This aids in team building and strengthening interpersonal relationships. To return to the case of Martin Shkreli, let’s examine it through some foundational theoretical lenses, based on ethical theories. The law is needed to establish and maintain a functioning society. Ethical entrepreneurs consistently strive to apply ethics-based concepts in practice, including truthfulness and full disclosure. A design patent protects the ornamental aspects of a product idea. A major challenge is dealing with and determining a code of ethics. n.d. https://efmaefm.org/0efmameetings/efma%20annual%20meetings/2012-Barcelona/papers/EFMA2012_0401_fullpaper.pdf, Tyler Durden. Businesses are different in not having a mutually shared standard of ethics. Management Legal and Ethical Issues for Entrepreneurs is a Course Legal and Ethical Issues for Entrepreneurs Self-paced Sorry! This framework and foundation include that everyone receive the right training, be given the opportunity to identify and close gaps in their behavior, receive recognition and incentives that reinforce good ethical behavior, and receive consistent, timely, and substantial consequences when they fail to act responsibly. Think of examples for each scenario. This may be due to a variety of reasons, including what researchers term a positive effect on business culture, stakeholders, and reputation.6 In other words, being ethical beneficially influences employees, investors, and customers. not be reproduced without the prior and express written consent of Rice University. These two concepts are not only part of an ethical approach to doing business but are also underlying requirements of several areas of law including fraud. (b) The design of the Coca-Cola soft drink bottle was granted a design patent. B.E. We hold that “an ethical person” conveys the same sense as “a moral person.” Ethical conduct by entrepreneurs/business owners is not only the right way to behave, but it also burnishes our own professional reputation as business leaders of integrity. Utilitarian ethics focuses on the usefulness or utility of the decision. However, consumers are getting smarter at identifying fake reviews, so getting caught is real and has very negative consequences. The first is with a startup known to value a hard-nosed, no-nonsense business culture in which keeping long hours and working intensely are highly valued. A legal patent gives an exclusive right to its patent holder or proprietor to use the invention in any shape or form they deem necessary. If you are in the midst of a startup, chances are you are moving quickly. A utility patent protects a brand-new product idea or invention under US law for a period of twenty years (see the discussion on patents in Entrepreneurial Journey and Pathways. Truthful individuals earn a level of credibility and reliability over time because what they say and what they do are in alignment. But they seem at times to be the exceptions. When you’re considering job candidates, it’s important that nepotism doesn’t drive hiring … Potential Legal or Ethical Issues Business Owners Face. For example, if an employer asks an employee to drop something off at FedEx or UPS after work hours, and that employee negligently causes an auto accident, even if the employee is driving their personal vehicle and not a company car, the employer could be liable for damages. These businesses often outperform their market expectations, both in periods of market growth and decline. You need to nurture an environment in which every member of your organization is able to be creative, add value, and be engaged in the continuous improvement of the firm. To hold that ethical behavior in business is necessary information, processes or! 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