Memorandum for Building Entrepreneurial Ethics
2024 Volume 16 Issue 2 Pages 29-36
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2024 Volume 16 Issue 2 Pages 29-36
The objective of this research is to elucidate the necessity of developing an ethics appropriate to the phenomena and contexts addressed in entrepreneurship and to delineate future research directions in the field of entrepreneurial ethics, which currently lacks research. To accomplish this, it is imperative to first identify which aspects of the multifaceted concepts of “entrepreneurship” and “ethics” will be the focus of this study. This research primarily examines the creation and scaling of high-technology and high-growth startups as an “entrepreneurship” phenomenon. The term “ethics” is used in the context of examining moral issues in this field, including not only normative ethics and applied ethics, which refer to the establishment of rules and the explanation of corporate scandals, but also meta-ethics. Furthermore, we delineate the characteristics of entrepreneurship. These characteristics encompass aspects such as high uncertainty, innovativeness, organizational immaturity, psychological characteristics, the power balance between startups and stakeholders, and the absence of norms. We demonstrate that numerous challenging ethical problems inevitably arise from these characteristics. Furthermore, we propose a policy to address these problems. Although this research is not a comprehensive systematic review and therefore has its limitations, it provides a foundation for future research on entrepreneurial ethics.
The rapid adoption of ChatGPT, released by OpenAI in late November 2022, is noteworthy, with the application acquiring 100 million users in approximately two months, an unprecedented rate even within the startup industry (Reuters, 2023) [1]. As of February 2024, the application has expanded to include image-reading and videogeneration capabilities, potentially impacting a wide spectrum of creative endeavors. Conversely, the application presents potential risks, including copyright infringement, employment displacement, and reinforcement of racial bias, prompting extensive discourse regarding regulatory measures (USA TODAY, 2024) [2]. Indeed, a major news organization, The New York Times, has initiated legal proceedings against OpenAI on copyright grounds (The New York Times, 2023) [3].
Notwithstanding the multifaceted nature of these issues, encompassing conflicts between societal benefits and existing legal frameworks, there is a notable absence of a systematic approach for examining these concerns. This deficiency in analytical methodology may lead to a polarized society, either permitting any business activity that yields benefits or rigidly adhering to existing regulations, thereby suppressing disruptive and innovative initiatives. For instance, Nicholson and Anderson (2005) [4] documented a shift in perception regarding entrepreneurs from economic heroes to subjects of intense moral scrutiny within a single decade, indicating a dramatic change in the social positioning of entrepreneurship. Given the current emphasis on startup promotion policies, both domestically and internationally, it is imperative to reassess entrepreneurship.
This study examines the ethical dimensions of entrepreneurship. To accomplish this, we first elucidate the concepts of entrepreneurship and ethics. Subsequently, we identify the salient ethical issues pertinent to entrepreneurship by delineating the characteristics of entrepreneurship that intersect with ethical considerations. We then present a framework for investigating ethics within the domain of entrepreneurship. Finally, we propose several avenues for future research.
1.2 Literature reviewSince McClelland (1961) [5] advocated the need for ethics in line with the entrepreneurship domain, it has been observed that there have been limited studies about entrepreneurship and ethics (Hannafey, 2003 [6]; Harris, Sapienza, & Bowie, 2009 [7]; McVea, 2009 [8]; Vallaster, Kraus, Lindahl, & Nielsen, 2019 [9]). Research on the intersection of these two areas is still in its nascent stages (Betta, 2016) [10].
Despite the scarcity of research, the significance of the combined area of entrepreneurship and ethics has been emphasized (Anderson & Smith, 2007 [11]; Brenkert, 2002 [12]; Hägg, Haataja, Kurczewska, & McKelvie, 2024 [13]; Hannafey, 2003 [6]; Harris et al. 2009 [7]; Vallaster et al. 2019 [9]). According to Harris et al. (2009) [7], business ethics is also a relatively recent theme that developed in the two decades around 1990–2010. Even within the context of entrepreneurship, it is necessary to construct and develop an ethics framework that is more relevant to the context (Morris, Schindehutte, Walton, & Allen, 2002 [14]). The following is an example of the direction in which this complex field of ethics is being developed. For instance, Schon (1967) [15] proposed an “ethics of change” and the need for moral guidelines for entrepreneurs. However, as will be discussed subsequently, ethics do not conclude with an examination of moral guidelines or a description of cases of misconduct. What type of ethics should be developed to deal with the domain of entrepreneurship?
In what context are the terms ‘entrepreneurship’ and ‘ethics’ employed, and why is ethics an issue in the field of entrepreneurship? This study endeavors to provide guidance on these inquiries.
To examine the intersection of entrepreneurship and ethics, it is essential to define the scope of each domain within this study.
2.1 EntrepreneurshipEntrepreneurship is a context-dependent social phenomenon (Anderson & Smith, 2007 [11]). Given that the field of ethics in entrepreneurship is still in its nascent stages and lacks a systematic framework, it is necessary to elucidate the concept of “entrepreneurship” as addressed in this paper. In doing so, we adhere to the approach of Sarasvathy et al. (2020) [16] in elucidating entrepreneurship by presenting “what phenomena we focus on to understand entrepreneurship,” rather than by establishing a uniform definition. Consequently, in accordance with Kuratko (2025, first online) [17], this study defines entrepreneurship as a dynamic process encompassing various stages, including opportunity identification, resource acquisition, venture creation, and growth. However, given the diverse phenomena encompassed within entrepreneurship, it is imperative to delineate the specific phenomena to be examined.
To identify the phenomenon addressed in this study, Betta (2016) [10] and Hannafey (2003) [6] follow Powell (1990) [18] and employ the distinction between high-order and low-order entrepreneurship. In the case cited by Betta (2016) [10], the former refers to entrepreneurship that can have a substantial social impact, such as the founding of Facebook, whereas the latter pertains to entrepreneurship that meets basic local needs, such as opening a laundromat. However, Betta (2016) [10], however, contends that the ethical implications of the former are more significant than those of the latter. In a related vein, Morris et al. (2002) [14] posits that the high-tech revolution has led to serious ethical compromises. Following this distinction, “entrepreneurship” or “entrepreneurial” in this study addresses high-order entrepreneurship, where the need for ethical considerations is more pronounced. This investigation specifically examines startups that operate on a global scale and utilize cutting-edge technology. This research aims to analyze startups in their creation and growth stages (Kazanjian, 1988 [19]) from an ethical perspective.1
2.2 EthicsThis section aims to elucidate the definition of “ethics”. Primarily, drawing from the Oxford English Dictionary, two principal definitions of “ethics” are identified: “knowledge or study dealing with moral principles” and “moral principles, system, or code of conduct.” This distinction aligns with the categorization proposed by Brenkert and Beauchamp (2010) [20], who differentiate between “Business Ethics from a Philosophical Orientation” and “Business Ethics from a Business Orientation.” According to their framework, the former emphasizes the recognition and analysis of complex cases based on moral principles, while the latter focuses on the development of guidelines and initiatives for business professionals and managers, as well as the formulation of moral rules. This study adheres to the former perspective.
Therefore, ethics in this study encompasses all general ethical categories, including meta-ethics, normative ethics, and applied ethics. Essentially, the primary focus is not on establishing regulations for entrepreneurs to ensure ethical behavior or prevent fraudulent activities. Rather, the emphasis is on examining the ethical considerations inherent in entrepreneurship from a multifaceted perspective. Specifically, it addresses the questions “What is good/bad or right/wrong in the context of entrepreneurship? (meta-ethics),” “What is the appropriate course of action for an entrepreneur? (normative ethics)” and “What is the correct decision in the specific situation? (applied ethics). The foundation for the development of entrepreneurial ethics research will be established through systematic inquiry, including the formulation of assumptions and foundations through meta-ethical considerations, development of a moral theory specific to entrepreneurship through normative ethics, and applicability and modification of that theory through applied ethics.
2.3 Entrepreneurial EthicsThis study does not assert that the existing findings on business ethics are inapplicable. However, as Hägg et al. (2024) [13] noted, business ethics discussions generally pertain to social responsibility and ethical leadership in mature companies (Card, 2005 [21]; Constantinescu & Kaptein, 2015 [22]; Kaptein, 2019 [23]). There are challenges in addressing entrepreneurship within the scope of business ethics typically assumed for such corporate organizations and publicly traded companies (Dees & Starr, 1992 [24]; Harris et al., 2009 [7]; McVea, 2009 [8]). Business ethics, from its developmental history, has primarily focused on establishing rules and compliance mechanisms to prevent excess in extant business (Arnold et al., 2015 [25]; Köseoglu et al., 2018 [26]). Consequently, it does not target newly established companies (McDonald, 2015 [27]). The entrepreneurship examined in this study concentrates on the creation and growth phases, and there is limited research from the perspective of business ethics that considers the characteristics unique to these phases. However, in the context of entrepreneurship, the creation and growth of companies constitutes a central research theme (Prince et al., 2021 [28]). As one of the few examples, there is an “Entrepreneurship” section in the business ethics textbook by McDonald (2015) [27], but it is discussed in conjunction with small businesses in general, and in that sense, it does not fully reflect the characteristics of entrepreneurship (these characteristics will be discussed in Chapter 3). Entrepreneurship necessitates a unique ethics that is not predicated on how to deter the fraud that exists in contemporary business. Consequently, this study posits that it is necessary to explore the possibility of constructing an entrepreneurial ethics framework that is not entirely encompassed within existing business ethics paradigms. Henceforth, this paper will utilize the term entrepreneurial ethics in the broad sense of “a discipline that examines the phenomenon or concept from an ethical aspect in a manner that is more relevant to the context of entrepreneurship.”2
This chapter aims to identify the characteristics pertinent to ethical issues from two perspectives: the entrepreneurs themselves and their activities (3.1), as well as the environment surrounding the entrepreneurs (3.2). The former encompasses uncertainty, innovativeness, organizational immaturity, and psychological characteristics, whereas the latter comprises perspectives such as stakeholders and resources, power balance, and the absence of norms. These characteristics are particularly prominent in the entrepreneurship defined in this study. Table 1 summarizes the ethical problems related to the characteristics discussed below.
| Characteristics | Examples of related ethical problems |
|---|---|
| Uncertainty | Entrepreneurs may be held responsible for more than they can handle, because they cannot know in advance the consequences of their actions. |
| Innovativeness and Novelty | It is conceivable that extant regulations and ethical standards may be inadequate to evaluate the moral status of new business. |
| Organizational immaturity and Influence of individual | Decisions are made that significantly reflect the entrepreneur’s personality, and there is a high probability that they will be implemented as determined. |
| Psychological characteristics of entrepreneurs | Entrepreneurs may utilize individuals just as means for business expansion or inadvertently overstate due to excessive confidence. |
| Stakeholders and resources | In pursuit of resource acquisition, entrepreneurs may resort to fraudulent practices. |
| Power balance | Under pressure from their own investors, entrepreneurs may make false reports to other stakeholders. |
| Absence of norms | Due to the nascent nature of this market, established guidelines are absent, rendering ethical decision-making processes challenging. |
As Knight (1921) [32] points out, the phenomenon of entrepreneurship is inherently fraught with uncertainty beyond calculable risk. Uncertainty due to ambiguity, ignorance, and information overload intervene in entrepreneurship activities (Townsend, Hunt, McMullen, & Sarasvathy, 2018 [33]). Startups, particularly those utilizing cutting-edge technologies, often operate in a manner that depends on a single product or service (Hannafey, 2003 [6]). Consequently, startups are perpetually in a precarious position, as it is challenging to expect them to complement their business with another venture, and their customer base remains fragile (Morris et al., 2002 [14]). Furthermore, they must make decisions in a constantly changing and unpredictable environment when promoting their business (Bi, Boh, & Christopoulos, 2021 [34]). The entrepreneurial process is complex, and the business environment is continuously evolving and unpredictable. These conditions significantly reduce the predictability of appropriate entrepreneurial actions and outcomes. Such a high degree of unpredictability applies not only to the entrepreneur but also to surrounding stakeholders, such as investors. Entrepreneurs are thus placed in a situation where they cannot foresee the ethical implications of their business and decisions for society. Consequently, there exists a potential scenario wherein an entrepreneur may initiate a business venture without a comprehensive understanding of the extent of the ethical responsibility they are obligated to fulfill.
Innovativeness and NoveltyHistorically, entrepreneurship has always been associated with creativity, innovation, and novelty (Lautermann & Tokarski, 2018 [35]). In Sarasvathy et al.’s (2020) [16] view, entrepreneurs do not “find” something that already exists, but rather “make” something new for the future. Nevertheless, this novelty has the potential to conflict with the ethics of the majority in society, existing customs, and the legal system (Dees & Starr, 1992 [24]). The novelty of a new product or service is not necessarily contingent on its novelty in terms of time. It would be challenging to recognize novelty in a project that is fully comprehensible and easily feasible according to the customs, values, and legal systems that prevail in existing society.
Furthermore, when utilizing cutting-edge technology, technological development and projects often proceed ahead of social consensus, and moral and legal regulations may be considered concurrently (McVea, 2009 [8]). In other words, the business may be so novel that the framework for determining whether the business is appropriate itself does not exist initially. Thus, the novelty of entrepreneurial activity includes an element of challenging existing norms (Brenkert, 2009 [36]) and may potentially disrupt the norms that stabilize society.
Organizational immaturity and Influence of individualStartups often commence operations with a limited number of co-founders, and the ethical culture of the organization is underdeveloped (Hannafey, 2003 [6]) with no established routines for decision-making or guidelines for behavior (Pellegrini & Ciappei, 2015 [37]). Indeed, Blank (2014) [38], a prominent advocate of customer development methods, characterizes startups as “temporary organizations designed to search for a repeatable and scalable business model.” In such temporary organizations, the founders themselves are unfamiliar with their role in the company (Morris et al., 2002 [14]). Therefore, compared to established large corporations, the environment is more likely to reflect the ethics and value norms held by individuals that influence organizational decision-making, rather than decisions based on specific roles and norms (Hannafey, 2003 [6]).
Furthermore, McVea (2009) [8] found that, compared to MBA students, business entrepreneurs are more likely to make decisions in light of their personal moral values. One of the distinguishing features of entrepreneurship is the prominence of an individual’s ethical values. Consequently, the ethical responsibilities of the individual founder may be pursued more readily than in large corporations. This characteristic is not observed in large companies, which typically employ hierarchical decision-making processes and oversight mechanisms.
Psychological characteristics of entrepreneursEntrepreneurs have been deeply associated with and admired for concepts such as heroism and specialty (Anderson & Smith, 2007 [11]; Ogbor, 2000 [39]). However, the “dark side” of entrepreneurship has also been identified (Morris et al., 2002 [14]; Ramamurti, 1986 [40]). This aspect of the entrepreneurial process is characterized by excessive optimism, overconfidence, and risk-taking propensities (Hannafey, 2003 [6]). Entrepreneurs are often described as individuals with an intense commitment to their business ventures and a strong desire to exert control over others (Longenecker, McKinney, & Moore, 1989 [41]). While the self-focused perspective instills a significant sense of responsibility in entrepreneurs, the pursuit of profit can lead to moral indifference (Vallaster et al., 2019 [9]). Indeed, Zhang and Arvey’s (2009) [42] longitudinal study, based on the hypothesis that many entrepreneurs transgress rules to achieve success, suggests a positive correlation between adolescents’ tendency to deviate from established norms and their subsequent entrepreneurial status. Entrepreneurs exhibiting these psychological characteristics may subordinate ethical considerations when making decisions, or may not perceive ethical matters as pertinent issues. Furthermore, the aspect of control over others suggests that they may potentially influence employees and stakeholders towards ethical deviance. These issues are further exacerbated when the magnitude of the individual influence is considered.
3.2 Characteristics of the Entrepreneurial Environment Stakeholders and resourcesThe complex nature of entrepreneurial endeavors renders it virtually impossible to execute them based solely on the knowledge and resources possessed by the individual founder. Startups invariably lack various resources, including capital, human resources, technology, and information (Bager, Svane, & Jørgensen, 2018; Hannafey, 2003 [43]). Resource expansion is a critical activity for startups to address uncertainty, as characterized by effectual activities (Sarasvathy, 2001 [44]). Consequently, the success of a startup is significantly dependent on external resources, in addition to its own. This may motivate entrepreneurs to utilize stakeholders as a means to acquire resources by any means necessary or to engage in fraudulent activities to obtain resources. For example, an entrepreneur on the verge of running out of funds might present false key performance indicators at their next meeting with investors. This violates the simple moral law of “do not lie” and “do not betray others.”
Power balanceCircumstances in which the acquisition of resources from external sources is unavoidable may lead to situations in which stakeholders exert pressure on entrepreneurs to provide resources (Bager et al., 2018 [43]). This scenario creates a power dynamic characterized by vulnerable entrepreneurs and influential stakeholders. If entrepreneurs fail to secure collaborators and obtain genuine commitments, their business growth may be impeded. To elicit stakeholder cooperation, entrepreneurs may be inclined to withhold unfavorable information or present themselves in an exaggerated manner that contradicts factual evidence. Given the challenges associated with persuading individuals to allocate resources to uncertain or innovative ventures, entrepreneurs, as more vulnerable parties, may be tempted to engage in unethical behavior or communication to mitigate disadvantages and facilitate business development. Furthermore, the entrepreneur has the potential to receive coercive directives from stakeholders. Such directives may include compelling the entrepreneur to enter into an excessively restrictive contractual agreement, with the intention of precluding the entrepreneur from establishing contractual relationships with competitors.
Absence of normsEstablished industries adhere to guidelines or standards, such as International Organization for Standardization (ISO) standards, which companies within the industry must follow. Based on these norms, organizations can anticipate the outcomes and implications of their operations to a certain extent, and can determine what is considered acceptable practice. Moreover, by demonstrating external compliance with these regulations, an organization may be able to attain a certain level of trust and recognition from society. However, there are no established norms or industry regulations to reference when an entrepreneur attempts to establish an entirely new market (Bi et al., 2021[34]). The absence of reliable external standards complicates the entrepreneur’s own assessment of the validity of ethical judgments and renders persuasive explanations to stakeholders a significantly challenging task. The ethical deliberation of an entrepreneur can be an arduous process that differs from the management of a company in the existing market. As Brenkert (2009) [36] also points out, products and services that are too much in tune with the existing market and institution will no longer bring about new changes in the market, and are therefore outside the scope of entrepreneurship.
Based on the preceding discussion, it is evident that Entrepreneurial Ethics necessitates exploration in a complementary manner, diverging from existing business ethics. High-technology, high-growth startups aim to develop products and services in environments characterized by extreme uncertainty, where established markets are nonexistent. This necessitates an extraordinary level of commitment to the business; however, supporting organizations and routines are fragile, and individual decision-making exerts substantial influence. Moreover, the contextual factors surrounding startups may compel entrepreneurs to make ethically questionable decisions. The products and services that entrepreneurs aspire to realize demand considerable resources, including financial capital, human resources, and information, and require long-term technological development and customer acquisition strategies to mobilize these resources. Constant ethical decisions in this process can become a barrier to business growth. While some of these characteristics may be present in existing large companies, this does not negate the need to examine whether the findings of existing business ethics can be directly applied to the phenomenon of entrepreneurship as defined in this study, or to determine the appropriate ethical approach in this field.
This study does not aim to develop a uniform definition of ‘Entrepreneurial Ethics’ or to create a list of key research questions. However, it is evident that numerous unique ethical issues are inherent in the phenomena addressed within the field of entrepreneurship, given their nature and context. Merely applying current norms to these issues and judging them as right or wrong would result in a loss of understanding of the entrepreneurship phenomenon. Instructing entrepreneurs to “be ethical” in a manner that compels them to conform to existing norms and rules without critical examination may unduly reduce the social and economic impact of entrepreneurship (Brenkert, 2009 [36]). This approach does not align with the objectives of entrepreneurial ethics, which is the subject of this study.
It is imperative to construct an ethical framework that preserves the value of entrepreneurship itself by organically integrating meta, normative, and applied ethics to facilitate a deeper understanding of entrepreneurship. For instance, consider the case of an entrepreneur whose business activities have resulted in substantial harm to the stakeholders. In this scenario, an applied ethical approach may entail accurately delineating the detailed mechanisms of a case through interviews and extracting practical lessons. A normative ethical approach examines the ethical guidelines established by a company and evaluates their appropriateness in light of more general ethical principles. However, entrepreneurial activities involve a high degree of uncertainty. Therefore, from a meta-ethical perspective, it is possible to analyze the distinction between unintentional and intentional harm, and determine the appropriate concept of responsibility to be applied in such cases. However, these approaches are also interdependent. Specifically, if the understanding of responsibility and intention differ, the manner in which the code of conduct is established and the degree to which it should be strictly adhered to will consequently change. Furthermore, if the perception of the code of conduct changes, the evaluation of the incident will also be altered. Depending on whether it is characterized as an injustice that should be condemned based on a violation of the code of conduct, or as an injustice that was an unintended consequence caused by a combination of unavoidable factors despite adherence to the code of conduct, the descriptive approach will also vary. Consequently, there may be a reduction in the number of entrepreneurs initiating businesses in the same field as this entrepreneur in the future, or investors may exhibit reluctance to provide funding. These three approaches have tangible effects in the real world. Therefore, it is imperative that these three approaches be comprehensively applied, and that the complex ethical issues of entrepreneurship be examined from multiple perspectives.
It is imperative that each of these perspectives be comprehensively addressed, and within each perspective, the intricacies of entrepreneurship and the complex ethical issues arising from it, as presented in this study, must be thoroughly examined. Given that entrepreneurial ethics is an emerging field, delineating its direction as a research area will be significant for its future development.
This study presents a preliminary discussion of the characteristics of entrepreneurial ethics. Uriarte et al. (2024) [45] conducted a systematic review of entrepreneurship and ethics; however, their analysis encompassed small-scale social entrepreneurship and other areas, and the boundaries were not fully delineated. It is evident that there are distinct ethical considerations and contexts associated with manufacturing new handicrafts in a region compared to implementing new nuclear fusion power generation. Consequently, although this study does not encompass the entire problem domain of entrepreneurship and ethics, it provides a substantive foundation for future investigations within a limited scope. As discussed in Chapter 2, the entrepreneurial characteristics examined in this study are particularly prominent in the creation and growth phases of high-technology, high-growth startups. Consequently, further research is necessary to determine whether the ethical issues addressed in this study can also manifest in other entrepreneurial contexts, and whether entrepreneurs encounter similar challenges even after the company has entered a period of stability.
As an exemplar of a prospective research theme, from a meta-ethical perspective, one could inquire, “How can we evaluate the ethical validity of an entrepreneur’s activities when there exists no societal consensus or established guidelines?” Furthermore, it is imperative to consider the implications of scrutinizing entrepreneurs’ ethical responsibilities as agents of change and liberation. The examination of ethical obligations may potentially deter individuals from engaging in activities characterized by uncertainty. From a normative ethical perspective, we can examine, “If an entrepreneur cannot further develop their business while adhering to existing norms, which should take precedence: business growth or moral norms?” Exploring such questions could prove highly beneficial for entrepreneurs, who may need to make immediate decisions on ethical and complex issues. Finally, from an applied ethical perspective, it would be feasible to analyze actual occurrences, posing questions such as “What was the structural problem that led to that decision-making of entrepreneur X?” Indeed, there have been instances of fraudulent activities involving funding at companies such as the blood test startup Theranos and the Japanese company LPIXEL, which developed AI for medical imaging diagnosis. Rigorous analysis of such cases can not only provide practical recommendations but also facilitate revisions to normative ethics and meta-ethics.
As Green and Donovan (2010) [46] and De George (1987) [47] assert, further collaboration with philosophers and ethicists will be essential as a research methodology. This study corroborates that ethical issues arising from entrepreneurial contexts are multifaceted, and it is unfeasible to address all of them from a singular ethical perspective. Consequently, it is imperative to utilize the specialized knowledge of philosophers and ethicists not only in meta-ethics and normative ethics, but also in applied ethical research. Furthermore, it is necessary to investigate the ethical dilemmas encountered by practicing entrepreneurs, their decision-making processes, and the underlying rationales. When conducting such research, measures must be implemented to mitigate social desirability bias. Interviews with entrepreneurs who were directly involved in actual incidents are anticipated to provide valuable insights for Entrepreneurial Ethics; however, it is probable that few entrepreneurs would be willing to participate in such research. An alternative approach may involve retrospective analysis of incidents through interviews using contemporaneous articles and news reports, after sufficient time has elapsed. Nevertheless, even in this scenario, it is crucial to devise methods to minimize retrospective bias.
This study narrowed the focus of the polysemous concepts of “entrepreneurship” and “ethics” and showed that the characteristics of entrepreneurship are intrinsically linked to complex ethical considerations. This study rejects an ethical framework that merely imposes restrictions on entrepreneurial activities based on established rules and norms, given the inherent uncertainty and potentially high impact of such endeavors. From the perspectives of meta-ethics, normative ethics, and applied ethics, this study elucidated one direction for entrepreneurial ethics: to investigate the ethical implications of entrepreneurship while considering the inherent tension between entrepreneurship and ethics. This constitutes the primary contribution of this study.
1 The stage of company development that falls within the scope of entrepreneurship as discussed in this paper needs more consideration. Regardless of the criteria employed to categorize companies—such as employee count, years in operation, or capital raised—there exists significant variation across industries. For the purposes of this study, these classificatory issues are temporarily set aside, and the focus is directed towards activities preceding company establishment and the initial unstable phase immediately following inception.
2 We have based our approach on philosophy and ethics as a way of thinking about the ethical issues of entrepreneurship. However, Theoharakis et al. (2021) [29] and Scearf et al. (2021) [30] have conducted psychological analyses focusing on the personalities of entrepreneurs. Garud et al. (2023) [31] has proposed research into the impact of criminal proceedings against startups on policy. As you can see, research into the ethical issues of entrepreneurship has been conducted in recent years from a variety of disciplines.
