THE ETHICAL AND SOCIAL RESPONSIBILITIES OF ENTREPRENEURS

THE ETHICAL AND
SOCIAL
RESPONSIBILITIES
OF
ENTREPRENEURS

1. THE ETHICAL AND
SOCIAL
RESPONSIBILITIES
OF
ENTREPRENEURS
LESSON 3
Entrepreneurship

2. TOPICS TO DISCUSS:
01
Ethical and Legal
Issues in
Entrepreneurship
02
Corporate Social
Responsibility and
Social
Entrepreneurship
03
Developing a
Workplace Culture of
Ethical Excellence and
Accountability

3. ETHICAL AND LEGAL
ISSUES IN
ENTREPRENEURSHIP

4. ETHICAL ISSUES IN
ENTREPRENEURSHIP
The moral dilemma that develops while
dealing with ethical issues in business
must be resolved. In other sense, it's a
situation where a moral principle is called
into question. These ethical issues are
challenging because guidelines are
needed to solve it.

5. STAKEHOLDERS
A substantial group composed of every
individual with a stake in the company, both
individuals and groups. Every stakeholder is
important, thus it is imperative to take them all
into account when making significant business
decisions that could have a wide-ranging impact.

6. BEING AN ETHICAL
ENTREPRENEUR
Every time you reflect on the conduct you
demand of yourself in both your personal
and professional life, you are having a
philosophical conversation with yourself.
This conversation is about your ethics,
which are the norms of conduct you have
decided to uphold.

7. A SUCCESSFUL
ENTREPRENEUR
So much more than just making money and
expanding a business could go into becoming an
entrepreneur successful.
Success may entail treating
everyone with integrity and
respect, including coworkers,
clients, and the larger
community.
1.
The pride experienced when
conducting honest business
may lead to success; this is
true not just because the law
requires it but also because
we expect it of ourselves.
2.
The key to success may be
understanding that any profits
we generate do not come at
the expense of others.
3.

8. BUSINESS ETHICS
Business ethics therefore serves as a set of principles
that entrepreneurs and their businesses follow to
uphold the law and respect the rights of their
stakeholders, particularly their customers, clients,
employees, and members of the local community and
environment.

9. INTEGRITY
Integrity, or consistency between our words and deeds, is a
quality that is highly regarded. But it involves more than simply
moral consistency. When we behave honorably, we firmly uphold
a set of moral principles.
OUR DEEDS DETERMINE US, AS MUCH AS
WE DETERMINE OUR DEEDS.
-GEORGE ELIOT

10. ETHICAL THEORIES
The primary objective of
Normative Theories of
Ethics is to provide rules
or criteria that define
what constitutes ethical
behavior. Utilitarianism
and duty-based ethics
are frequent illustrations
of normative ethical
theories.
1.
NORMATIVE
THEORIES
OF ETHICS
The focus of Kantian
or duty-based ethics
is on the motivation
or underlying
purpose of a
decision, not on
whether it is right or
wrong.
2.
KANTIAN
OR DUTY-
BASED
ETHICS
This theory fixates on the
decision's efficacy or
utility.
3.
UTILITARIAN
ETHICS
The Protestant Work Ethic
examines the decision from
the perspectives of
capitalism, free markets,
and a duty to ensure the
largest possible investment
return.
4.
THE
PROTESTANT
WORK
ETHICS
Advocates of Virtue Ethics
argue that ethics is
composed of a number of
innate but hidden
characteristics that one
must gradually cultivate.
These values include trust
and its derivatives,
including such being
truthful.
5.
PROPONENTS
OF VIRTUE
ETHICS

11. ETHICAL
ISSUES
DISCRIMINATION
- any act that leads an
employee to experience
unfair treatment
HARASSMENT
- this can happen in the form of bullying,
mocking, racial slurs, sexual abuse, or verbal
abuse.

12. ETHICAL
ISSUES
UNETHICAL ACCOUNTING
- occurs when companies manipulate their financial accounts or accounting regulations to show a better
image than is actually true.
HEALTH AND SAFETY
- workers have a right to a safer workplace environment.
ABUSE OF LEADERSHIP AUTHORITY
- The results may be detrimental to working relationships and morale.

13. ETHICAL
ISSUES
NEPOTISM AND FAVORITSM
- Nepotism occurs when a business chooses to employ a relative. Favoritism happens when a boss gives
one employee preferential treatment over another for their own gain.
PRIVACY
- The personal life of an employee and their work should be separated to ensure their privacy.
CORPORATE ESPIONAGE
- Theft or acquisition of intellectual property without authorization.

14. LEGAL ISSUES IN
ENTREPRENEURSHIP
As opposed to working in a major corporation
with a set structure, entrepreneurs frequently
build and run a new company endeavor
according to their own rules. Entrepreneurs are
motivated to come up with novel solutions to
address possible market demands by the
pressure to launch a new business while
working within constraints and limitations.
LEGAL ISSUES

15. LEGAL ISSUES IN
ENTREPRENEURSHIP
INTELLECTUAL
PROPERTY
1
CONFLICT OF
INTERESTS
2
CONTRACTS
AND TORTS
3
FRAUD
4
ANTITRUST
5

16. PATENTS, COPYRIGHTS, AND TRADEMARKS
INTELLECTUAL PROPERTY (IP)
PATENTS
INTELLECTUAL PROPERTY
A unique idea that has been transformed into a useful and valuable product or
service by one or more people; this expression of original ideas is protected by
law. IP refers to anything that is a company's sole property, will set it apart
from the competition, and support long-term competitive advantage.
COPYRIGHT
An exclusive right
granted for an invention,
which is a product or a
process that provides, in
general, a new way of
doing something, or
offers a new technical
solution to a problem.
TRADEMARK
The legal right of
the owner of
intellectual
property or in
simpler terms, the
right to copy.
A form of intellectual property, which
appears in the form of some recognizable
design, phrase, or expression that serves to
identify products or services produced by
one source, over those produced by another.
Utility Patents
Design Patents
2 Types of Patents

17. CONFLICT OF INTEREST
Conflicts of interest arise when a person (or organization) has
interests in several different areas (financial investments, professional
commitments, personal relationships), and these interests may be at
odds with one another.
CONTRACTS AND TORTS
Every entrepreneur enters into contracts, typically on a frequent
basis, thus they all need to comprehend the fundamental ideas
behind them. Similar to how most businesses probably have some
interaction with tort law, which safeguards people's rights not to
suffer harm (physical, financial, or otherwise), such as a violation of
privacy, it also protects people's rights against financial and other
harm.

18. FRAUD:
Entrepreneurs that uphold high ethical standards continually work to
put ideals like honesty and complete disclosure into action. These two
concepts are not just part of an ethical approach to doing business
but are also underlying requirements of various areas of law including
fraud. A company that manufactures or sells a good or service is
accountable for telling the whole truth about such goods or services.
TRUTHFULNESS AND FULL DISCLOSURE
A person who is stating the
truth is using their capacity to
be factual about a topic,
dealing with reality, and
being aware of evidence.
TRUTHFULNESS
Fairness is concerned with
acting in a just, unbiased, and
moral way. In terms of
application, the trait of being
truthful serves as the pillar of
fairness.
FAIRNESS
Describes sharing necessary
facts and details about a
specific topic in a honest and
forthright way.
DISCLOSURE

19. CORPORATE
SOCIAL
RESPONSIBILITY
AND SOCIAL
ENTREPRENEURSHIP

20. CORPORATE SOCIAL
RESPONSIBILITY (CSR)
It is the practice by which a business views itself
within a broader context: as a member of society
with certain implicit social obligations and
environmental considerations and issues.
CSR ensures that a company is engaging in sound
ethical practices and policies in accordance with the
company’s culture and mission, above and beyond
any mandatory legal standards. In short, CSR are
ethical business leaders opt to do good at the same
time that they do well.

21. SOCIAL
ENTREPRENEURSHIP
Organizations founded by entrepreneurs who are first
and foremost advocates of a social cause are referred to
as practicing social entrepreneurship. These people are
typically inspired and motivated by a higher and better
vision or more important goal. In order to achieve their
social objectives and personal agenda, this new breed of
entrepreneurs uses the influence of their position, their
reputation in the society, and the potential synergy and
wealth-creation power of a company as a platform.

22. FOCUS AREA
OF SOCIAL
ENTREPRENEURSHIP
Increase a person's capacity for opportunity-driven
improvement of their economic well-being and sense of self.
Improve the accountability, openness, and solution-focused
nature of aid for long-term development.
Ensure that disadvantaged groups have access to and use
efficient, inexpensive, and effective healthcare.
Rather than focusing on individual beneficiaries, address
system-wide sustainable production challenges.
Provide the groundwork for world peace and people's safety.
Use the consumer and capital markets that propel change by
taking into account their advantages and disadvantages.
Change the long-term management and provision of water for
both people and agriculture.

23. EMPLOYMENT DEVELOPMENT
ROLE AND IMPORTANCE OF SOCIAL
ENTREPRENEURSHIP
Jobs and employment are the first substantial economic value that social
entrepreneurship actually creates. Estimates of the percentage of people
employed in the sector range from one to seven percent.
INNOVATION/NEW GOODS AND SERVICES
The creation and use of innovation is crucial to the social and economic
growth of new products and services by social entrepreneurs. Several of the
most pressing societal issues are addressed, including HIV, mental health
illness, illiteracy, criminality, and drug misuse. Importantly, these issues are
addressed in creative ways.
EQUITY PROMOTION
Social entrepreneurship promotes a more fair society by addressing social
issues and attempting to achieve long-term sustainability through their social
mission rather than maximizing profits.

24. QUALITIES OF SOCIAL ENTREPRENEURS
1. AMBITIOUS
Social entrepreneurs address major societal problems such as increasing low-
income students' college enrollment rates and combating poverty. They work
in a variety of organizations, including innovative nonprofits, social-purpose
ventures, and hybrid organizations that combine nonprofit and for-profit
elements.
2. MISSION-DRIVEN
The primary criterion for an effective social entrepreneur is to create social
value rather than wealth. While making money is a part of the process, it is not
the end goal. The true objective is to encourage systemic social change.
3. STRATEGIC
Social entrepreneurs, like business entrepreneurs, see and act on
opportunities to improve systems, create solutions, and invent new
approaches that generate social value.

25. QUALITIES OF SOCIAL ENTREPRENEURS
4. RESOURCEFUL
Social entrepreneurs have limited financial resources and traditional market
support systems because they operate in a social context rather than the
business world. As a result, social entrepreneurs must be adept at mobilizing
human, financial, and political capital.
5. RESULTS-ORIENTED
Social entrepreneurs are motivated to generate measurable results. These
findings transform existing realities, create new opportunities for the
marginalized and underprivileged, and unleash society's potential to effect
social change.

26. RESPONSIBLE
ENTREPRENEURS
AND SOCIAL
ENTREPRENEURSHIP
OPPORTUNITIES
RESPONSIBLE
ENTREPRENEURS
- works to change entire sectors and even our society. They
question and improve legal and regulatory frameworks as
well as governance practices. They must think far more
creatively than is typical for a corporate leader to do.

27. RESPONSIBLE
ENTREPRENEURS
AND SOCIAL
ENTREPRENEURSHIP
OPPORTUNITIES
SOCIAL
ENTREPRENEURSHIP
OPPORTUNITIES
- is predicated on the need to generate social value for the
local community's benefits.

28. PROBLEMS FACING BY
SOCIAL ENTREPRENEUR
Funding
Strategy and Long-Term Focus
Remaining True to the Mission
Lack of skilled man force
Social and Cultural Effect
Lack of Government support

29. A NON-PROFIT ORGANIZATION
THE TYPES OF BUSINESS ENTITIES THAT
FUNCTION WITH A SOCIAL PURPOSE
ASILO DE LA MILAGROSA
A COOPERATIVE VENTURE
SOCIAL PURPOSE BUSINESS
A HYBRID VENTURE
HARIBON FOUNDATION

30. DEVELOPING A
WORKPLACE CULTURE
OF ETHICAL
EXCELLENCE AND
ACCOUNTABILITY

31. ENTREPRENEURIAL
CULTURE
IN HIGHEST REGARD NEVER LIE TO THEM SERVE THEM WELL
An entrepreneur typically promises always to hold customers:
RESPECT
Even if it results in financial loss for the company, this entrepreneur will not defraud a customer or misrepresent the
company's services. Respect for customers is meant to become a defining characteristic of the company.

32. UNDERSTANDING AND
DEVELOPING
ORGANIZATIONAL CULTURE
Factors that shape an organization's culture
Creating and Managing Organizational Culture
Practice to Develop Culture
Communication
Metrics
Legal & Global issues

33. PROACTIVE VS.
REACTIVE
APPROACHES
The reactive side helps an entrepreneur to spot risky conduct, negligent deeds, and unethical behavior as they occur and address
them. By creating and encouraging an environment of ethics, accountability, and compliance, a proactive approach to creating an
ethical workplace aims to avoid careless conduct, irresponsible behaviors, and ethical deviations.
DEVELOPING THE FOUNDATION
AND FRAMEWORK OF AN
ETHICALLY RESPONSIBLE
ORGANIZATION

34. SERVICE AND ADVANCEMENT
OF SOCIETY
GENDER EQUITY
ELIMINATION OF PREJUDICES
COLLABORATIVE EXCELLENCE
ETHICAL
PRINCIPLES

35. ETHICAL PRINCIPLES
Develop a Culture of Collaborative Excellence
Human Resources Development
Develop Ethical and Responsible
Leadership/Management-
Develop Internal/External Organizational Alignment
and Cohesion
Develop a Culture of Creativity and Innovation
Develop a Culture of Delivering Responsible Results

36. CREATING AN
ETHICAL AND
RESPONSIBLE
WORKPLACE
ENVIRONMENT
Is commonly considered to be an
adverse attitude and/or feeling
toward a person based solely on
one's membership in a specific
group. Prejudice against members of
unfamiliar cultural groups is
common.
People are urged to express their
ideas and points of view freely and
respectfully in a collaborative
excellence environment.
PREJUDICE
COMPETITION AND
COLLABORATION

37. CREATING AN
ETHICAL AND
RESPONSIBLE
WORKPLACE
ENVIRONMENT
Entrepreneurs must value, respect,
and learn to effectively leverage the
diverse and distinctive qualities that
each person has to offer because
these characteristics may be utilized
to innovate, make sound choices,
deal with complex
problems/conflicts.
As an entrepreneur, you must
recognize the importance, value, and
impact of the principle of gender
equality in developing a sustainable
competitive advantage.
DIVERSITY
GENDER EQUALITY

38. CREATING AN
ETHICAL AND
RESPONSIBLE
WORKPLACE
ENVIRONMENT
Finally, the creation of safe
environments involves creating an
environment in which individuals
can form unbreakable bonds of trust
and do not feel the need to
constantly monitor things behind
their backs.
TRUST AND
ETHICAL
ACCOUNTABILITY

39. THANK YOU
FROM GROUP 2!
LESSON 3
Entrepreneurship