Business Ethics

Responsibilities to Employees

1. Sensible and Attractive Salary

   • Attracts talent and motivates employees.

2. Assignment of Right Jobs

   • Align jobs with employees' skills and backgrounds.

3. Provide Security of Employment

   • Ensures job stability to motivate commitment.

4. Provide Best Working Environments

   • Maintain optimal conditions for productivity.

5. Assumption of Welfare Arrangements

   • Financial support during sickness, accidents, and crises.

6. Humane Behavior towards Employees

   • Compassionate treatment and respect for rights.

7. Formation of Small Business Relations

   • Build good relationships for effective communication.

8. Participation in Profits and Management

   • Sharing profits with employees fosters loyalty.

9. Definite Service Surroundings

   • Clarity in service conditions like promotions and penalties.

10. Espouse Incentives Wages Structure

    • Using incentives to inspire higher productivity.

Responsibilities to Government

1. Compliance of Government Rules

   • Abide by legal requirements.

2. Payment of Taxes

   • Honest declaration of income for tax purposes.

3. Not to Seek Political Patronage Unfairly

   • Avoid seeking political support through unethical means.

4. Collaborate for Commercial Development

   • Align business objectives with governmental goals.

Responsibilities to Creditors and Suppliers

1. Pay Fair Prices of Goods

   • Ensure timely payments to maintain good relationships.

2. Inform about Changes in Market

   • Communicate market developments to suppliers.

3. Give Guarantee of Minimum Price

   • Ensure price stability for supplier confidence.

4. Provide Technical Advice

   • Assist suppliers with procedures and requirements.

5. Inform Suppliers of Future Developments

   • Keep suppliers aware of upcoming changes and developments.

6. Promote Healthy Competition

   • Foster a competitive yet fair market environment.

Responsibilities to Consumers and the General Public

1. Determination of Fair Prices

   • Set just pricing to build customer trust.

2. Render Good and Economic Services

   • Prioritize excellent customer service.

3. Standardization of Goods

   • Ensure products meet quality standards for safety.

4. Best and Economic Packing of Products

   • Implement effective packaging strategies.

5. Right and Truthful Advertising

   • Honest marketing aligns with ethical responsibility.

6. Avoid Adulteration and Low Measurements

   • Follow quality standards to protect consumer welfare.

Lesson 2: Major Ethical Issues in Entrepreneurship

Common Ethical Issues

• Favouritism/Partiality

  • Avoid bias in hiring and decision-making.

• Copyright Violation

  • Seek permission for using others' intellectual property.

• Overworking Staff

  • Understand limits in employee workloads.

• Tax Accounting Dishonesty

  • Be transparent in financial reporting.

• Hiding Income

  • Failures to report income hinder business legality.

• Hiding Blemishes During Fundraising

  • Being truthful during investment discussions.

• Merging Personal and Business Accounts

  • Maintain separation for clarity in finances.

• Hiring Fake Review Writers

  • Ethical issues arise from deception in marketing.

Lesson 3: Models and Frameworks of Social Responsibility

Frameworks of Social Responsibility

1. Economic Model

   • Focus on profit generation benefiting society.

2. Philanthropic Model

   • Businesses contribute socially to enhance public relations.

3. Social Web Model (Ethical)

   • Business operates as a responsible community member.

4. Integrative Model

   • Combine economic goals with social objectives.

Carroll's Pyramid Model of Corporate Social Responsibility (1991)

• Philanthropic Responsibilities: Be a good citizen.

• Ethical Responsibilities: Act justly and fairly.

• Legal Responsibilities: Comply with laws and regulations.

• Economic Responsibilities: Be profitable.

Thank you!