Sustainability model from ethical perspective: a case study of social enterprise in Malaysia

This study explores the intersection of ethics and sustainability within social enterprises, challenging the predominant market-driven sustainability models by emphasizing the role of moral and ethical values. The main purpose is to address the gap in understanding how ethical practices contribute to the sustainability of social enterprises and to investigate sustainability from the perspective of social enterprises themselves. A comprehensive literature review reveals that most sustainability factors are financially related, resulting in a fragmented sustainability framework for social entrepreneurship. This study aims to explore other significant factors that can substantially contribute to the sustainability of social enterprises, enabling them to continue delivering social and economic impacts. Despite a solid ethical foundation, social entrepreneurship ethics theory is still nascent, with limited focus on linking ethics to sustainability. This study addresses this gap by emphasizing the ethical perspective. The lack of comprehensive research has led to fragmented literature on sustainability in social entrepreneurship, lacking empirical evidence. This research is crucial due to the absence of empirical data on the actions needed for social entrepreneurs to achieve social sustainability in a dynamic environment. To address these gaps, a qualitative multiple case study approach was employed, involving 11 registered social enterprises in Malaysia. Data were gathered through semi-structured in-depth interviews, document reviews, site photos, and observations, and analyzed using thematic analysis. The analysis was conducted both on a case-by-case basis and across cases to identify common themes and unique insights. The findings reveal that ethical practices such as altruism, servant leadership, strategic thinking, and social innovation are pivotal in fostering sustainability. Ethical considerations significantly influence human resources, financial management, and social innovation within social enterprises towards sustainability. The study proposes a sustainability model that integrates ethical practices, demonstrating their importance in achieving a balance between social and financial missions. This model incorporates key elements such as human resources, social innovation, and financial management, examined through an ethical lens. Additionally, it includes newly emergent themes related to ethical practices for sustainability and sustainability perspectives, constituting a novel contribution to the research. This research enriches academic discourse by providing empirical evidence on the ethical dimensions of sustainability in social enterprises. It offers practical insights for practitioners and policymakers, suggesting that the adoption of ethical frameworks can enhance the effectiveness and impact of social enterprise. The implementation of this model is expected to improve societal well-being through sustainable and ethically guided social entrepreneurship.