Ethical knowledge: A missing catalyst for entrepreneurial success in Bangladesh
Unethical business practices of local entrepreneurs are among the main reasons for business failures. Developing ethical knowledge of our entrepreneurs can be an effective catalyst in making their businesses sustainable in the open and growing market
Many people argue that foreign companies are making the market competitive for local businesses in Bangladesh. Additionally, some people complain that these foreign companies, based on their intensive marketing and huge investment, are destroying our local entrepreneurs' small and medium-sized enterprises (SMEs).
Moreover, people also highlight political anarchy and instability, a lack of financial support, traffic jams, a poor supply chain, and so on as the major causes of entrepreneurial failures in Bangladesh. However, very few people recognise that the unethical business practices of a significant portion of local entrepreneurs are the main reasons for these failures.
Customers order products or services via the website or Facebook page of a local business, but they often find the delivered products or services are not according to the stated descriptions.
Due to this kind of negative experience, customers do not spend any more money buying products or services from the same organisation. No one deserves to be the victim of such unethical business practices. As a result, this type of entrepreneurial venture is gradually being phased out of the market.
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The above example is just relating to the products' or services' quality and delivery. Many business owners take advantage of their employees by underpaying and forcing them to work extra hours without pay. Many business owners physically and mentally abuse their employees. Some of them have been involved in sexual scandals.
We have to acknowledge that if an entrepreneur's success comes from exploiting their employees, it is an unethical business! The abundance of these types of entrepreneurs is alarming for our country. It is because a country's economic sustainability is dependent on the success of its entrepreneurs.
Furthermore, some entrepreneurs try to tarnish the reputation of competitors through social and other types of media. This not only destroys the business but also reduces various stakeholders' confidence in other new entrepreneurs' products and services.
Moreover, they try to overbill customers by manipulating supply and delivery processes. Some of them try to find tax loopholes, ignoring local laws and norms. As a result of such unethical business practices, the confidence and loyalty of various stakeholders, such as customers, investors, banks, suppliers, government agencies, etc., are getting low.
Graduates feel demotivated to join the industry due to the prevalence of such unethical practices. Entrepreneurs are the lifeblood of economic growth in any country. If our current and future entrepreneurs continue to engage in unethical practices, the country will be devoid of successful individuals, who should always emphasise the importance of business ethics in order to be successful.
Statistically, 9 out of 10 new entrepreneurial ventures never make it to the finish line successfully. Many of them experience silent deaths or just fall by the wayside. However, this is not something we expect in Bangladesh, which is enjoying a huge demographic dividend.
In this regard, developing the ethical knowledge of our entrepreneurs can be an effective catalyst in making their businesses sustainable and successful in the open and growing market. Many foreign players are doing well in this country only because of their commitment and ethics towards various stakeholders, including employees, customers, suppliers, governments, environmental aspects, and so on.
Ethical education and training can be facilitators in the ethical knowledge development of entrepreneurs in Bangladesh. In this regard, the government, non-governmental organisations (NGOs), and educational institutions, such as colleges and universities can provide ethical education and training to our students.
Ethical education and training will ensure moral development among our entrepreneurs. As a result, their moral development will reach the postconventional moral stage, which will motivate our entrepreneurs to adopt better business practices, not because they are afraid of punishment but because they truly believe in what is right and good for all parties.
If entrepreneurs' moral development is ensured, stakeholders' confidence in the entrepreneurs will be strong and high, this not only retains their customer base, it also ensures long-term business success.
In the age of Industry 4.0 and artificial intelligence, we cannot ignore competition, nor can we prevent a foreign company from entering Bangladesh. But we can make our entrepreneurs reliable and consistent in terms of the quality of their products and services which would also make them resilient in the competitive business environment and warrant success in the competitive market.
Dr Md Asadul Islam, PhD is an Assistant Professor at BRAC Business School.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
