In today’s modern society, businesses have been gaining more power and it invariably influences various areas of our society. Thereby, businesses are obliged to take the responsibility for the upholding of values, wealth creation, and the appropriateness of the tools that are used to achieve the goals. So people value business not only in economic, legal but also in ethical terms.
There are so many organizations that develop a new startup business with a primary goal to meet their own needs and make a profit. In a business, an entrepreneur’s social norms, morality, social responsibility initiatives, and norms of conduct are said to be a matter of business ethics. Business ethics & culture are closely related and deeply influence each business enterprise. So the importance of entrepreneurship ethics goes way beyond what we expect!
Entrepreneurship is very closely related to morality. In a business, an entrepreneur can rely on his insight, desires, ability, and diligence which directly has a connection towards the consequences of the decisions taken. So yes, he is responsible for his decisions & actions!
Also, any responsibility has a moral starting point. The object of business ethics majorly lies in an entrepreneur’s morality behavior, values, and norms.
What is Business Ethics in Entrepreneurship?
Business Ethics is said to be a form of social responsibility which are more related to compliance with moral norms and rules. Some authors have also described it as an invisible force that actually regulates the relationship between morality and business and also, it is something that helps in achieving harmony in that relationship. And that is why ethics is important in entrepreneurship!
Types of Business Ethics
There are two types of business ethics: macro-ethics & micro-ethics. Macro-ethics defines the moral relationships within a business, relationships between businesses as moral entities, and also between their shareholders and employees.
Micro-ethics is a part of business ethics that defines the specifics of moral relationship between the socio-economic system of the macro-entities, the state, business organizations, and society in general.
The ethical problem generally results due to people’s communication. By communicating with each other, people make decisions that are usually judged from ethical positions. So the moral maturity of a business and its moral values determine the ethical problems in a business.
Most common Ethical issues faced by Entrepreneurs:
- Production of poor products
- Hiding correct information in reports
- Unfair price increase
- Direct fraud in negotiations
- Poor quality of work
- Blind obedience to management
- The conflict between personal & business interest
- No opportunity to disapprove an unethical behavior
- Insufficient attention to personal life due to excess workload
- Fraudulent behavior to benefit the organization
In today’s business, the core value is said to be the pursuit of benefit and the rest does not matter! And that is where business ethics plays a very important role. The fundamentals of business ethics are important where a business particularly involves communicating with people. Beyond just leading people, entrepreneurs should also preach a moral attitude, convey proper ways to solve problems and earn their respect to maintain business ethics.
The Three Main Key Statements of Business Ethics:
- A business must not only develop & deliver products or services but also moral values
- Businesses must direct their funds and profits toward socially important goals
- Reconciling challenges that arise from interpersonal interests must be addressed as a priority
Personal Ethics Statement
As an entrepreneur, it is very crucial to create a personal ethical statement. The personal ethics of an entrepreneur defines the core ethical values & beliefs. Also, it conveys a strong testimony about your code of conduct while you deal with people.
It can differentiate you from other businesses in your space. It may include information about your opinions, fundamental beliefs, and values. It will give your potential customers insight into what it is to be in a business relation with you.
Read here: How to Exceed Customers’ Expectations?
Remember, you are telling people why one should choose your business and you are also communicating what you value as a person.
It is true that every business owner aims for long-term success and not for something short-term. But the question is if there is enough time and space for ethical deeds while managing a company and it is the numerical indicators that directly define the success of a business. The answer is, leading a business based on ethical principles should be a constant attempt. If this is universally followed and recognized, every business will succeed straightforwardly.
1. Why are ethics important to entrepreneurs?
Ethics are important to entrepreneurs because it helps in improving the business reputation and building a brand image for your business.
2. What are the ethics required for entrepreneurship?
A good example of business ethics is the commitment to employees – respect, timely pay, and honesty.
3. What is an entrepreneurial example?
Being entrepreneurial is to have a vast knowledge about the industry and being able to create new opportunities with that knowledge.
4. Why is ethics important in entrepreneurship and everyday life?
There is a framework of ethics that exists beneath our daily lives which are important to create positive outcomes, promote integrity, keep our promises, etc