Business owners can agree on a number of issues, including how they run the business, their rights and obligations, privileges and safeguards, etc. in such an agreement. When looking at a company with co-founders, it becomes very important to describe the business relationship, agree on the different roles and expectations of the co-founders, and how they will respond to future uncertainties. Here are some of the hypothetical situations that can be addressed in the shareholders` agreement: What happens if a co-owner wants to start a similar business or leave the business, what happens if there is disagreement or impasse in the decision-making process? Dealing with these situations contractually can often lead to difficult conversations between business owners. However, the procedures, rules, rights and obligations agreed upon as a result of the discussions will not only create ease and mutual trust, but will also enable owners to overcome various business challenges. One of the biggest challenges for any entrepreneur is solving ethical problems in business. While some ethical issues in business are covered by law, the requirements for others are more vague. In these cases, it is incumbent on business owners and managers to hold employees accountable for unethical actions and, of course, to behave ethically. Ethics is a broad term.
At its core, acting ethically in business means building a business on integrity and trust and complying with regulations. However, there are many other issues that fall under ethical issues in the definition of the company, including empathy, diversity and acceptance, and conducting business in accordance with the company`s values. For this reason, we use the words ethics and morality interchangeably in our discussion. We believe that “an ethical person” conveys the same meaning as “a legal person”. The ethical behavior of entrepreneurs/business owners is not only the right way to behave, but also polishes our own professional reputation as honest business leaders. Integrity – the unity between what we say and what we do – is a highly valued quality. But it`s more than just consistency of character. Acting with integrity means that we strictly adhere to a system of ethical values. These values often serve as the basis for the creation of ethical codes or codes of conduct. A code of ethics serves as a guideline for conduct and can be derived from a variety of sources.
This can be an internal personal code of conduct or an official code adopted by a commercial organization. It can also be an external code based on one`s own profession (e.g., CPAs, lawyers, CFPs and others have professional codes of ethics) or a more broadly applicable external code, such as the Business Roundtable or Business for Social Responsibility. Being a professional of integrity means constantly striving to be the best person and professional possible in all your interactions with others. Integrity in companies brings many benefits, not least because it is a decisive factor for the proper functioning of companies and society. It is also a fundamental basis for developing and maintaining trust, which is crucial for all contractual and informal engagements between companies and all key stakeholders. Successful entrepreneurs and the companies they represent will be proud of their business if they do business with transparency, intent and integrity. Treating customers, employees and everyone touched by a business with dignity and respect is ethical. In addition, ethical business practices serve the long-term interests of companies, as customers, employees, and society as a whole are much more willing to patronize a company and work hard for the company if that company cares about the community it serves. And what kind of business has long-term customers and employees? One whose track record proves honest business practices. Legal structure: There are three types of legal structures that can be adopted for setting up a for-profit business in Nepal, namely: private companies, partnership companies, and enterprises. A private business is suitable for a business run by a sole proprietor. Businesses owned by two or more entrepreneurs can be managed as partnership companies.