Who is John Galt? From rational egoism to social responsibility through entrepreneurial passion

Abstract

PurposeEnterprising individuals are frequently portrayed as rational agents who maximize their own interests. At the same time, an increasing number of small and medium-sized enterprises (SMEs) use social responsibility strategies, incorporating collective interests into their business agenda. This study aims to analyze the interplay between the rational and emotional aspects of the entrepreneurial personal identity and address its implications for the socially responsible behavior of businesses by drawing on the literature on entrepreneurial identity, the objectivism (rational egoism) philosophical perspective and the concept of entrepreneurial passion.Design/methodology/approachA sample of 333 Russian SMEs is used to test the research hypotheses. The study follows the quantitative research strategy, wherein the main assumptions are examined based on mediation testing techniques.FindingsThe results suggest that entrepreneurs whose personal identities are rooted in objectivism values are less likely to foster culture of social responsibility within their firms. At the same time, their entrepreneurial passion mitigates the negative effect of objectivism on social responsiveness of the venture.Originality/valueThis research enhances the understanding of entrepreneurial personality and can help policymakers promote social responsibility in small and medium businesses, showing that they need to communicate effectively with SMEs’ leaders and align their policies with entrepreneurial values and beliefs.