Business Ethics for Kidpreneurs: Teaching Kids to Play Fair

Business Ethics

Business Ethics for Kidpreneurs: Teaching Kids to Play Fair

Business Ethics

Kidpreneurs have awesome ideas and skills to build businesses. But being a successful entrepreneur takes more than smarts. It requires a commitment to doing business the right way, with integrity and ethics. That’s why teaching Kidpreneurs about business ethics is so important. Teaching honesty, accountability, and caring will create entrepreneurs who are the best.

In this article, we’ll see how parents can have important talks with their Kidpreneurs. We’ll focus on how to discuss ethical business practices. Doing business with a conscience helps the world. But it also leads to sustainable success.

Why Business Ethics Matter for Budding Kidpreneurs

Running a business, even a small one run by Kidpreneurs, has social responsibilities. Each choice a founder makes impacts others.

Doing unethical things such as lying, copying, or wasting may help the owner for a while. But that type of success won’t last.

Companies and leaders with shady practices eventually get exposed. News spreads fast. No one wants to buy from or work with someone they can’t trust.

Beyond damage to their reputation, unethical Kidpreneurs can face legal issues. They may even have to close up shop. Doing the wrong thing often leads to a dead end.

Meanwhile, Kidpreneurs who run their ventures honestly and morally earn community respect. Their ethical foundation allows them to build something lasting. 

Consumers care increasingly about whether businesses align with their values. Kindness and integrity matter. Ethical Kidpreneurs will win loyalty.

Defining Ethical Business Conduct for Kidpreneurs

What exactly does it mean for Kidpreneurs to act ethically? Consider if their actions reflect values like:

  • Honesty. Truthfulness in all advertising, interactions, and operations. Don’t overpromise or be misleading.
  • Fairness. Treating employees, partners, vendors, and customers equitably. Avoid bias.
  • Integrity. Matching your actions and values. Keep your word. Do the right thing without compromise.
  • Accountability. Admitting mistakes and making amends. Be transparent about business practices.
  • Respect. Honoring everyone’s humanity, privacy, intellectual property, and right to fair compensation.
  • Compassion. Conducting business kindly. Caring about the well-being of people and the planet.
  • Responsibility. Considering the broader impacts of your business. Avoiding unnecessary harm in all you do.

High standards? Absolutely. But Kidpreneurs who live these values gain stakeholders’ trust. Their ethics become a competitive advantage to stand out from others.

Teaching Business Ethics to Kidpreneurs Through Everyday Actions

Instilling business ethics goes beyond high-minded theoretical concepts. Bring lessons to life for Kidpreneurs through their real-world choices and habits.

For example, if your child has a pet walking business, they face ethical issues like:

  • Setting a fair fee based on time and effort, not exploiting neighbors
  • Honoring commitments and showing up when scheduled
  • Being careful not to let dogs off-leash or get loose
  • Reporting earnings and paying taxes honestly
  • Returning dogs safely if owners aren’t home as expected
  • Refusing to walk certain marginalized groups’ pets
  • Avoiding exaggerating their pet handling experience or skills to get jobs

Every business action is tied to an ethical consideration. Highlight examples from your Kidpreneur’s ventures as teaching moments. Discuss real-life calls they must make.

Also praise times when you see them show integrity, compassion, or responsibility already. Positive reinforcement cements doing business the right way as habit.

Ethical Kidpreneurs Role Models

Besides your child’s activities, share stories of other ethical young entrepreneurs. Here are a few to research with your child:

Mikaila Ulmer – Founded lemonade business at age 4. She donates part of her profits to social causes.

Robert Nay – Created the bubble ball toy at 14 and focus on sustainable manufacturing.

Moziah Bridges – Started a bowtie business at age 9. He commits to hiring those overcoming homelessness.

Alina Morse – Started Zollipops sugar-free candy company at 7 years old. Prioritizes natural ingredients.

Reading about Kidpreneurs who built honest businesses is encouraging. It gives Kidpreneurs inspirational models to learn from. They see business ethics in action.

Addressing Common Kidpreneurs Business Ethics Dilemmas

 As you foster discussions around ethics, Kidpreneurs will face some common tricky situations. Here’s guidance on navigating a few dilemmas wisely:

1) A friend asks to copy their business idea

Saying yes may help their friend but undermine your child’s hard work coming up with the idea. And if the friend executes it poorly, it could damage the reputation of the business model. Explain why it’s unethical to take credit for someone else’s intellectual property. Offer to mentor the friend on developing their own fresh idea instead.

(2) A customer is unhappy with faulty product and asks for refund

Making excuses or refusing the refund would be unfair. Acknowledge the mistake, apologize, provide the refund, and offer to correct the problem. This turns frustration into increased customer loyalty. 

(3) Supplies get stolen, and insurance could cover it. But the easier route is to slightly inflate inventory losses.

Padding the claim may seem harmless but it’s still dishonest. Role model sticking to the facts and ethics, even when inconvenient.

(4) A nonprofit asks them to donate and sponsor their event. But Kidpreneurs’ is short on funds right now.

Saying yes may stretch their finances. But it’s an opportunity to support a good cause. Get creative – perhaps they could donate their time and talent instead of money. Looking for ethical solutions builds character.

Encourage Kidpreneurs to talk to you about moral dilemmas by keeping a open dialogue. Talk through challenges to make good choices.

Creating a Kidpreneurs Code of Business Ethics

To cement high standards, have your child draft a code of ethics for their business. Putting guiding principles in writing makes things official.  

Their code of ethics should outline commitments like:

  • Producing safe, high-quality products
  • Truthful marketing and labeling
  • Treating customers and employees fairly
  • Sourcing environmentally friendly supplies
  • Preventing discrimination or unsafe labor
  • Giving back to the community
  • Honoring business contracts and obligations 
  • Avoiding deceptive or anti-competitive practices
  • Protecting customer and employee privacy 
  • Being transparent about business operations

Display your Kidpreneur’s code proudly in their workspace as an ever-present reminder. Revisit and update it as their company evolves.

For inspiration, check the websites of leading brands to read their ethics codes. This will spark ideas to incorporate based on your child’s business model and values.

Teaching Kidpreneurs Ethics Through Family Philanthropy

Ethical Kidpreneurs care about running their business responsibly and giving back to others. That’s why starting family philanthropy traditions can build empathy and integrity.

Consider these ideas to teach your child social responsibility:

  • Volunteer together locally each month with organizations addressing issues you care about.
  • Set aside a part of your child’s profits each month to donate to a charity they choose. 
  • Encourage them to give discounts to help military families or seniors in need.
  • Ask them to track their company’s environmental impact. Then brainstorm ways to reduce waste or offset carbon.
  • Instead of gifts for birthdays or holidays, suggest your child raise money for a charity.
  • Help them work together with a charity to do something special and raise money for their cause.
  • Have them organize supply drives donating items from their business to social organizations. 

When you teach your family to be kind, it helps kids see business as a positive thing. Combining earnings with purpose creates sustainable success.

Troubleshooting Kidpreneurs Business Ethics Challenges

Despite your best efforts, most Kidpreneurs will likely face some ethics stumbles. They’re still learning. Be ready to address challenges with patience:

If you find out your child has been dishonest or unfair in business, turn it into a chance to learn and grow. Explain why the specific behavior was problematic and have them make amends. But don’t shame them. Focus on learning.

If their business partnerships with other kids hit conflicts, encourage open communication. Help them navigate compromises. Stay close to guide interactions as needed.

If kids tease your child for being kind or not competitive, remind them that having principles in business is beneficial in the long run. Peer pressure is tough but possible to overcome.

Kidpreneurs might feel discouraged because running their business ethically seems to limit profits. If that’s the case, offer another viewpoint. Doing good brings purpose. The right customers and investors value integrity over quick bucks.

While an occasional ethics slip up may happen, show grace. Then reinforce standards to aim even higher moving forward.

Instilling Business Ethics Lasts a Lifetime

Chats with your budding kids about business ethics may feel heavy. But the payoff is huge. Grounding kids in values they carry throughout their lives rewards everyone.

Some businesses may become rich and famous by being unethical, but your child can feel good by doing the right thing. By being the change, ethical Kidpreneurs inspire others to follow suit.

Leading a venture with strong morals can bring greater fulfillment and success. Employees, partners, investors, and customers flock to work with those they trust. Taking the high road wins over the long haul.

Keep having honest conversations with Kidpreneurs about ethics, by sharing perspectives and experiences. Help them face dilemmas guided by wisdom and care for others. 

The future depends on stopping excess in business and creating new enlightened paths. Ethical Kidpreneurs give much reason for hope. With your support, their values-based approach to business can make a better world.

Share this post:

Related Posts

Subscribe To Raising Empowered Kids® For Free Tips And Kid-Friendly Resources

Our weekly newsletter bringing you the latest and greatest in entrepreneurial parenting.

    By clicking "Subscribe" below, you Agree to our Terms of Use and Privacy Policy.

    You will also be subscribed to Kidpreneurs news and updates.

    Subscribe To Raising Empowered Kids® For Free Tips And Kid-Friendly Resources

    Our weekly newsletter bringing you the latest and greatest in entrepreneurial parenting.

      By clicking "Subscribe" below, you Agree to our Terms of Use and Privacy Policy.

      You will also be subscribed to Kidpreneurs news and updates.