ABSTRACT
This chapter explores the emergence of certain unethical practices, which the authors call "start-up ethical flaws", that originate during the start-up phase of new businesses. It elaborates on the proposition that some unethical practices and behaviors are deeply rooted in the company formation process, and are "path-dependent" on the particular set of circumstances taking place during that period. The chapter contains some recommendations about how ethical and Corporate Social Responsibility (CSR) issues can be incorporated into training and advisory programs for smaller companies. Researching ethical issues in the small business sector calls for integration of conceptual approaches and methods that originate from two sub-disciplines of management research: entrepreneurship and business ethics. The most difficult and sensitive task in the training programs for small business owners relates to identifying "ethical flaws" in a given company, particularly those rooted in the company's formation stage, and preparing a plan for eliminating those flaws.
