′A tough line to work through′: Ethical ambiguities in a South African SME

Abstract

The unique contexts and experiences of SMEs have recently been taken up as a gap within business ethics scholarship. In this exploratory paper, I aim to contribute to the knowledge of ethics within SMEs through an in-depth case study comprising interviews, site visits and document analysis of a South African SME. The paper examines the SMEs' three owners' perceptions of ethics and corporate social responsibility, as well as the ethical challenges arising from their employee relations. The case illuminates the deep uncertainties and contradictions that permeate the owners' values and practices and points to ethical decision-making as a process of reflection and moral imagination.

The Impact of Ethical Practices on the Performance of Small and Medium Enterprises in South Africa

“…On that note, it is crucial for SMEs to address issues relating to; corporate social responsibility, employees, customers and how they relate with their suppliers. However, Vivier (2013) report that most SMEs are solely run, which result in one managing the business without any formal written ethical policies. Consequently, SMEs lack formal structures and policies to deal with shareholders, suppliers, employees, the community and the ones relating to how they respond to customer complaints as compared to large businesses (Arruda, 2010;Spence & Perrini, 2010).…”

Ethical perceptions of employees in small retailing firms: A case of indigenous-owned fast-food outlets in Zimbabwe

“…Because SMME managers or owners tend to consider employees as the bedrock of a company, the SMME normally regards employees' health and well-being as their sole responsibility (Seeletse & Ladzani 2012;Vivier 2013). Although employee welfare is a component of the broader regime of ethics, the importance of ethics to SMMEs compared with larger businesses needs to be acknowledged.…”

“…This under-exploration of SMME employees ignores the fact that they are often the primary stakeholders for SMME managers and owners (Klein & Vorbohle 2010;Vivier 2013) and where contractual arrangements (e.g. through employee ownership programmes) exist between the manager or owner and the employees, the latter often enjoy a mutual commitment to shared values as well as to the welfare of the group (Barnett & Schubert 2002;Sledge & Miles 2012).…”

“…of the organisation are monopolised by the manager or owner whose approaches to these issues are based on their personal experiences, standards and judgement (Spence & Lozano 2000;Vivier 2013). Most SMMEs are owner-managed and the owners are directly involved in the day-to-day activities of the company, often undertaking multiple roles and functions (Vivier 2013).…”

“…of the organisation are monopolised by the manager or owner whose approaches to these issues are based on their personal experiences, standards and judgement (Spence & Lozano 2000;Vivier 2013). Most SMMEs are owner-managed and the owners are directly involved in the day-to-day activities of the company, often undertaking multiple roles and functions (Vivier 2013). The centrality of the small business managers and owners in decision making processes, therefore, has made them the ideal candidates for investigation, thereby unintentionally excluding employees who actually have more direct contact with clients and other stakeholders.…”