3: The Ethical and Social Responsibilities of Entrepreneurs
- Page ID
- 158221
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 3.1: Prelude to the Ethical and Social Responsibilities of Entrepreneurs
- This page discusses Martin Shkreli, CEO of Turing Pharmaceuticals, who became infamous for hiking the price of an HIV drug from $13.50 to $750 per pill, sparking significant public outrage. Though he defended his pricing strategy as a business necessity, he earned a reputation as the "most-hated" CEO. While his pricing actions were legal, he was ultimately convicted of securities fraud for deceiving investors and misusing company funds.
- 3.2: Ethical and Legal Issues in Entrepreneurship
- This page emphasizes the significance of ethics and social responsibility for entrepreneurs, highlighting the contrast between shareholder primacy and stakeholder approaches. Ethical practices are vital for long-term success, as demonstrated by the World’s Most Ethical Companies. Entrepreneurs must navigate legal challenges related to intellectual property and contracts, while also understanding their responsibilities towards employees and compliance with antitrust laws.
- 3.3: Corporate Social Responsibility and Social Entrepreneurship
- This page covers corporate social responsibility (CSR), social entrepreneurship, and community-focused initiatives. It highlights the importance of businesses like New Belgium Brewing, TOMS Shoes, and Patagonia, which integrate ethical practices and sustainability into their operations. The text stresses the need for businesses to balance profit with social responsibility, emphasizing the role of personal values in guiding entrepreneurial missions.
- 3.4: Developing a Workplace Culture of Ethical Excellence and Accountability
- This page emphasizes the necessity for entrepreneurs to cultivate an ethical workplace culture, particularly for the millennial workforce. It advocates for proactive leadership that prioritizes values like trust, fairness, and open communication. Key techniques for fostering this culture include systematic training and accountability measures, drawing on examples like Unilever and Johnson & Johnson.
- 3.5: Key Terms
- This page outlines fundamental concepts in business ethics and law, highlighting ethical decision-making strategies and antitrust laws for market fairness. Key terms include conflict of interest, copyright, and corporate social responsibility (CSR). It emphasizes integrity, fairness, diversity, and sustainability, while addressing social and environmental entrepreneurship.
- 3.6: Summary
- This page explores the relationship among entrepreneurship, ethics, and legal obligations, noting that ethical practices are voluntary while legal compliance is essential. It highlights the role of social responsibility in entrepreneurship, showcasing B-corporations as examples of profit-making with positive societal impact.
- 3.7: Suggested Resources
- This page addresses ethical and legal considerations in entrepreneurship, stressing the significance of legal compliance and resources like SBREFA. It explores corporate social responsibility and social entrepreneurship, offering links to various models and media, such as a TED Talk. The page also emphasizes fostering an ethical workplace culture and accountability, recommending the Society for Human Resource Management for additional support in these areas.
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