Moral communication and legal uncertainty in small and medium enterprises

What is it about?

Small businesses are often vulnerable to problems with the law. This is because they often do not have the resources to comply with the law and use it for problem-solving. This paper looks if moral communication (e.g. citing moral norms and values) is sometimes helpful. For this, data about small and medium-sized businesses (SMEs) in Poland is used. In line with theoretical predictions, the paper finds that usually, the references to morality cannot improve businesses' resilience. However, under some conditions, the widely-spread practice of using moral communication may stabilise small businesses operations. This, however, comes at a risk.

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