TOPIC 3: EMERGING TRENDS AND ISSUES IN ENTREPRENEURSHIP

1. Business Ethics

Business ethics refers to the moral principles and values that guide business behavior. It ensures that
businesses operate with integrity, fairness, and accountability. Example: A company must ensure that its
marketing practices are truthful and do not exploit vulnerable populations.

The key components include:

 Honesty and Transparency – Businesses should provide truthful information to stakeholders,

 Fair Treatment of Employees – Ethical companies ensure fair wages, a safe working
environment, and equal opportunities.

 Corporate Governance – Ensures businesses comply with legal regulations and ethical standards
through board oversight and internal policies.

 Consumer Protection – Ethical businesses ensure that their products and services meet quality
standards and do not mislead or harm customers.

 Anti-Corruption Measures – Businesses must avoid bribery and unethical lobbying to maintain
fair competition.

 Conflicts of Interest: Avoiding situations where personal interests conflict with professional
duties.

2. Social Responsibilities in Business

Social responsibility refers to a company’s duty to act in the best interest of society, balancing profit-
making with social good. Example: A company might partner with NGOs to provide scholarships for
underprivileged students in areas where it operates.

Components include:

 Corporate Social Responsibility (CSR) – Initiatives like community engagement, charitable

 Employee Welfare – Providing healthcare, education, and skill development programs.

 Sustainable Development – Reducing environmental impact through eco-friendly policies.

 Ethical Supply Chain Management – Ensuring suppliers adhere to labor laws and environmental
standards.

 Diversity and Inclusion: Promoting a workplace culture that values diversity and prevents
discrimination.

3. Environmental Issues in Business

Businesses contribute to environmental problems such as pollution, deforestation, and climate change.
Example: A company might transition to biodegradable packaging to reduce plastic waste.

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Key concerns include:

 Pollution Control – Managing waste, reducing emissions, and using clean energy.

 Sustainable Resource Management – Using renewable materials and reducing water and
energy consumption.

 Climate Change Impact – Businesses need to adopt carbon-neutral strategies to combat global
warming.

 Green Innovations – Developing eco-friendly products and adopting circular economy models.

 Carbon Footprint Reduction: Adopting renewable energy sources and reducing greenhouse gas
emissions.

4. Taxation in Business

Taxation is the process of collecting financial contributions from businesses to fund government
activities. Example: A multinational company must navigate complex tax laws in different countries
while maintaining ethical practices.

Key aspects include:

 Corporate Taxes – Businesses pay income tax based on their profits. Large corporations are
often scrutinized for using loopholes to avoid paying fair taxes, which can harm public trust.

 Value-Added Tax (VAT) / Sales Tax – A tax on goods and services that businesses collect on
behalf of the government.

 Tax Compliance – Companies must follow tax laws to avoid penalties and maintain a good
reputation.

 Tax Evasion vs. Tax Avoidance – Ethical businesses pay their fair share of taxes instead of using
loopholes for tax avoidance.

5. Trade Exhibitions

Trade exhibitions are events where businesses showcase their products and services to potential
customers and investors. Example: A trade exhibition might prioritize showcasing sustainable products
and technologies.

Key benefits include:

 Networking Opportunities – Helps businesses connect with suppliers, customers, and industry
experts.

 Market Expansion – Allows businesses to introduce their products to new markets.

 Competitive Analysis – Companies can observe competitors’ products and marketing strategies.

 Product Launches – An opportunity to introduce and demonstrate new products.

6. E-Commerce in Business

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E-commerce refers to buying and selling goods and services online. Example: An e-commerce platform
might implement robust cybersecurity measures to protect customer data.

Key components include:

 Digital Platforms – Websites, apps, and marketplaces like Amazon and Alibaba facilitate
transactions.

 Payment Systems – Secure payment methods such as PayPal, mobile banking, and credit cards.

 Customer Experience – Personalized shopping, fast delivery, and customer support enhance
user satisfaction.

 Cybersecurity – Protecting customer data from fraud and hacking threats.

 Logistics and Fulfillment – Efficient supply chain management to ensure timely deliveries.

7. Globalization and Business Outsourcing

Globalization refers to the integration of markets, economies, and cultures, leading to increased trade
and investment across borders. Business outsourcing involves delegating operations to third-party
providers, often in different countries. Example: A company outsourcing manufacturing to another
country must ensure that its partners adhere to ethical labor practices.

 Benefits of Globalization

o Access to larger markets and a broader customer base.

o Lower production costs due to outsourcing to low-wage countries.

o Innovation through global knowledge-sharing.

 Challenges of Globalization

o Increased competition from international businesses.

o Regulatory and cultural differences in global markets.

o Environmental and ethical concerns regarding labor practices in outsourced regions.

 Outsourcing in Business

o Manufacturing Outsourcing – Companies move production to countries with lower

o IT and Customer Service Outsourcing – Businesses hire third-party companies for

o Risks – Quality control issues, language barriers, and loss of local jobs.

8. HIV/AIDS in Entrepreneurship

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HIV/AIDS can have a significant impact on businesses, particularly in industries with a high reliance on
labor. Example: A company might offer free HIV testing and counseling services to its employees as part
of its wellness program.

 Impact on Businesses

o Reduced workforce productivity due to illness.

o Increased healthcare costs for employees.

o Workplace discrimination and stigma affecting morale.

 Entrepreneurial Strategies for HIV/AIDS Management

o Implementing workplace wellness programs and awareness campaigns.

o Providing medical support and insurance for affected employees.

o Encouraging inclusive hiring practices and preventing discrimination.

o Engaging in community outreach to support HIV/AIDS prevention and treatment.