Chat with AIExam 2: The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics
Which is not a trait of a successful entrepreneur?
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VerifiedD
Give some in-depth examples of the dilemmas entrepreneurs face with ethics and laws.
(89) VerifiedOne dilemma entrepreneurs face is managerial rationalization. Managers may use rationalizations to justify questionable conduct. Some examples are: believing that the activity is not "really" illegal or immoral, the act is in the company's best interest, the behavior will not be found out, and the company will condone the act. The questionable act may seem all right to the manager using these rationalizations, yet is against the laws of the business world and society.
Another dilemma concerns the matter of morality. Using LaRue Hosmer's conclusions concerning legal requirements and moral judgments, the requirements might overlap but not duplicate the moral standards of society. First, this results from laws not having any moral content, laws being morally unjust, and moral standards having no legal basis. Second, legal requirements tend to be negative whereas morality tends to be positive. Third, legal requirements can lag behind the acceptable moral standards of society.
Another dilemma entrepreneurs are often faced with concerns economic trade-offs. Economic trade-offs occur when innovations, risk taking, or venture creation are used to stimulate the economic system to create new jobs and new growth. These qualities produce the trade-off between economic and social welfare. Some examples are, advertising for cigarettes with death as a possible result; toxic waste dumps invading lakes, streams, and eventually drinking water; minorities being laid off only because they were the last to be hired, and capital gains realized through the advance information of mergers.
Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations.
(74) Each and every person has the potential and free choice to pursue a career as an entrepreneur.
(82) Problems can arise when people believe that laws represent morality.
(71) Selfishness and a need for power are two characteristics common in entrepreneurs.
(81) In the Monroy-Folger Model of Risk Typology, profit-seeking activity is associated with:
(84) Role distortion deals with morally questionable acts that are committed "for the firm."
(75) The need to achieve can be a source of stress for entrepreneurs.
(90) Define ethics and discuss some conflicts over the ethical nature of decisions.
(77) A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n)
(68) In starting or buying a new business, the higher the rewards, the
(84) Firms need to be public about their ethical values and expectations.
(69) According to the Model of Entrepreneurship Motivation, the entrepreneur's expectations are not compared with the actual or perceived outcomes of the firm.
(84) One of the most important reasons firms want to adhere to a high moral code is that doing so protects free markets and is good business.
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