THE ETHICAL AND SOCIAL

RESPONSIBILITIES OF THE
ENTREPRENEUR
Group 1
 LIST OF CONTENT
PRESENTATION

01 BUSINESS ETHICS AND FACTORS INFLUENCING ETHICAL

BEHAVIOR

02 HOW ETHICAL BEHAVIOR IS ENCOURAGED

03 ETHICAL ISSUES FACING ENTREPRENEURSHIP

WHAT IS BUSINESS ETHICS?

ETHICS
Is a moral obligation involving the
distinction between right and wrong.
THE ETHICAL BEHAVIOR REQUIRED OF ENTREPRENEURS IS
DETERMINED BY THE FOLLOWING;

1. The Public
2. Interested Groups
3. Business Organization
4. Individual's Personal, Moral, and Values
FACTORS INFLUENCING ETHICAL BEHAVIOR;

1. The Situation

2. Reward System

3. Individual Differences

4. Other Factors
 1. ADAPTATION OF
A CODE OF ETHICS
The code of ethics is a formal document indicating the
entrepreneurship's adapted principles of appropriate behavior. A
code of ethics is very useful to the firm espousing ethical behavior.

A CODE OF ETHICS CAN BE MADE EFFECTIVE IF THE

FOLLOWING REQUIREMENTS ARE MET.

1. It should refer to specific unethical practices like receiving gifts, avoiding warranty
claims, bid-rigging, making fictitious claims, among others; and

2. it must be supported by top management. Support comes in various forms such as

providing sufficient funds for its implementation and assigning specific employees to
handle ethical infractions of other employees, and the like.
2. REWARDS,
PUNISHMENT, AND
ETHICAL BEHAVIOR
If the entrepreneurship wants to have some
measure of control over the behavior of its
personnel, a system of reward and punishment
must be instituted.
Punishments could take the form of dismissal,
demotion, suspension, or repri-mand. Rewards
may be given in the form of cash gifts,
promotion, or citation.
3. INTERNAL PROGRAMS FOR
RESOLVING CONFLICTS
Conflicts arise, even when ethical conduct of personnel is
concerned.
It is important for entrepreneurships to adapt a program of
resolving conflicts.
4. CREATION OF ETHICS
REVIEW COMMITTEES
ETHICS COMMITTEE

This committee 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.
The committee provides advice to the
entrepreneur and his staff concerning
sensitive ethical issues.
5. PROVISION OF
TRAINING IN ETHICS

Company personnel who are exposed to

activities that are ethically charged must
be provided with sufficient training in
ethics.
Ethics are more appropriate for persons
occupying sensitive positions in
purchasing, waste disposal, personnel,
research and development, sales, and
manufacturing.
6. TOP MANAGEMENT SUPPORT
When an 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
ENTREPRENEURSHIP
Entrepreneurship face ethical questions on a daily basis: these spring
from the following relationship:

1. BETWEEN THE COMPANY AND THE CUSTOMERS

2 BETWEEN THE COMPANY AND ITS PERSONNEL
AND EMPLOYEES
3. BETWEEN THE COMPANY AND ITS BUSINESS
ASSOCIATES
4. BETWEEN THE COMPANY AND THE INVESTORS
AND THE FINANCIAL COMMUNITY.
 THE RIGHT TO BE SAFE .
1. RELATIONS WITH Consumers expect that the
products and services that they
COSTUMERS buy will do them harm.

THE RIGHT TO BE INFORMED.

ENTREPRENEURS SUPPORT Consumers make purchasing
decision often.
FOR CONSUMERS RIGHTS:
THE RIGHT TO CHOOSE
firms that intend to adhere should strive
to protect consumers right to choose what
product and services they need and intend
to purchase.

THE RIGHT TO BE HEARD

Costumers have the right to
communicate their concerns to
entrepreneurship they
patronize.
2. RELATIONS WITH
PERSONNEL AND EMPLOYEES

GOOD ETHICAL CONDUCT REQUIRES

ENTREPRENEURS TO BE AWARE OF THEIR
RESPONSIBILITY TO EMPLOYEES:

WORKPLACE SAFETY.
The ethical entrepreneur is one who makes sure
that the workplace is safe for employees.

QUALITY OF LIFE ISSUES.

many employees are burdened by problems
about maintaining a good balance between work
and family.
AVOIDING DISCRIMINATION
everyone has the right to work in
place where discrimination is not
practiced.
PREVENTING SEXUAL HARASSMENT
sexual harassment refers to
unwelcome sexual favors and
USERE TWO : 310M
other verbal or physical contact of
a sexual nature.

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3. BETWEEN THE COMPANY AND ITS
BUSINESS ASSOCIATES
Entrepreneurships operate in conjunction with
the efforts of suppliers, agents, and various
types of middlemen.

4. BETWEEN THE COMPANY AND THE

INVESTORS AND THE FINANCIAL
COMMUNITY
The country’s financial system survives partly
because investors and other players have
placed a certain degree of trust in firms they
deal with.
THANKS FOR
WATCHING
GROUP 1