Business Ethics
Business Ethics pertains to ethical guidelines and moral or ethical problems that can occur in a
business environment. It employs diligently to all positions of business conduct and has
relevance to the act of individuals and the whole business organization. It deals to know what is
right or wrong in the workplace and gives emphasis on doing what is right.
Responsibility
Responsibility refers to the duty or obligation to satisfactorily perform or complete a task that
is assigned by someone or created by one's own circumstances which one must fulfill. As
businesspeople, we must know that every action leads to certain effects. One should step off and
accept that ignoring responsibility has consequences, so it cannot be simply ignored.
Accountability
Accountability is the obligation of an individual or an organization to account for activities and
accept blame for failures. A person who is accountable may be called upon to answer and
account the consequences. In a business circle, one’s action, decision - making, strategy, or
policy could lead to the biggest accountability if not managed properly.
Social Responsibilities of Entrepreneurs towards Employees and Workers
Entrepreneurs have the responsibility to pay their employees at least the minimum hourly wage
according to locality and pay each employee money owed from working per pay period including
overtime, sick leave, and vacation wages. Employees deserve to receive reasonable and
attractive remuneration. Right jobs should be assigned to the employee based on their abilities
and skills.
Entrepreneurs must give security of employment and a conducive working place. They should
provide opportunities to professional development like trainings, seminars, and education. They
should also develop mutual understanding and trust, adapt welfare schemes like financial
assistance during sickness, old age, or medical concerns. The entrepreneur should behave
humanely to their employees. They should not treat their employees with mistakes inhumanely.
They should also create a well-defined service condition like promotion, appointments,
retirement and should adopt a wage incentive scheme that will inspire the employees to higher
quality work.
Entrepreneurs have strong responsibility to the government by complying with government rules
like licenses for operation, price determination, and production. They should honestly pay
different taxes such as income tax, sales tax, excise, tariff duties, and wealth tax.
They must not accept antisocial activities with a political party or person during election. The
businesspeople must cooperate with the government for economic development.
The role of the supplier to the entrepreneur is very important for any business.
They supply raw materials, machinery, and labor. With that, they must pay fair prices of goods
and pay on time. They should inform suppliers of future development and changes in the
demand of commodities. The entrepreneur has the responsibility to give needed technical
assistance to produce new and substitute products and innovate indigenous supplies. Healthy
competition is encouraged to individual suppliers and institutional suppliers.
Financial institutions and banks play an important role in entrepreneurship.
They should gain loans on reasonable conditions. They should follow mortgage rules and
business ethics with proper use of debt capital. They should religiously pay the installment and
interest until the repayment of loan.
Social Responsibility of Entrepreneur towards Customer/Consumer/General
Public
The general practice is that the customer or consumer is always right. It is essential that the
entrepreneurs fulfill social responsibilities towards the customers or consumers. The
entrepreneurs should provide commodities and services, according to the desires and needs of
the consumers, at affordable prices by determining fair prices for commodities and delivery of
goods and economic services. The goods should be standardized based on the need of the
customer. Another consideration is the packaging. It should be packed well. Publish what is right
and make truthful advertisement because customers depend on what they see in commercials.
Entrepreneurs should re-address quickly the complaints of the customer. They should keep in
contact with customers association and follow rules and bylaws of such organizations. Some
entrepreneurs establish organizations to protect the interests of the consumers whose
membership is voluntary. The entrepreneurs should become members and should follow the
rules and by-laws of such organizations. After-sales service should be implemented by trained
employees or engineers.
The entrepreneur should avoid hoarding practices for the sake of maximization of profits. They
must promote customer research so that they would know the changes happening in desires,
tastes, looks, and designs. The efficient distribution should be implemented so that commodities
do not become costly. For the prosperity of business, civilized and respectful behavior to all
types of customer is very important.
Social Responsibility and Accountability towards Stakeholders
Entrepreneurs have a huge role in the local community or stakeholders. Whether it is the private
or public sector, they should make efforts to upgrade and improve the conditions of surrounding
areas like by offering employment and helping the needy one. The business has also the
responsibility of providing employment to the members of the stakeholders. They can also help
improve standards of living by giving scholarship grants to the children of the employees. They
should also promote good public relations to understand the feelings and opinions of common
people.