The utilitarian, individualism, moral-rights, and justice approaches for evaluating ethical behavior.
The utilitarian approach implies that behavior is moral if it produces the greatest utility for the greatest number of people. Under this approach, a decision maker while making his decision should choose the best alternative that will satisfy the greatest number of people. This approach is often used in crisis.
Individualism approach implies that behavior is moral if it serves individual’s long-term interests, which eventually leads to the greater good. This approach is an opposite of the utilitarian approach. A decision maker while making decision should choose the best alternative that will satisfy individuals to a larger degree. Individualism is believed to lead to honesty and integrity bcs that workers best in the long run.
Moral-rights approach implies that behavior is moral if it doesn’t violate the rights of people. Each individual has his own moral rights: right to privacy, the right of freedom, of free speech, right to life and safety. To make ethical decisions, managers need to avoid interfering with the fundamental rights of others.
Justice approach implies that behavior is moral if it’s based on standards of equity and fairness. Individuals must be treated equally from moral right point of view but they should be treated differently according to their skills and qualifications, they shouldn’t receive different salary for performing similar tasks.
Three levels of personal moral development.
Preconventional level managers are mostly concerned with themselves, they blindly follow the rules to avoid punishment, and they act in their own interest in order to get rewards. Important thing for managers here is just task accomplishment
Conventional level managers try to satisfy expectations of other people; they want to seem good to others. If their colleagues, family, friends, and society think that such of behavior is good, they behave in that way. Here it is important group cooperation.
Postconventional level managers are guided by their internal values and beliefs, and they disobey rules and laws that violate their interests. They will act in ethical way regardless of expectations from others inside and outside the organization.
Entrepreneurship, entrepreneur and small business.
Entrepreneurship – the process of initiating a business venture, organizing necessary resources, and assuming the associated risks and rewards.
Entrepreneur is a person who creates his own business or company in the face of risk and uncertainty His purpose is to achieve high profits and growth. Entrepreneur can be young people (30%), women (72%), minority (Chinese, Indian restaurant), immigrant, home-based entrepreneurs, family business (90%), copreneurs(couple that work together).
Small Business is an enterprise, which has a small number of employees, low volume of sales, small amount of assets and limited impact on the market.
Five types of small business owners Level 2
Idealists – people who like the idea of working on something that is new, creative, or personally meaningful.
Optimizers – people who get satisfaction of being business owners because it gives them power.
Hard workers – people who enjoy working long hours and want their business to grow larger and more profitable.
Sustainers – people who want to balance work and personal life and often don’t want the business grow too large, they like stability.
Jugglers – high energy, high risk people who like the chance a small business gives them to handle everything themselves, they feel independent