The spotlight in the CSR discourse has traditionally been focused on multinational corporations (MNCs). This paper builds on a burgeoning stream of literature that has accorded recent attention to the relevance and importance of integrating small and medium enterprises (SMEs) in the CSR debate. The paper begins by an overview of the CSR literature and a synthesis of relevant evidence pertaining to the peculiarities and special relational attributes of SMEs in the context of CSR. Noting the thin theoretical grounding in (...) the literature on offer, the paper then presents relevant CSR theoretical perspectives that could be useful in conducting further research on SMEs. In light of this framework, the paper outlines the findings of an empirical study highlighting the peculiar CSR orientations of SMEs in a developing country context in comparison to some of their MNC counterparts. The study is qualitative in nature, capitalizing on a comparative research design to highlight differences in CSR orientations between SMEs and MNCs. The findings are presented and implications are drawn regarding the peculiar relational attributes of SMEs in the context of CSR generally, and developing countries more specifically, and how this inclination can be further nurtured and leveraged. (shrink)

This article seeks to expand business and society research in a number of ways. Its primary purpose is to redraw two core corporate social responsibility theories, enhancing their relevance for small business. This redrawing is done by the application of the ethic of care, informed by the value of feminist perspectives and the extant empirical research on small business social responsibility. It is proposed that the expanded versions of core theory have wider relevance, value, and implications beyond the small firm (...) context. The theorization of small business social responsibility enables engagement with the mainstream of CSR research as well as making a contribution to small business studies in scholarly, policy, and practice terms. (shrink)

The concept of sustainable and responsible (SR) investments expresses that every investment should be based on the SR investor’s code of ethics. To a large extent the allocation of SR investments to more sustainable companies and ethical practices is based on the environmental, social, and corporate governance (ESG) scores provided by rating agencies. However, a thorough investigation of ESG scores is a neglected topic in the literature. This paper uses Thomson Reuters ASSET4 ESG ratings to analyze the influence of firm (...) size, a company’s available resources for providing ESG data, and the availability of a company’s ESG data on the company’s sustainability performance. We find a significant positive correlation between the stated variables, which can be explained by organizational legitimacy. The results raise the question of whether the way the ESG score measures corporate sustainability gives an advantage to larger firms with more resources while not providing SR investors with the information needed to make decisions based on their beliefs. Due to our results, SR investors and scholars should reopen the discussion about: what sustainability rating agencies measure with ESG scores, what exactly needs to be measured, and if the sustainable finance community can reach their self-imposed objectives with this measurement. (shrink)

The social dimension of sustainable development and its impact on supply chains have so far received less attention than the environmental dimension. The aim of the research is to explore the intersection between social issues, corporate social responsibility actions and performance outcomes. A structured literature review of social issues in supply chains is presented, analysing the research published so far in peer-reviewed publications. Linking CSR and supply chain management allows the exploration of strategies and performance outcomes with a focus on (...) social issues. The corresponding responsible supply chain actions adopted by firms to address these issues are grouped into communication, compliance and supplier development strategies. Social and economic as well as buyer and supplier performance are identified as the key outcomes, but the interactions among these constructs would require further research. This paper contributes to the understanding of managing social issues in supply chains by linking social issues, responsible supply chain actions and performance outcomes. The paper consolidates related research by offering an overarching conceptual framework and points to future research directions and simultaneously provides insights into the management of social issues in supply chains. (shrink)

Employee buy-in is a key factor in ensuring small- and medium-size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi-structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but tradeoff within (...) these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

In the current paper, our aim is to explore the latent power dynamics surrounding corporate social responsibility in developing countries. To do this, we synthesize an analytic framework that borrows from both cross-cultural management literature as well as feminist considerations of power. We then use the framework to examine three streams of CSR literature. Our analysis uncovers the prevalence of arguments and discussions about indigenous and power-over themes rather than more generative, endogenous, and power-to themes. The paper concludes with the (...) suggestion for more space in the CSR literature for examining the realities and potentialities of local SME CSR expressions to counterbalance the overwhelming focus on MNCs. Such counterbalancing can better lead to the recognition that power and domination are not the only important dynamics to examine in CSR research. Just as important is the need for a more nuanced consideration of the role and contributions of different actors to the continuously unfolding CSR discourse. (shrink)

In their book ‘Corporate Social Opportunity’, Grayson and Hodges maintain that ‘the driver for business success is entrepreneurialism, a competitive instinct and a willingness to look for innovation from non‐traditional areas such as those increasingly found within the corporate social responsibility (CSR) agenda’. Such opportunities are described as ‘commercially viable activities which also advance environmental and social sustainability’. There are three dimensions to corporate social opportunity (CSO) – innovation in products and services, serving unserved markets and building new business models. (...) While small‐ and medium‐sized enterprises (SMEs) have traditionally been presented as non‐entrepreneurial in this area, this paper demonstrates how SMEs can take advantage of the opportunities presented by CSR. Using data from 24 detailed case studies of UK SMEs from a range of sectors, the paper explores the numerous CSR opportunities that present themselves to SMEs, such as developing innovative products and services and exploiting niche markets. There are inevitable challenges for SMEs undertaking CSR, but by their very nature they have many characteristics that can aid the adoption of CSR; the paper explores these characteristics and how the utilisation of positive qualities will help SMEs make the most of CSOs. Integrating CSR into the core of a company is crucial to its success. Using the case studies to illustrate key points, the paper suggests how CSR can be built into a company's systems and become ‘just the way we do things’. There are a number of factors that characterise the CSO ‘mentality’ in an organisation, and Grayson and Hodges's book describes seven steps that will move a company in the direction of a ‘want to do’ CSO mentality. This paper adapts these steps for SMEs, and by transferring and building on knowledge from the 24 detailed case studies, it develops a ‘business opportunity’ model of CSR for SMEs. (shrink)

“Political” corporate social responsibility involves businesses taking a political role to address “regulatory gaps” caused by weak or insufficient social and environmental standards and norms. The literature on political CSR focuses mostly on how large multinational corporations can address environmental and social problems that arise globally along their supply chains. This article addresses political CSR of small- and medium-sized enterprises. SMEs represent a major share of economic value creation worldwide and are increasingly exposed to regulatory gaps. Although SMEs differ substantially (...) from MNCs in terms of organizational characteristics, behavioral guiding principles, and financial and human resources, they should still tackle such regulatory gaps by accepting a political role. Drawing on Zadek’s model of CSR-based organizational learning and Young’s concept of social connection, this study develops a conceptual framework as the basis for discussing why SMEs should become involved in political CSR, how they can manage political CSR internally and systematically, and how their progress can be assessed by third-party observers externally. (shrink)

In this paper, we examine the relationship between Christian religiosity, attitudes towards corporate social responsibility, and CSR behavior of executives. We distinguish four types of CSR attitudes and five types of CSR behavior. Based on empirical research conducted among 473 Dutch executives, we find that CSR attitudes mediate the influence of religiosity on CSR behavior. Intrinsic religiosity positively affects the ethical CSR attitude and negatively affects the financial CSR attitude, whereas extrinsic religiosity stimulates the philanthropic CSR attitude. Financial, ethical, and (...) philanthropic CSR attitudes significantly affect some types of CSR behaviors. However, because religiosity has opposing effects on the three attitudes, the joint mediation effect of the three attitudes is negligible. Furthermore, we find a direct negative influence of intrinsic religiosity on diversity and a direct positive influence on charity. (shrink)

Global Corporate Citizenship (GCC) continues to become increasingly popular in large corporations. However, this concept has rarely been considered in small and medium size enterprises (SMEs). A case study of a Norwegian clothing company illustrates how GCC can be also applied to small companies. This case study also shows that SMEs can be very innovative in exercising corporate citizenship, without necessarily following the patterns of large multinational companies. The company studied engages as partner in some voluntary labor initiatives promoted by (...) the government, employs people in marginal situations, and exerts influence for the adoption of good working conditions in its supply chain. Environmental issues and actions of solidarity are also considered within a global scope. Ethics of care and concern for specific aspects of the common good seem crucial as GCC drivers in this company, as do personal values, character, and leadership of the owner-manager of the firm. (shrink)

Anti-sweatshop activists have turned global production networks into contested organizational fields. Although this contest has triggered the growth of an extensive literature on contested GPNs, the scholarly conversation is still limited in two important ways: First, it ignores or dismisses the role of small and medium-sized enterprises in GPNs and, second, it assumes that firms are driven solely by rational profit-maximizing motives. Based on a study of a Swedish SME’s payment of living wages at its Indian supplier, this article addresses (...) these limitations by demonstrating how SMEs’ peculiarities allow them to assume a distinct role in contested GPNs. Furthermore, this article contributes to the scholarly conversation about living wages by providing a much-needed move beyond conceptual discussions into empirical studies of the underlying trade-offs of paying living wages. (shrink)

The concept of business responsibility, usually termed as corporate social responsibility (CSR), originated in the early 1930s after the Wall Street crash of 1929 exposed corporate irresponsibility in large organisations. The understanding of CSR has evolved since then and its scope has now broadened from mere compliance to corporate laws to active alignment of internal business goals with externally set societal aspirations. Unfortunately, the significance of this multidimensional concept within the small and medium enterprise (SME) sector has continued to be (...) overshadowed by its application in large and multinational organisations. More importantly, this has led to the practice of judging SMEs, which are experiencing increasing pressure to engage in social activities, as if they are no different from their larger counterparts. This study therefore investigates CSR from the perspective of SMEs in Australia without any theoretical presumptions and then comments on the relevance and applicability of the two theories that have been commonly used to investigate business responsibility, namely, stakeholder theory (ST) and social capital theory (SCT). The research findings indicate that CSR within the SME sector is more aligned to the fundamentals of SCT, mainly owing to the unique resource and survival challenges that they face, and which are, arguably, not so pronounced in large organisations. (shrink)

Corporate Social Responsibility amongst Small and Medium Enterprises is often characterised in the literature as unstructured, informal and ad hoc discretionary philanthropic activities. Drawing insights from recent theoretical/analytical frameworks :52–78, 2010), and on empirical data collected from both Nigeria and Tanzania, we found that CSR practices in SMEs are much more nuanced than previously presented. In addition, SMEs undertake their CSR practices to varying degrees in multiple spaces—i.e. the workplace, marketplace, community and the ecological environment. These CSR practices go beyond (...) philanthropy and in some instances involve institutional works aimed at addressing some of the institutional gaps in the environments where these SMEs operate. The paper makes a contribution by drawing attention to the multiple spaces of CSR practices amongst SMEs, and the institutional works they do, which are often taken for granted in the extant literature. We provide a unique perspective—by arguing that what is frequently conceptualised as philanthropic CSR in Africa is ‘institutional works’. (shrink)

The field of “business for peace” recognizes the role that businesses can play in peacebuilding. However, like much of the discussion concerning business in conflict zones, it has prioritized the view of multinationals, often overlooking the role of indigenous local firms. The economic, social, and intergroup dynamics experienced by local businesses in conflict zones are understudied, with the current paper beginning by positioning micro- and small enterprises in the peacebuilding debate, then engaging with multidisciplinary works to understand how they foster (...) peace. Through a case study set in north Lebanon, we conducted semi-structured interviews with twenty-three MSE owners in one industry who operate across sectarian divisions and with recently displaced Syrian refugees. Our findings indicate that local business activity can simultaneously promote peace and foster conflict, with peacebuilding improved when intergroup differences are reduced within the operating environment. Furthermore, the importance of economic development was elevated for local businesses, suggesting that peace through mechanisms such as social development, the rule of law, and training, is only achieved if economic needs are alleviated through these measures. We conclude by citing how contextual factors in conflict zones can enhance intergroup differences, and how resolving such factors can promote peacebuilding, with further empirical work needed in this area. (shrink)

Most studies of corporate social responsibility have focused on the organisational level, while the individual level of analysis has been treated as a ‘black box’ when researching antecedents of CSR engagement or disengagement. This article offers insights into a small and medium-sized enterprise that is recognised as a pioneer in CSR. Although the extant literature suggests that the owner-manager is crucial in the implementation of CSR, this study reveals that employees drive CSR. The employees in the focal firm voluntarily joined (...) forces based on their shared perception of moral responsibility for CSR and they developed strict targets to be achieved by 2030. Despite their strong ethical and moral perspective when enacting CSR, they disengaged from their moral responsibility for CSR in various contexts. This paper contributes to the theory of moral decoupling by uncovering a novel context of disengagement—‘visionary procrastination’. Visionary procrastination is suggested to be a particularly relevant context of disengagement when individuals perceive moral responsibility for CSR. Moreover, by delivering insights into the antecedents of employee-initiated CSR on the organisational level, this study adds to the growing body of literature on the micro-foundations of CSR. (shrink)

This paper advances stakeholder salience theory from the viewpoint of small businesses. It is argued that the stakeholder salience process for small businesses is influenced by their local embeddedness, captured by the idea of social proximity, and characterised by multiple relationships that the owner-manager and stakeholders share beyond the business context. It is further stated that the ethics of care is a valuable ethical lens through which to understand social proximity in small businesses. The contribution of the study conceptualises how (...) the perceived social proximity between local stakeholders and small business owner-managers influences managerial considerations of the legitimacy, power and urgency of stakeholders and their claims. Specifically, the paradoxical nature of close relationships in the salience process is acknowledged and discussed. (shrink)

This article theoretically proposes and empirically verifies an understudied issue in the business ethics and corporate social responsibility literature—how moral degradation in a society influences the relationship between BE or CSR and firm performance. Building on strategic choice theory, we propose that both BE and CSR become more important in enhancing business success when the perceived MD is heightened. Our analysis of 300 firms operating in China statistically confirms our hypotheses: first, under high MD, firms’ engagement in CSR results in (...) higher corporate legitimacy and competitive advantage, and second, their adherence to ethical business codes leads to higher corporate legitimacy. We conclude the article by outlining the implications for both theory and practice. (shrink)

Employee buy‐in is a key factor in ensuring small‐ and medium‐size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi‐structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but tradeoff within (...) these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

Workplace incivility is a current challenge in organizations, including smaller firms, as is the development of programs that enhance employees’ treatment of coworkers and ethical decision making. Ethics programs in particular might attenuate tendencies toward interpersonal misconduct, which can harm ethical reasoning. Consequently, this study evaluated the relationships among the presence of ethics codes and employees’ locus of control, social aversion/malevolence, and ethical judgments of incivility using information secured from a sample of businesspersons employed in smaller organizations. Results indicated that (...) ethics code presence was associated with a more internal locus of control and stronger ethical judgment of workplace incivility. Social aversion/malevolence was negatively related to ethical judgment, and internal locus of control was positively related to ethical judgment. Smaller firms should develop ethics codes to manage individuals’ perceptions of control, thus encouraging enhanced ethical reasoning in situations that involve the mistreatment of coworkers; they should also monitor counterproductive tendencies that harm such reasoning and precipitate incivility. (shrink)

This study focuses on the prediction of the engagement of small- and medium-sized enterprises (SMEs) in environmental management practices, based on a random sample of 689 SMEs. The study finds that several endogenous factors, including tangibility of sector, firm size, innovative orientation, family influence and perceived financial benefits from energy conservation, predict an SME’s level of engagement in selected environmental management practices. For family influence, this effect is found only in interaction with the number of owners. In addition to empirical (...) research on SMEs’ environmental behavior, this article draws on the ecological modernization literature as well as the theory of planned behavior. (shrink)

Developing countries have recently experienced a burgeoning of small-scale individual entrepreneurs (SIEs) – who range from petty traders to personal service workers like small street vendors, barbers and owners of small shops – as a result of market-based reforms, rapid urbanisation, unemployment, landlessness and poverty. While SIEs form a major part of the informal workforce in developing countries and contribute significantly to economic growth, their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing, (...) sale of underweight or substandard products, or attempts to hoard goods, to name a few. Despite the growing interest in corporate social responsibility (CSR) initiatives of small businesses in developing countries, the SIEs have received almost no attention. To address this void in the literature, we explore the reasons for the less than optimal level of social responsibility demonstrated by some SIEs in developing countries. We do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of SIEs highlighting their unique characteristics and the different contextual factors that they encounter in developing countries. Based on this framework, we then present a set of propositions specifying the influence of these contextual factors such as business environment, cultural traditions, socio-economic conditions, and both international and domestic pressures on the business practices of SIEs. The framework offers an explanation for the lack of responsible entrepreneurship of SIEs and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete. (shrink)

Studies into corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) have suggested that small businesses are different to the large companies on which CSR research usually focusses. Extending this argument, this article raises the question what differences in approaches to CSR there are within the SME category. Analysing the CSR strategy and performance of a medium-sized fashion retailer in the United Kingdom through manager interviews as well as customer and employee surveys, the article develops an analytical framework of (...) CSR in small, medium and large firms. The argument is developed that medium-sized firms occupy a transition stage, where some CSR features that are reminiscent of small enterprises are still important but get overlaid with aspects that are more typical of large companies. (shrink)

We conducted an international survey of 211 scholars with expertise in business ethics. Each respondent was asked to identify the three most important issues that business ethics academia will face in the coming decade. Using content analytic procedures, responses were categorized and analyzed for commonalities. The results suggest that the most important issues facing business ethics academia in the future will be the following: issues relating to business ethics education such as curriculum, pedagogy, faculty, and accreditation the credibility of the (...) business ethics field, environmental issues, issues relating to business ethics research such as research tools and quality of business ethics research the decline of ethical behavior in society and organizations, corporate social responsibility, globalization, and the institutionalization of ethics into business. We maintain that these issues have important teaching and research implications for the future sustainability of the business ethics discipline. (shrink)

In this article, we explore the implicit conceptions of business ethics and social responsibility of owners−managers of small and medium enterprises (SME) in Cameroon. While using a hermeneutical approach, our main objective is to clarify how Sub-Saharan African business people themselves understand and define corporate responsibility in their particular economic and political environment. Our aim is not to deliver an empirical study of business practices and management behavior in SMEs. We wish to discuss which responsibilities they themselves judge to be (...) relevant and which can legitimately be attributed to them by third parties. Secondly, we relate our findings to other empirical work on SMEs, in Africa and elsewhere. It is shown that there are similarities with the way in which SMEs in Europe interpret their responsibility, but also striking differences. Further, we relate our findings to some theoretical controversies around corporate social responsibility (CSR) in SMEs, to questions about evaluation tools for CSR in the SME context, and to the role of CSR with respect to poverty alleviation in developing countries. (shrink)

The link between corporate social responsibility (CSR) and competitiveness has been examined mainly at the business level. The purpose of this paper is to improve conceptual understanding and provide empirical evidence on the link between CSR and competitiveness at the national level. We draw on an eclectic-synthetic framework of international economics, strategic management and CSR literatures to explore conceptually whether and how CSR can impact on the competitiveness of nations, and test our hypotheses empirically with a sample of 19 developed (...) countries over a 6-year period. Our evidence suggests that CSR can make a significant positive contribution to national competitiveness, as measured by national living standards. We also find that countries with a relatively low innovation record can benefit more, as compared to highly innovative countries, by implementing nationwide CSR-based positioning strategies. (shrink)

The purpose of this article is to develop a model of how managers perceive the responsibilities of business towards society. The article is based on the survey responses of more than 1,000 managers in eight large international firms. It is concluded that the managerial perceptions of societal responsibilities differ in some respects from the mainstream models found in the corporate social responsibility (CSR) and business ethics literature. The article is an output of RESPONSE: an EU- and corporate-funded research project on (...) managerial perceptions of CSR. (shrink)

In the December 2006 edition of Harvard Business Review, Michael Porter and Mark Kramer argue that by approaching corporate social responsibility (CSR) based on corporate priorities, strengths and abilities, firms can develop socially and fiscally responsible solutions to current CSR issues, which will provide operational and competitive advantages. We agree that an effective approach to CSR includes a mapping of strategy, risk and opportunity. However, we also caution that the identification of these to the exclusion of societal input may not (...) be to the corporation's advantage. Instead, an investment in both strategic analysis and social capital can pay off from a social and an organizational standpoint. Compared with their larger counterparts, small‐ and medium‐sized enterprises (SMEs) frequently have stronger relationships with their internal and external stakeholders that foster the development of social capital. As such, we believe that the sector offers a unique opportunity to identify additional models and frameworks in order to approach a strategic CSR model as espoused by Porter and Kramer. This paper explores a case study of one Canadian SME that uses a community development framework called Asset Based Community Development (ABCD) for its CSR programming. Because ABCD relies heavily on the development and maintenance of social capital and can be utilized to attain set objectives, we propose that it provides a supplementary framework through which the arguments of Porter and Kramer can be expanded. In applying the ABCD framework for CSR, we can begin to establish a programme that supports strategy, integrates employees and stakeholders towards a common vision, and creates unique and sustainable alternatives towards the resolution of social and corporate goals. (shrink)

The goal of this research is to analyze the heterogeneity of family firms in the normative attention to their non-family stakeholders. With this aim, we suggest that the psychological process of top family managers in terms of individual affective commitment to their firms is a key variable to explain that heterogeneity. However, we also suggest a moderator effect of the family stakeholder salience in the relationship between the managers' affective commitment to the firm and the establishment of firm goals toward (...) non-family stakeholders. The results of a hierarchical regression analysis on data obtained from 207 family executives show a significant positive influence of managers' affective commitment on the establishment of goals related both to internal and external non-family stakeholders. In addition, we can observe a negative moderator effect of the family utilitarian power—as an indicator of the family stakeholder salience—on the relationship between the family managers' affective commitment and the goals related to non-family employees. (shrink)

Small family businesses have generally been shown to exhibit significant concern for social responsibility, especially at the community level. Despite the reported heterogeneity of family firms in their preferences for and participation in social responsibility, the drivers of such differences are not agreed upon in the literature. We draw from enlightened self-interest and social capital theories by exploring their complementary and competing implications for the effect of duration and community satisfaction on participation in community-oriented social responsibility. Additionally, drawing on the (...) association between gender and self-construal and evidence that gender shapes helping and giving behaviors, we assess the moderating role of the gender of the firm manager in these relationships. We test our hypotheses on a sample of 279 family businesses and find support that gender moderates the relationship between community duration and satisfaction and measures of CSR. (shrink)

Drawing on managerial discretion and conflicting institutional logics literature, this study investigates the relation between the personal sustainability behaviors of owner–managers and the corporate sustainability practices of SMEs. The research proposes a contingency model that assesses the moderating effects of perceived economic advantages and environmental hostility on this relationship. Based on linear hierarchical multiple regression analyses of a cross-sectoral sample of French SMEs, the results suggest a positive influence of the manager's PSB on the SME's CS practices that appears to (...) be differently moderated depending on the type of practice considered. The influence on environmental practices is fostered through the perception of economic advantages. The influence on workplace practices is only effective when the business environment is deemed benign and the influence on community practices is dampened by the perception of environmental hostility. Highlighting the trade-off between the manager's personal values and the SME's economic constraints, these findings contribute to a better understanding of the critical antecedents of sustainability in small businesses. (shrink)

Based on the concept of shareholder primacy, many scholars have argued that it is more important for businesses to earn profits for their shareholders than to provide benefits to society at large. Corporate social responsibility is often regarded as an investment that comes at the expense of shareholders. In contrast, research analyzing the connections between the equity ownership structure of a company and its level of CSR engagement suggests that CSR offers benefits to shareholders that go beyond direct financial returns (...) from investments. This study provides a comprehensive review and systematic assessment of theoretical considerations and approaches regarding different forms of equity ownership and their relationships to CSR, and it discusses the relevant benefits and motivations of shareholders. The perceived value of these CSR benefits varies among different types of shareholders, as they assign unequal values to short-term financial or to rather long-term CSR benefits. Based on a literature sample of 146 publications, this review demonstrates central problems inherent in previous analyses. Given the ambiguous and partially contradictory findings of prior research, this study identifies potential moderating influences that help clarify empirical evidence. A contingency approach is suggested in future research, as this can help resolve the problem of contradictory empirical findings and theoretical arguments. (shrink)

A recent preoccupation in scholarly research is the capacity of firms in developing country industrial clusters to comply with international corporate social responsibility policies and codes of conducts. This research is at an early stage and draws on several—often quite distinct—scholarly traditions. In this paper, we argue that future work in this area would benefit from a more explicit examination of the connection between cluster firms and human rights defined according to the 1948 Universal Declaration of Human Rights and subsequent (...) covenants and treaties. We argue that cluster firms’ adoption of CSR policies, often indiscriminately imposed by global buyers, should be differentiated from firms’ actual human rights practices. Based on this distinction, we elaborate a typology of industrial clusters and identify a set of factors likely to influence their practice. Against this background, we discuss an agenda for future research and elaborate on the potential methodological intricacies related to research on the interface between industrial clusters and human rights. (shrink)

This paper examines the process through which micro-businesses ‘go green’. It builds upon previous studies that have identified the different drivers of this greening process. However, rather than a static focus on specific drivers, the study articulates the evolution of environmental practices over time. The paper uses comparative case studies of six micro-businesses to build a composite sequence analysis that plots the greening process from its roots through to large-scale and ambitious ecological projects. The study identifies three distinct stages that (...) businesses pass through during this greening process. This has important implications for policy-makers and advisors as it was found that the support needed by the businesses changed as they passed through these different stages. In particular, it was found that appropriate support is currently lacking at certain key points of the businesses' greening development. The paper therefore adds to current understanding of small business ecological responsibility by showing how activities and drivers change with the level of engagement. Pointers are provided as to how support can be improved. (shrink)

This paper contributes to a growing body of literature analyzing the social responsibilities of SMEs (Sarbutts, 2003, Journal of Communication Management 7(4), 340-347; Castka et al., 2004, Corporate Social Responsibility and Environmental Management 11, 140-149; Enderle, 2004, Business Ethics: A European Review 14(1), 51-63; Fuller and Tian, 2006, Journal of Business Ethics 67, 287-304; Jenkins, 2006, Journal of Business Ethics 67, 241-256; Lepoutre and Heene, 2006, Journal of Business Ethics 67, 257-273; Roberts, 2003, Journal of Business Ethics 44(2), 159-170; Williamson (...) et al., 2006, Journal of Business Ethics 67, 317-330) by designing a conceptual framework based on the Strategic Management Theory, which links social issues to the creation of sustained competitive advantages for SMEs. Firstly, the paper reviews literature on corporate social responsibility (CSR) and especially on the creation of social capital for SMEs. An exploration of Strategic Management Theory follows, focusing on the Positioning and Competence Based Schools, with the objective to find an answer to the question: how do social and environmental issues fit in the logic of creation of competitive advantage and what role do they play during strategic planning? The contributions of Hart (natural resourced based view) and Porter and Kramer (development of strategic intent in social responsible actions) are then related to the framework of possible growth paths of SMEs (Hong and Jeong, 2006, Journal of Enterprise Information Management 19(3), 292-302) in order to answer this question. Strategies that could trigger or lever these growth paths are then discussed. Following the recommendation Thompson and Smith (1991, Journal of Small Business Management 29(1), 30-44) gave to focus on the "study of CSR behaviors instead of perceptions," a medium-sized Austrian company in the food producing industry has been identified for an exploratory case study analysis to test the applicability of this theoretical framework for the description of the actual responsible business behavior (RBB) of an SME. This company is typical of one of the 250.000 SMEs which account for 99.6% of the Austrian economy. Based on the findings and the discussion, this paper presents a strategic planning tool for SMEs aiming to embed RBB into the corporate strategy. (shrink)

In the December 2006 edition of Harvard Business Review , Michael Porter and Mark Kramer argue that by approaching corporate social responsibility (CSR) based on corporate priorities, strengths and abilities, firms can develop socially and fiscally responsible solutions to current CSR issues, which will provide operational and competitive advantages. We agree that an effective approach to CSR includes a mapping of strategy, risk and opportunity. However, we also caution that the identification of these to the exclusion of societal input may (...) not be to the corporation's advantage. Instead, an investment in both strategic analysis and social capital can pay off from a social and an organizational standpoint. Compared with their larger counterparts, small- and medium-sized enterprises (SMEs) frequently have stronger relationships with their internal and external stakeholders that foster the development of social capital. As such, we believe that the sector offers a unique opportunity to identify additional models and frameworks in order to approach a strategic CSR model as espoused by Porter and Kramer. This paper explores a case study of one Canadian SME that uses a community development framework called Asset Based Community Development (ABCD) for its CSR programming. Because ABCD relies heavily on the development and maintenance of social capital and can be utilized to attain set objectives, we propose that it provides a supplementary framework through which the arguments of Porter and Kramer can be expanded. In applying the ABCD framework for CSR, we can begin to establish a programme that supports strategy, integrates employees and stakeholders towards a common vision, and creates unique and sustainable alternatives towards the resolution of social and corporate goals. (shrink)

This paper examines the process through which micro-businesses ‘go green’. It builds upon previous studies that have identified the different drivers of this greening process. However, rather than a static focus on specific drivers, the study articulates the evolution of environmental practices over time. The paper uses comparative case studies of six micro-businesses to build a composite sequence analysis that plots the greening process from its roots through to large-scale and ambitious ecological projects. The study identifies three distinct stages that (...) businesses pass through during this greening process. This has important implications for policy-makers and advisors as it was found that the support needed by the businesses changed as they passed through these different stages. In particular, it was found that appropriate support is currently lacking at certain key points of the businesses' greening development. The paper therefore adds to current understanding of small business ecological responsibility by showing how activities and drivers change with the level of engagement. Pointers are provided as to how support can be improved. (shrink)

Firms engage in social responsibility activities for diverse reasons. This study focuses on understanding firms' instrumental motivations for engaging in socially responsible activities. We suggest that the instrumental motivations underlying firms' corporate social responsibility engagement are associated with their market, learning, and risk-related behaviors; thus, we identify market orientation, learning orientation, and risk-taking attitudes as three constructs that influence firms' CSR engagement. This research was conducted in the Norwegian firewood sector, in which CSR expectations are high and in which we (...) expect CSR engagement to be encouraged by both instrumental and normative motivations. The firms in this study are micro-firms with fewer than 10 employees and represent an important but highly neglected segment of firms in CSR research. Data obtained from 230 firms were analyzed using structural equation modeling. Our results indicate that market orientation, learning orientation, and risk-taking attitudes affect social responsibility toward different stakeholder groups in different ways. In some cases, the size and age of firms also affect these relationships. (shrink)

This study examines the relationship between cooperative business relations in small businesses and environmental protection, one of the most important policies of social responsibility in manufacturing. We reviewed the literature and carried out an empirical study of 930 small manufacturing firms in Spain. Results indicate that small businesses that maintain and improve their cooperative relations through business networking with universities, competitors, suppliers and customers spend more on environmental protection. The managerial, practical, research and policy implications of the obtained research findings (...) are discussed. (shrink)

Based on the literature on stakeholder management and family firm dynamics, this research analyses the relationship between three constructs: the identification of business families with their family firms, FFs’ orientation toward key non-family stakeholders, and the achievement of better economic performance. Data analyses from 374 family and non-family members of 173 Spanish FFs show that a high level of family identification with their firms affects the orientation of FFs toward key non-family stakeholders in setting corporate goals and that this orientation (...) will lead to higher economic performance only when it is built on family identification with the firm. Our results also show that the significance of both relationships changes with the degree of family involvement in the management of the FF. (shrink)

Conflict zone entrepreneurs—local entrepreneurs running small businesses in conflict settings—have paradoxical impacts on stability: holding the ability both to foster peace but also to enhance conflict. Prior scholarly work has been unable to explain this divergence, as existing entrepreneurial indicators do not account for fundamental peacebuilding elements. In response, the article consolidates divergent fields of study, applies paradox theory to analyze underlying tensions in the field, and reframes entrepreneurship through a peacebuilding lens based on intergroup inclusivity and value-creating business practices. (...) Using several cases, this article shows how entrepreneurial activity in conflict zones can foster sustainable peace, limited peace, or conflict, arguing that entrepreneurship based on value-creating and inclusive practices can result in pro-peace outcomes. The article offers policy recommendations for local governments and the humanitarian sector seeking to use entrepreneurship in conflict zones to promote peace. (shrink)

This article examines the different discursive resources on which small business owner–managers draw when understanding their sense of self in relation to corporate social responsibility. In the small business context, identity provides a justifiable framework to study corporate social responsibility, as decisions regarding socially responsible activities are mainly taken by managers and stem from their sense of who they are in the world. On the basis of 25 thematic interviews with owner–managers, two broad discursive resources were found that describe how (...) they actively seek to create and legitimise their sense of self within the discussion on corporate social responsibility. These discursive resources are called being altruistic and being instrumental. The findings emphasise that the essential and also the most challenging feature in small business owner–managers' identity work is the process of reconciling economic values with the social and ethical aspects of business life. (shrink)

This article examines the different discursive resources on which small business owner–managers draw when understanding their sense of self in relation to corporate social responsibility. In the small business context, identity provides a justifiable framework to study corporate social responsibility, as decisions regarding socially responsible activities are mainly taken by managers and stem from their sense of who they are in the world. On the basis of 25 thematic interviews with owner–managers, two broad discursive resources were found that describe how (...) they actively seek to create and legitimise their sense of self within the discussion on corporate social responsibility. These discursive resources are called being altruistic and being instrumental. The findings emphasise that the essential and also the most challenging feature in small business owner–managers' identity work is the process of reconciling economic values with the social and ethical aspects of business life. (shrink)

This paper develops a set of 16 criteria, divided into four groupings, for responsible business practice (RBP) in Small and Medium-Sized Enterprises (SMEs) drawn from the existing SME/RBP literature. The current lack of a general set of criteria against which such activity can be judged is noted and this deficit is redressed. In order to make an initial assessment in support of the criteria so derived, an exploratory feasibility study of RBP in U.K. Fair Trade organisations was conducted. The findings (...) from this study show that most but not all of the RBP criteria seem to be applicable to U.K. Fair Trade organisations but it is recommended that the complete set of criteria continues to be used in further research until such time as there is a general consensus as to which criteria are appropriate. Implications for RBP in small businesses in general, and for Fair Trade organisations in particular, are drawn out and suggestions for further research are identified. (shrink)

The business case for social responsibility is one of the most widely studied topics in the business and society literature that focuses on large firms. This attention is understandable because large firms have an obligation to shareholders who, as commonly assumed, seek to maximize returns on their investments, in turn, pressing corporate managers to show that firms’ expenditures in social engagement would pay off. Small firms, on the other hand, rarely face such pressures, yet the BCSR logic is increasingly applied (...) to small firms as well. Our primary objective in this paper is to examine whether and how much do small firm owners’ perceptions of BCSR affect the firm’s social engagement. In finding a fine-grained answer to those questions, we consider BCSR as a two-dimensional construct consisting of tangible and intangible benefits, and also integrate the BCSR perspective with the slack resource perspective to offer a motivation-capacity lens to examine firm’s social engagement. Drawing on a multi-industry sample of 478 small firms in the US, we find that while small firm owners’ perceptions about potential tangible benefits of social engagement are not related to the firm’s social engagement, perceptions about potential intangible are positively related. Firm's financial performance is also positively related to its social engagement, but there is no interaction between potential benefits and financial performance. This study contributes to an improved understanding about small firms’ social engagement, which still remains an understudied area. Our results are in line with studies which argue that firms’ social engagement is a response to institutional factors. (shrink)

In this paper, I present a systematic approach to stakeholder theory based on social capital: the stakeholder social capital approach. Social capital is a relatively novel concept in stakeholder theory, which in previous research was not properly defined or systematically developed. This paper aims to fill this gap by taking into account the specificities of the stakeholder theory, which implies an explicit consideration of values. Therefore, the stakeholder social capital concept is defined by four dimensions (relational, cognitive, structural and evaluative) (...) instead of three (relational, cognitive and structural). I present the stakeholder social capital approach according to Donaldson and Preston's distinction: the descriptive, instrumental and normative. The descriptive perspective implies mapping the stakeholder networks based on the four dimensions and implies a shift toward relationships rather than groups of stakeholders. The instrumental perspective based on the relational view focuses on the drivers of relational rents within the network (relational assets, knowledge routines, complementary resource endowments and effective governance) and the normative perspective aims to foster a relational view of society. (shrink)

The stakeholder approach has become a popular perspective in mainstream management and the corporate social responsibility (CSR) literature. However, it remains an open question as to how real-life managers actually view stakeholders and what rationales and logics are used for explaining the relationship between the firm and its constituencies. This article examines whom managers in multinational corporations (MNCs) consider to be their important stakeholders, and how they describe the societal responsibilities towards these groups and individuals. It is concluded that managers (...) still tend to hold a rather narrow (managerial) view of the firm and generally give priority to stakeholder groups who are directly involved in the firm's core transformation system. The conclusions are derived from interview and survey data from 647 managers in four MNCs. The paper is based on data collected as part of project RESPONSE: a European Union- and corporate-funded initiative on CSR. (shrink)

This paper analyzes how national institutions impact corporate social responsibility practices for small- and medium-sized enterprises in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance and the CSR approach. Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in France and (...) Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets. (shrink)

This paper analyzes how national institutions impact corporate social responsibility practices for small- and medium-sized enterprises in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance and the CSR approach. Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in France and (...) Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets. (shrink)