CHAPTER 4: INTEGRITY AND ETHICS IN ENTREPRENEURSHIP/BUSINESS

Why is integrity crucial for entrepreneurship?

• To minimize legal challenges

• To build a healthy work culture

• To establish a reliable and sustainable business

• To create more profits

Some acts, such as cheating on taxes, clearly shows that it violates the integrity and ethics.

• True

• False

Salim, an entrepreneur who owned a flooring sales business often sold sheets of linoleum at first-quality prices, even though they were graded as “seconds” by the factory. To hide his deception, he developed an ink roller that changed the factory stamp from “SECONDS” to read “SECONDS TO NONE!”

This shows that Salim has a highly ethical attitude.

• True

• False

Money is important, and it can be the only goal of interest. Violating all the laws and good attitudes and showing a lack of integrity just to gain more profits for the business is the best way to have a successful business.

• True

• False

What is ethics?

• Beliefs about what is right and wrong or good and bad in actions that affect others.

• A business model that prioritizes social consciousness

• The legal principles that govern behavior in business

• An ethical consciousness about business.

An individual’s culture, demographics, and the social context in which it occurs, determine whether a particular behavior is seen as being ethical or unethical.

• True

• False

Ethical behavior is behavior that conforms to individual beliefs and socials norms about what is right and good.

• True

• False

Unethical behavior is behavior that individual beliefs and social norms define as being wrong and bad.

• true

• false

Business ethics is a term often used to refer to ethical or unethical behaviors by a manager or employee of an organization.

• True

• False

Ethics are vary from one person to person, from situation to situation, and from culture to culture.

• True

• False