Ch 3
Firm = an entrepreneur
A belief that many people think the owner is the business
Ethics
A system of values that people consider in determining whether actions are right around
Six steps to follow an event of a crisis
Admit you're in trouble, get to the scene as soon as possible, communicate facts you know, have one person serve as the firm spoke person, separate crisis management from every day management of the firm, deal with the crisis quickly
Sustainable entrepreneurship
An approach to the operation of the firm, the line of business to the firm, or both, which identifies or creates and then explores opportunities to make profit in a manner that minimizes the depletion of natural resources, maximize the use of recycled material, improve the environment, or chiefs in a combination of those outcomes
Billboard principle
An ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see
Universalism
An ethical model that suggests that there is a code of right and wrong that everyone can see and follow
Utilitarianism
An ethical model that supports seeking the greatest good for the greatest number of people
Organizational identity
Composed of the name, description, in distinctive elements of a firm, such as trademarks, uniforms, logos, characteristics, and stories
What are the three steps to making ethical decisions
Define, generate, and implement
How do you build legitimacy
Develop networks and trust
Golden rule
Do unto others as you would have them do unto you
Three classes of ethical standards
Employee should be dependable organizational citizens, do not do anything that will harm the organization, be good customers
The most powerful way to connect
Face-to-face, 30% more powerful than email
The big three of social networking
Facebook, LinkedIn, and Twitter
Sources for Network Connections
Family, friends and neighbors, kids, bank, customer contacts, and school
For philosophies when thinking through alternatives to help guide you
Golden Rule, Utilitarianism, universalism, billboard principal
Three skills for making the right decision
Handling a crisis, achieving sustainability, and making ethical decisions
Networking
Interacting with others in order to build relationships useful to business
Social network
Online network of people
Two types of networks
Personal network and social network
Ethical dilemma
Situation that occurs when a persons values are in conflict, making it unclear whether a particular decision is the right thing to do
Mutuality
The action of each person helping another
Legitimacy
The belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors
External environment
The forces, institutions, and people, outside the boundary of the firm
Trade magazine
The magazines that target specific industries and professions
Internal environment
The people in groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm
Ronald Reagan
Trust but verify
Personal Network
includes people outside of the business environment, such as family, friends, neighbors, and other acquaintances.
Caveat emptor
let the buyer beware