Introduction to Entrepreneurship Ethics

Introduction to Entrepreneurship - Ethics, Professionalism, and Social Responsibility

• The chapter emphasizes the importance of ethics, professionalism, and social responsibility in business activities.
• Ethics involve personal beliefs, values, good practices (discipline, honesty, responsibility, trustworthiness).
• Professionalism means competence, qualification, due care, skill, diligence, and adherence to laws, regulations, and codes of practice.
• Social responsibility requires actions that benefit society, the environment, and the country, without causing harm.
• The objectives of this chapter are to understand and appreciate the importance of good morals, ethics, and professional values in the workplace, to understand the meaning of professionalism, and to appreciate the importance of social responsibility to a business organization.
• Learning outcomes for the chapter include appreciating good character for long-term success and relating to corporate social responsibility.

List of Topics

• Introduction to Ethics and Standards of Professional Conduct
• The Importance of Ethics and Code of Good Professional Conduct
• Islamic Ethical Values
• Social Responsibility and Sustainable Development

Introduction

• A socially responsible entrepreneur is an asset to society and the nation.
• Business activities should create win-win situations, benefiting society while generating profit.

Introduction to Ethics and Standards of Professional Conduct

• Ethics involve personal beliefs, values, and good practices like discipline, honesty, responsibility, and trustworthiness.
• Ethical values are derived from various sources, including religion, culture, and laws (legal acts, enactments, by-laws, rules, and regulations).
• Honesty, responsibility, fair dealings, and reasonableness are universally accepted ethical principles.
• Criminal acts (cheating, stealing, robbery, rape, etc.) are considered universally unethical and wrong.
• Personal ethical development comes from upbringing, religion, exposure to the world, education, social norms, observations, experiences, and knowledge of local laws. This forms a moral compass for personal conscience.
• Professionalism involves competence and qualifications, and performing tasks with expected standards like due care, skill, diligence, and compliance with rules, regulations, and codes of practice.
• Various professional bodies (accountants, engineers, lawyers, doctors, nurses, dentists, architects) have codes of professional conduct and disciplinary boards to ensure compliance with legal/technical/ethical requirements.

Introduction to Ethics and Standards of Professional Conduct (cont.)

• Business involves providing products or services to customers while making a profit.
• Ethical and legal practices are crucial for business success; ensuring the business model benefits society and environment avoiding harm.
• Successful entrepreneurship also involves adhering to professional and ethical standards; not purely about worldly achievement neglecting good conduct. Moral integrity and personal character are crucial for lasting positive outcomes.
• Good ethical, moral conduct provides holistic, meaningful, and satisfying success that inspires others.

Common Unethical Practices

• Selling counterfeit/ fake/ imitation products
• Selling fake products like cosmetics

Social Responsibility and Sustainable Development

• Social responsibility involves upholding good ethical principles and acting as exemplary citizens.
• This enhances a company's image, market positioning, and competitiveness in the long term.
• Corporate social responsibility (CSR) involves assuming responsibility towards the environment, consumers, employees, communities, and other stakeholders.

Corporate Social Responsibility Examples

• Eco-Biz Dream project by Alliance Bank
• Community programme by Shell

Sustainable Development

• Sustainable development involves meeting current needs without compromising future generations' ability to meet their needs.
• It includes maintaining human needs while preserving the environment.
• Entrepreneurs contribute through less pollution, energy-efficient production, energy/water-efficient machinery, reduced waste, and eliminating harmful materials to the environment.

Sustainability Examples

• Shell's commitment to delivering energy responsibly to meet the world's needs.
• Maxis' corporate responsibility focus on sustainability.

Summary

• Ethics, professionalism, and social responsibility are fundamental to business operations.
• Entrepreneurs must incorporate these aspects to achieve profit objectives and fulfil social obligations.
• A good business model considers the interests of all stakeholders, creating win-win solutions.