Entrepreneur Ethics and Importance of Ethics in Key Areas of Business
Successful entrepreneurs operate on sound business ethics which are approved and accepted in any society.
Entrepreneurial Ethics are those codes of conduct, employed by entrepreneurs which impact society positively, thereby increasing the entrepreneur’s chances for greater success.
Entrepreneurial ethics would lead to positive attitudes towards raising successful entrepreneurs, who would, in turn, build entrepreneurial institutions for societal growth and advancement.
When entrepreneurial ethics are practiced and visible, the entrepreneurs and their team, work with great zeal, dedication, and purposefulness, to achieve the organization’s objectives, and together, they work for the common good of all.
It can be clearly seen that when good entrepreneurial ethics are demonstrated, businesses can handle or tackle difficulty when they arise.
A healthy entrepreneurial spirit is certainly a viable option for many countries facing unemployment crisis, especially in the third world countries. Entrepreneurial ethics, combined with integrity and all the right motives, would allow for economic growth and gradual development throughout the primary, secondary and tertiary sectors in the economy.
Sound Entrepreneurial ethics helps to develop relationships built on mutual trust and respect. Without this trust, businesses will not survive; investments will not be made. Successful business empires have gained credibility and reliance as a result of their sound ethical entrepreneurial practices.
Ethical Entrepreneurial practices bring forth positivity with the vision and mission of an organization. It, therefore, necessitates a great sense of self-discipline and humility which grows small businesses into successful empires.
The Importance of Ethics in Key Areas of Business
Hand in hand with entrepreneurial ethics is integrity in business.
It is important that entrepreneurs today don’t get caught up in moneymaking schemes and lose sight of the importance of doing the right thing for the common good.
Any entrepreneur who willfully and dishonestly engages in business activity with the motive of ripping people off or profiting at the expense of others, creates a harmful business environment of distrust and antagonism.
When you build a business on integrity, and set off with an attitude of nobility, humility and service, and the intention of making a living by providing your community with needed goods and services, you contribute to, rather than detract from, the general good. An early and consistent stand against questionable conflicts of interest is an important aspect of any entrepreneur’s ethics effort.
How a company treats its workers is a good indication of its ethical practices. An entrepreneur who sets out to cheat or underpay his employees will indefinitely cause his organization to suffer and be subject to high staff turnover, low morale, dishonesty among other negative things that could cause the downfall of the business.
It is important to treat all employees well as they represent the business daily, but it will also benefit the entrepreneur because most people are more likely to reciprocate what behaviours and attitudes they receive. It goes without saying, that when good work habits are developed and practiced by all within an organization, a special bond is formed and a loyalty to the company becomes apparent. Entrepreneurs who manage to keep open lines of communication with their employees, grow to understand their feelings about things taking place within the workplace, and they work together to ensure that everyone is in alignment to benefit from their association with the organization.
Your clients are your key stakeholders and it should be quite obvious as to how dependent your business is on its customers. The entrepreneur today should seek out the opportunity to personally treat all clients well, and express great and humble appreciation when they support your business.
The ideal way to do this is to always strive to provide goods and services that are of the best quality and service, as good as you can make or get them, for your clients. An entrepreneur with an honest motive and good ethical sense will realize that doing and giving the best to clients every day is not only a good business decision, but a wise and ethical choice as well.
It is difficult, and possibly unavoidable, to engage in business while having no impact on the environment. Even if you’re in the craft business, your clients are looking on to see how you utilize resources or recycle products. If you are truly invested in reducing your business’s Eco-footprint, then you can have a much greater impact, not just in the business world, but in the community and environment as a whole.
The ethical entrepreneur today should explore, welcome, and employ the many ways that a business can reduce its Eco-footprint on the environment, including recycling, reducing energy waste, carpooling, minimizing paper packaging and usage, and reducing wasteful business practices among other things.
While all of these activities have a practical basis, in that they protect the environment and the public reputation of your business, they also have a great impact and influence on others. When entrepreneurs model environmental ethics and encourage Eco-friendly practices, others are likely to follow suit.
Organizational Ethics should not only be practiced by larger businesses. In fact, the entrepreneur today can consciously choose to make ethics a part of their business plan. Start-ups can create and effectively commit to sound ethical practices.
Ethics Reality Check For The Entrepreneur Ethics
1. Entrepreneurs must first recognize that there are ethical dilemmas surrounding them within the culture of entrepreneurship.
2. They must decide to make ethics a principle value of their business’s objectives and mission. The entrepreneur today should embrace doing business ethically in order to improve their standards.
Good business ethics should be visible to all who come into contact with the business. Ethical policies should be included in business plans, in the business’s mission statements, and in all other business documents.
3. The ethical entrepreneur ought to seek out favourable opportunities to make his or her ethical commitment bona fide. It is the business of an entrepreneur to communicate clearly to all, from the initial stages of business, the ethical standards they employ. This entrepreneur will no doubt enjoy both financial success and a superb reputation.
4. The ethically made entrepreneur should be un-naively aware of the inevitable and unavoidable tensions in the business world, and anticipate these tensions not with fear, but with resilience, and so be able to put in place, a reasonable action plan that helps the entire team to deal with these tensions before the situations are actually encountered. This practice should be included in the business’s plan and mission and become part of a more formal “ethics training” for all.
5. Not every situation can be anticipated, but the ethical entrepreneur must always keep an open door policy so that new and uncommon ethical issues can be worked out as they arise.
6. The ethical entrepreneur looks for opportunities to engage the business as a whole and align them to the community and its needs. This aids in team building and strengthening interpersonal relationships
7. The ethical entrepreneur thinks and talks about the ethical values that matter at any given opportunity. The frantic and elaborate, rapid growth of start-ups makes it easy to submit to the temptations of malpractices in order to stay alive in this highly competitive business world. Always keep your objectives clear in front of you and visible for all to see and acknowledge.
8. The ethical entrepreneur challenges growth and renews the commitment to ethical practices. Businesses change as they grow, and so to, do their objectives. As the entrepreneur and his/her business grows, re-valuation is important and needed where ethics is concerned. Ethical values and the commitment to continued ethical practices must be reworked and re-communicated every time change occurs, thereby preparing all involved in the business to deal with the changing and evolving ethical dilemmas.
9. The ethical entrepreneur looks for opportunities to engage the business as a whole and align them to the community and its needs.
The rewards of being an ethical start-up are many. Personal and business success is accomplished, and client and team satisfaction is the most prominent benefit for all. Everyone feels better about themselves and the butterfly effect happens magically as everyone freely and satisfyingly chose to act ethically in their dealings with others.
For the individual entrepreneur, a reputation for much needed ethical practices can place your business on the top lists of ethical businesses with which others will unhesitatingly choose to do business with, increasing your opportunities for successful business partnerships.
It is imperative, that the entrepreneur today understand that the business they run has responsibilities to everyone.
Note: Cherise Castle-Blugh is the Author of THE TIMELY ENTREPRENEUR & the Key Educator at Downer’s Educational Institute in the field of Business and Entrepreneurship.