The aim of this research is to explore the process linking participative leadership to organizational identification. The study examines the relationship between participative leadership and internal CSR perceptions of employees and also investigates the role that pride in membership plays in the affiliation of CSR perceptions with organizational identification. By studying these relationships, the paper aspires to contemplate new presumed mediators in the association of participative leadership with organizational identification as well as determine a possible novel antecedent of employee CSR (...) perceptions. Empirical evidence is provided from data that was collected through a survey distributed to employees working for small- and medium-sized enterprises in three countries in the Middle East and North Africa regions, particularly the United Arab Emirates, Lebanon, and Tunisia. Findings show that participative leadership leads to positive internal CSR perceptions of employees and that these CSR perceptions lead to pride in membership which, in turn, results in organizational identification. Implications of these findings are also discussed. (shrink)

Existing scholarly work on corporate social responsibility frequently emphasizes either normative/ethical claims about social progress or instrumental/strategic claims about corporate effectiveness, yet less often acknowledges the moral conditions of those undertaking CSR within a specific cultural context. In this paper, we draw attention to the social conditions in which CSR takes place and the related ethics of the subjects that must enact it. Our approach is to document the lived experiences of practitioners in Romania, a post-communist society. Drawing from fifty-three (...) depth interviews with both corporate responsibility practitioners, and managers in non-profit organizations who together work on CSR projects, we describe their experiences of the social and organizational environment, the CSR practices that are undertaken in this context, and the intended and unintended consequences of such work. Using Bauman’s theorization of ethics, including adiaphora and moral distancing, and Borţun’s interpretation of Romanianness, we then theorize liquid CSR as an ambivalence between adiaphoric practice and the moral impulse to do good, resulting in both intended and unintended consequences. (shrink)

This article discusses the ethics and drivers of philanthropic foundations in emerging markets. A foundation organizes assets to invest in philanthropic initiatives. Previous scholarship has largely focused on developed countries, especially the United States, and has questioned the ethics behind the activities of foundations, particularly for strategic motives that served wider corporate purposes. We argue that philanthropic foundations in emerging markets have distinctive characteristics that merit separate examination. We scrutinize the ethics behind the longitudinal activity of such foundations using 70 (...) oral history interviews with business leaders in 18 countries in Africa, Asia, Latin America, and the Middle East. We find that 55 out of 70 foundations associated with these leaders have been used as vehicles for a specific type of philanthropic ethics defined as “spiritual philanthropy”. These foundations often embodied personal or family traditions, culture, and religious values, which emphasized charitable giving and social responsibility. As in the case of many of the industrial foundations in Europe, these foundations also carried founding family names and provided a structure to maintain family control and enhance corporate reputation. We argue that, as business leaders in emerging markets are more directly exposed to dire social, educational and health deprivation than their counterparts in developed countries, they are less inclined toward grandiose world-making, and their foundations are more focused on delivering immediate benefits to communities in their home countries, motivated by implicit or explicit spirituality. (shrink)

One of the key debates in the literature on small and medium enterprises and corporate social responsibility in developing countries has to do with the role that local industrial districts, or so-called industrial clusters, play in the promotion of CSR in those countries. While there is now an embryonic literature on this subject, we lack systematic, integrated analytical frameworks that can improve our understanding of the role that governance of clusters play in addressing CSR concerns in SMEs in developing countries. (...) This article develops such a conceptual framework drawing on the literatures on cluster governance, CSR, SMEs, and environmental management as they relate to the developing countries. The authors argue that environmental improvements in SME clusters can be achieved through three basic types of cluster governance: legal enforcement, supply chain pressure, and voluntary engagement in CSR. The proposed framework is an attempt to show how each type of cluster governance is likely to induce different responses in cluster-based SMEs. These responses are related to stages of CSR in which SMEs engage, the barriers to EM they face, the types of EM practices they use, the climate change strategy types they use, and the kinds of benefits that accrue to SMEs from engagement in CSR. The authors put foward a framework that can be useful for both academics and practitioners as they seek to reflect on the interconnectedness of these themes from a research, policy, and practice perspective. (shrink)

Business Ethics: A European Review, EarlyView.

We study the values on which managers of small and medium-sized enterprises (SMEs) draw when constructing their personal and organizational-level engagement with environmental issues, particularly climate change. Values play an important mediating role in business environmental engagement, but relatively little research has been conducted on individual values in smaller organizations. Using the Schwartz Value System (SVS) as a framework for a qualitative analysis, we identify four “ideal-types” of SME managers and provide rich descriptions of the ways in which values shape (...) their constructions of environmental engagement. In contrast to previous research, which is framed around a binary divide between self-enhancing and self-transcending values, our typology distinguishes between individuals drawing primarily on Power or on Achievement values and indicates how a combination of Achievement and Benevolence values is particularly significant in shaping environmental engagement. This demonstrates the theoretical usefulness of focusing on a complete range of values. Implications for policy and practice are discussed. (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)

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)

According to surveys of companies, branding is one of the main objectives of their corporate social responsibility. With advantageous data from Brand Finance, we address three contextual factors that may condition the relationship between CSR and brand value. First, we hypothesize that the relationship between CSR and brand value obtains across major world regions and industrial sectors. Second, we hypothesize that the relationship has weakened with time, as companies have had increasing difficulty using CSR to differentiate their brands in a (...) sea of CSR-espousing competitors. Third, we hypothesize that the relationship between CSR and brand value is weaker where a brand’s identity is different from that of its corporate owner, which may make it difficult for observers to readily link CSR with its potential brand beneficiaries. We support these hypotheses with random-effects, fixed-effects, and instrumental-variable regressions before ending with contributions, limitations, implications, and potential next steps. (shrink)

In this introductory article we explore the relationship between statehood and governance, examining in more detail how non-state actors like MNCs, international NGOs, and indigenous authorities, often under conditions of extreme economic scarcity, ethnic diversity, social inequality and violence, take part in the making of rules and the provision of collective goods. Conceptually, we focus on the literature on Areas of Limited Statehood and discuss its usefulness in exploring how business-society relations are governed in the global South, and beyond. Building (...) on insights from this literature, among others, the four articles included in this special issue provide rich illustrations and critical reflections on the multiple, complex and often ambiguous roles of state and non-state actors operating in contemporary Syria, Nigeria, India and Palestine, with implications for conventional understandings of CSR, stakeholders, and related conceptualizations. (shrink)

Business Ethics: A European Review, EarlyView.

Studies on small and medium enterprises or SMEs in India are scarce. What little is known shows that there is a need to know more about this sector, specially on their performance on responsible business practices. This paper reports the findings on the environmental awareness and practices of some Indian SMEs, from a study conducted by the present authors on 200 SMEs, in the manufacturing and service sectors, in the two Indian states of West Bengal and Odisha. The study results (...) show that environmentally responsible practices and the related concept of social responsibility of business are yet to take root at the Indian SME level. Some of the major findings reported are the lack of knowledge and interest about environmentally responsible business practices among the SME owner–managers, the perceived disconnect between environmental practices and socially responsible business practices, the total absence of reporting practices in the sector, and the disinterest in the 14001 certification. The study also mentions the perceived barriers and constraints reported by the SME owner–managers in the path of greater engagement with the environment. On the whole, the study concludes that there is an urgent need for sensitization, training, and mentoring the Indian SME owner–managers in order to develop their capabilities for improved environmentally responsible business practices. (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)

Se reconoce que la responsabilidad social empresarial (RSE) genera un impacto positivo en el desempeño de los negocios, principalmente en la gran empresa, sin embargo, su sostenibilidad en las PYMEs es debatida. Este artículo propone un modelo de RSE para PYMEs desarrollado a partir de una revisión bibliográfica y que luego fue examinado en un grupo de microempresas que practican RSE. A través del análisis narrativo se encontró que es factible realizar acciones de RSE en estos negocios, pero hay que (...) tomar en cuenta la familia, el trabajo colaborativo y el apoyo institucional como factores adicionales que influencian su sostenibilidad. (shrink)

This article contributes to the limited literatures on small- and medium-size enterprises and corporate social responsibility. Using an institutional theoretical framework, we analyzed fieldwork interviews with twenty SMEs and perspectives of 165 SME managers and workers in textiles, garment, and footwear industries, the most important wage-earning sector in Vietnam. Having understood in the context of a developing “market economy with socialist orientation”, we find that socially responsible practices and expectations developed long before the arrival of CSR as a western concept (...) and an MNC agenda. While identifying and contributing ideas concerning forms of “informal” CSR practices—influenced by social and cultural expectations—to the CSR/sme literature, we are conscious of the mixed effects of these practices and the ongoing nuanced negotiations between workers and managers in these SMEs. In our research, we found that it takes both domestic and international stakeholders to improve labor conditions in Vietnam under the banner of CSR. (shrink)

The separation thesis states that business and moral decision making should and can be differentiated clearly. This study provides empirical support for the competing view that the separation thesis is impossible through a case study of the Rotary Club, which fosters an ethical orientation among its global business and professional membership. The study focuses attention on the Club in the early to middle 20th century. Based on a reading of their service doctrine, the four objects of Rotary and the Four (...) Way Test, the author argues that the example of the Rotary Club undermines the separation thesis. The Rotary message was conceptually ambiguous: it did not clearly differentiate business roles from social activities; rather both fed into each other, with the business tools developed by members and disseminated by Rotary, utilized in nonbusiness contexts with a view to enhancing societal well-being. (shrink)

Small businesses in developing countries, as part of global supply chains, are sometimes assumed to respond in a straightforward manner to institutional demands for improved working conditions. This article problematizes this perspective. Drawing upon extensive qualitative data from Tirupur’s knitwear export industry in India, we highlight owner-managers’ agency in avoiding or circumventing these demands. The small businesses here actively engage in irresponsible business practices and “evasion” institutional work to disrupt institutional demands in three ways: undermining assumptions and values, dissociating consequences, (...) and accumulating autonomy and political strength. This “evasion” work is supported by three conditions: void, distance, and contradictions. Through detailed empirical findings, the article contributes to research on both small business social responsibility and institutional work. (shrink)

Business Ethics: A European Review, EarlyView.

This study examines corporate stakeholder orientation across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their shareholder and specific non-shareholder orientations in the midst of institutional pressures emerging from country and industry contexts. Using a 7-code index of CSO on CEO–shareholder communications from India, we find that in general large firms in India exhibit a pre-dominant, significant and rising trend of pro-shareholder orientation in (...) the six-year period immediately preceding the CSR law. Yet, we uncover significant industry differences in CSO potentially driven by four key factors: the degree of competitive dynamics, nature of products and services, extent of negative externalities and social activism, and exposure to international markets. Our findings support the view that while some minimum threshold of regulatory intervention is required to balance the interests of business with society, legislation raises questions in relation to the usefulness of a uniform one-size-fits-all CSR across all industries. (shrink)