International Journal of Research in Management & ISSN : 2348-6503 (Online)

Vol. 4 Issue 1 Jan. - Mar. 2017

Business Studies (IJRMBS 2017) ISSN : 2348-893X (Print)

Business Ethics, Values and Social Responsibility

to An Entrepreneur
I
R.P.Nivethigha, IIS.Divyabharathi, IIIB.Velmurugan
I,II
Full Time Scholar, Dept. of Management Studies, Anna University, Chennai, Tamil Nadu, India
III
Research Scholar, Bharathiar University, Coimbatore, Tamilnadu, India

Abstract
Entrepreneurship is the process of identifying opportunities in the marketplace marshalling the resources required to pursue these
opportunities and investing the resources to exploit the opportunities of long-term gain. The successful entrepreneur should maintain
a strict discipline in their business. It is necessary for an entrepreneur to know the values and important of business ethics. Doing
business ethically means holding right things right and wrong things wrong in business. Frederick and Lawrence define business
ethics as “application of general ethical ideas in business”. Business ethics are centrally concentrated with the business conduct.
A value is something that has worth or importance to an individual, it contains a judgment elemental in that it carries individual,
ideas as to what is right, good or desirable. Corporate Social Responsibility is the continuing commitment by the business to behave
ethically and contribute to economic development while improving the quality of life of the workforce and their families as well
as the local community and society at large. This paper defines the detailed view of Business Ethics, Values and Corporate Social
Responsibility, and its importance for an Entrepreneur

Keywords
Entrepreneurship, Business Conduct, Individual, Workforce, Society

Introduction 1) Public Image. The activities of an entrepreneur towards

An entrepreneur is one who organizes, manages and assumes the
risk of an enterprise. An entrepreneur visualizes a business, takes
bold steps to establish undertaking, coordinates the various factors
of production and gives it a start. An entrepreneur should be aware
of ethics and social Responsibility in business and should follow
them in order to maintain the ecological balance in the society.
The study and examination of moral and social Responsibility in
relation to business practice and decision making in business is
known as “Business Ethics”.
The term “business” is commonly referred to the commercial
activities achieved at making profit, but gradually there is a
substantial change in the way in which people viewed the
business.
In the past primary objective of a business was profit maximization
but the present perspectives on business objectives are not
maximization. Besides profit maximization the entrepreneur needs
to fulfil the ethics in the business
Definition
James and stoner said, “Values are a relatively permanent desire
that seems to be good in them”.
Social Responsibility implies that business man should oversee
the operation of an economic system that fulfils the expectations
of the public. - W.Fredick
Social Responsibility has been defined by Andrews “By social
Responsibility, we mean the intelligent and objective concern
for the welfare of society that restrains individual and corporate
behaviour from ultimately destructive activities, no matter how
immediately profitable, and leads in the direction of positive
contributions to human betterment, variously as the latter may
be defined.”
the welfare of the society earn goodwill and reputation for
the business. People prefer to buy products of a company
that engages itself in various social welfare programs. Again
good public image also attracts the honest and competent
employees to work with such employers.
2) Employee Satisfaction. Employees are the part of the
society. If you satisfy your needs, then you are doing social
work.
3) Ethical Leadership. It is the belief that what entrepreneur
does has a strong influence on employees. If manager cheats,
Lies, steals or manipulates, then they are sending wrong
signals to employees.
4) A social Entrepreneur is an individual or organization
who seeks out opportunities to improve society by using
practical, innovative and substantial approaches. Since last
three decades, HDFC contributes 7% of its income to support
community needs. Mahindra Tech employees donated one
day salary to help victims of Bihar floods. Wipro has set up a
foundation named Azim Premji Foundation to help improve
education of the elementary schools in rural India.
5) Environment Management. Managers and Organizations
can do many things to protect and preserve the natural
environment which includes plastic less business by giving
paper bag, creating eco-friendly product, by eliminating
production.
6) Consumer Awareness. Consumers have become very
conscious about their rights. If you are giving high quality
products at cheap rate, that is kind of social Responsibility

Ethics And Social Responsibility For An Entrepreneur

Social Responsibility means eliminating corrupt, irresponsible
or unethical behaviour which might harm to the community, its
people and the environment.

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ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 4 Issue 1 Jan. - Mar. 2017
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

o Humility and Contentment

2) Personal Traits of an Entrepreneur
Personal Traits are enduring characteristics of an individual
by which he/she can be identified and also to a certain extent
differentiated from others. Every entrepreneur has certain personal
traits which make him/her successful and efficient. The following
dominant traits are:
o Stability
o Skill
o Creativity
o Achievement
o Flexibility
3) Goals of an Entrepreneur
(The pyramid of Social Responsibility) Value of an entrepreneur will have a direct influence on the goals
and objective he sets. The following are the goals of a typical
Need of Ethics to An Entrepreneur entrepreneur are:
The social dimensions of business ethics cannot be overlooked o Customer Satisfaction
because many problems arise from the relationship of business o Achievement of departmental and organizational goal
to the boarder society. Ethical considerations are significant for o Employee Motivation
managers due to the following reasons: 4) Important Personal Qualities of an Entrepreneur
 For every individual job is the Centre of life. Unless job Certain personal qualities (heights, complexion, voice, dressing
values are in harmony with the rest of life, he cannot be habit, gregariousness, versatility etc.) should supplement and
happy and healthy person. stand in good steals of an individual to accomplish all-around
 Modern society is an industrial society. Therefore, business success. The following four qualities are important for a typical
value becomes the value of the society as a whole. Entrepreneur are:
 An entrepreneur must take into moral and social consideration o Self-control
because these are the real motivating factors. o Sociability
 When an organization fails to behave in accordance with o Articulation abilities
the social expectations, it may lose not only its image and o Physical stature
market share but it’s very right to exist.
 The study of business ethics insulates high level of integrity Causes of Growing Concern for Social Responsibility
to an entrepreneur.  Social responsibility is a very effective exercise of public
 Ethical knowledge will help the entrepreneur in setting relations.
highly responsible tone for the organization in individual  Image building of a business house in a society.
judgements and decisions whether ethical or not  Two-way activities, CSR make the upliftment of society,
which in turn will co-operate with business firm in achieving
Significance of Value in Management their business goals.
The Human values support established business value such as  To make the best use of natural resources so as to raise the
service, communication, excellence, credibility, innovation, level of national income and standard living of people.
creativity and co-ordination.  To create more and more employment opportunities for semi-
In view of management and organizational work, Values are skilled people
significant due to various reasons.  To protect the ecology of nation.
1) Value system influences the choice of organisational goals  To contribute to the economic development of backward
and strategies adopted to achieve those goals. region of the country.
2) Individual judge organisational success as well as its
achievement on the basis of their value system. Social Responsibilty of an Entrepreneur Towards
3) Values determine the extent to which individuals accept Different Sections of The Society
organizational pressure and goals. If these do not match their 1. Responsibility Towards Employees:
value they throw the organizational pressure and goals and o Fair wages and salaries
even leave the organisation o Adequate Basic Facilities like safe drinking water, electricity,
canteen, hygienic toilets.
Values for an Entrepreneur o Skill development programmes.
Values of entrepreneur depend on socio-cultural factors obtained o Good and safe working environment.
in a given society. o Retirement benefits and pension schemes
1) Core Values of an Entrepreneur o Collective bargaining
Core Values that are considered as crucial by majority of an o Insurance cover
entrepreneur are: o Medical facilities
o Integrity 2. Responsibilty Towards Customers:
o Trust o Charge reasonable price for products or services.
o Achievement motivation o Supply of right quality of goods in right quantity.
o Truthfulness o No use of manipulated or false advertisements.

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International Journal of Research in Management &
Vol. 4 Issue 1 Jan. - Mar. 2017
Business Studies (IJRMBS 2017)
o Avoid unfair selling practices.
o Fair guarantee of product
3. Responsibility Towards Shareholders:
o A fair return on investment.
o Safety of invested capital.
o Regular and complete information about the performance
and progress of the company.
o Regular Payment if dividend
4. Responsibility Towards Suppliers, Creditors:
o Maintain healthy and co-operative inter-business relationship
between different businesses.
o Provide accurate and relevant information to creditors.
o Payment of price of materials on time.
o Prompt payment of interest on borrowed funds.
o Producing original documents for credit processing.
5. Responsibility Towards Public in General:
o Help the weaker section of the society.
o Creation of job opportunities.
o Improvement in living standards.
o Building of basic infrastructure like roads, sewerage.
o Health and educational development schemes.
o To make best use of society’s resources for their welfare.
6. Responsibility towards Government:
o Payment of corporate tax in correct amount with no
manipulation of profit figures.
o To avoid corrupting public servants by offering bribe.
o To encourage fair trade practices.
o To avoid monopoly practices.
o To improve national income.
Top Companies Follow CSR Practices In India
Mahindra & Mahindra
Key CSR Areas: Focus on the girl child, youth and farmers
through programs in the domains of education, public health
and environment. Mahindra Pride Schools provide livelihood
training to youth from socially and economically disadvantaged
communities and have trained over 13,000 youth in Pune, Chennai,
Patna, Chandigarh and Srinagar.
L&T
Key CSR Areas: Water and sanitation, education, healthcare and
skill building. L&T partners with local governments on health
programs focused on reproductive health, tuberculosis & leprosy
control, integrated counselling & testing centres for HIV/ AIDS.
L&T’s community health centres are located at Mumbai, Thane,
Coimbatore, and Chennai.
Infosys
Key CSR areas: Works with Infosys Foundation, headed by Sudha
Murty, towards removing malnutrition, improving healthcare
infrastructure, supporting primary education, rehabilitating
abandoned women and children and preserving Indian art and
culture. Infosys Foundation USA is focused on bridging the digital
divide in America by supporting computer science education and
training in underrepresented communities.
Jubilant Life Sciences
Key CSR Areas: The Jubilant Bhartia Foundation (JBF) focuses
on elementary education, improving health indices, employability
and promoting social entrepreneurship. Jubilant CSR programs
© 2014, IJRMBS All Rights Reserved
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ISSN : 2348-6503 (Online)
ISSN : 2348-893X (Print)
are implemented around its manufacturing locations in six areas
in India.
Bharat Petroleum
Key CSR Areas: Quality education (strengthening primary,
secondary education and empowering teachers), water
conservation, skill development (employment linked skill training
to the underprivileged with an inclusive approach for women,
unemployed youth and persons with disabilities), health/hygiene
and rural development
Conclusion
All the Entrepreneurs should consider ethics and social
responsibility as their part of life. Doing business legally and
ethically will lead a development to the country. The entrepreneur
should do business without affecting the society. We all have an
image of our better selves-of how we are when we act ethically
or are”at our best”. We probably also have an image of what an
ethical community, an ethical business an ethical government, or
an ethical society should be Creating ethical organizations and
governments makes our society as a whole ethical in the way it
treats everyone. The government also should take necessary steps
for the development and welfare of Entrepreneurs.
References
[1] Ackoff, R. L. 1987. Business Ethics and the Entrepreneur.
Journal of Business Venturing, 2: 185-91.
[2] Longenecker, Justin G., McKinney, Joseph A. and Moore,
Carlos W. “Egoism and Independence: Entrepreneurial
Ethics,” Organizational Dynamics, (Winter, 1988), 64-72
[3] Wempe, J. 2005. Ethical Entrepreneurship and Fair Trade.
Journal of Business Ethics, 60(3): 211-220.
[4] The Journal of Entrepreneurship, (2008), 17( 2),
[5] The Journal of Entrepreneurship, (2009), 18( 2),
[6] MostafaEmami, Kamran Nazari, “Entrepreneurship,
Religion, and Business Ethics”,Australian Journal of
Business Management and Research,(2012) Vol.1 No.11
[59-69]
Website
o http://www.investopedia.com
o http://economictimes.indiatimes.com
Author’s Profile
Ms.R.P.Nivethigha, BE, MBA, I am
currently pursuing my Full Time Doctoral
Programme at Anna University, Chennai.
My area of Specialization is Human
Resource and Marketing.
www.ijrmbs.com
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 4 Issue 1 Jan. - Mar. 2017
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

Mrs.S.Divyabharathi, MBA., M.Phil.,

I am currently pursuing my Full
Time Doctoral Programme at Anna
University, Chennai. My area of
Specialization is Human Resource and
Marketing

Mr.Velmurugan.B, MBA., M.Phil.,

PGDCA., PGDFM., (PhD). Working
as a Assistant Professor cum Admission
Coordinator in Agni School of Business
Excellence, Dindigul, Tamilnadu. I
am currently pursuing my Doctoral
Programme at Bharathiar University,
Coimbatore in the Area of Shareholder
Wealth Maximization. My area
of Specialization is Finance and
Operations Research. I have published
4 papers in National and International
Conference.

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