National Ethical Institutions and Social Entrepreneurship

Abstract

Using insights from institutional theory, the chapter proposes understanding ethics as national institutions that deeply influence social entrepreneurship. Moreover, the chapter proposes that low behavioral ethical standards (normative ethical institutions) provide opportunities for individuals to establish social enterprises. Furthermore, it proposes that high public-sector ethical standards (regulatory ethical institutions) and values of unselfishness (cognitive ethical institutions) facilitate and motivate individuals to establish social enterprises. The chapter also explores the combined effects of public-sector ethical standards and low behavioral ethics, public-sector ethical standards and societal unselfishness, and low behavioral ethics and unselfishness, on the creation of social enterprises. The chapter contributes to cross-cultural comparative entrepreneurship by suggesting, through a multilevel framework, the effects of societal-level ethical institutions on the creation of social enterprises.

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