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The Impact of Geographical and Cultural Factors on Ethical Issues and Dilemmas: An Investigation From Social Enterprises

The Impact of Geographical and Cultural Factors on Ethical Issues and Dilemmas: An Investigation From Social Enterprises

Shajara Ul-Durar (University of Sunderland, UK), Khuram Shahzad (University of Lahore, Pakistan), and Paula Danby (University of Sunderland, UK)
Copyright: © 2023 |Pages: 41
DOI: 10.4018/978-1-6684-7140-1.ch005
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Abstract

Social enterprises are oriented towards reversing an imbalance in the social system by creating a positive social change. Ethical issues and dilemmas are, therefore, of prime importance to achieve social objectives. This theoretical chapter's core purpose was to identify the ethical issues and dilemmas faced by social enterprises. Variances in the ethical issues concerning geographical and cultural factors have also been highlighted. This study will discuss the organizational theory and its concept. Secondly, this study evaluates the functions of social enterprises and their aims and objectives; and, thirdly, it identifies the shift of social enterprises towards hybrid organizations to achieve both social and economic objectives. The study concludes with a discussion on how ethical challenges impact organizations' performance and sustainability. The results have implications for future research on social entrepreneurship and hybrid organizations.
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2. Literature Review

Social enterprises should focus on the long-term aims and objectives of the firm. The focus should be on the degree of formalization, specialization, centralization, and relevant control and coordination (Ouchi, 1980; Child, 1984; Taylor, 1914Scott, 1991; Gentile-Lüdecke et al., 2020). In regard to SE literature, many studies advocate the correlation between organizational design and organizational achievements, for instance social entrepreneur leadership advocated by Dees (1998) and Oberoi et al. (2021), internal commitment advocated by Post and Waddock (1991), continuous training advocated by Choi et al. (2020) and Smallbone et al. (2001), and volunteer support advocated by Akingbola et al. (2021) and Thompson (2002). However, very few studies offer a comprehensive approach to the organizational design that fits with current ethical challenges for social enterprises (Battilana and Lee, 2014; Ko and Liu, 2021).

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