SMART LEADERSHIP FOR SMALL BUSINESSES: ETHICS-DRIVEN GROWTH IN HUMAN RESOURCES, MARKETING, AND FINANCE
Abstract
Leadership with integrity is a key factor in effective human resource management, especially in the micro, small, and medium enterprise (MSME) sector. Leadership based on ethical values can create a positive work environment, promote accountability, and improve sustainable performance. However, many MSME entrepreneurs still face challenges in implementing ethical leadership, particularly in fostering transparency, honesty, and fairness not only in managing employees but also in financial practices and marketing strategies. This community service activity aims to enhance MSME entrepreneurs’ understanding of the importance of ethical leadership and analyze its impact on business performance from a multidisciplinary perspective—human resources, accounting, and marketing. The activity was attended by 32 MSME entrepreneurs, primarily from the food and beverage sector in Kelurahan Meruya Selatan. The method employed included counselling, hands-on training, observation, and in-depth interviews. Evaluation results showed that participants improved their understanding and application of ethical leadership principles in HR management, financial transparency, and customer engagement. The adoption of integrity-based practices—such as transparent bookkeeping, fair pricing, and honest marketing communication—contributed to increased employee loyalty, better financial control, and greater trust from customers. Thus, raising awareness and providing training on integrity-driven leadership across managerial domains is essential to support the sustainability and competitiveness of MSMEs. Entrepreneurs are expected to integrate ethical leadership into their daily business practices to achieve more resilient and responsible growth.
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References
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