Ethics and sustainability during challenging times

Abstract

A prominent economist has cautioned that SMEs in Malaysia should be ready and brace themselves for tough economic times ahead. Weak Ringgit, labour shortage and rise in prices of product and services are conditions that SMEs are now trying to deal with. Thus this research firstly attempts seek opinion of SMEs owners on the effect of current economy on their businesses. Secondly, it tries to investigate the importance and effect of business ethics on SMEs business and lastly to identify factors and challenges of SMEs to sustain during economic challenging times. A total of 45 small business owners were interviewed in an urban area of Johor Bahru. It is found that the current tough times of the economy have generally affected the small businesses. Some really struggled in their endeavour to sustain their business. Although misconducts were being admitted by the owners in cutting corners, the majority of them are concerned with customers’ trust and loyalty; thus perceived that business ethics should not be compromised. They also agreed that strengthening business relations particularly with customers and suppliers are vital to ensure business sustainability. It is also recommended that small business should leverage on technology and must seriously move into automation in order to face current and future challenges.