CHAPTER 3

Ethical Behavior of Entrepreneurs

Objectives:
At the end of this chapter the learners
must be able to:
To identify what is business ethics the factors that
should be considered in making business ethics

Discuss the Factors Affecting Ethical Behaviour

Ways of Encouraging Ethical Behaviour

Ethical Issues Facing Entrepreneurs

Ethics is a study of
moral obligation
involving the
distinction between
right and wrong.

Ethical behavior required of the

entrepreneurs is determined by
the following:

Ethical Behavior is determined by the

following:
The public
Interest groups
Business organizations
The individuals personal morals and
values

Ethical Behaviour

Factors Influencing
Ethical Behaviour
The Situation
Reward System
Individual
Differences
Other Factors

Encouraging
Ethical Behaviour
Code of Ethics
Reward, Punishment
and
Ethical Behaviour
Internal Programs for
Resolving Conflicts

Ethics Review
Committee
Provision of Training
in
Ethics
Top Management
Support

What is Code of Ethics?

The Code of Ethics is a formal

document indicating the
entrepreneurs adapted principles of
adapted behavior.

A Code of Ethics can be made

effective if the following requirements
are met:
It should refer to specific unethical
practices
It must be supported by the top
management.

Rewards, Punishment and Ethical

Behavior

Internal Programs and Resolving

Conflicts

Ethics Review Committee

Provisions of Training in Ethics

Top Management Support

Ethical Issues Facing

Entrepreneurs

-Between the company and the

customers
-Between the company and its
personnel and employees
-Between the company and its
business associates
-Between the company and the
investors and financial community

Relations with Customers

The Right to be Safe
The Right to Be Informed
The Right to Choose
The Right to be Heard