It is not too early for J and S to start laying an ethical foundation for their firm, it is important that the founders of an entrepreneurial firm to establish a strong ethical culture in doing business. The following are the steps Jack and Sarah should take to lay a strong ethical foundation for the firm:
• Prepare a code of conduct or ethics which will help when J and S employ new people.
• There will be pressure on both of them cut ethical corners such as not following all the contractual obligations of vendors or not paying bills on time or avoiding taxes. J and S should not intentionally overlook these issues. • They should not mislead customers or sell low quality accessories to gain profits
• J and S should make sure that they pay their investors (who helped them raise capital) on time to avoid legal complications.
• They should have realistic plans on the business growth and should not be undercapitalized or take more loans and not pay them, which will eventually lead to ethical or legal Issues.