3. The rules about how entrepreneurs ought to behave are referred to as
business ethics. the ethical behavior required of entrepreneurs is
determined by the following:
• the public
• interest groups like the Society of Prevention of Cruelty to Animals;
• business organizations; and
• the individual's personal morals and values.
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4. Factors influencing Ethical behavior
Ethical behavior, whether by a person or a business entity, is
influenced by any or a combination of the following:
• the situation;
• reward system;
• individual difference; and
• other factors
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5. Adherence to
Ethical Standards
Establishment of
trust
Smooth Flow of
Business Exchanges
by Entrepreneurship -between buyers and
sellers
- between lenders and
borrowers
Example: Selleing is faster
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O
6. There are certain ways of encouragig ethical
behavior among employees. These are the
following:
• adaption of a code of ethics;
• institution of rewards and pushments
concerning ethical behavior;
• adaption of internal program for resolving
conflicts;
• creation of ethics review committees;
• top management support
HOW ETHICAL BEHAVIOR IS ENCOURAGED
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7. CODE OF ETHICS
• it should refer to specific unethical practices like receiving
gifts, avoiding warranty claims, bid-rigging, making fictitious
claims, amng others; and
2. it must be supported by top management. support comes in
various forms such as providingbsufficient funds for its
implementation and assigning specific employees to handle
ethical infractions of other employees, and the like.
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8. REWARDS, PUNISHMENT, AND ETHICAL BEHAVIOR
INTERNATIONL PROGRAM FOR RESOLVING CONFLICTS
ETHICS REVIEW COMMITTEES
PROVISION OF TRAINING IN ETHICS
TOP MANAGEMENT SUPPORT
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9. ETHICAL ISSUES FACING ENTREPRENEURSHIP
Entrepreneurships facce ethical questions on a daily basis. These
spring from the Following relationships:
1. between the company nd the customers;
2. between the company and its personnel and employees;
3. between the company and its business associates; and
4. between the company and the investors and the financial
community.
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10. RELATIONS WITH CUSTOMERS
Entrepreneurs are expected by society to treat their
customers fairly and not to act in ways that will be harmful to them.
entrepreneurs should provide support for consumer rights which
are as follows
• the right to be safe;
• the right to be informed;
• the right to choose; and
• the right to be heared
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11. RELATIONS WITH PERSONNEL AND EMPLOYEES
GOOD ETHICAL CONDUCT REQUIRES ENTREPRENEURS
TO BE AWARE OF THEIR RESPONSIBILITIES TO EMPLOYEES.
THESE ARE THE FOLLOWING:
• Workplace safety;
• Quality of life issues;
• Avoiding discrimination; and
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12. 4. Preventing sexual harassment.
In preventing sexual harassment, the entrepreneur needs to do the
following:
• Issue a specific policy statement prohiiting sexual harassment;
• develop a complaint procedure for employees to follow;
• creating a work environment that encourages sexually harassed
employees to report their experiences;
• establish a committee to investigate sexual harassment claims; and
• take displinary actions agaisnt harassers
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13. RELATIONS WITH BUSINESS ASSOCIATES
RELATIONS WITH INVESTORS AND THE FINANCIAL COMMUNITY
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