RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

Quintuple Helix co-creation as a pillar for responsible (environmentally and socially)… 381
Literature review
From entrepreneurship to responsible entrepreneurship
Entrepreneurship – as a function, which involves exploring, and detecting new opportunities
and establishing new economic activities usually through the foundation of a new organization
(Reynolds, 2005) – entails the creation of new products and services as well as the
establishment of new business processes, strategies, and markets (Shane & Venkataraman,
2000). The theory of entrepreneurship bases on the fact that different individuals have different
beliefs on the value of resources (Alvarez & Busenitz, 2001). The traditional economic
theory suggests that business activities aim primarily to the generation of profit. It also emphasizes
the analogy between capital investment and profit rate. As stated by Say “The
entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity
and greater yield” (Dees, 2006).
However, with the current global pressures, the notion of entrepreneurship has drastically
changed towards becoming more socially inclusive. The social element in entrepreneurship
was first presented last decade following the establishment of the link between entrepreneurship
and innovation as well as the first with risk management by Drucker and Schumpeter
(Martin & Osberg, 2007). Even more, environmental considerations become a key driving
force of contemporary entrepreneurship. To this end, responsible entrepreneurship encompasses
business processes and functions, which increase the positive impact of organization’s
activities on society, while minimizing the negative consequences on individuals and the environment.
It involves the generation of profits while providing solutions to social and environmental
issues. Entrepreneurs fund and run organizations that are frequently based on the
triple bottom line model. The triple bottom line model implies that business activities are conducted
in a responsible manner in terms of finance, society and environmental sustainability.
As stated by the World Business Council for Sustainable Development a responsible
organization shows constant engagement to behave ethically and enhance the economic development
while improving the quality of life of employees and their families as well as the
local community and society in general (2008).
In 1997, Leon Sullivan introduced the framework for responsible entrepreneurship, which
included several aspects such as human rights, discrimination in workplace, appropriate working
conditions and environmental sustainability (Drayton, 2002). Still, the modern concept
underlies that responsible entrepreneurship has at least two elements including the ethical
choice and the ethical performance of business activities. Firstly, it is crucial that the company
makes a decision that satisfies social needs, enhances public welfare, and raises profits
for the organization while leaving a positive impact on the economy and adopts the
appropriate business processes to implement and measure these decisions (Lee & Peterson,
2000). The proper implementation of responsible entrepreneurship requires institutional
reforms, which comply with the international standards and principles as well as national legal
regulations (Cingula, 2008) while complying to inclusive business ethics. Business ethics provides
individuals within an organization with a framework on how to behave in such way
that their conduct complies with generally accepted ethical codes and morals (Broni &
Velentzas, 2010). It also entails guidelines to prohibitive behaviour in the workplace as well
as legal governance of the organization (Jones et al., 2005).