<p>This study examined how moral imagination—the capacity to recognize ethical dilemmas and generate stakeholder-inclusive solutions—influences entrepreneurial decision-making among Filipino entrepreneurs and managers. Despite growing interest in moral imagination as a cornerstone of responsible decision-making, empirical research in the Philippine context is limited. Using a vignette-based assessment adopted from as reported by Godwin (in: Doctoral dissertation, Case Western Reserve University, 2008), 93 participants from the retail, food service, and manufacturing sectors analyzed short business cases and provided stakeholder analyses and solution proposals. Responses were scored on two dimensions: discerning (issue and impact awareness) and developing (fluency and flexibility). Moral imagination scores were analyzed for associations with socio-demographic variables and the ethical quality of business decisions using ANOVA and Chi-square tests. Results showed that only 17% of respondents were classified as highly morally imaginative. A reverse U-shaped pattern emerged, with the highest scores among entrepreneurs with 6–8&#xa0;years of experience, suggesting a developmental window for ethical sensitivity. Higher moral imagination scores were significantly linked to mutually beneficial decisions that balanced enterprise performance with stakeholder well-being. These findings support viewing moral imagination as a developable competency with strategic relevance for entrepreneurship education and MSME development programs. Encouraging moral imagination early—and reinforcing it as entrepreneurs progress beyond mid-career—may help cultivate ethical foresight and promote more sustainable entrepreneurship in emerging markets where ethical ambiguity is common.</p>