Managing Ethical Challenges in Social Enterprises

This paper aims to conduct an in-depth analysis of ethical issues faced by social enterprises operating in Kenya by examining the nature and complexity of these challenges. Furthermore, the research aims to explore strategies put in place by these social enterprises to promote ethical practices in their operations and discourage unethicality. This research used a qualitative approach to examine ethical issues in Kenya’s social enterprises. Semi-structured interviews with nine social enterprise leaders in Kenya were conducted. The paper provides empirical findings on the ethical issues that social enterprises in Kenya face and the strategies they have instituted to manage these ethical issues. Findings show that the ethical issues encountered are donor dependence, stakeholder interference, people management, cultural inclusivity and sensitivity, bribery, conflict of interest, transparency and accountability, and legal processes. Measures for handling ethical issues in social enterprises include attaining financial independence and sustainability, compliance with the law, promoting community relationships and engagement, and promoting transparency and accountability. The methods used to collect data may present issues like generalizability due to the sample size for the social enterprise leaders. The paper contributes to building a more ethical and sustainable social enterprise ecosystem in Kenya by identifying and addressing ethical concerns. Furthermore, identifying ethical issues can guide regulators and policymakers in creating guiding frameworks and powerful brand images, developing “brand ambassadors,” and managing the balance between stability and change.