30.7 Ethics in the Profession

Ethical standards in this field emphasize integrity, fairness, and respect for all stakeholders. Social entrepreneurs often face dilemmas where they must balance the needs of their beneficiaries with financial sustainability and organizational growth. These dilemmas can include decisions about sourcing materials, setting fair wages, and managing conflicts of interest.

Real-world examples of ethical challenges in social entrepreneurship illustrate the complexity of these decisions. For example, a social enterprise focused on providing affordable housing might face the ethical dilemma of choosing between using cheaper, less sustainable building materials to lower costs or investing in eco-friendly options that align with their environmental mission. In addressing such challenges, social entrepreneurs must weigh the immediate benefits against long-term impacts, striving to uphold their ethical commitments while ensuring the viability of their enterprise.

Transparency, accountability, and social responsibility are foundational principles for social enterprises. Transparency involves openly sharing information about the organization’s operations, financial status, and decision-making processes. This openness builds trust with stakeholders, including beneficiaries, employees, investors, and the broader community. Accountability means being responsible for the outcomes of the enterprise’s activities and being answerable to stakeholders for both successes and failures. Social responsibility involves actively contributing to the well-being of society and the environment, going beyond profit motives to prioritize the greater good.

By adhering to these ethical principles, social entrepreneurs can navigate the complexities of their work, make informed and fair decisions, and maintain the trust and support of their communities.

Reference

Barreiro, Terri D., and Melissa M. Stone. 2013. Social Entrepreneurship: From Issue to Viable Plan. Business Expert Press.