Abstract

Micro, small, and medium enterprises (MSMEs) with their unique position in the industry as the biggest providers of employment and significant contributors to the gross domestic product (GDP) of the nation, today have greater opportunities for expansion and diversification across industries. As they are poised to grow exponentially, it is important to also study the environmental, social, and governance (ESG) values that these companies embrace. MSMEs, having been largely left unregulated and often being family-owned and managed, are not considered as having strong ethical, environmental, and governance frameworks. As a result, there is a perception of them being unethical. This research article studied some selected organizations in the MSME sector using in-depth interviews and observation techniques. Organizations were examined from five aspects, namely, human value, environmental value, social and relationship values, ethical value, and leadership value. The data collected through observation and open-ended questionnaires were analyzed using the NVivo method of color coding and bucketing. A conceptual model was created based on the five-value constructs. The study concluded that the enterprises have the intention to become ethical and are taking notable actions to create values in their organizations. The study also indicates that there is an increased need for ethics training and awareness creation with regard to the co-creation of values among the players in the MSME sector in India.