Skip to main content

Africa: Ethics and Sustainability Within SMEs in Sub-Saharan Africa: Enabling, Constraining and Contaminating Relationships

  • Chapter
  • First Online:
Ethics in Small and Medium Sized Enterprises

Abstract

In this paper, we explore the role ethics plays in African SMEs. We looked specifically at the role that relationships between SMEs and their stakeholders play in enabling or foreclosing the possibility of ethical business practices. We argue that certain relationships, such as those between SMEs, suppliers, employees and local communities, can be described as enabling. Other relationships, such as those with corrupt governments, are contaminating. What seems to be needed is to expand on and strengthen certain constraining relationships, such as those that exist between peers within a certain industry, professional associations, and civil society.

The majority of African SMEs seem to fall in the smaller end of the spectrum, which includes businesses with fewer than ten employees. These are often referred to as ‘Micro enterprises’, but form a definite part of this study.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Blundel, R.K., Spence, L.J. & Zerbinati, S. 2010. Entrepreneurial social responsibility: Scoping the territory. In L. Spence & M. Painter-Morland. Ethics in small and medium sized enterprises: A global commentary, Dordrecht: Springer.

    Google Scholar 

  • Bond, P. 2004. Against global apartheid. Johannesburg: Zed Books.

    Google Scholar 

  • Bowen, G.A. 2006. Grounded theory and sensitizing concepts. International Journal of Qualitative Methods, 5(3): 1–9.

    Google Scholar 

  • Dunham, L., Freeman, R.E. & Liedtka, J. 2006. Enhancing stakeholder practice: A particularised exploration of community. Business Ethics Quarterly, 17(3): 515–534.

    Google Scholar 

  • Fafchamps, M. 1999. Networks, communities and markets in sub-Saharan Africa: Implications for firm growth and development. The Centre for the Study of African Economies Working Paper Series, Paper 108.

    Google Scholar 

  • Fox, T. 2005. Small and medium-sized enterprises (SMEs) and corporate social responsibility: A discussion paper. IIED.

    Google Scholar 

  • Freeman, R. E. 1984. Strategic management: A stakeholder approach. Boston: Pitman.

    Google Scholar 

  • Helg, A. 2007. Corporate social responsibility from a Nigerian perspective. Masters Thesis, Handelshogskolon VID Goteborgs Universiteit.

    Google Scholar 

  • IDC. 2003. IDC boosts the SME Sector. [Online]. Available: http://www.realbusiness.co.za/Article.aspx?articleID=3190&typeID=1. Accessed on 20 May 2009.

  • Institute of Directors in South Africa. 2002. King Report on Corporate Governance for South Africa. IODSA. Johannesburg.

    Google Scholar 

  • Jeppesen, S. 2005. Enhancing competitiveness and securing equitable development: Can small, micro and medium-sized enterprises (SMEs) do the trick? Development in Practice, 15: 3–4.

    Article  Google Scholar 

  • Koehn, D. 1998. Rethinking feminist ethics: Care, trust and empathy. London: Routledge.

    Google Scholar 

  • Macculloch, F. 2001. Government administrative burdens on SMEs in East Africa: Reviewing issues and actions. Economic Affairs, 21(2): 10–16.

    Article  Google Scholar 

  • MacIntyre, A. 1988. After virtue (3rd edition). Notre Dame: University of Notre Dame Press.

    Google Scholar 

  • Margolis, J. & Walsh, J. 2006. Building the business case for ethics. Bridge paper by the Business Roundtable Institute for Corporate Ethics. Charlottesville.

    Google Scholar 

  • Painter-Morland, M. 2007. Redefining accountability in a network society. Business Ethics Quarterly, 17(3): 515–534.

    Article  Google Scholar 

  • Parker, M. 1998. Organisation, community and Utopia. Studies in Cultures, Organisations and Societies, 4: 77–91.

    Google Scholar 

  • Perrini, F. 2006. SMEs and CSR theory: Evidence and implications from an Italian perspective. Journal of Business Ethics, 67: 305–316.

    Article  Google Scholar 

  • Pouloudi, A., Gandecha, R., Atkinson, C. & Papazafeiropoulou, A., 2004. How stakeholder analysis can be mobilized with actor-network theory to identify actors. Information system’s research. Dordrecht: Springer.

    Google Scholar 

  • Rossouw, D. 2002. Business ethics in Africa. Cape Town: Oxford University Press.

    Google Scholar 

  • ‘t Hooft, S. 2006. Up-lifting power: Creating sustainable consumer-driven supply chains through innovative partnerships in Ghana. In W. Visser, M. McIntosh & C. Middleton (eds.) Corporate Citizenship in Africa. Sheffield: Greenleaf.

    Google Scholar 

  • Raynard, P. & Forstater, M. 2002. Corporate social responsibility: Implications for small and medium enterprises in developing countries. Vienna: United Nations Industrial Development Organization.

    Google Scholar 

  • Spence, L.J. & Rutherfoord, R. 2003. Small business and empirical perspectives in business ethics. (Editorial) Journal of Business Ethics, 47(1): 1–5.

    Article  Google Scholar 

  • Spence, L.J., Schmidpeter, R. & Habisch, A. 2003. Assessing social capital: Small and medium sized enterprises in Germany and the UK. Journal of Business Ethics, 47(1): 17–29.

    Article  Google Scholar 

  • Spence, L.J., Blundel, R.K. & Zerbinati, S. 2008. Entrepreneurial social responsibility: Scoping the territory. Paper for the ISBEE Congress 2008, Cape Town, South Africa, 15–18 July. Ethics in Small and Medium Sized Enterprises Stream.

    Google Scholar 

  • Tarus, D.K., Ng’ang’a, S.I., Lagat, C. & Omboto, P.I. 2007. Small and medium size manufacturing enterprises’ growth and work ethics: A case of Jua Kali enterprises in Eldoret, Kenya. Paper presented at 7th Annual Conference of BEN-Africa 1–3 August 2007, Hotel Ghion, Addis Ababa, Ethiopia.

    Google Scholar 

  • Verschoor, C. 1999. Corporate performance is closely linked to a strong ethical commitment. Business and Society Review, 104: 407–415.

    Article  Google Scholar 

  • Verschoor, C. 2004. Does superior governance still lead to better financial performance? Strategic Finance, 86: 13–14.

    Google Scholar 

  • Verschoor, C. 2005. Is there financial value in corporate values? Strategic Finance, 87: 17–18.

    Google Scholar 

  • UNIDO, 2002. Implications for small and medium enterprises in developing countries. Corporate Responsibility, Vienna.

    Google Scholar 

  • Usher, R. 2006. Management ethics and organizational networks. In S. Clegg & C. Rhodes. Management ethics. London: Routledge.

    Google Scholar 

  • Welter, F. & Kautonen, T. 2005. Trust, social networks and enterprise devleopment: Exploring evidence from East and West Germany. The International Entrpreneurship and Management Journal, 1: 367–379.

    Article  Google Scholar 

  • Wrong, M. 2008. It’s our turn to eat: The story of a Kenyan whistle-blower. London: Fourth Estate.

    Google Scholar 

Download references

Acknowledgements

We would like to acknowledge the research assistance of Ms Hanrie Greebe of the Centre for Business and Professional Ethics in setting up and conducting many of the interviews, and for her language editing, and of Mr Michael Röthel for literature sourcing.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mollie Painter-Morland .

Editor information

Editors and Affiliations

Appendices

Appendix 1: Country Representation

Country

Intermediary

SME

Total

South Africa

1

2

3

Nigeria

2

1

3

Ethiopia

1

 

1

Ghana

2

 

2

Uganda

5

 

5

Kenya

2

 

2

Cameroon

1

 

1

Tanzania

2

 

2

Democratic Republic of Congo

2

 

2

Mauritius

 

1

1

Zambia

1

1

2

Across countries

2

 

2

 

21

5

26

Appendix 2: SME Owners/Managers Telephonic Questionnaire

Ethics in Small and Medium Enterprises on the African Continent

For all of the questions that we will be asking, could you please refer to your own experiences within your company as well as your wider knowledge of other SMEs in your country?

I will be referring to small and medium enterprises as SMEs throughout the interview.

(Ask all of Questions 1–4.)

  1. 1.

    How do you define SMEs / What are SMEs?

  2. 2.

    Please tell me a bit about your company – what does it do, how many employees do you have?

  3. 3.

    What is your position in your company and how long have you been there?

  4. 4.

    What do you understand under the concept of ethics?

    (If they are totally off the mark or don’t know at all, clarify briefly that we are talking about right and wrong conduct.)

  5. 5.

    If I speak of ethics in SMEs, what comes to mind?

    (From here on, use discretion in asking questions to probe further / get information on areas not covered by the respondent.)

  6. 6.

    What would you say is the impact of SMEs in society (both positive and negative)?

    1. a.

      Do you think other SME owners/managers see it the same way?

    2. b.

      Do you know of any social responsibility projects that your own organisation or other SMEs are involved in?

  7. 7.

    What are the most important ethical problems/issues for SMEs?

  8. 8.

    Why are some SMEs ethical and others not?

    1. a.

      What are the most important factors in establishing a culture of ethics in SMEs? (Skip if already covered.)

    2. b.

      What could make it difficult for an SME to be ethical? What factors either within the organisation or outside the organisation?

  9. 9.

    What factors facilitate or hinder long-term business relationships for SMEs, for example with suppliers or clients?

  10. 10.

    What background or resources do SME owners and managers have on ethics?

  11. 11.

    Do you have anything further you would like to say about ethics in SMEs in the country/area in which you operate?

    (If nothing is mentioned on corruption ask:)

  12. 12.

    Is corruption a problem for SMEs in your country?

Appendix 3: Intermediary Organisations – Telephonic Questionnaire Ethics in Small and Medium Enterprises on the African Continent

Which African Country’s SMEs would you say you have the most experience with?

For all of the questions that we will be asking, could you please focus your answers to your experiences of the SMEs in that country.

(Ask all of Questions 1–4.)

  1. 1.

    How do you define SMEs / What are SMEs?

  2. 2.

    What is your involvement with SMEs?

  3. 3.

    What do you understand under the concept of ethics?

    (If they are totally off the mark or don’t know at all, clarify briefly that we are talking about right and wrong conduct.)

  4. 4.

    If I speak of ethics in SMEs, what comes to mind?

    (From here on, use discretion in asking questions to probe further / get information on areas not covered by the respondent.)

  5. 5.

    In (country X), what would you say is the impact of SMEs in society (both positive and negative)?

    1. a.

      Do you know of any social responsibility projects that SMEs in your country are involved in?

  6. 6.

    What are the most important ethical problems/issues for SMEs?

  7. 7.

    Why are some SMEs ethical and others not?

    1. a.

      What are the most important factors in establishing a culture of ethics in SMEs? (Skip if already covered.)

    2. b.

      What could make it difficult for an SME to be ethical? What factors either within the organisation or outside the organisation?

  8. 8.

    What factors facilitate or hinder long-term business relationships for SMEs, for example with suppliers or clients?

  9. 9.

    What background or resources do SME owners and managers have on ethics?

  10. 10.

    Do you have anything further you would like to say about ethics in SMEs in the country/area in which you operate?

    (If nothing mentioned on corruption ask:)

  11. 11.

    Is corruption a problem for SMEs in your country?

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer Science+Business Media B.V.

About this chapter

Cite this chapter

Painter-Morland, M., Dobie, K. (2010). Africa: Ethics and Sustainability Within SMEs in Sub-Saharan Africa: Enabling, Constraining and Contaminating Relationships. In: Spence, L., Painter-Morland, M. (eds) Ethics in Small and Medium Sized Enterprises. The International Society of Business, Economics, and Ethics Book Series, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-9331-8_2

Download citation

Publish with us

Policies and ethics