Exploring the Impact of Fluid Ethics on Sustainable Entrepreneurial Start-ups

Research at the intersection of sustainable start-ups and ethics explores mainly a linear perspective on ethical decision-making. It is either utilitarian, deontological, or depends on a leader’s virtues. Current studies suggest that singularly, neither of these provide a satisfying response to ethical dilemmas. Given the emergent nature of sustainable start-ups, scarce attention is paid to how these are affected by fluid ethics. To address this question, a multiple case study research strategy is employed. Six start-ups, operating in vertical farming, were purposefully selected, located in Denmark, UK and South Korea. During the process of emergence, data points to continuous concerns and experimentation with legitimation and institutionalization of values of start-ups. Fluctuations are observed in the declarations of start-up vision and values, from non-existent to detailed categorizations. The experimentation from the side of start-ups is also influenced by the community’s perspectives. In addition to being reactive to the pressures of stakeholders, our findings suggest that the entrepreneurs’ proactive behavior in relation to the regulator, either by following a policy initiative or streamlining policy changes, and institutionalizing integrity norms (e.g., codes of ethics, reports, and hotlines) is important. Competing logics between the values of the regulator, community and entrepreneurial start-up create an environment of institutional complexity and contributes to a creativity in the legitimation and institutionalization of values.