Do Large Business Have an Affect on Small Business
Small Business Institute® National Conference Proceedings
Vol. 34, No.1 - Winter 2010 292
DOES SIZE MATTER? ETHICS APPLIED
TO SMALL BUSINESSES COMPARED TO LARGE BUSINESSES
Kevin Cooksey & Dolores Kuchina-Musina, Christopher Newport University
Abstract
Considering the normative statement that both large and small businesses should follow the same ethical and moral standards, this paper analyzes the perceptions of individuals based on the relative ethical behavior of small business as compared to large business. The study of ethics focuses on the differences between what is right and what is wrong in society which affects both small business and large business due to their obligation to the public and their stakeholders.
Both entities are guided by the same standards and both are expected to meet all legal regulations and ethical standards.
The analysis employs surveys to gauge the public’s perceptions of the ethical decision making by management in both small business and large business. The survey also analyzes the role of those ethical decisions within scenarios and their impact on the individuals’ patron behavior in small business as compared to large business. Statistical analysis has been utilized to test the authors’ overall hypothesis that the public is generally less concerned about ethical decision making of small business relative to large business. The implications of these findings for both large and small businesses are provided with the analysis and suggestions to correct the disparity between both entities.
Introduction
During the past decades it has been evident that ethics has become the hot topic in business.
However, much of the talk is not comprised of all types of business it involves primarily the large corporations. Large corporations such as Enron have caused much grief to those around them and everyone that they employed. Due to this reason regulations such as the Sarbanes-
Oxley Act have been enforced to hold large
Vol. 34, No.1 - Winter 2010 292
DOES SIZE MATTER? ETHICS APPLIED
TO SMALL BUSINESSES COMPARED TO LARGE BUSINESSES
Kevin Cooksey & Dolores Kuchina-Musina, Christopher Newport University
Abstract
Considering the normative statement that both large and small businesses should follow the same ethical and moral standards, this paper analyzes the perceptions of individuals based on the relative ethical behavior of small business as compared to large business. The study of ethics focuses on the differences between what is right and what is wrong in society which affects both small business and large business due to their obligation to the public and their stakeholders.
Both entities are guided by the same standards and both are expected to meet all legal regulations and ethical standards.
The analysis employs surveys to gauge the public’s perceptions of the ethical decision making by management in both small business and large business. The survey also analyzes the role of those ethical decisions within scenarios and their impact on the individuals’ patron behavior in small business as compared to large business. Statistical analysis has been utilized to test the authors’ overall hypothesis that the public is generally less concerned about ethical decision making of small business relative to large business. The implications of these findings for both large and small businesses are provided with the analysis and suggestions to correct the disparity between both entities.
Introduction
During the past decades it has been evident that ethics has become the hot topic in business.
However, much of the talk is not comprised of all types of business it involves primarily the large corporations. Large corporations such as Enron have caused much grief to those around them and everyone that they employed. Due to this reason regulations such as the Sarbanes-
Oxley Act have been enforced to hold large
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