ENTR FPX 5412 Assessment 3 Code of Ethics and Business Conduct

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Capella University

ENTR-FPX5412 New Ventures and Entrepreneurship

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The Importance of Entrepreneurial Ethics in Business Success

In the competitive world of business, having strong ethical values can be the key to long-term success. For veteran-owned woodworking businesses, like ours, these principles help us craft exceptional products and maintain trust with our customers. Our dedication to ethical standards and a customer-first mindset sets us apart, ensuring that our business thrives through repeat customers and positive referrals. Below, we will explore the mission, values, and ethical considerations that guide our business, ensuring not only compliance but also success in a crowded marketplace.

Mission Statement: Veteran-Owned Woodworking with Integrity

As a veteran-owned and operated business, our mission is to create and refurbish unique furniture that resonates with our customers. Each project we undertake is designed with the intent of building lasting relationships, ensuring our clients return for future projects. This mission underscores our commitment to quality craftsmanship and ethical business practices, both of which are integral to our success.

Venture Values and Ethical Standards in Business

Every business must operate under a set of core values and ethical guidelines, whether it’s a large corporation or a small woodworking venture. By establishing clear ethical standards, we create a work environment that fosters loyalty among customers and staff alike. When these values are evident in everyday business operations, the entrepreneurial team works with enthusiasm, dedication, and a shared purpose toward organizational objectives.

For entrepreneurs, personal and business values are inextricably linked. Values influence how we prioritize tasks and goals, ultimately shaping how we run our businesses. Here are the key values that drive our business forward:

Respect for Self and Others
Respect is the foundation of any successful business. It enables entrepreneurs to appreciate their efforts and connect meaningfully with family, community, and customers. This respect stems from pride, hope, and enthusiasm, freeing business owners from the limitations of low self-esteem, anger, and frustration.
Trust
Trust is crucial for any growing business. Customers, employees, and vendors must feel confident in the company’s reliability and honesty. Trust, built through consistent behavior, helps overcome negative traits like selfishness and fosters collaboration in all business dealings.
Honesty
Entrepreneurs must remain honest, especially when making financial decisions and managing assets. Honesty fosters transparency in decision-making, allowing business owners to avoid complacency and maintain calm during challenging times.
Fortitude
Running a business demands resilience and perseverance. Entrepreneurs need fortitude to navigate difficulties and remain focused on their long-term vision. Fortitude, which includes realism and consistency, helps entrepreneurs stay on course despite obstacles.

Why Ethical Practices Matter for New Businesses

New businesses must prioritize ethical practices from the start. This involves embedding ethical considerations into business plans, mission statements, and operational documents. Customers are more likely to support a business they perceive as ethical, and having a clear commitment to ethics can attract investors and loyal clients. Upholding these standards is essential to ensuring long-term success and building a reputation as a trustworthy business.

Customer-Centric Approach to Business Success

A business cannot thrive without its customers. It’s not enough to offer products; a company must provide goods and services that meet customers’ needs and desires. By focusing on customer satisfaction, businesses reinforce their responsibility to the market and increase the likelihood of repeat business. For us, customer-centricity is the driving force behind every woodworking project, ensuring that each piece we create meets the highest standards.

Compliance with Laws and Regulations

Every business, regardless of industry, must comply with federal, state, and local regulations. These laws govern everything from income reporting and taxation to waste disposal and online transactions. For our woodworking business, we need to secure the necessary licenses and adhere to tax requirements before starting operations. While we do not plan to hire employees immediately, understanding employment laws and marketing regulations will be essential as our business grows.

Shared Management Responsibilities in Our Business

As a husband-and-wife team running our woodworking venture, we share management responsibilities equally. Our collaborative approach allows us to make decisions together and ensure that our business runs smoothly. If we grow to the point of hiring employees, we will foster an open environment where new ideas are welcome. Good managers must be able to make tough decisions while also listening to customers and adjusting operations as needed.

Protecting Customer Information and Intellectual Property

Customer privacy is critical in today’s business environment. Companies must communicate transparently about how they use customer data, from email addresses to payment information. We use Square as our payment processing system, which provides PCI-DSS compliance, ensuring a secure environment for handling credit card transactions. This protection builds trust with our customers, ensuring they feel safe doing business with us.

Avoiding Conflicts of Interest

A conflict of interest arises when personal interests clash with professional responsibilities. As a woodworking business focused on customer satisfaction, we prioritize creating meaningful, high-quality products for our clients. While profitability is important, our primary goal is to make our customers happy and ensure they return. For this reason, we do not foresee conflicts of interest being an issue in our business.

Conclusion: Upholding Values for Long-Term Success

Entrepreneurs must follow all applicable laws and uphold their ethical values to build successful businesses. A strong reputation, built on respect, trust, honesty, and fortitude, brings in both new and returning customers. For our woodworking business, we aim to be a trusted resource that friends and family can confidently recommend. Not every customer will agree with our practices, but as long as we stay true to our values, we can maintain a strong business that grows through integrity and quality craftsmanship.

References

Desi_admin. (2018, July 02). Entrepreneur Ethics and Importance of Ethics in Key Areas of Business. Retrieved from desientrepreneurs.com: https://www.desientrepreneurs.com/entrepreneur-ethics-importance/

Galante, M. (n.d.). Crucial Business Laws for Entrepreneurs. Retrieved from Square: https://squareup.com/us/en/townsquare/business-laws

Hanson, K. (n.d.). A Good Start: Ethics for Entrepreneurs. Retrieved from Markkula Center for Applied Ethics: https://www.scu.edu/ethics/focus-areas/business-ethics/resources/a-good-start-ethics-for-entrepreneurs/

Kauffman. (2004, November 30). The Values That Sustain Entrepreneurs. Retrieved from Kauffman Entrepreneurs: https://www.entrepreneurship.org/articles/2004/12/the-values-that-sustain-entrepreneurs