Entrepreneurial Business ethics

Entrepreneurial business ethics can be considered as a practice where an entrepreneur manages the business according to his or her own views and standards of right and wrong, rather than relying on the principles of management.

Ethics are essential for building customer trust and customer relationships as well as supplier relationships. Ethics set the standards for the conduct of an entrepreneurial business. Entrepreneurial business ethics can be defined as a subculture or religion of the entrepreneurial movement.

Objectives of Entrepreneurial Business Ethics

The main objectives of the ethics found in an entrepreneurial business can be stated as follows.

To study the behavior of individuals involved in the entrepreneurial business venture and assess whether they are moral or immoral.

To establish ethical standards and norms in the entrepreneurial movement and accordingly, judge the behavior of individuals.

To formulate standards of how to behave properly in the entrepreneurial business.

To express ideas or attitudes about individual behavior in the entrepreneurial business venture and identify the suitability of such respective behavior.

For survival, development and excellence, the entrepreneurial movement must obtain the social approval of the society in which it exists and operates. Without social sanctions, an entrepreneurial business cannot earn loyal customers. As a result, the entrepreneurial business may fail to function in its market.

No matter how big, strong or wealthy an entrepreneurial business is, it will not sustain if it operates in an unethical manner. Thus, entrepreneurial business ethics leads to the sustainability of that entrepreneurial business.

Morals

It is important to explore what values ??consist in an entrepreneurial business venture.

Values: are global beliefs that guide actions and judgments across a variety of contexts.

Values: represent the good and the bad, the right and the wrong in one’s behavior.

Values: are stable and enduring and have a high impact on the entrepreneurial businesses.

Values: provide the context in which social norms are established and justified in the entrepreneurial movement.

Values: in entrepreneurial businesses involve judging the right course of action and holding the entrepreneur’s opinions on right or wrong.

Attitudes

Another significant area which needs exploration in an entrepreneurial business venture is Attitudes. Values ??are determined by what we think is right or wrong and just or unjust. Attitudes can be defined as the entrepreneurs’ preference for certain physical things, people and situations. Attitudes represent a single belief that drives actions and judgment through objects and situations.

Values ??can explain attitudes and behaviors, but it is not clear which specific attitudes and behavioral patterns will shape an entrepreneur. Nevertheless, attitudes and values ??strongly influence the behavior of entrepreneurs.

Need for entrepreneurial business ethics

Globalization brings with it greater coordination among different cultures and socioeconomic systems. Technology which arises with globalization has created a new level of transparency in enterprise business communication. Entrepreneurial businesses are now more exposed globally and their respective information and news spreads rapidly through the Internet and social networking sites irrespective of the credibility.

Ethics can act as an integral part of product or service differentiation, enhancing brand segments and giving the organization a unique position rather than competitiveness. A good ethical policy can have a positive impact on the income of an entrepreneurial business.

Sources of Entrepreneurial Business Ethics

It is worthwhile to identify the various origins of ethics found in entrepreneurial ventures.

Religion

All religions agree that ethics is essential and will reveal what is right and wrong in every aspect of life. All religions emphasize social responsibility. That is why the religion which an entrepreneur follows and believes influences his or her ethics.

Culture

Culture shapes the lifestyle of individuals and their way of life in society including their attire, customs, beliefs, rules, regulations and behavior. Hence, the cultural background of the entrepreneur shapes the ethics of the venture.

The behavior of man as a social animal directly or indirectly refers to culture. Similarly the family culture of the entrepreneur affects the moral value system.

The principles of honesty, respect for life and liberty, justice, loyalty, human dignity, and integrity are immortal and valid for generations to come.

The legal system provides the minimum standards of conduct for human society, but the laws cannot duplicate the value system of society. Entrepreneurial businesses must obey the law and obeying the law itself is an ethical behavior.

Connection between ethics and entrepreneurial businesses

The ethical mandate of an entrepreneurial business is to maximize shareholder profits. There are various pressures on entrepreneurial businesses to increase profits. Entrepreneurs within the entrepreneurial business should appreciate the importance of ethics and make it a habitual practice.

Entrepreneurial business ethics can add more strategic value to those businesses if they are linked to profit maximization. Entrepreneurial businesses must follow ethical rules in order to make a profit and must largely fulfill their commitments to shareholders, customers, suppliers, employees, creditors, banks, various lenders and society.

Importance of Ethics in Entrepreneurial Businesses

An entrepreneurial business is a subsystem in the society. Therefore, its activities should contribute to the welfare of the society. Ethics add value to the business image of each respective entrepreneurial business venture. An entrepreneurial business cannot earn loyal customers without social restrictions.

Ethics leads to the sustainability of the entrepreneurial movement. Ethics builds trust in employees. The products or services of ethically and socially responsible entrepreneurial enterprises contribute to the profitability in the long run.

Summary

Entrepreneurial business ethics is where an entrepreneur manages the business according to his or her own views and standards of right and wrong rather than relying on the principles of management. Business ethics can be defined as a subculture or religion of the entrepreneurial movement.

The main objectives of the ethics found in an entrepreneurial business includes studying the behavior of individuals relevant to the enterprise business and assessing them as moral or immoral, establishing ethical standards and behaviors in the entrepreneurial business and judging the behavior of individuals and, formulating norms on how people should behave properly in the entrepreneurial business.

In an entrepreneurial business, values are global beliefs that guide actions and judgments through a variety of conditions, and values represent the good and the bad, the right and the wrong in one’s behavior. It also contributes to the integrity of the entrepreneurial movement.

Attitudes in an entrepreneurial business can be expressed as the entrepreneur’s liking for certain physical things, people and situations. Both attitudes and values strongly influence the behavior of entrepreneurs. Religion, culture, and lifestyle have all contributed, directly or indirectly, to the ethics of entrepreneurship.

The ethical mandate of the entrepreneurial business is to maximize shareholder profits. Entrepreneurial businesses must follow ethical rules in order to make a profit and must largely fulfill their commitments to shareholders, customers, suppliers, employees, creditors, lenders and society.

An entrepreneurial business is a subsystem in society. Therefore, its activities should contribute to the welfare of the society. Ethics adds value to the image of that entrepreneurial business and leads to the sustainability of the entrepreneurial business.