JOURNAL OF DEVELOPMENTAL ENTREPRENEURSHIP VOL.

7,

No. 1 APRIL, 2002

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B)# d" E. Jo, #), Di "& P", # " d (#'il, A. R"i+o)
Abstract
Little research has been conducted on the ways that smaller organizations establish and maintain their ethical standards as they grow. In this study, the development of business ethics and corporate social responsibility in growing firms is studied using ten successful entrepreneurial organizations. Both the "legal compliance strategy" and the "integrity strategy" have been used by these firms to guide their policies with respect to the stakeholders of the organization. The values of the leader in each of these organizations have been inculcated into the business via written policies and by the patterns of ethical behavior established and modeled by the founders. Key words: Values, ethics, corporate responsibility

The contribution that an organization makes to the larger society within which it operates is seen by many to be as important as the profits the organization derives. Many statistics support the premise that talk about ethics, values, integrity and responsibility is not only becoming acceptable in the business community, it!s practically re"uired #$todder, %&&', p. %%'(. )f, in fact, the behavior of a firm with respect to its ethics and social responsibility is important to society in general, it behooves us to understand how firms develop their ethical stances and the values that are the foundation of their decision*making frameworks. +ow do firms actually inculcate values, business ethics, and corporate social responsibility into their developing organizations,
Brenda . !oyner is "ssociate #rofessor of $anagement at Loyola %niversity, &ew 'rleans. (er research interests include venture startups, entrepreneurial behaviors, and entrepreneurial ethics. )inah #ayne is #rofessor of $anagement at the %niversity of &ew 'rleans. (er teaching and research interests include multiple facets of international business* law, strategy, organizational behavior, corporate social responsibility and ethics. +ecily ". ,aiborn is #rofessor of "ccounting at Loyola %niversity &ew 'rleans. (er research interests include cost management, international, -uality, and ethics issues.

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