Abstract
In the rapidly evolving digital economy, small and medium enterprises (SMEs) are pivotal drivers of innovation, employment, and economic development. These enterprises are crucial for economic dynamism, particularly in developing regions like the South-South region of Nigeria. Despite their potential, the growth of SMEs in these regions is often impeded by stringent ethical policies. These policies encompass regulatory compliance, transparency, fair labor practices, environmental responsibility, anti-corruption measures, and digital privacy, and are designed to ensure responsible business conduct and protect stakeholders. However, while these policies aim to promote fair business practices and safeguard consumer and worker rights, they frequently pose substantial challenges for SMEs striving for growth in competitive digital markets. Globally, ethical policies present a dual-edged impact on SMEs. On one hand, they can enhance transparency, accountability, and trust, which can foster investment and growth. On the other hand, they may create formidable barriers, particularly for SMEs with limited resources. In developed economies, SMEs often benefit from robust support systems and resources to meet ethical standards, turning potential impediments into opportunities. Conversely, SMEs in less developed regions like Sub-Saharan Africa face increased operational costs and reduced flexibility, limiting their ability to innovate and expand. This study aims to analyze the impact of ethical policies on SME growth, identify specific impediments, and evaluate the challenges faced by SMEs in complying with these policies within the South-South region of Nigeria.
References
Adu-Gyamfi, R. (2020). The impact of ethical policies on small and medium-sized enterprises in Ghana. Journal of Business Ethics, 162(3), 623 639. https://doi.org/10.1007/s10551-018- 3997-3 Banerjee, A. (2008). The impact of environmental and labor regulations on SMEs in India. Indian Journal of Economics, 89(4), 713-725. https://doi.org/10.2307/4367222 Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108 Beck, T., Demirguc-Kunt, A., & Levine, R. (2005). SMEs, growth, and poverty: Cross-country evidence. Journal of Economic Growth, 10(3), 219-241. https://doi.org/10.1007/s10887 005-3533-7 Brynjolfsson, E., & McElheran, K. (2016). The role of digital technologies in SME growth. MIT Sloan Management Review, 58(3), 1-12. https://sloanreview.mit.edu/article/the-role-of digital-technologies-in-sme-growth/ Coviello, N. (2015). The importance of digital privacy policies for SMEs. Journal of Business Ethics, 126(2), 287-299. https://doi.org/10.1007/s10551-013-1960-7 Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). The regulation of entry. Quarterly Journal of Economics, 117(1), 1-37. https://doi.org/10.1162/003355302753399436 Freeman, R. E., & Medoff, J. L. (1984). What do unions do? Basic Books. Hess, D. (2007). Social reporting and the role of SMEs. Business Ethics Quarterly, 17(3), 573-590. https://doi.org/10.5840/beq200717327 Jones, P., & Tilley, F. (2018). The impact of ethical policies on SME growth. International Small Business Journal, 36(4), 423-440. https://doi.org/10.1177/0266242617715045 Jenkins, H. (2009). The role of ethical policies in SME growth in developed economies. Journal of Business Ethics, 87(4), 585-603. https://doi.org/10.1007/s10551-008-9816-2 Kotler, P., & Keller, K. L. (2015). Marketing management (15th ed.). Pearson. Muriithi, S. (2017). Challenges facing SMEs in implementing ethical policies. Journal of Small Business and Enterprise Development, 24(3), 567-583. https://doi.org/10.1108/JSBED-05 2017-0148 North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press. Rawlins, B. (2009). Corporate social responsibility and transparency. Corporate Social Responsibility and Environmental Management, 16(4), 196-204. https://doi.org/10.1002/csr.204
