The ethical context of entrepreneurship: Proposing and testing a developmental framework

    Authors

    M. H. Morris; M. Schindehutte; J. Walton;J. Allen

    Comments

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    Abbreviated Journal Title

    J. Bus. Ethics

    Keywords

    ethical context; entrepreneurship; formal and informal structures; small; business; stages of development; SMALL BUSINESS; DECISION-MAKING; RISK-TAKING; BEHAVIOR; VALUES; ORGANIZATIONS; GROWTH; PERFORMANCE; DIMENSIONS; COMMITMENT; Business; Ethics

    Abstract

    The aim of this study is to increase our understanding of the ethical climate of entrepreneurial firms as they grow and develop. A developmental framework is introduced to describe the formal and informal ethical structures that emerge in entrepreneurial firms over time. Factors influencing where firms are within the developmental framework are posited, including the entrepreneur's psychological profile, lifecycle stage of the business, and descriptive characteristics of the venture. It is also proposed that the implementation of ethical structures will impact perceptions of the clarity and adequacy of the ethical standards of the firm and the firm's preparedness to deal with ethical challenges as they arise. Results are reported of a cross-sectional survey of small firms at different stages of development. The findings indicate the existence of four distinct clusters of firms based on their formal and informal ethical structures: Superlatives, Core Proponents, Pain and Gain, and Deficients. Evidence is also provided of statistically significant relationships between the proposed antecedent and outcome variables. Implications are drawn from the results, and priorities are established for future research.

    Journal Title

    Journal of Business Ethics

    Volume

    40

    Issue/Number

    4

    Publication Date

    1-1-2002

    Document Type

    Review

    Language

    English

    First Page

    331

    Last Page

    361

    WOS Identifier

    WOS:000178719100003

    ISSN

    0167-4544

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