Ethics and social responsibility of

entrepreneurs
 Ethics

Ethics refers to the study of what is right and good for man. It is an
essential quality related with individual morality and behavioral
habits.

Business ethics is concerned with the investigation of business

practices in the light of human values. It is the study of proper
business policies and practices regarding potentially controversial
issues, such as corporate governance, insider training, bribery,
discrimination, corporate social responsibility. Business ethics are
often guide by law while other times provides a basic framework
that business may choose to follow in order to gain public
acceptance.
 Social responsibility

Social responsibility is the obligation of entrepreneur

towards society where he/she establishes his business,
exist and will grow and expand business activities.

It is the obligation of an entrepreneur to protect norms

and rules within which his/her organization is operating
its activities to fulfill its economic interest to earn profit.
Some specific responsibilities of entrepreneur towards the
various components of the society are as follows:

Towards consumers

•Supply better quality goods at the right time in reasonable price.

•Take necessary steps to improve quality, reduce price and
develop network for distribution.
•Provide after sales service on the basis of nature of product.
•Perform research and development works for better quality and
for new products.
•Avoid unfair practices like black marketing, adulteration, false
advertising etc.
 Towards employees
•Ensure job security

•Provide fair wages and other benefit like bonus, allowances,

share of profit etc.

•Ensure welfare facilities like further education, promotion,

medical care, training etc.

•Provide favorable working environment and recognition of

the performance.

•Provide opportunity to participate in management and

career development.
 Towards community

•To protect the environment from pollution and maintain

ecology.

•To create employment opportunities for the skilled, semi-

skilled, unskilled workers.

•To take necessary steps for maximum utilization of resources

available in society.

•To maintain and develop social and cultural values and norms.

•To involve in social welfare programs like education, health,

games and sports.
 Towards Government

•Follow strictly the governmental rules, regulations and laws.

•Pay all government taxes like value added tax, income tax,
custom duty etc. regularly and honestly.

•Avoid monopolistic and unfair trade practices.

•Support to solve national problem such as unemployment,

poverty, illiteracy etc.

•Emphasize for fair dealing in import and export trade to

maintain the reputation of the nation.