Ethics in an unethical environment or absence of ethics?

Purpose - The purpose of this paper is to place students in the reality of business in an emergency environment and encourage them to go “out of the box” in analyses of ethical issues. Design/methodology/approach - Information concerning the business environment in Belarus is gathered based on literature research and field studies, interviews with entrepreneurs, owners and employees of financial firms operated at the black financial market, and the representative of Belarusian official financial institutions. All names and the name of the company Destinator have been changed for the sake of security of the company and its owners. Findings - The case describes the activity of small businesses in the transition period and discusses why entrepreneurs moved their businesses into a black financial market. The case also raises the moral dilemma between helping entrepreneurs and avoiding illegal operations. Practical implications - This case can be used in undergraduate and graduate courses for analysis of business ethics in the context of a hostile business environment, for studying the criteria of ethical decision‐making process in an unfamiliar business environment, and for examination the peculiarities of the business environment of the post‐Soviet country. Originality/value - The paper provides original field study of the micro enterprise in the emerging market and gives opportunities to consider ethical issues of entrepreneurial activities in the transition economy.