with integrity in all aspects of business and our business
relationship.
►► Treat all stakeholders fairly and with respect.
►► Accurately document transactions and report all pertinent
financial information and invoices accurately and honestly;
never distort any information or documents related to your
work.
►► Respect and treat the business and personal information of
others with the utmost discretion.
►► Understand that Marriott strictly forbids giving or promising
anything of value to a government official or employee,
whether to influence that person in his or her official duties
or to encourage unlawful conduct.
►► Never compromise ethical standards to gain a competitive
advantage or meet a business objective.

POLICIES AND PRACTICES IN ALL

ASPECTS OF BUSINESS
OPERATIONS
LEARNING OBJECTIVE Economic structures and policies create the context for
Explain the policies throughput, but it is individual business operations that
and practices in all are responsible for the actual throughput activities in the
aspects of business
operations
production of goods and services. The specific technologies they
use have a significant impact on the amount and types of materials
that go through the production cycle of extraction, manufacture, use
and waste. In the past, the impact of various technologies on the
environment was not a significant issue for business planning and
operation. The effects of burning coals were too obvious to ignore
in the late 19th and early 20th centuries, but even British royalty
could not exert enough authority to reduce the pollution created.
Concerns for the environmental impact of business activities arouse
in earnest in the latter part of the 20th century with the evidence of
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chemical pollution, a variety of environmentally significant industrial

RESPONSIBILITIES AND ACCOUNTABILITIES OF ENTREPRENEURS

accidents, opposition of indigenous peoples to logging and mining
operations, and the discovery of human impacts on global systems
such as the atmospheric ozone layer and climate.
The accumulating evidence of serious environmental and human
health effects triggered citizen protests, and led governments to begin
exerting influence on businesses to clean up their act. Environmental
concerns arose for individual nations and within the United Nations.
The evolution of environmental non-governmental organizations
(NGOs) also played a significant role in convincing businesses to
take greater care of the environment. Pushed by these external
forces, businesses in the last quarter of the 20th century began to
take up environmental issues in a more serious way. Concern for
environmental issues was also connected to worries about the growth
of the human population. Projections of a global population of
several billion raised doubts about how to provide for such numbers,
and how to close the poverty gap. It became evident those affluent
lifestyles would not be possible for the world’s billions, and that
some radical changes were needed to both provide for humanity’s KEY WORD
needs and protect the environment.
Corporate Social
Responsibility is a form
Eco-efficiency of corporate self-
regulation integrated
Eco-efficiency is the term used by some businesses to describe their into a business model.
goal with respect to the environment. The World Business Council
on Sustainable Development, an association of some of the world’s
largest corporations, defines eco-efficiency as “as being achieved by
the delivery of competitively priced goods and services that satisfy
human needs and bring quality of life, while progressively reducing
ecological impacts and resource intensity throughout the life cycle, to
a level at least in line with the Earth’s estimated carrying capacity”.
This definition is impressive in its reference to human needs and
quality of life, which could be interpreted as a move away from
the mere acquisition of material goods for their own sake and an
emphasis on their contribution to meeting needs in the service of
human well-being. This is also an impressive definition from a
scale perspective in its reference to carrying capacity. This implies
recognition of limits, the core of the scale perspective.
Businesses from different associations and various sectors have
used a similar set of approaches to achieve their own version
of sustainable business practices. Much of the improvements in
business practices have come from new ways of thinking about
meeting customer needs, and redesigning production operations
with environmental concerns in mind. Such procedures as life-
cycle analysis, design for environment and preventive engineering
have all played significant roles in assisting businesses in moving
toward more sustainable operations. This trend reflects the call for
prevention rather than relying solely on rehabilitation or end of
pipe solutions.

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 Items Large and Small interest in corporate social responsibility.
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Some individual corporations have

Sustainable businesses practices are applicable developed their own unique triple bottom
to all business operations and go beyond the line (covering financial, environmental
traditional “green businesses” of recycling and social performance), or supplementary
and waste management. Everything from environmental reporting formats. The rigor
razor blades and ball-point pens are being and quality of these reports is highly varied.
made with less materials and resources than Some are very thorough and admit to ongoing
they were in the past. Even the ways large problems as well as record successes in
buildings are being designed and constructed environmental improvements. Without
are affected by this approach. The traditional explicit standards, corporations can chose
way a large complex building was designed what they report, and the report format
involved many technical professions adding may change from year to year, allowing the
their input to a set of plans that would be corporation to hide certain aspects of their
passed from one group to another in the right performance record. Some companies have
sequence. Each professional group would joined with others in their industry or region
provide their design input and pass the plans to collectively set standards and agree on
on to the next group. Typically the method reporting formats. Several dozen groups
of reimbursing this design input involved have emerged that articulate shared standards
compensation based on capital expenditures, and work collectively to provide adequate
therefore, the larger the air conditioning unit performance records.
for example, the larger the fee. This approach
creates few incentives for any group to reduce
either construction or operating costs, or to
make the building environmentally friendly. ►
An innovative total systems approach to
buildings pays special attention not only to
the types of materials that are used but also to
the design process itself. By creating a design
team consisting of the various professional
and technical groups together with those who
will use the building, and setting a goal of
making it as environmentally friendly as
possible, can lead to dramatic results in terms ►
of reducing material and energy needs. When
the professional compensation is based on the
reduction in the building’s life-long operating
costs, their expertise is redirected to saving
►
energy and materials as much as possible.
One of the reasons that businesses
have been attracted to increased resource
productivity is that these redesign investments
can save money. The less energy and
materials used, the lower their operating
►
costs.

Accountability for the

Environment
The sustainable business development
movement is one aspect of the growing

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