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Decision Making in SMEs: Insights from Business Ethics and Entrepreneurship
Abstract
This chapter explores theories and concepts of ethical decision making in SMEs and how individuality of entrepreneurs affects their organisations. In order to investigate the entrepreneurial ethical decision-making process, the chapter crossbreeds the concepts of greed and power, cognitive moral development, ethical ideologies, and individual psychological characteristics as determinant of ethical decision making. Through discussion of relevant models, the chapter presents arguments on determinants of individual ethical decision making as well as external factors that influence the decision-making process. In doing so, it aims to provide a distinctive perspective on understanding decision making in SMEs through forming a bridge between individual moral psychology and entrepreneurial decision making. This understanding enables us to have an alternative reasoning when examining employment-related issues.
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