Inculcating value, Ethics and Corporate Social Responsibility in Nigerian SMEs

Abstract

The current economic situation in Nigeria has facilitated an increasing clamour for the creation and proliferation of the small and medium sized enterprises(SMEs). The importance of the SMEs cannot be overemphasized in any given economy. Therefore, the need to bring the awareness of existing SMEs owners as well as prospective business individuals to the pertinence of establishing ethical standards in their businesses is much relevant. This research investigates the creation of business ethics and corporate social responsibilities(CSR) in developing businesses using four successful SMEs in Kwara State. Both the “integrity strategy” and the “legal compliance strategy” have been utilized by these businesses to protect their policies with respect to the stakeholders of the business. The values of the head in each of these SMEs have been entrenched into the firm through written policies and by the patterns of ethical behaviours created and modelled by the business leaderships. The study employed the qualitative research methodology as the frame for both data collection and analysis. Findings of the study showed that most SMEs owners are aware of ethical standards but in most cases, decides to find a way round for profit purposes. The paper concludes that SMEs is a complex process that is attainable over time by series of decisions, each of which gradually contributes to the ethical framework of the business. Identifying and describing the most crucial of these incremental decisions may give the key to the background of ethical businesses. It therefore recommends that when prospective entrepreneurs are starting business, organizational values should always reflect founders’ values. This will further spur a strict awareness of responsible business entrench with values and ethics.