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)

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)

Collaborative governance (CG) is becoming the common currency of decision‐making, able to surmount existing institutional constraints to effectively address challenges related to sustainability and social and environmental corporate behavior. CG approaches may however result in institutional complexity. As an illustration of CG in the domain of corporate social responsibility (CSR), the ISO 26000 standard is a legitimate point of reference for organizations worldwide. The standard represents a pluralistic institutional logic that resonates several tensions arising from the domain it tries to (...) standardize, the nature of its development process, its interpretation of CSR and the type of standard it represents. This article aims to identify and examine strategic responses to ISO 26000 by various standards‐related organizations (including national standardization institutes, certification organizations, and service providers) and to contribute to the understanding of strategic responses of organizations to pluralistic institutional logics that result from CG. (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)

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)

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner—managers' perceptions of stakeholder management in six European countries. The comparative analysis is followed by (...) a discussion of how institutional, cultural and linguistic contexts can influence owner—managers' sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe. (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)

Operational and financial sustainability have, over time, remained as issues in the microfinance industry. The microfinance industry is struggling to gain self-sufficiency in Pakistan due to non-performing loans and operating costs. Simultaneously, deliberation on corporate social responsibility is also considered in academic literature and organizational practices. However, studies on CSR and financial performance in the microfinance sector are scarce, especially in Pakistan. CSR will develop customer attraction and loyalty, employee attraction, motivation and commitment, MFIs' reputation and access to capital, and (...) eventually build financial performance. Interviews were conducted with branch managers of microfinance institutions to test previous questionnaires. A self-administered survey was conducted to collect data from the managers of the microfinance banks operating in Punjab. Descriptive and inferential statistics were performed to answer research questions using Smart PLS. Most of the microfinance institutions believe in social responsibilities but lacks fund allocation and approval from higher management, and results are in line with prior studies. These empirical findings lead to the perception that CSR is not a barrier performance in microfinance banks as they have access to capital. The results indicated a strong positive correlation between CSR and the financial performance of the MFIs. CSR also positively correlates with customer retention, employees' motivation and attraction, and business reputation. CSR was associated with access to capital but was found to be weak. The research also narrated the limitation and practical implications of the study. The study also discusses further research directions. (shrink)

Chief Executive Officers and other organizational leaders can affect how corporate social responsibility initiatives are perceived in their organizations. However, in order to be successful with regard to promoting CSR, leaders need to have strong network competencies and to move beyond charismatic leadership. In this paper we offer a critique of charismatic leadership as it relates to CSR, posit that the intellectual stimulation brought about by transformational leadership is more important in this regard, propose that internal and networking is a (...) leadership competence highly relevant to CSR, and emphasize the importance of working through highly credible opinion leaders in promoting CSR. (shrink)

The corporate citizenship (CC) concept introduced by Dirk Matten and Andrew Crane has been well received. To this date, however, empirical studies based on this concept are lacking. In this article, we flesh out and operationalize the CC concept and develop an assessment tool for CC. Our tool focuses on the organizational level and assesses the embeddedness of CC in organizational structures and procedures. To illustrate the applicability of the tool, we assess five Swiss companies (ABB, Credit Suisse, Nestlé, Novartis, (...) and UBS). These five companies are participants of the UN Global Compact (UNGC), currently the largest collaborative strategic policy initiative for business in the world (www.unglobalcompact.org). This study makes four main contributions: (1) it enriches and operationalizes Matten and Crane’s CC definition to build a concept of CC that can be operationalized, (2) it develops an analytical tool to assess the organizational embeddedness of CC, (3) it generates empirical insights into how five multinational corporations have approached CC, and (4) it presents assessment results that provide indications how global governance initiatives like the UNGC can support the implementation of CC. (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)

Based on the findings of a qualitative empirical study of corporate social responsibility (CSR) in Swiss MNCs and SMEs, we suggest that smaller firms are not necessarily less advanced in organizing CSR than large firms. Results according to theoretically derived assessment frameworks illustrate the actual implementation status of CSR in organizational practices. We propose that small firms possess several organizational characteristics that are favorable for promoting the internal implementation of CSR-related practices in core business functions, but constrain external communication and (...) reporting about CSR. In contrast, large firms possess several characteristics that are favorable for promoting external communication and reporting about CSR, but at the same time constrain internal implementation. We sketch a theoretical explanation of these differences in organizing CSR in MNCs and SMEs based on the relationship between firm size and relative organizational costs. (shrink)

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner–managers’ perceptions of stakeholder management in six European countries. The comparative analysis is followed by (...) a discussion of how institutional, cultural and linguistic contexts can influence owner–managers’ sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe. (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 existing analysis of heterogeneous social responsibility in small and medium enterprises has considered the effects of individual factors. However, no holistic analysis has been performed on how different factors of heterogeneity interact and how they collectively affect SR in SMEs. Here, we propose a new systemic approach—employing the social capital concept—with the aim of identifying how and why SR is built diversely in SMEs. In particular, we focus on a positive and holistic perspective that integrates the factors proposed in (...) the literature into the social capital construct. Through a case study of four Spanish SMEs, this article proposes a systemic approach to the study of heterogeneous SR in SMEs. (shrink)

Proactive corporate social responsibility (CSR) involves business strategies and practices adopted voluntarily by firms that go beyond regulatory requirements in order to manage their social responsibilities, and thereby contribute broadly and positively to society. Proactive CSR has been less researched in small and medium enterprises (SMEs) compared to large firms; and, whether SMEs are ideally placed to gain competitive advantage through such activity therefore remains a point of debate. This study examines empirically the association between three specified capabilities (shared vision, (...) stakeholder management and strategic proactivity), proactive CSR and financial performance in SMEs. Using quantitative data collected from a sample of 171 SMEs in the machinery and equipment sector of the Australian manufacturing industry, we find that all specified capabilities are positively associated with adoption of proactive CSR by SMEs, and that proactive CSR is, in turn, associated with an improvement in firm financial performance. Evidence of a fully mediating role for proactive CSR on the association between capabilities and financial performance presented in this study aligns with RBV theory that suggests adoption of value-creating strategies that make the most effective use of a firm’s capabilities is essential to financial success. The study contributes to the CSR literature by demonstrating a case for SMEs being able to maximise financial returns whilst proactively making progress towards CSR. (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)

There exists increasing pressure for small and medium-sized enterprises (SMEs) to engage in corporate social responsibility (CSR) practices, including social reporting. Curiously in this promotional programme of CSR reporting, the only group whose ideas are not sought in this debate are the SME leaders themselves. The present ethnographic field analysis, based on discussions within entrepreneurs' circles, tends to suggest that the argument for expanding formalisation of CSR to SMEs rests upon several fallacies. It implicitly assumes that an apparent solution for (...) large multinationals can be transposed to SMEs, and it underestimates the drawbacks of bureaucracy. Moreover, many SMEs experience inconsistency between the idealistic CSR communication of some large companies and their actions, especially in the supply chain. The author concludes that reports do not constitute the validation for real CSR, nor the proof of superior ethical behaviour. Formalisation can even be counterproductive. Conversely, the absence of social reporting does not imply that SMEs do not behave responsible. CSR in SMEs needs a specific approach, adapted to the informal nature and entrepreneurial character of the small business. The essence of CSR lies in the implementation of responsible business practices. It lies in the right attitudes, in the corporate culture, not in formalisation. (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)

There exists increasing pressure for small and medium-sized enterprises (SMEs) to engage in corporate social responsibility (CSR) practices, including social reporting. Curiously in this promotional programme of CSR reporting, the only group whose ideas are not sought in this debate are the SME leaders themselves. The present ethnographic field analysis, based on discussions within entrepreneurs' circles, tends to suggest that the argument for expanding formalisation of CSR to SMEs rests upon several fallacies. It implicitly assumes that an apparent solution for (...) large multinationals can be transposed to SMEs, and it underestimates the drawbacks of bureaucracy. Moreover, many SMEs experience inconsistency between the idealistic CSR communication of some large companies and their actions, especially in the supply chain. The author concludes that reports do not constitute the validation for real CSR, nor the proof of superior ethical behaviour. Formalisation can even be counterproductive. Conversely, the absence of social reporting does not imply that SMEs do not behave responsible. CSR in SMEs needs a specific approach, adapted to the informal nature and entrepreneurial character of the small business. The essence of CSR lies in the implementation of responsible business practices. It lies in the right attitudes, in the corporate culture, not in formalisation. (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)

Many scholars have investigated the direct impact of entrepreneurial orientation on performance, but this direct association seems both spurious and ambiguous because many parameters may have an indirect influence on this relationship. The present study thus considers sustainable practices—environmental practices, social practices in the workplace, and social practices in the community —as three probable mediators in the relationship between EO and performance, which is considered in terms of its financial and non-financial dimensions. We seek to show to what extent small- (...) and medium-sized enterprises’ sustainable practices are useful assets, which are supported by EO, to improve performance. Using a structural equation modeling approach, data collected from 406 French SMEs were tested against the model. Our findings reveal that EO has a positive impact on the implementation of sustainable practices and that SPW partially mediate the link between EO and performance. Taken together, these findings suggest that EO plays a role in indirectly promoting performance by enhancing certain human resource management practices. (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)

The challenges presented by sustainable development are broadly accepted, yet resource use increases unabated. It is increasingly acknowledged that while technical solutions may play a part, a key issue is behaviour change. In response to this, there has been a plethora of studies into how behaviour change can be enabled, predominantly from psychological and sociological perspectives. This has resulted in a substantial body of knowledge into the factors that drive behaviour change and how they can be manipulated to achieve desired (...) social goals. In this paper, we describe a study that draws on this body of knowledge to design an intervention to drive behaviour change across the hairdressing sector, and by the process of diffusion, across the vast social networks of this occupational group to influence domestic hair-care practices. The intervention was successful: hairdressers indicated positive intentions to adopt more sustainable practices within their salons and pass them onto their customers. The customer survey confirms this: customers surveyed after their hairdresser attended the Green-Salon-Makeover intervention were significantly more likely to report that environmental issues had been considered in their salon visit and that they themselves would consider such issues in their hair-care practices at home than customers who were surveyed before the intervention. (shrink)

We propose adding a temporal dimension to stakeholder management theory, and assess the implications thereof for firm-level competitive advantage. We argue that a firm’s competitive advantage fundamentally depends on its capacity for stakeholder management related, transformational adaptation over time. Our new temporal stakeholder management approach builds upon insights from both the resource-based view (RBV) in strategic management and institutional theory. Stakeholder agendas and their relative salience to the firm evolve over time, a phenomenon well understood in the literature, and requiring (...) what we call level 1 adaptation. However, the dominant direction of stakeholder pressures can also change, namely, from supporting resource heterogeneity at the firm level to fostering industry homogeneity, and vice versa. When dominant stakeholder pressures shift from supporting heterogeneity towards stimulating homogeneity in industry, the firm must engage in level 2 or transformational adaptation. Stakeholders typically provide valuable resources to the firm in an early stage . Without these resources, which foster heterogeneity (in line with RBV thinking), the firm would not exist. At a later stage , stakeholders also contribute to inter-firm homogeneity via isomorphism pressures (in line with institutional theory thinking). Adding a temporal dimension to stakeholder management theory has far reaching implications for this theory’s practical relevance to senior level management in business. (shrink)

The concept of corporate social responsibility (CSR) has been widely investigated, but a generally accepted theoretical framework does not yet exist. This paper argues that the idiosyncrasies of large firms and SMEs explains the different approaches to CSR, and that the notion of social capital is a more useful way of understanding the CSR approach of SMEs, whereas stakeholder theory more closely addresses the CSR approach of large firms. Based on the extant literature, we present a comparison of large firm (...) and SME idiosyncrasies suggesting that both consolidated and emerging strategic orientations toward responsible behaviours exist. Idiosyncrasies of large firms and SMEs are also discussed to provide an assessment of the firm’s strategic CSR orientation, suggesting the key drivers upon which CSR strategies must be based. A twofold consideration emerges. First, the CSR–SME relationship could be better explained if the notion of social capital is taken into account, but this should also be accompanied by a stakeholder view of the SME; second, social capital and stakeholder theory should be taken as alternative ways of explaining CSR in both large firms and SMEs. (shrink)

This article explores the conceptual and practical gap existing between the developed and developing countries in relation to corporate social responsibility (CSR), or the North-South ' CSR Divide', through the analysis of possible impact on the competitiveness of developing countries' and economies' SMEs and MNEs in globalization. To do so, this article first reviewed the traditional wisdom on the concept of strategic CSR developed in the North and the role that CSR engagement can play in corporate competitiveness, and compare with (...) the impact on the competitive advantage of the South through the supply chains. It points out that among the many factors that could explain the ' CSR Divide', the negative impact of CSR on comparative advantage is the final resort where developing countries are reluctant and defensive toward western-style CSR. It did point out that developing countries are changing their approaches to make CSR work in favor of their competitive position in global trade, such as China who has started to adopt proactive approach by becoming CSR standards-setter. This article concludes with two policy proposals that aim to bridge the CSR gap, the first is to improve CSR standard-setting participation from both sides, and the second to search for solutions in the international investment legal framework which will define corporate obligations in relating to CSR in a more explicit way. (shrink)

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)

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)

This article examines the drivers and barriers for corporate social responsibility (CSR) in the Norwegian graduate uniform industry, which is a market devoid of large corporations, consisting entirely of two small businesses. It finds that these small businesses' CSR activities are not particularly well explained by the existing literature on CSR in small‐ and medium‐sized enterprises, which assumes the presence of large competitors. This raises the question of whether small businesses that do not compete against large corporations may actually behave (...) more like ‘little big firms’ when it comes to CSR. The article finds that the two businesses studied are mostly driven by external pressure to improve their social responsibility. Such pressure stems partly from news reports on their activities and partly from increasing competition leading to a situation where the small businesses operating in the market scrutinise each others' activities. (shrink)

In this paper we argue that the collective grandness of small business is often underestimated in CSR research and policy‐making. We emphasize the importance of understanding the contexts and the ways in which small‐ and medium‐sized companies engage in CSR and how they differ from multinational companies. We suggest that it might be that researchers and practitioners are asking the wrong questions in their ambitions to prove ‘the business case for CSR’. Perhaps we should rather focus on the ‘how’ and (...) the ‘with what impact’ questions to understand better the SME engagement in CSR. (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)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and to enact values other (...) than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (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)

This article examines the drivers and barriers for corporate social responsibility (CSR) in the Norwegian graduate uniform industry, which is a market devoid of large corporations, consisting entirely of two small businesses. It finds that these small businesses' CSR activities are not particularly well explained by the existing literature on CSR in small- and medium-sized enterprises, which assumes the presence of large competitors. This raises the question of whether small businesses that do not compete against large corporations may actually behave (...) more like ‘little big firms’ when it comes to CSR. The article finds that the two businesses studied are mostly driven by external pressure to improve their social responsibility. Such pressure stems partly from news reports on their activities and partly from increasing competition leading to a situation where the small businesses operating in the market scrutinise each others' activities. (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)

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)

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)

The purpose of this study is to identify the elements that can be implemented to achieve an ethical infrastructure, in small and medium enterprises. The ethical infrastructure is considered as a set of formal and informal systems, leadership, climate and culture, related to ethical issues. The research was carried out through interviews and focus groups with managers from 28 companies in Madrid, all signatories to the Global Compact. The identified key elements in SMEs are leadership, informal managerial and formal communication. (...) This study also explores different factors that influence the effectiveness, implementation, and sustainability of the ethical infrastructure in SMEs, discovering some factors that can act as both accelerators and barriers such as pressure from customers. Additional findings regarding the concepts of ethics and corporate social responsibility in SMEs, dilemmas and characteristics of the culture and climate are also presented. (shrink)

Multinational corporations (MNCs) have come under pressure to adopt private regulatory initiatives such as supplier codes of conduct in order to address poor working conditions in global supply chain factories. While a well-known literature explores drivers and outcomes of such monitoring schemes, this literature focuses mainly on large firms and has ignored the growing integration of small- and medium-sized enterprises (SMEs) into global supply chains. Furthermore, the literature on corporate social responsibility (CSR) in SMEs primarily emphasizes domestic initiatives and not (...) global challenges. Focusing on the Business for Social Compliance Initiative (BSCI), this article examines the positions of private actors, who demand and supply private regulation as well as the positions of those firms, who are the targets of such schemes. As the BSCI has grown its membership, MNCs increasingly request that SMEs meet BSCI requirements in global supply chains even though compliance is a “mission impossible” for many smaller firms. As a result of this development, the private regulatory system is facing growing strain. (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)

In this paper we argue that the collective grandness of small business is often underestimated in CSR research and policy-making. We emphasize the importance of understanding the contexts and the ways in which small- and medium-sized companies engage in CSR and how they differ from multinational companies. We suggest that it might be that researchers and practitioners are asking the wrong questions in their ambitions to prove 'the business case for CSR'. Perhaps we should rather focus on the 'how' and (...) the 'with what impact' questions to understand better the SME engagement in CSR. (shrink)

This paper presents the results of a Catalan project in which an academic institution acted as a practitioner to promote corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs). The project involved the establishment of a working network with intermediate organisations and the creation of specific tools for the purpose. The paper is set up as a case study, emphasising inclusion, representativity and legitimacy as key elements for the successful construction of a network to promote CSR in SMEs. It (...) underlines the assumptions behind the functioning of this network and the learning findings from this public–private initiative. Presented from a public policy perspective, the paper emphasises the need for coordination in terms of the growing number of initiatives fostering CSR in SMEs. It presents a brief account of the material results, focusing on the process of creating a consensus within the network. It opens up a path for future research, exploring how network management and leadership can be seen as key issues when talking about corporate social responsibility (CSR) promotion in SMEs. (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 study examines CSR engagement by Zimbabwean SMEs through their practices and procedures. A qualitative approach was adopted, involving 16 in-depth interviews with key decision makers of ICT SMES in Zimbabwe. The study makes finds that Understanding of CSR by SMEs is patchy, their approach to selecting and executing CSR activities is ad hoc, unstructured and not supported by dedicated budgets while decision making rests solely with the CEO who values and upbringing plays a defining role in this process. The (...) study presents useful insights from a developing world context on CSR characteristics by SMEs. (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)