Embarrassed when actor initially exploits director (7)
I believe the answer is:
ashamed
'embarrassed' is the definition.
('ashamed' can be similar in meaning to 'embarrassed')
'when actor initially exploits director' is the wordplay.
'when' becomes 'as'.
'actor' becomes 'ham' (ham is a kind of actor).
'initially' indicates taking the first letters.
The initial letters of 'exploits director' is 'ed'.
'as'+'ham'+'ed'='ASHAMED'
(Other definitions for ashamed that I've seen before include "Afflicted with remorse, feeling sense of wrongdoing" , "Feeling embarrassed" , "Chagrined" , "Humiliated" , "Embarrassed and Contrite" .)