Entrepreneurship Chapter 2

legitimacy lies

to misrepresent the facts or create false impressions to mislead others intentionally and earn their confidence.

environmentalism

The effort to protect and preserve the environment.

social responsibilities

A company's ethical obligations to the community.

integrity

A general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances.

sustainable small business

A profitable company that responds to customers' needs while showing reasonable concern for the environment.

underlying values

Beliefs that provide a foundation for ethical behavior in an individual or a firm.

social entrepreneurship

Entrepreneurial activity that provides innovative solutions for social issues.

ethical imperialism

The belief that the ethical standards of one's own country can be applied universally.

stakeholders

Individuals or groups who either can affect or are affected by the performance of the company. Owners (or stockholders), customers, employees, the community, and the government

code of ethics

Official standards of employee behavior formulated by a business owner. By defining behavioral expectations By communicating that those expectations apply to employees at all levels in the business By helping employees convey the company's standards of conduct to suppliers and customers By serving as a tool for handling peer pressure By providing a formal channel for communicating with superiors without fear of reprisal

intellectual property

Original intellectual creations, including inventions, literary creations, and works of art, that are protected by patents, copyrights, trademarks, design rights, and trade secrets.

PRO factors

Products, Representatives, and the Organization—to emphasize that they can promote firm performance when customers are satisfied with them Will the product (or service) serve my needs better than alternatives, and will it be a hassle to change from the brand I currently buy? (Research indicates that product/service knowledge is the most important of the three factors when customers make purchase decisions.) Do the company's representatives know what they are talking about, and will they (can they) live up to their assurances? Will the organization still be around to stand behind its product or service if I have a problem with it six months from now?

Ethics Policy

Should be based on Purpose. The vision for the company and your core values will guide business conduct. Pride. When employees take pride in their work and their company, they are much more likely to be ethical in their dealings. Patience. If you push too hard for short-term results, sooner or later acting unethically will seem to be the only way to achieve the outcomes you seek. Persistence. Stand by your word, which is the foundation of trust. If you are not committed to an ethical framework, your integrity is at risk, as is the reputation of the company. Perspective. Stop from time to time to reflect on where your business is going, why it is going that way, and how you plan to get there. This will allow you to be more confident that you are on the right track now and will continue to be in the future.

ethical relativism

The belief that ethical standards are subject to local interpretation.

How to create legitimacy

The business itself can establish legitimacy by setting up a high-quality website, insisting on professional behavior from all customer-contact employees, forming strategic alliances with well-respected partner firms, and taking other, similar measures.

Responsibilities

Type of ResponsibilitySocietal ExpectationGeneral FocusEconomicRequiredBe profitable.LegalRequiredObey all laws, adhere to all regulations.EthicalExpectedAvoid questionable practices.DiscretionaryDesired/ExpectedBe a good corporate citizen, and give back.

primary stakeholders

entities in a relationship with the corporation in which they, the corporation, or both are affected immediately, continuously, and powerfully

Useful Links

http://www.sba.gov/ Better Business Bureau Google Alerts, Viralheat, and Trackur Reputation.com, Big Blue Robot, and Metal Rabbit Media BrandYourself.com U.S. Environmental Protection Agency (EPA) offers the Small Business Gateway