Chapter 2

Ethics, Social
Responsibility,
and the
Start-up Venture
 Overview

• Vision and values

• Ethics

• Social responsibility

• Core values and success

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Vision
 Core Values

• Fundamental beliefs about what is

important in business
– We create superior value for our customers

• Endure beyond the tenure of the founder

• Core values are not situational

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 Purpose and Mission

• Purpose: the reason you’re in business

– We’re in the business of education

• Mission: the major objective of

the company
– To become the number 1 educator of real
estate professionals in the U.S.

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 Ethics

• Moral code by which we live and

conduct business

• Common ethical problems

– Conflicts of interest
– Survival tactics
– Peer pressure
– Pushing the legal limit

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 Developing a Code of Ethics

• Start with company self-examination to

identify values
• Identify the behaviors that would allow the
business to display these values
• Ask four questions
– Will the actions take result in the greatest good?
– Will the actions respect the rights of all parties?
– Are the actions just?
– Would I be proud if my actions were announced in
the local newspaper?
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 Social Responsibility

• Benefits
– Improved financial performance
– Reduced operating costs
– Enhanced brand image and reputation
– Increased sales and customer loyalty
– Increased productivity and quality
– Increased ability to attract and
retain employees
– Reduced regulatory oversight
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Ways to Be Socially Responsible

• Donate your product or service

• Get other companies involved with you

• Offer your expertise free of charge

• Contribute to your community

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 Core Values and Success

• Success has purpose—it is a journey

• Success goes hand in hand with failure

• Success is the result of satisfaction with

what you’re doing

• Success takes a lot of work

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 Take-Aways

• List what your students took away from the

discussion here in real time

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