Formation of Integrity Culture in Small and Medium-Sized Enterprises as a Basis for Their Development and Competitiveness

Abstract

The purpose of the article is to study integrity culture as a foundation for the development and competitiveness of small and medium-sized enterprises (SMEs) amidst crisis challenges. The study defines the role of compliance in building an integrity-oriented management model and analyses the possibilities of implementing ethical practices, considering the specifics and resource potential of domestic SMEs. The research employs methods of theoretical generalization, comparative analysis, and systemic and institutional approaches to comprehend scientific concepts of business integrity, social responsibility, and compliance. The analysis includes modern domestic and international publications, regulatory and methodological materials, as well as survey results and practical cases of Ukrainian SMEs, particularly within business integrity development initiatives. The essence of corporate integrity culture is defined. It is proven that this culture extends beyond formal adherence to ethical norms and legal requirements, emerging as an integrated system of values, management tools, and behavioural practices. Deeply rooted in the mind-set of management and staff, it shapes reputational capital and business competitiveness. The main steps and tools for its development are identified. External prerequisites for forming an integrity culture in domestic enterprises are analysed. It is substantiated that compliance, in its broad sense, is not only a regulatory mechanism but also a tool for developing an integrity culture, mitigating risks, and increasing business process efficiency. The study identifies key motivational factors for implementing compliance systems in SMEs and generalizes practical forms of ethical behaviour. Proposed directions for forming a compliance system consider the limited resources of SMEs, including the use of digital solutions, training tools, and internal control mechanisms. It is concluded that building an integrity culture in SMEs is a long-term, systemic process requiring a combination of compliance approaches, organizational culture development, and moral leadership. Implementing such approaches enhances the competitiveness of SMEs and creates the prerequisites for the post-war reconstruction of Ukraine.