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Some of our experts in the field have given their thoughts on the Debate Piece By Whose Rules Should We Judge Entrepreneurs? by Nigel Culkin. If you would like to join the debate please email chris@isbe.org.uk and your comments will be placed on the website.
Responses by:
Louise Worth
Sandy Ogilvie
Laquita Blockson
As you sow, so shall you reap!
By Louise Worth
By whose rule would you be happy to be judged? From a personal and professional perspective (as a Chartered Marketer, Marketing Consultant and sole trader – notice I choose not to use the term ‘Entrepreneur’), I’m not sure that I am ‘happy’ to be judged as this could be construed as criticism. Constructive criticism however is always welcome as this enables us to do better.
In answer to the question, I use an ‘X Factor’ analogy where the judging panel (in the style of Simon Cowell and Co) is made up of experienced specialists in the field and external stakeholders. From a marketing context this panel would be consist of me, The Chartered Institute of Marketing (whose Members’ Code of Professional Practice requires that I demonstrate integrity, negotiate my business in a professional and ethical manner, and that I am fair and equitable), my client (who pays my bills based on trust and satisfied outcomes), and other professional/legal bodies (who ensure that I run my business within the boundaries of the law).
This is of course, my analogy, based on my personal values and I guess that this is the point. As the saying goes “Do not do unto others what you do not want others to do unto you”. So far in life, this has allowed me to sleep easily at night, particularly in relation to my business affairs.
To me, ‘Entrepreneurial Marketing’ is about being innovative, pushing boundaries, challenging the status quo, or simply, doing things differently. As a result, new products and services evolve and more efficient ways of doing things are uncovered. Financial gains, as well as additional customer or stakeholder value are often the outcome.
As Richard Houdmont, Director for Wales, Chartered Institute of Marketing comments “Culkin misses the point by failing to distinguish between ‘rules’ and ‘the law’. By ‘rules’ we often mean the ‘norm’ or accepted/normal behaviour. Marketers, by definition, seek out new ways of meeting a need and so by (my) definition are rule-breakers. Innovation and creativity means breaking the rules but it doesn’t mean breaking the law”.
There’s also the issue of Corporate and Social Responsibility to consider. There are many examples of organisations whose ‘ethical’ stance has proven to be beneficial in terms of attracting new customers, or keeping existing ones. As customers become more ‘savvy’ or knowledgeable about the businesses they buy from, they choose those whose values reflect their own. Having an ethical regard is therefore good business acumen!
Be warned! There are also several examples of companies who as a result of their unethical behaviour have encountered Public Relations disasters. Yet despite this, choose to carry on regardless of the financial risk or potential damage to brand image.
The Entrepreneur as suggested in this article gives an impression of a super-rich, hard-nosed individual looking to make their next buck by whichever means they see fit. Most entrepreneurs, in my view and experience, are honest individuals trying to run a business, in the only way they know how (with or without formal knowledge of ethics and legislation). As most have customers in their personal and professional networks, to risk the value of such an intangible asset as a result of short term, unethical behaviour would surely be foolish.
Louise Worth, Chartered Marketer, Director Louise Worth Business Development
Response to By Whose Rules Should we Judge Entrepreneurs?
By Sandy Ogilvie
Coming from a small business background these days I recognise the definitions of entrepreneurs as “being in business for themselves” and “rule breakers”. Their use in my experience comes most frequently from those who have the comfort and luxury not to be facing the challenges of building a sustainable business or being responsible for the continuing employment of others and from those who have probably never undertaken anything remotely risky with their own career or finances.
Being in business and being an entrepreneur is not the same thing. Starting a business because you are unemployed and have little or no choice does not make you a entrepreneur. For by their nature true entrepreneurs are creative and push boundaries in much the same way as artists and musicians. It is at these boundaries that judgements are made and it is there that changes are repelled, curtailed or accepted. As with other aspects of life the entrepreneur faces judgements that can come from a legal, moral, political or social challenge and in addition has to deal with the judgements of customers/clients; and competitors who can be from almost anywhere across the globe or near neighbours and who are in the main free to help themselves to a slice of the market. Despite this I would argue that entrepreneurs have no more or less reason not to be judged from an ethical stance than anyone else.
There are entrepreneurs who are crooks, there are some who use crookish tactics to become legitimate and there are those whose success is down to a mix of talent, luck and opportune timing. By whose rules should We judge this none homogenous group? ... I do not think we should or can judge them en masse; it would be like judging the animal kingdom as if there was only one species. However the existence of an ethical framework for entrepreneurs is necessary and gives that activity shape and focus. But does it stifle, set free or provide checkpoints for entrepreneurial creativity? In my view it should only do the latter and therefore cannot be applied from a static rule based view but needs to be applied in a context. And if the framework stifles or sets free, it is the wrong framework.
Where we have to make judgements and want to test entrepreneurial boundaries then I would apply the same rules as should determine success and failure in other areas, with care, transparency, the application of common sense and in so far as it is possible with an open mind to recognise that it just may be that exciting time where the current boundaries need to be moved. Then it is called pioneering which has altogether more positive associations.
Sandy Ogilvie. CEO The PNE Group & Shell-LiveWIRE International Director. Newcastle upon Tyne
A “Rule” of Thumb for Entrepreneurs: Seek a Self-interest/Collective Interest Balance
By Laquita Blockson
The concept of entrepreneurial ethics is garnering greater attention because of its influence and effect on individual entrepreneurs, the ventures they create and steward, and the contributions they and their ventures make toward promoting commerce and innovation within society. In this light, Nigel Culkin reflects upon Camus and Aristotle to present a thought-provoking argument for whether entrepreneurs should operate by a particular set of rules or values and whether entrepreneurship would prefer one set over the other. I understand and agree with Culkin’s premise for why “a static rule-based view of entrepreneurial ethics is inappropriate in a dynamic society.” Some rules and values evolve over time and/or need to be challenged; for example, Muhammad Yunus’ Grameen Bank could be viewed by some as a compassionate act of civil disobedience. Nevertheless, an opportunity exists for bridging the gap that Culkin describes.
I believe one of the major keys to ethical entrepreneurship – whether we are looking at entrepreneurship at the individual, organizational, or institutional/societal level – is to maintain an appropriate balance between the values of self-interest and collective interest, as well as to have a healthy appreciation for the fundamental values of liberty and justice. Donna Wood, Kimberly Davenport, Harry Van Buren and I expressed this sentiment in a 2002 Business & Society article:
“The ties between self-interest/collective interest and liberty/justice can be seen in the way our social institutions are organized to fulfill them…in their ideal forms, the institution of business focuses primarily on human values of self-interest and ultimately for human liberty, whereas the institution of government focuses primarily on human values for collective interest and thus for social justice. It is well-known that the administration of justice removed some personal liberties and that the full exercise of liberty can result in unjust harms to others. Therefore, other major institutions in society exist in part to teach people how to balance these contradictory but equally necessary values of self-interest and collective interest.” (pg. 214)
Culkin’s article prompted me to reflect upon my interactions with my business students. When I teach my entrepreneurship course, I ask the class, “Can entrepreneurs think and behave ethically?” I pose a similar question when leading my business ethics course: “Can ethical businesspeople think and behave entrepreneurially?” When asked these questions, most of my students respond initially the same way most people generally would, which is with a not-quite-resounding “yes.” No doubt, many people – including some entrepreneurs – believe that ethical entrepreneurship is an oxymoron. We scholars and practitioners of entrepreneurial ethics recognize that this is not the case. Considering the growing number of entrepreneurs who are creating and growing ventures that address societal needs and/or adopt socially responsible business practices, most of these entrepreneurs would argue that the ethics-based “rules” or values they uphold and practice rarely stifle creativity, innovation and growth.
As citizens, we want entrepreneurs to act in a Schumpeterian manner. Their contributions to our society’s economic and socioeconomic fabric are significant. Nonetheless, no entrepreneur creates his/her venture in a vacuum; and, as such, entrepreneurs must form mutually beneficial relationships with other people, organizations, and institutions to obtain the necessary resources, knowledge, and skills to create, operate, and grow their ventures. Entrepreneurs who recognize and adopt practices that enable them to balance their self interests with their collective interests are more likely to be viewed as ethical entrepreneurs.
Laquita C. Blockson, Assistant Professor of Ethics and Entrepreneurship
College of Charleston (South Carolina, USA)
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