Navigating Entrepreneurial Dilemmas: Ethical Practices and Innovation

Sources of Entrepreneurial Dilemmas

Ethical dilemmas are complex situations involving apparent conflicts between moral imperatives, where adhering to one may transgress another.

Internal and External Pressures

These pressures can create internal conflicts for entrepreneurs.

Shifting Societal Values

Changes in societal values, mores, and norms can also contribute to ethical dilemmas.

Ethical Code of Conduct

An ethical code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres.

Organizational Barriers to Ethical Behavior

1. Systems: Resistance to established systems can lead to individuals creating their own methods, potentially bypassing ethical guidelines.
2. Structures: Dissatisfaction with the company structure can lead to disruptive and unethical behavior.
3. Policies and Procedures: Failure to follow policies and procedures can result in unethical actions by staff.
4. Culture: Cultural differences and practices in the workplace can sometimes clash with established norms and be perceived as unethical behavior.
5. Strategic Direction: Resistance to the company's strategic direction, due to personal misalignment, can lead to unethical behavior.
6. People: Differing values and priorities among individuals in the workplace can generate unethical behavior.

Promoting Ethical Employee Behavior

• Encourage Innovation: Provide flexibility, support initiative, and encourage risk-taking to create a comfortable environment for new ideas.
• Empower Middle Managers: Remove barriers for entrepreneurial middle managers by granting them freedom and avoiding excessive control.
• Ethical Training: Incorporate an ethical component into corporate training, ensuring fairness for all.

Practices for an Innovation-Driven Organization

1. Set Explicit Goals: Establish clear, tangible, and achievable goals.
2. Feedback and Reinforcement: Create a system of feedback and positive reinforcement to improve work quality.
3. Individual Responsibility: Emphasize individual responsibility and ownership of outcomes.
4. Performance-Based Rewards: Provide rewards based on results to motivate employees.
5. Tolerance for Failure: Avoid punishing failures, as this can demotivate employees and negatively impact workflow.

Benefits of an Entrepreneurial Philosophy

1. Competitive Advantage: Creates a workforce that helps maintain a competitive edge.
2. Talent Retention: Promotes a climate that attracts and retains high-achieving employees.
3. Growth and Expansion: Leads to the development of new products and services, fostering organizational growth.

Need for Corporate Entrepreneuring

1. International Competition: Adapting to and competing in the global marketplace.
2. Corporate Downsizing: Responding to the challenges of downsizing and restructuring.
3. New Competitors: Addressing the rapid growth of sophisticated competitors.
4. Distrust in Traditional Management: Adapting to a changing environment and evolving management styles.
5. Exodus of Talent: Retaining valuable employees who might otherwise leave to pursue entrepreneurial ventures.
6. Efficiency and Productivity: Improving overall efficiency and productivity within the organization.