Chapter 1-

INTRODUCTION
The term "entrepreneur" is difficult to precisely define. Although dictionary definitions often talk
of entrepreneurship in terms of organizing and operating a business, the original French term
carries with it a sense of adventure and risk for the undertaking. Various English definitions of
the term include the concepts of innovation, risk taking, and undertaking a new venture. In
reality, what tends to set apart the entrepreneur from other business persons is the degree of risk
taken in the new venture. By this definition, entrepreneurs may work within established
organizations (sometimes referred to as intrapreneurs), or they may be independent, starting a
new venture on their own or as part of a team.
No matter which situation an entrepreneur finds him- or herself in, there are some activities that
never change. Ideas and business plans must be developed, employees and projects must be
managed, clients or customers must be attracted, start-up capital must be obtained, and
continuing income must be generated. However, entrepreneurs also face challenges that are not
typically a part of the everyday life in established organizations. The risky nature of their
ventures means that marketing is often more difficult than with a proven product. Whereas
established businesses can point to a proven track record of success, sometimes the entrepreneur
can only try to sell an idea with the promise to work out the details in the future. A corollary of
this problem is that the entrepreneur also tends to be more concerned with finding capital for
running his or her business or developing a new product than the management of an organization
with an established product would be. Particularly if the entrepreneur does not work for an
established organization, financial backing for the new venture often must be found and won.
The nature of the entrepreneurial organization brings with it a unique set of management
problems separate from those experienced in more established organizations or those involved
with less risky ventures. Entrepreneurialism tends to be defined by innovation, and innovation
requires creative personalities. Such persons tend to require a different management style than
those doing more routine jobs. The very abilities that are necessary to be a successful innovator
the abilities to think outside the box and do things one's own waymake management of the

creative individuals in an entrepreneurial organization more difficult. On the other hand, just as
nature tends to move toward a steady state, so do organizations move toward financial security
by taking high risks in the short term in order to become established and successful and take less
risk in the long term. This means that as entrepreneurial organizations grow and become more
successful, the paradigm of independent thinking and maverick tactics must change in order to
promote the long-term sustainability of the organization. Since rebellion against established
products and procedures is one of the defining factors of entrepreneurialism, entrepreneurs often
find this transition difficult or even impossible to make.
In addition, as social concerns and culture change, so do some of the hot topics in
entrepreneurship. The Internet and easy access to high-tech communications have in many ways
truly made the world a village, and the marketplace no longer needs to be limited to the local
community; businesses can literally market to the world. However, one must be technologically
savvy in order to maximize the potential of the high-tech tools available for marketing and
communication. In addition, such global marketing opportunities also require an increased
sensitivity to multicultural concerns in order to attract and maintain a client base.
It is not only the rapid march of technology that impacts the lives of entrepreneurs. Social
concerns of the greater culture also affect the purpose and organization of many entrepreneurial
firms. For example, issues such as social entrepreneurship and the practice of being "green" are
important considerations in success. In addition, researchers and entrepreneurs both continue to
struggle, as does the rest of the business community, with questions about the different styles and
success rates experienced by women and minorities.

Chapter 2-

ECOLOGICAL ENTREPRENEURSHIP
An "entrepreneur" is someone who thinks of a new idea or opportunity in business and who takes
the risks necessary to convert his or her vision into a reality. Entrepreneurs are absolutely
essential to the forwarding of human progress. An ecological entrepreneur is someone who is
driven not only by the possibility of making a profit, but is also driven by environmental and
social concerns. They want to make the world a better place by improving the environment.
One interesting thing about entrepreneurship is that it is a market-based approach, which
encourages us to seek out positive rewards, mainly in the form of profit. Governmental
oversight, the main way we address environmental issues, often involves punishing offenders in
order to change people's approach to the environment. Ecological entrepreneurship is a rewardbased approach to addressing environmental problems, rather than a punitive approach, and may
prove more successful at changing attitudes and practices in the long run.
Business practices fundamentally affect the business world, the environment and our lives.
Ecology implies community, and ecological entrepreneurs understand the connections between
their actions and the greater community as a whole. The field is socially important because
ecological entrepreneurs are instrumental in reshaping the way we approach the environment and
its relation to business.

2.1 Few Standout Ecological/ Social Entrepreneurs

While it is admirable to build a successful business of any kind, some entrepreneurs do more
than just make a profit with the fruits of their labor. Some actually help others, bringing
resources, opportunities, training, and other assets to those who need them most. These social
entrepreneurs use their know-how and business savvy to make the world a better place,
combining a traditional business model with a pressing social mission in ways that have been

helping to make big changes in places around the world for decades. Here, I highlighted just a
few of the standout social entrepreneurs whore showing that successful businesses dont have to
just watch the bottom line and can truly be socially and environmentally conscious.

Examples of greatest social or ecological entrepreneurs of all time are:

1. Bill Drayton
Bill Drayton isnt just a great example of a social entrepreneur, he actually helped to define and
promote the term itself. Drayton is the founder and current chair of Ashoka: Innovators for the
Public, an organization that is dedicated to finding and helping social entrepreneurs around the
world. Drayton spreads out his social entrepreneurship expertise in other organizations as well,
working as a chairman at Community Greens, Youth Venture, and Get America Working! in
addition to his duties at Ashoka. As of 2010, Ashoka Foundation has sponsored 2,145 fellows in
73 countries, some of which have gone on to develop leading social businesses that have made a
huge impact on communities around the world.
2. Jeffery Hollender
In 1988, Jeffery Hollender founded cleaning, paper, and personal care products company
Seventh Generation. The company focuses on producing products that have a reduced
environmental impact, avoiding the harsh chemicals that are part of many of todays leading
cleaning and personal care products. In addition, the company donates 10% of pre-tax profits to
funding nonprofits and businesses focused on the community, the environment, and responsible
practices. Despite adhering to practices that many businesses claim limit profits, Hollender and
his associates have built Seventh Generation into a major corporate force, bringing in over $150
million in revenue in 2010. Hollender was pushed out of his role at Seventh Generation in 2010,
but that doesnt mean hes slowed down in social entrepreneurship. He helps with the American
Sustainable Business Council, writes books on responsible business practices, and is a member
of the Social Venture Network and founder of the Community Capital Bank.
3. Ibrahim Abouleish

Early in his career, Ibrahim Abouleish was working in leading pharmaceutical firms in Europe,
developing new treatments for osteoporosis and arteriosclerosis, but a trip to Egypt in the
mid-70s would change that. He would leave Europe and move back to Egypt, founding the
development initiative SEKEM (Ancient Egyptian for vitality from the sun). Abouleish hoped
that by using biodynamic farms, schools and vocational training centers, a medical center, and
trading company that he could not only help repair the environment but also the lives of the
Egyptian farmers in those areas. SEKEM grows plants that are developed into herbal teas, fresh
produce, and even organic cotton, which helps to sustain the other facilities it hosts. Abouleish
has also played a key role in developing new chemical-free methods to process cotton and
developing Egypts first private pharmaceuticals company. His business has been so successful
that experts and ideas from it are being exported to South Africa, India, Palestine, Senegal, and
Turkey.
4. Bunker Roy
Indian social activist and entrepreneur Sanjit Bunker Roy has helped thousands of people in
Asia and Africa learn vital technical skills and bring solar power to their sometimes remote
villages. Roy founded the Barefoot College, an organization which specializes in teaching
illiterate women from poor villages how to become doctors, engineers, and architects. Whats
more impressive is that each of the colleges campuses are solar powered and often built and
designed by former students. In founding the college, Roys goal wasnt to make a profit for
himself, but to help improve the economic production and quality of life of women throughout
his native India (though some aspects of the project have spread to Africa as well). With women
leading and running most of the Barefoot Colleges operations, its clear that hes been pretty
successful in achieving that goal.

Chapter 3-

GREEN ENTREPRENEURSHIP
In a rapidly economic changing world facing unknown climate change issues, Green
Entrepreneurship offers a range of new opportunities for groups disadvantaged both in society
and on the labour market. Young people looking for opportunities through to older workers
looking up skill and have additional income in their 3rd age. Green Entrepreneurs need to be
able to identify new opportunities and have a passion to follow their ideas through.
The nature of Green Entrepreneurship means that those with entrepreneurial spirit have the
opportunity to link new business ideas to a wide range of green issues. The Green
Entrepreneurship will develop a range of innovative learning approaches and tools to help
potential entrepreneurs think laterally, explore new ideas, problem solve barriers/challenges
faced, seek out new opportunities and learn how to engage others to help their ideas become
reality.

3.1 Green Entrepreneurship Taking The Two Perspectives

Green entrepreneurship can be defined from two perspectives related to the output (products and
services) as well as the process (or production) of an economic activity. Entrepreneurs can enter
into an overtly green business sector, providing green and environmentally friendly products
and services (e.g. waste management). Alternately, green entrepreneurs can provide their
products or services through an environmentally friendly process or with the help of clean
technologies (e.g. eco-tourism). Usually, green entrepreneurs consider both aspects in their
business models, creating additional decent employment through the use of more
environmentally friendly processes, while reducing the overall environmental impact as a result
of people or companies using the final product or service.

3.2 Green Entrepreneurs

Green entrepreneurs provide the hotbed for starting and sustaining a green economy by
providing green products and services, introducing greener production techniques, boosting
demand for green products and services, and creating green jobs.

3.3 Green Entrepreneurs The Engine For Job-Rich Growth And Youth
Employment
SME-sector is indispensible for the countrys socioeconomic development. It is estimated that
SMEs contribute more than 20% to the national GDP, while creating approximately 150,000
jobs. Green entrepreneurship can form an integral part in the fight against youth unemployment
(currently standing at over 60%) due to the low entry-level requirements for young people in
many sectors and their generally strong interest in innovative business solutions and
sustainability considerations. In addition, the creation of new firms allows equal access in terms
of gender and is not limited to urban areas where traditionally larger employment opportunities
exist. Green entrepreneurship can also provide new employment opportunities to workers who
are set free during the restructuring towards a greener economic model.

3.4 Green Entrepreneurs Are Drivers Of Change

Originating mainly from a level of technical innovation such as pollution reduction, clean
production processes and resource efficiency, green entrepreneurship goes beyond the narrow
technology-based aspects of doing business. It can nurture a culture of lifecycle-based thinking
and stimulate green innovation at the societal level. In doing so, green entrepreneurs create a
shift in peoples mindsets towards greener thinking and increased demand for green products and
services, boosting the dual effect of employment and environmental gains.

3.5 A Systemic Approach Towards Green Entrepreneurship

Nurturing a (green) business culture and raising awareness amongst entrepreneurs about

opportunities arising from environmentally friendly business models.

Creating an enabling environment which promotes and encourages green investments and
entrepreneurship.
7

Supporting new and emerging entrepreneurs through the provision of business

development services and other financial and technical support schemes.

3.6 Challenges Before Green Entrepreneurs

a tendency for government policy to favour large businesses in the construction sector
over small to medium-sized enterprises (SMEs);

wide variation in the application of planning rules across different local authority areas
that stifle innovation in sustainable building;

risk averseness by banks unwilling to invest in green businesses and;

a shortage of skilled labour capable of using sustainable building materials coupled with
a lack of knowledge to incorporate new green technologies into buildings

Currently training materials to stimulate Green Entrepreneurship training is non-existent,

particularly in terms of the projects target group.

3.7 Green Entrepreneurs Who Are Making a Difference

From green real estate to hybrid limousines and reusable packaging to earth-friendly pizza
delivery, green entrepreneurs are taking the business world by storm. Can you make money and
make a difference at the same time? Absolutely, and the five "ecopreneurs" below prove it.
Here's a quick look at how these green innovators have created successful business models and
what they're doing to help the environment. Who knows? You just might be inspired to start your
own green business and become an ecopreneur yourself!
1.

Chris Bartle - Green Key Real Estate

According to a May 2008 report by McGraw-Hill Construction and the National Association of
Home Builders, the market for green homes is growing. Green homes are expected to be 12% to
20% of market share by 2012.
A pioneer in the green brokerage business, Chris Bartle, President and CEO of Green Key Real
Estate, is taking full advantage of that fact. He's not only a licensed eco-broker, he's also
planning to expand his green brokerage firm beyond Northern California into other
environmentally-conscious places like Boulder, Colorado; Seattle, Washington; and Portland,
Oregon.
2. Frederick Dunn - Dunn Rite Limousine Service
Frederick Dunn runs a high-end limousine service. That might not sound like an eco-friendly
profession but Dunn has turned it into one by incorporating hybrid vehicles into his fleet of
luxury cars. It's been a boon to his business. Not only is he saving money on fuel, he's also
catering to clients who prefer hybrids while reducing his business's carbon footprint. Dunn plans
to convert his entire fleet to upscale hybrid vehicles in the future.
3. Spencer Brown - Rent-A-Green Box
Spencer Brown's company, Rent-A-Green Box, makes reusable moving boxes called Recopacks
from hard-to-recycle plastics. Brown disliked the idea of cutting down trees to make cardboard
boxes that were used once and then tossed in the trash, destined for a landfill. Rent-A-Green
Box, which he started in 2004, is now a multi-million dollar business, achieving the dual purpose
of making money and reducing the environmental impact of packaging materials.
4.

Lyndon Rive and Peter Rive SolarCity

The two brothers behind the California-based company SolarCity created a program in which
neighbors interested in solar energy could pool their resources and be eligible for discounts on
solar panel installations. SolarCity has had resounding success branching out into the
commercial and government sectors as well. The SolarCity mission statement sums it up best:
"To energize our world with clean affordable solar energy. One installation at a time"
5. Vaughan Lazar and Michael Gordon - Pizza Fusion, A Green Franchise
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Another green franchise that's deliveringliterally!is Fort Lauderdale-based Pizza Fusion, a

fast-food delivery business specializing in natural sodas and pizzas garnished with organic
veggies, cheese, and other healthy toppings. But more than that, business partners Vaughan Lazar
and Michael Gordon have gone the extra mile when it comes to being green. Uniforms are made
from organic cotton fabric, countertops are made from recycled bottles, and all of Pizza Fusion's
paper products are 100% post-consumer paper. Even their buildings are LEED certified.

Few in Indian context:

1. Rajaram Tripathi - Herbal Hero
Maa Danteshwari Herbal Products, Kondagaon, Chhattisgarh

From banking to farming

Rajaram Tripathi has created a niche through organic herbal farming in over 1,000 acres land in
his home district Kondagaon in Chhattisgarh. He quit his job as a bank officer in 2001 to take up
farming. Tripathi received the prestigious Earth Hero Award 2012, instituted by Royal Bank of
Scotland for biological diversity.

Organic benefits

Tripathi felt the prime reason why farmers had mounting debts was because of wasteful
expenditure on pesticides and fertilisers. His group uses organic fertilisers made of farm waste,
including leaves and cow dung. His farms also use bio-waste generated power. The group,
comprising 200 tribal families, markets its produce with the help of Central Herbal Agro
Marketing Federation of India. They have set up a herbal food supplement production unit and
have an annual turnover of Rs 20 crore.
2. Damji Prajapati - Feat of Clay
Eco-friendly birdhouses, Ahmedabad

Rumble in the concrete jungle

10

Prajapati has been making earthen birdhouses for the past 10 years to encourage people to
protect the natural habitat of birds. "The use of steel and glass in our buildings has reduced the
availabilityof nesting sites," he says.

Home with a difference

Prajapati's birdhouses are textured in the form of a tree trunk. He has now received orders from
real estate developers who plan to include it in their design schemes.
"I watch documentaries on birds that keep me updated about new technologies and informs me
about innovations in this field."
3. Anupam Jalote - Wealth from waste
Green Oil, Delhi

Practice makes perfect

Anupam Jalote quit his job as senior vice-president at Bharti Airtel in 2008 to work on producing
renewable energy and organic manure. He started Green Oil with wife Mamta, 43, in 2010. The
company is based in Delhi but they source the waste material from Jaipur.

Starting small

Green Oil produces organic manure and sells it on a small scale under the brand name of Green
Oil Karishma. The company is in the process of building a 1 MW power plant-which will be
connected to the National Grid-in Samode village, near Jaipur. "It is like a sophisticated gobar
gas plant that uses waste to produce bio-methane through anaerobic digestion," says Jalote.
Rotten fruits and vegetables, cattle and elephant dung and other organic farming waste would be
used to produce electricity. The company will also sell the by-product, organic manure.

Plant for the future

Jalote aims to build 10 power plants of 1 MW each in five years. The comany's current revenue
is Rs 3 lakh-Rs 4 lakh a month. Last year, a Zurich-based company, LGT Venture Philanthropy,
bought 30 per cent stake in Green Oil for $600,000 (Rs 3 crore). A lot rests on the Samode plant.
11

Once it becomes operational, Jalote anticipates monthly revenue of around Rs 1 million from the
sale of power and organic manure.
"We want to help farmers profit from their farming waste and reduce their dependence on
chemical manure."

Chapter 4-

LEGAL ISSUES AND THE

ENTREPRENEURS
While a lot of entrepreneurs at least have a basic understanding of the law, most of them fail to
think about the legal implications of starting a company.

4.1 Here Are Some Common Legal Issues That Entrepreneurs Face:
1.

Is my business compliant?
Corporate compliance affects companies in all types of industries. It is important to find
out what type of records and other documents should be generated and maintained by
your business. The laws, which apply to your business, will vary depending on a range of
different factors, such as what type of business entity you are and what state you do
business in. As a result, its usually important to consult with an attorney to ensure that

your company is compliant with any federal and state laws that might apply to you.
2. What business structure should I use?
There are multiple business structures available and using the best structure can be
critical to ensuring that your company is successful. For instance, are you interested in
having your company go public in the future or do you want to remain a private
company? Are you planning on taking on investors or will you be privately funded? What
type of growth do you predict your company will have in the future? The answers to all
of these questions will lead to structuring your company in a variety of ways.
3. How should I avoid legal problems with employees?

12

Generally, every company should limit their liability as much as possible before taking on
any new employees. Typically, company owners should have an employee handbook in
place and ensure that all new employees sign an acknowledgement form stating that they
received the handbook. The handbook should address everything from the companys
sexual harassment policy to the office dress code.
4. Am I properly protecting my personal assets?
It is always important for a company owner to keep their personal and business assets
separate. The best way to do this is to maintain a separate business bank account and only
pay for business-related items and expenses from your business account. In the event that
a creditor sues you, they may be able to seize your companys assets if they were
purchased using your personal funds.
5. How should I structure a partnership agreement?
Many new companies fail due to the fact that there never was a well-written partnership
agreement in place that spelled out the duties and obligations of each partner and covered
all issues that could have arisen in the future. For instance, will the partners agree all
company decisions on unanimously or by majority rules? How much equity will each
partner have in the company? How will company assets be split up in the event of
dissolution? All of these issues and many more must be tackled and addressed in a
comprehensive partnership agreement at the outset of forming the partnership.
6. Am I properly protecting my business name?
A large amount of companies begin using a name only to find out that another company
has already been using that exact same name. A company should usually do a trademark
search on the web to ensure that a business name is available. An attorney can help you
register your name as well as a logo and assist you with protecting against anyone
infringing on your intellectual property.
7. What should I do if I get sued?
In the event that your company is sued, it is ideal to try and settle a lawsuit prior to going
to court. An attorney can use their negotiating skills against an adverse party and work
towards settling with them and saving your company the risk of going to court and
potentially losing your case. In the event that a case cannot be settled, its best to consult
with an attorney on the best strategy for winning your case in court.
8. Should I use a non-disclosure agreement?
If your company is looking to share propriety information with another company with the
intent of potentially forming a joint venture, then it might be appropriate to have a non-

13

disclosure agreement in place. It is important to make sure the non-disclosure agreement

is very detailed and lays out exactly what proprietary information will be shared.
Otherwise, you might risk losing valuable work to a competitor and cause major setbacks
in making your company a success.
9. Are oral contracts enforceable?
Although its a common misconception, oral contracts may be enforceable. However,
there are some contracts that are governed by the Statute of Frauds, which is a collection
of statutes requiring certain contract to be in writing. For instance, under the Statute,
which has been adopted in most states, agreements to pay anothers debt, contracts for
over a certain amount of money, and contracts that last longer than a partys life must be
in writing. In general, which oral contracts may be enforced, contract law doesnt favor
oral contracts since theyre often difficult to prove.
10. Do I need an attorney or can I do it on my own?
Sometimes, you might perceive a legal problem to be small when in fact the problem can
potentially impact your business in ways that only an attorney can foresee. While you can
certainly read up on a particular legal issue if you have the time, its best to consult with
an attorney who can anticipate various legal pitfalls your company might encounter.

4.2 Governmental Support To The Entrepreneurs

The government currently has less regulations that it needs in order to implement the policies it
needs to if India wants to be known as a green superpower. The government can be a neutral
arbiter and help industries and research institutions with purchasing the R&D. This can be
counted as an investment. It should be done in exchange for a) partial ownership rights, b)
oversight rights to ensure proper conduct and c) legally binding agreements in terms of
deliverables and technologies.
In exchange for government support the companies that will be formed would be partially
beholden to the government. This is a good thing and should be encouraged. The government can
and should give production and taxation benefits. These government benefits are what the
international organizations would back as signs of their commitments. They will act as an
intermediary in the entire transaction, acting as investment midwives in the early stages. This
will encourage quick spreading of any innovation into new markets.

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The government can also help by attaching restructuring conditions to loans given to troubled or
black industries. These will encourage them to seek out new avenues to turn themselves
green, which is exactly the sort of demand side boost that entrepreneurs need. With the
environment stoked as such and the government playing an active part in this transaction, the
market creation should be smooth.

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Chapter 5-

SOCIAL AND ETHICAL

RESPONSIBILITY OF
ENTREPRENEURS

5.1 Business Ethics: A Brief Definition

Ethics is the branch of philosophy concerned with the meaning of all aspects of human behavior.
Theoretical ethics, sometimes called normative ethics, is about discovering and delineating right
from wrong. It is the consideration of how we develop the rules and principles (norms) by which
to judge and guide meaningful decision-making. Theoretical ethics is supremely intellectual in
character, and, being a branch of philosophy, is also rational in nature. Theoretical ethics is the
rational reflection on what is right, what is wrong, what is just, what is unjust, what is good, and
what is bad in terms of human behavior. How we see 'ethical behavior' - in terms of what is right
and wrong - is guided by these definitions.
Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that
examines ethical principles and moral or ethical problems that arise in a business environment. It
applies to all aspects of business conduct and is relevant to the conduct of individuals and entire
organizations.

16

Business ethics can be defined as written and unwritten codes of principles and values that
govern decisions and actions within a company. In the business world, the organizations culture
sets standards for determining the difference between good and bad decision making and
behavior. In the most basic terms, a definition for business ethics boils down to knowing the
difference between right and wrong and choosing to do what is right. The phrase 'business ethics'
can be used to describe the actions of individuals within an organization, as well as the
organization as a whole.
There are three parts to the discipline of business ethics: personal, professional, and corporate.
All three are intricately related. It is helpful to distinguish between them because each rests on
slightly different assumptions and requires a slightly different focus in order to be understood.
We are looking at business ethics through a trifocal lens: close up and personal, intermediate and
professional, and on the grand scale (utilizing both farsighted and peripheral vision) of the
corporation. In spite of some recent bad press, business executives are first and foremost human
beings. Like all persons, they seek meaning for their lives through relationships and enterprise,
and they want their lives to amount to something. Since ethics is chiefly the discipline of
meaning, the business executive, like all other human beings, is engaged in this discipline all the
time, whether cognizant of it or not.

5.2 Social Responsibility: A Brief Note

Social responsibility is an ethical ideology or theory that an entity, be it an organization or
individual, has an obligation to act to benefit society at large. Social responsibility is a duty every
individual or organization has to perform so as to maintain a balance between the economy and
the ecosystem. A trade-off always exists between economic development, in the material sense,
and the welfare of society and the environment. Social responsibility means sustaining the
equilibrium between the two. It pertains not only to business organizations but also to anyone
whose action impacts the environment. This responsibility can be passive, by avoiding engaging
in socially harmful acts, or active, by performing activities that directly advance social goals.
This shows the various ways that companies can invest in being socially responsible and the
value those actions can bring to the company.

17

A report suggests that social responsibility is a way of conducting business through balancing the
long-term objectives, decision-making, and behavior of a company with the values, norms, and
expectations of society. Social responsibility can be a normative principle and a soft law
principle engaged in promoting universal ethical standards in relationship to private and public
corporations.
Companies can demonstrate social responsibility in a myriad of ways. They can donate funds to
education, arts and culture, underprivileged children, animal welfare, or they can make
commitments to reduce their environmental footprint, implement fair hiring practices, sponsor
events, and work only with suppliers with similar values.
Social responsibility in business is also known as corporate social responsibility, corporate
responsibility, corporate citizenship, responsible business, sustainable responsible business, or
corporate social performance. This term refers to a form of self-regulation that is integrated into
different disciplines, such as business, politics, economy, media, and communications studies.

5.3 Entrepreneurship V/S Ethics And Social Responsibility

Ethics and social responsibility are very important values in entrepreneurship ventures. This is
particularly essential in decision making process. Ethical conscience reminds entrepreneurs to
make trustworthy and profitable entrepreneurship decisions. Likewise, the social responsibility
component sought entrepreneurs to make entrepreneurial decisions that can enhance benefits and
repelling harms to the stakeholders.
The entrepreneur must establish a balance between ethical exigencies, economic expediency, and
social responsibility. A managers attitudes concerning corporate responsibility tend to be
supportive of laws and professional codes of ethics. Entrepreneurs have few reference persons,
role models, and developed internal ethics codes. Entrepreneurs are sensitive to peers pressure
and social norms in the community as well as pressures from their companies.
While ethics refers to the study of whatever is right and good for humans, business ethics
concerns itself with the investigation of business practices in light of human values. The word
ethics stems from the Greek ethos, meaning custom and usage. Development of Our Ethical

18

Concepts Socrates, Plato, and Aristotle provide the earliest writings dealing with ethical
conceptions; earlier writings involving moral codes can be found in both Judaism and Hinduism.
Ethics and social responsibilities of an entrepreneur is certainly an important issue considering
the role of social responsibility in society and ethics in business. Social responsibility is
beneficial for business community and at the same time for global community. Social
responsibility is significant owing to the realism of globalization. The people of the universe are
becoming interconnected more owing to the advancement of technology, transportation and
communication. The world market economy is affecting not only services and goods but values
and ideas as well. Expansion on the global front, enhancing regulatory omission and the factors
which is responsible for creating awareness regarding the significance of making for sectored,
macro and operational hazards to both an organizations and entrepreneurs competitive position
and reputation. As small business owners and entrepreneurs, activities which harm the people
and the planet, will spoil the scope for your profits. For this reason there is great significance for
triple bottom line which is profits, planet and people.
The world economy requires innovators and entrepreneurs to both advance and sustain global
community. While ethics and social responsibilities of an entrepreneur and businesses undertake
the plan and consider social responsibility a vital event in their activities, everybody benefits.
The effect could be noticed within local communities and ultimate profit making from their
business. With the extension of cooperation for businesses, governments and NGOs, they
encourage in the matter of corporate social responsibility and entrepreneurship and take steps to
improve the mechanism for its potential growth. Therefore, in regards ethics and social
responsibilities, an entrepreneur has to become aware about his role and strive to obey them in
perfect manner which would be beneficial to him as well as the community as a whole
An entrepreneur is actually running his own business and being a businessman he has some
obligation of a business to meet his economic and legal responsibilities. Social responsibility is
basically a business intention, beyond its legal and economic obligation to do the right things and
act in ways that are good for society.
While we are talking about the business ethics, there are three things that need consideration:
(1)

Avoid breaking criminal law in ones work related activity

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(2)

Avoid action that may result in civil law suits against the company

(3)

Avoid actions that are bad for the company image.

For example, an entrepreneur made a chemical that looks like a pesticide and he started selling it
like a pesticide in the market and earns the profit, this act is against the law.

5.4 Link Between Ethics And Social Responsibility

You will probably note the link between business ethics and corporate social responsibility
(CSR). The two concepts are closely linked:

A socially responsible firm should be an ethical firm

An ethical firm should be socially responsible

However there is also a distinction between the two:

CSR is about responsibility to all stakeholders and not just shareholders

Ethics is about morally correct behavior

How do businesses ensure that its directors, managers and employees act ethically?
A common approach is to implement a code of practice. Ethical codes are increasingly popular
particularly with larger businesses and cover areas such as:
* Corporate social responsibility
* Dealings with customers and supply chain
* Environmental policy & actions
* Rules for personal and corporate integrity
Example of Dr. Verghese Kurien Amul India
Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the
founder Chairman and the committed professionalism of Dr Verghese Kurien, who was
entrusted the task of running the dairy from 1950.

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Leaders of Indian industry could contribute significantly to corporate social responsibility by

adopting the methodology followed by Amul.
He recalled that Amul had pioneered inclusive growth through work with dairy farmers at grassroot level, changing lives, enhancing income, empowering women and at the same time reaping
benefits to the business.
Companies through adoption of shared value concepts could tackle challenges of poverty and
malnutrition in India.
Minister of Heavy Industries and Public Enterprises Praful Patel has said India is a fast-growing
economy with enormous entrepreneurial skills.
Leaders of the industry endowed with correct mindset had the potential to become world leader
in harnessing CSR for inclusive growth and sustainable development.

5.5 Sachar Committees Suggestion

In 1978, the Sachar Committee laid the emphasis that the companies should not ignore their
social responsibility and publish social accounts in annual accounts.
The acceptance of concept of social responsibility must be reflected in the information and
disclosure that the companies make available for the benefit of the shareholders, creditors,
workers and community.
It was suggested that as far as possible social report must be cast both in quantity and monetary
terms.
The committee also felt the need that the board should also report on the future plans of the
company it has made, to discharge its social responsibility and duties.

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CONCLUSION
When the risks are too large, then even if the payoff is immense, people wont want to
take it.
This means that if we want the next wave of Indias entrepreneurs to tackle the climate
change challenge the problem is more than one of finding the correct opportunities. The
problem is one of creating the kind of environment that encourages people to take up
those opportunities.
We need to bring more entrepreneurs into the field. The necessity of technological
innovation in order to solve the environmentalism problem is undeniable.
In the modern world people can no longer expect large enterprises to guarantee them jobs
for life. Individuals are increasingly expected to seek out their own opportunities, actively
create value and behave ethically, rather than faithfully follow rules and routines set by
others. In particular, today's young people need to learn to be enterprising, both when
working for others and when setting up their own businesses. Being enterprising involves
taking responsibility for decision making, becoming increasingly self reliant, pioneering,
adventurous, daring, dynamic, progressive, opportunist, ambitious and holding your
values, as well as being able to initiate ideas and see them through into action.

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REFERENCES
Bibliography:

Baumol W. J. Entrepreneurship: Productive, Unproductive, and Destructive. The

journal of political economy 1892: 893921. Print.

Blundel Richard, and Lockett Nigel. Exploring Entrepreneurship: Practices and

Perspectives. Oxford: Oxford University Press, 2011. Print.

Westhead Paul, Wright Mike, and McElwee Gerard. Entrepreneurship: Perspectives and

Cases. Harlow: FT Prentice Hall, 2011.

Barry, J., and Doran, P. (2006) Refining green political economy: From ecological

modernisation toeconomic security and sufficiency, Analyse & Kritik , 28, 250-275.
Beveridge, R., and Guy, S. (2005) The Rise of the Ecopreneur and the Messy World of

Environmental Innovation, Local Environment, 10(6), 665-676.

Broome, J. (2007) The Green Self-Build Book: How to Design and Build Your Own EcoHome, Green Books: Totnes

Webliography:

http://www.cbi.org.uk/pdf/climatereport2007summary.pdf
http://www.raeng.org.uk/education/vps/pdf/Engineering_a_low_carbon_built_environme

nt.pdf
http://www.foe.co.uk/resource/reports/greenest_gvt_ever.pdf

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