Do Ethical Practices Have Impact on the Sustainability of Small- and Medium-Sized Enterprises in Kenya? A Systematic Review of Literature

Small and medium enterprises (SMEs) make considerable contributions to the economic development of many nations across the globe. Corruption is rampant in most developing countries, Kenya included. Most SMEs in these countries face unique challenges, forcing them to engage in unethical business practices to survive. This paper analyzed the driving forces behind ethical business practices and their contributions to SMEs’ sustainability. The researcher reviewed available literature on ethical business and enterprise sustainability. A total of 30 published journals from various institutional repositories and Google Scholar were reviewed, making the study secondary research. Findings from empirical analysis established that enterprises that implement and adhere to codes of ethics are better positioned to achieve better performance and long-term sustainability. Engaging in ethical business practices is integral to building trust and confidence among organizational stakeholders. SMEs with policies that guide their ethical behaviors can attract and retain critical stakeholders such as talented employees, customers, suppliers, and investors. The current study is relevant to those running SMEs since they will understand the importance of ethical business practices on the long-term sustainability of enterprises. Policymakers will also find the study suitable for developing and strengthening ethical policy frameworks that can boost the long-term sustainability of SMEs. Researcher has made key recommendations that can encourage ethical business practices among enterprises.