Question

Please explain in 200 words or more.

Explain the role of ethics in entrepreneurship.

Answer 1

Ethics have an important role to play in any business, particularly new businesses, in a number of different facets. These include ethical customer service, ethical relationships with suppliers, and ethical staffing protocols.

As a new business owner, the entrepreneur will not yet have established a reputation for his or her business. By upholding a good code of ethics, they will quickly become known to their target market as an ethical supplier of goods or services. This will inspire people to do business with them.

In terms of relationships with suppliers, it is important to remember that an entrepreneur is unlikely to have a long-standing relationship with his or her suppliers. That means that ethical defaults like late payments or non-payment will not easily be overlooked.

If the entrepreneur hires people to work for his or her new business, he or she needs to treat them fairly. Unfair staffing practices will quickly give them a bad reputation. An example of this would be hiring an unemployed person at a rate below minimum wage in order to save money.