How Can Ethical Management Contribute to Organizational Culture Development in Malaysia Smes

Abstract

This research aims to elucidate the strategies employed by Malaysian SMEs to foster an ethical working culture. The study polled managers of micro, small, and medium-sized enterprises in Malaysia. According to prior studies, the most critical elements are leadership, informal systems, and formal components. This study identified management, training, and communication as the three essential components. Nevertheless, no more studies have demonstrated that SMEs in Malaysia are religious. Our research addresses a deficiency in the literature by investigating the frequently neglected difficulties of ethical culture in small and medium-sized firms. The article offers a detailed analysis of the survey results regarding the ethical culture of SMEs. This study's findings have significant implications for Malaysian SMEs. This content may be beneficial for managers and business owners seeking to foster a more ethical work environment. Performance results may be enhanced by prioritising clarity, supportability, and transparency. By conforming to cultural norms and engaging in ethical practices, SMEs can enhance their reputation within the community and secure their future sustainability. This study significantly contributes to existing knowledge by examining the impact of ethical culture on performance in Malaysian SMEs. Understanding their influence on a company's profitability is facilitated when transparency, supportability, and clarity are prioritised as fundamental elements of an ethical culture. To cultivate a constructive organisational culture in small and medium-sized firms (SMEs) in Malaysia, the article's findings indicate that ethical leadership strategies should be adeptly implemented.