BEHAVIOURAL ECONOMICS IN THE MANAGEMENT OF SOCIAL ENTERPRISES: THE IMPACT OF ETHICAL BIASES ON STRATEGIC DECISIONS

Abstract

The article explores the role of behavioral economics in shaping strategic decisions in the field of social entrepreneurship, with a particular emphasis on the impact of ethical biases of managers on the effectiveness of decision-making. Social enterprises operate in a complex environment where it is necessary to balance social mission and economic sustainability. In this context, behavioral factors, including moral biases, the status quo effect, overconfidence, the availability heuristic, and other cognitive distortions, can significantly affect strategic planning, prioritization, and risk assessment. The main types of ethical biases inherent in managers of socially oriented enterprises are systematized, and the mechanisms of their influence on management processes are analyzed, in particular, the bias of moral revaluation, ethical inertia, selective ethics, the groupthink effect and the heuristic of justice, which can lead to distortion of strategic decisions, promote conformism in management teams, form a false idea of «moral compensation» and lead to reputational risks, irrational use of resources and a decrease in the strategic flexibility of a social enterprise. Key approaches to the strategic management of social enterprises are also summarized, in particular from the position of including an ethical component in decision-making mechanisms, which involves taking into account the interests of stakeholders, integrating ethical principles into all management processes, ensuring the adaptability of the strategy without violating value guidelines, using social innovations in compliance with moral norms, and finding a balance between social and financial results. The combination of these approaches forms a multidimensional model of strategic management, in which ethics acts not only as a qualification for decisions, but also as a tool for increasing organizational stability, preventing managerial distortions, minimizing reputational risks and creating long-term value for the community, partners and society as a whole. The results of the study allow improving management practice, increasing the effectiveness of strategic management and avoiding typical errors caused by subjective judgments. The study is based on an interdisciplinary approach that combines the tools of behavioral economics, strategic management and social entrepreneurship.