The impact of smaller firm size on corporate social responsibility (CSR) is ambiguous. Some contend that small businesses are socially responsible by nature, while others argue that a smaller firm size imposes barriers on small firms that constrain their ability to take responsible action. This paper critically analyses recent theoretical and empirical contributions on the size–social responsibility relationship among small businesses. More specifically, it reviews the impact of firm size on four antecedents of business behaviour: issue characteristics, personal characteristics, organizational (...) characteristics and context characteristics. It concludes that the small business context does impose barriers on social responsibility taking, but that the impact of the smaller firm size on social responsibility should be nuanced depending on a number of conditions. From a critical analysis of these conditions, opportunities for small businesses and their constituents to overcome the constraining barriers are suggested. (shrink)

We investigate the entrepreneurial opportunities and ethical dilemmas presented by technological turbulence. More specifically we investigate the line between Baumol’s [J. Polit. Econ. 98 (1990) 893] productive (e.g. innovation), unproductive (e.g. rent seeking) and destructive (e.g. criminal) entrepreneurship through three examples of Internet innovation – spam (destructive), music file sharing (unproductive), and Internet pharmacies (potentially productive). The emergence of accessible Internet technologies, under present norms, has created the potential for all three entrepreneurial activities. Because of the propensity for self-serving biases (...) and for bending the rules, the need for creativity in overcoming obstacles and overall liabilities of newness, entrepreneurs are likely to challenge established industrial morals and laws. Unlike new entrants, incumbents must abide by the currently accepted norms, and thus suffer from “liabilities of oldness”. The challenge for new entrants is to change sociopolitical legitimacy, whereas incumbents need to defend the established norms. We discuss competitive and other issues that result from technological turbulence and innovation. (shrink)

The purpose of this study is to identify the elements that can be implemented to achieve an ethical infrastructure, in small and medium enterprises. The ethical infrastructure is considered as a set of formal and informal systems, leadership, climate and culture, related to ethical issues. The research was carried out through interviews and focus groups with managers from 28 companies in Madrid, all signatories to the Global Compact. The identified key elements in SMEs are leadership, informal managerial and formal communication. (...) This study also explores different factors that influence the effectiveness, implementation, and sustainability of the ethical infrastructure in SMEs, discovering some factors that can act as both accelerators and barriers such as pressure from customers. Additional findings regarding the concepts of ethics and corporate social responsibility in SMEs, dilemmas and characteristics of the culture and climate are also presented. (shrink)

This study explores the pathways from the aspiration to make a difference in the world to vision and action of social entrepreneurs. Based on the qualitative analysis of interviews with 23 individuals who have pioneered institutions and initiatives around corporate responsibility, we find two predominant pathways to vision. The deliberate path starts with aspiration and moves through purpose toward a relatively intentional vision that ultimately leads to, and is subsequently informed by, action. The emergent path also begins with aspiration then (...) moves directly to action and only retrospectively to a sense of a vision behind the actions taken. The emergent path, in which action precedes vision, is contrary to the dominant assumption that vision leads to action in an entrepreneurial context and may be further characterized as either inadvertent or developmental. In advancing a conceptual model of the vision–action or action–vision trajectories of social entrepreneurs, this study highlights the iterative nature of vision. This study also demonstrates the importance of considering formative experiences that contribute to the aspiration to make some kind of a difference in the world, a sense of purpose or intentions, and core values and beliefs in examining the ethicality of social entrepreneurship. (shrink)

The unethical behavior of a business founder often leads to negative publicity which substantially affects positive corporate image. The amount of negative publicity relating to business founders’ unethical behavior is on the rise in the age of online social media in China. Based on the stimulus–response theory and balance theory, this paper developed a theoretical model to examine how negative publicity about a business founder’s unethical behavior affects corporate image. The proposed model was tested by the partial least squares technique. (...) Results show that perceived severity, publicity intensity and recovery performance are predictors of corporate image: perceived severity has a negative impact on positive corporate image; publicity intensity and recovery performance have positive impacts on positive corporate image; and founder image mediates the relationships between the three predictors and corporate image. Moreover, initial consumer impression of business founders has a positive impact on positive corporate image. (shrink)

The aim of the present research is studying the relationship between the salespersons’ ethical philosophy and their ethical decision-making process and seeks to answer two fundamental questions: first, what is the ethical philosophy of salespersons? And second, how does the salespersons’ ethical philosophy affect their ethical decision-making process? Statistical population of this research is salespersons who have passed the sales training course at the Department of Commerce Research Centre. One hundred thirty-seven questionnaires of total 300 accessible populations were analyzed through (...) path analysis method. The findings indicate that most salespersons are idealists. Although this idealism affects the ethical judgment directly, but the effect of relativism on ethical intention is more considerable. (shrink)

In this paper we advance inquiry into human dignity in relation to the theory and practice of social entrepreneurship and innovation in a two-fold manner. First, we explore how concepts from the literatures of human dignity and humanistic management can inform and enrich social entrepreneurship and innovation. Second, we examine case studies of social entrepreneurship and innovation to refine how we think about and operationalize notions of human dignity. In this way, we connect human dignity research more closely to alternative (...) life-conducive forms of organizing. Our goals are to advance an understanding of human dignity and to make this concept more accessible and relevant in business and management, as well as to explore how the practice of social entrepreneurship and innovation can both enrich and be enriched by the notion of human dignity. Third, we draw on the emerging literature of humanistic management to generate a classification system in the context of social innovation that specifies how organizing can contribute to dignity restoration, dignity protection, and dignity promotion. We elaborate and showcase paradigmatic cases, probe the limits of these cases for future research, and consider how to extend this dignity organizing model to other modes of business practice, such as the notion of value creation. Fourth, we outline an emerging research agenda for those interested in connecting innovation and organizing practices writ large with the notion of human dignity. (shrink)

Micro and small businesses contribute the majority of business activity in the most developed economies. They are typically embedded in local communities and therefore well placed to influence community wellbeing. While there has been considerable theoretical and empirical analysis of corporate citizenship and corporate social responsibility (CSR), the nature of micro-business community responsibility (mBCR) remains relatively under-explored. This article presents findings from an exploratory study of mBCR that examined the approaches, motivations and barriers of this phenomenon. Analysis of data from (...) 36 semi-structured interviews with micro-business owner-operators in the Australian city of Brisbane revealed three mBCR approaches, suggesting an observable mBCR typology. Each mBCR type was at least partly driven by enlightened self-interest (ESI). In addition to a pure ESI approach, findings revealed ESI combined with philanthropic approaches and ESI combined with social entrepreneurial approaches. The combination of doing business and doing good found amongst participants in this study suggests that many micro-business owner-operators are supporters of their local communities and, therefore, driven by more than profit. This study provides a fine-grained understanding of micro-business involvement in community wellbeing through a lens of responsible business behaviour. (shrink)