ENTREPRENEURSHIP AND ETHICS NAVIGATING THE CHALLENGES OF ETHICAL BUSINESS PRACTICES IN STARTUPS


Endang Fatmawati(1*), Mohammad Abdul Mukhyi(2), Agus Leonard Togatorop(3), Wilson Marpaung(4), Ahmad Muhajir(5)

(1) Universitas Diponegoro, Indonesia
(2) Universitas Gunadarma, Indonesia
(3) Sekolah Tinggi Ilmu Pelayaran Jakarta, Indonesia
(4) Universitas Sangga Buana, Indonesia
(5) UIN Sunan Gunung Djati Bandung, Indonesia
(*) Corresponding Author

Abstract


In recent years, the entrepreneurial landscape has witnessed a surge in the establishment of startups. While these ventures bring innovation and economic growth, they also face significant ethical challenges. This study explores the complexities of maintaining ethical business practices within startups. Utilizing a normative legal research method, the research draws on various previous studies and statutory laws in Indonesia to analyze how ethical considerations are integrated into business operations. The findings reveal that while many startups strive to adhere to ethical standards, they often encounter dilemmas due to limited resources, competitive pressures, and the evolving regulatory environment. This paper aims to provide insights into the importance of ethical business practices and offers recommendations for startups to navigate these challenges effectively.


Keywords


Entrepreneurship, Ethics, Startups, Ethical Business Practices, Business Challenges, Normative Legal Research.

Full Text:

PDF

References


Braithwaite, J. (2002). Restorative Justice & Responsive Regulation. Oxford University Press.

Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97(2), 117-134.

Brush, C. G., Greene, P. G., & Hart, M. M. (2001). From initial idea to unique advantage: The entrepreneurial challenge of constructing a resource base. Academy of Management Executive, 15(1), 64-78.

Caldwell, C., Hayes, L. A., & Long, D. T. (2010). Leadership, trustworthiness, and ethical stewardship. Journal of Business Ethics, 96(4), 497-512.

Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946-967.

Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.

Carter, S., & Jones-Evans, D. (2012). Enterprise and small business: Principles, practice and policy. Pearson Education.

Coglianese, C., & Mendelson, E. (2010). Meta-regulation and self-regulation. In R. Baldwin, M. Cave, & M. Lodge (Eds.), The Oxford Handbook of Regulation (pp. 146-168). Oxford University Press.

Deal, T. E., & Kennedy, A. A. (1982). Corporate Cultures: The Rites and Rituals of Corporate Life. Addison-Wesley.

Denison, D. R. (1996). What is the difference between organizational culture and organizational climate? A native's point of view on a decade of paradigm wars. Academy of Management Review, 21(3), 619-654.

Edelman, L. F., & Yli-Renko, H. (2010). The impact of environment and entrepreneurial perceptions on venture creation efforts: Bridging the discovery and creation views of entrepreneurship. Entrepreneurship Theory and Practice, 34(5), 833-856.

Freeman, R. E., Harrison, J. S., & Wicks, A. C. (2007). Managing for stakeholders: Survival, reputation, and success. Yale University Press.

Gunningham, N., Kagan, R. A., & Thornton, D. (2003). Shades of Green: Business, Regulation, and Environment. Stanford University Press.

Hannafey, F. T. (2003). Entrepreneurship and ethics: A literature review. Journal of Business Ethics, 46(2), 99-110.

Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2005). Entrepreneurship. McGraw-Hill/Irwin.

Hoffman, W. M. (2001). The Ethics Officer as Agent of the Board: Leveraging Ethical Governance Capability in the Post-Enron Corporation. Business and Society Review, 106(3), 233-253.

Kaptein, M. (2008). Developing a measure of unethical behavior in the workplace: A stakeholder perspective. Journal of Management, 34(5), 978-1008.

Kaptein, M., & Schwartz, M. S. (2008). The effectiveness of business codes: A critical examination of existing studies and the development of an integrated research model. Journal of Business Ethics, 77(2), 111-127.

Kotter, J. P., & Heskett, J. L. (1992). Corporate Culture and Performance. Free Press.

Kreps, T. J. (1990). Corporate culture and economic theory. In J. Alt & K. Shepsle (Eds.), Perspectives on Positive Political Economy (pp. 90-143). Cambridge University Press.

Kurucz, E. C., Colbert, B. A., & Wheeler, D. (2008). The business case for corporate social responsibility. In A. Crane, A. McWilliams, D. Matten, J. Moon, & D. S. Siegel (Eds.), The Oxford handbook of corporate social responsibility (pp. 83-112). Oxford: Oxford University Press.

Maak, T., & Pless, N. M. (2006). Responsible leadership in a stakeholder society: A relational perspective. Journal of Business Ethics, 66(1), 99-115.

Mayer, D. M., Kuenzi, M., & Greenbaum, R. L. (2010). Examining the link between ethical leadership and employee misconduct: The mediating role of ethical climate. Journal of Business Ethics, 95(1), 7-16.

Neubaum, D. O., Mitchell, M. S., & Schminke, M. (2009). Firm newness, entrepreneurial orientation, and ethical climate. Journal of Business Ethics, 85(3), 203-223.

Neubert, M. J., Carlson, D. S., Kacmar, K. M., Roberts, J. A., & Chonko, L. B. (2009). The virtuous influence of ethical leadership behavior: Evidence from the field. Journal of Business Ethics, 90(2), 157-170.

Pollack, J. M., Barr, S. H., & Hanson, S. E. (2017). New venture formation: An investigation of the dynamics of startup team development. Journal of Small Business Management, 55(3), 364-388.

Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.

Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118.

Resick, C. J., Hanges, P. J., Dickson, M. W., & Mitchelson, J. K. (2006). A cross-cultural examination of the endorsement of ethical leadership. Journal of Business Ethics, 63(4), 345-359.

Reynolds, S. J. (2006). Moral awareness and ethical predispositions: Investigating the role of individual differences in the recognition of moral issues. Journal of Applied Psychology, 91(1), 233-243.

Schaubroeck, J., Lam, S. S., & Peng, A. C. (2012). Cognition-based and affect-based trust as mediators of leader behavior influences on team performance. Journal of Applied Psychology, 96(4), 863-871.

Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). Jossey-Bass.

Schwartz, M. S. (2001). The nature of the relationship between corporate codes of ethics and behaviour. Journal of Business Ethics, 32(3), 247-262.

Schwartz, M. S., & Carroll, A. B. (2008). Integrating and unifying competing and complementary frameworks: The search for a common core in the business and society field. Business & Society, 47(2), 148-186.

Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217-226.

Sims, R. R. (1991). The institutionalization of organizational ethics. Journal of Business Ethics, 10(7), 493-506.

Sims, R. R., & Brinkmann, J. (2002). Leaders as moral role models: The case of John Gutfreund at Salomon Brothers. Journal of Business Ethics, 35(4), 327-339.

Trevino, L. K., Butterfield, K. D., & McCabe, D. L. (1998). The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly, 8(3), 447-476.

Treviño, L. K., Weaver, G. R., & Reynolds, S. J. (2006). Behavioral ethics in organizations: A review. Journal of Management, 32(6), 951-990.

Venkataraman, S. (2002). Stakeholder value equilibration and the entrepreneurial process. Ruffin Series in Business Ethics, 3, 45-57.

Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. (2008). Authentic leadership: Development and validation of a theory-based measure. Journal of Management, 34(1), 89-126.

Weaver, G. R., Trevino, L. K., & Cochran, P. L. (1999). Integrated and decoupled corporate social performance: Management commitments, external pressures, and corporate ethics practices. Academy of Management Journal, 42(5), 539-552.




DOI: https://doi.org/10.15575/jb.v3i1.36581

DOI (PDF): https://doi.org/10.15575/jb.v3i1.36581.g10968

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats