Ethics and Entrepreneurship
What Are Ethics? A set of principles outlining a behavioral code; what is good and right or bad and wrong. Obligations and appropriate moral actions for both the individual and the organization. It does not just apply to business. It may be difficult for individuals or groups in society to agree upon what is right and wrong.
Legal vs. Ethical The law provides boundaries for defining what activities are illegal. The law, however, does not necessarily outline what is “ethical.” The law sets out a basic minimum acceptable level of behaviours. Just because a decision is just doesn’t mean that it is ethical.
Ethics Within Businesses Many businesses develop their own codes of ethics or conduct. This code outlines what employees are to do to carry out what the company sees as “right” in various circumstances.
Venture Case Study Read the Venture – Blueprint for a Mutiny, found on page 296. Questions: What possible ethical problems might have been faced by Tupper and the other employees during the process of switching companies?
The “Ethics Check” Is it legal? Is it balanced/fair/win-win? How will it make you feel about yourself? - will it make you feel proud? - would you feel good if your decision was published in the local newspaper? - would you feel good if your family knew about it?
Mad Men – How has business ethics changed in the last 50 years? Why? Mad Men - Are there moral limits to emotional manipulation? Is an ad firm which uses love, happiness, freedom and similar virtues to motivate sales of products ethical? If so, what are the limits? If not, is it realistic to expect businesses to adhere to strict ethical standards?
Outline for a Code of Ethics Over all, a code of ethics should be a formal statement of a business’s values concerning ethics and social issues. It commonly speaks to acceptable norms of behavior, guided by six areas of concern: 1. Honesty: to be truthful in all your endeavors; to be honest and forthright with one another and with customers, communities, suppliers, and other stakeholders. 2. Integrity: to say what you mean, to deliver what you promise, and to stand up for what is right. 3. Respect: to treat others with dignity and fairness, appreciating the diversity of the people you deal with and their uniqueness. 4. Trust: to build confidence through teamwork and open, candid communication. 5. Responsibility: to speak up — without fear of retribution — and report concerns in the workplace and elsewhere, including violations of laws, regulations, and company policies. 6. Citizenship: to obey all laws of the countries where you do business and to improve the communities where you live and work.
Being Socially Responsible It’s not enough just to be ethical, or do the right thing anymore. Businesses now are expected to act in a socially responsible manner – they need to be good citizens as well as give back to the societies (including global) in which they exist. Can you think of a company that is socially responsible? One that is not? There are financial benefits to being a “socially responsible” company or organization. What might some be?
Hmmm… Q: who do you think American consumers voted to be the most “socially conscious/responsible company? A: Wal-Mart The retail giant trounced second-place McDonald's (yes, McDonald's). In fact, 28 percent of consumers picked Wal-Mart Stores as the most responsible company, compared with 17 percent for McDonald's and 16 percent for third-place Microsoft.
Movie – The Pursuit of Happiness This film is based on a true story It’s a story of how a business man Chris Gardner chooses to reach success based on his ethics and hard work, rather than cutting corners and unethical actions.