Effects of Personal Values on Ethical Decision Making and Corporate Social Responsibility Among Small and Medium Enterprise Owner-Managers in Kumasi Metropolis, Ghana

Abstract

Personal values are the core framework of the character of a human being. Every business decision reflects the presence or absence of these core values. The purpose of the study was to examine the effect of personal values on the attitudes towards ethical decision making and corporate social responsibility among SME owner-managers in the Kumasi Metropolis, Ghana. The study was guided by two (2) research questions and eight (8) hypotheses. The study used explanatory research design rooted in quantitative approach. The study used all 118 registered SMEs in the Kumasi Metropolis. Questionnaire was used to gathered primary data from the respondents. The data gathered from the field was processed using Smart PLS software and analysed using descriptive statistics (frequency, percentages, means and standard deviation) and Partial Least Squares Structural Equation Modelling (PLS-SEM). The study found that SMEs owner-managers had positive attitude towards ethical decision making and corporate social responsibilities. The study found that openness to change, self-enhancement value and traditional values were the main determinants of attitude towards ethical decision making. The study found that traditional values significantly predict attitude towards corporate social responsibility. The study recommended that owner-managers of SMEs should maintain good, trusting relationships with key stakeholders such as customers, employees, suppliers and the community. SME owner-managers should design a code of ethics as a key tool for implementing business ethical decision making. They should align their personal values to those of the organisation in order to achieve organisational and personal goals.