Those who are truthful entrepreneurs, Know them as 'Gurus' divine, Learn from them pragmatic experience, As if it is knowledge divine.

Udyam Shastra- Chapter 10, Verse 3

Key Objectives:

The students explore the importance of ethical behavior in their own lives and consider a business's responsibility to its employees, customers, stockholders/shareholders, and the community. They discuss the extent and limits of those responsibilities by acting as members of a corporate board of directors facing a variety of business and ethical dilemmas. Reading this module and doing the students activities will enable the students to:

List examples of ethical business that impact community.

Describe the basic responsibilities a business has eg. its employees, customers, shareholders, and the local community.

Use brainstorming techniques to suggest solutions to management problems.

Enterprise Concepts:

Business ethics.: The sense of conscience i.e. inward monitor that a business/enterprise uses ,is generally referred to as Business Ethics. An entrepreneur has responsibility to:

- his equity holders to be profitable - employees to provide satisfactory working conditions - customers to provide agreed product/service performance. - Community for the effects of his/her business actions and decisions.

Social obligation/responsibility.: The sense of conscience and morality regarding social and community issues may be referred to as the Business Social Obligation/Responsibility.

Opportunity costs. : The cost of something, for instance ‘A’, expressed in terms of what had to be given up ,for instance ‘B’, in order to obtain ‘A’. For e.g. You might give up going to a movie (B) in order to go to a place to finalize a business deal (A) , because the opportunity cost of foregoing the business deal is very high as compared to foregoing the movie.

Enterprise Skills:

The student 'Activities' in each lesson are designed to clarify the ENTERPRISE CONCEPTS of the lesson and develop some ENTERPRISE SKILLS (E.SKILLS). The E.SKILLS included in a lesson may not be exhaustive, but are indicative.

E.SKILLS stated in a lesson elsewhere may also get addressed through the activities of a particular lesson.

Some useful E.SKILLS are dealt with below:

Honesty.: A commitment to refrain from lying to be truthful and sincere in dealings with other people.

Abstract thinking.: Abstract thought are usually in inner working of the mind and may deal with aspects like truth, ethics etc. The latter aspect may not be measurable in concrete terms that we otherwise use for physical objects.Hence abstract thinking usually involves contemplating, introspection and such methods of thinking.


Activity - Social obligations.