The impact of smaller firm size on corporate social responsibility (CSR) is ambiguous. Some contend that small businesses are socially responsible by nature, while others argue that a smaller firm size imposes barriers on small firms that constrain their ability to take responsible action. This paper critically analyses recent theoretical and empirical contributions on the size–social responsibility relationship among small businesses. More specifically, it reviews the impact of firm size on four antecedents of business behaviour: issue characteristics, personal characteristics, organizational (...) characteristics and context characteristics. It concludes that the small business context does impose barriers on social responsibility taking, but that the impact of the smaller firm size on social responsibility should be nuanced depending on a number of conditions. From a critical analysis of these conditions, opportunities for small businesses and their constituents to overcome the constraining barriers are suggested. (shrink)

While corporate social responsibility (CSR) is becoming a mainstream issue for many organizations, most of the research to date addresses CSR in large businesses rather than in small- and medium-sized enterprises (SMEs), because it is too often considered a prerogative of large businesses only. The role of SMEs in an increasingly dynamic context is now being questioned, including what factors might affect their socially responsible behaviour. The goal of this paper is to make a comparison of SME and large firm (...) CSR strategies. Furthermore, size of the firm is analyzed as a factor that influences specific choices in the CSR field, and studied by means of a sample of 3,680 Italian firms. Based on a multi-stakeholder framework, the analysis provides evidence that large firms are more likely to identify relevant stakeholders and meet their requirements through specific and formal CSR strategies. (shrink)

The academic literature reveals the need to undertake more in-depth field studies in order to discover the organisational culture, the difficulties and the perceptions surrounding CSR in SMEs. This study presents the results of analysis of four case studies on Catalan companies that stand out for their social and environmental practices. The conclusions of this paper are the result of dialogue with the main actors – four medium-sized companies – focusing on their actions, understandings and resistance with regard to CSR. (...) The methodological perspective used was Grounded Theory, with the aim of the study being to contribute towards formalising CSR in SMEs, in their daily practices, by analysing some primary data. The results obtained show how difficult it is for SMEs to understand CSR, beyond the explanation of the specific practices carried out by the companies. They highlight the role played by the values of the founding director in the implementation of CSR programmes; they reveal that SMEs still have a long way to go towards learning how to inform both internal and external stakeholders of their best practices, and; finally, they show the interesting links that SMEs establish between responsible practices, improved competitiveness and economic results. Finally, the text points out the implications that the results of this analysis may have on creating ways of promoting CSR in SMEs. We believe that, in light of the opinions expressed by the companies, public organisations should try to concentrate on creating a favourable framework for responsible competitiveness, as a way to deal with CSR when addressing SMEs. (shrink)

This article is the guest editors’ introduction to the special issue in Business & Society on “SMEs and CSR in Developing Countries.” The special issue includes four original research articles by Hamann, Smith, Tashman, and Marshall; Allet; Egels-Zandén; and Puppim de Oliveira and Jabbour on various aspects of the relationship of small and medium enterprises to corporate social responsibility in developing countries.

This paper analyses the use of strategies and instruments for organising ethics by small and large business in the Netherlands. We find that large firms mostly prefer an integrity strategy to foster ethical behaviour in the organisation, whereas small enterprises prefer a dialogue strategy. Both large and small firms make least use of a compliance strategy that focuses on controlling and sanctioning the ethical behaviour of workers. The size of the business is found to have a positive impact on the (...) use of several instruments, like code of conduct, ISO certification, social reporting, social handbook and confidential person. Also being a subsidiary of a larger firm has a significant positive influence on the use of instruments. The most popular instrument used by small firms is to let one member of the board be answerable for ethical questions, which fits the informal culture of most small firms. With respect to sectorial differences, we find that firms in the metal manufacturing and construction sectors are more actively using formal instruments than firms in the financial service sector and retail sector. The distinction between family and non-family firms hardly affects the use of instruments. (shrink)

Corporate social responsibility (CSR) has acquired an unquestionably high degree of relevance for a large number of different actors. Among others, academics and practitioners are developing a wide range of knowledge and best practices to further improve socially responsible competences. Within this context, one frequent question is according to what theory should general knowledge of CSR be developed, and in particular the relationship between CSR and small and medium-size enterprises (SMEs). This paper suggests that research on large firms should be (...) based on stakeholder theory, while research on CSR among SMEs should be based on the concept of social capital. This paper first provides a theoretical and practical perspective on CSR today; the focus then shifts to the specific literature on CSR and SMEs; some data and information follow on SMEs in Europe and Italy; finally, some conclusions and questions for future research are suggested. (shrink)

With increasing awareness of environmental issues, there has been rising demand for environmental-friendly business practices. Prior research has shown that the implementation of environmental management practices is influenced by existing and potential stakeholder groups in the form of external pressures from legislators, environmental groups, financial institutions and suppliers, as well as internally by employees and owner/manager attitudes and knowledge. However, it has been reported that despite business owner/managers having strong “green” attitudes, the level of implementation of environmental-friendly practices is low. (...) In order to explore the connection between pressures for improved practices and the management actions taken, this article examines how influence from various stakeholders is related to awareness of environmental issues, and how this awareness relates to actions taken within the businesses to reduce the environmental impact of their operations. The results indicate that legislation does result in general environmental awareness, and that organizations are then willing to␣change their business processes and environmental strategies. However, despite their actions they have little awareness of the benefits that might arise from cost reductions from their environmental-friendly practices. Those influenced by their suppliers act to reduce waste, but do not put into place formal environmental management systems, or use environmental messages to market their goods or services. Nevertheless, it can be argued that they have a real commitment to environmental issues, as evidenced by a willingness to voluntarily contribute to environmental organizations. (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)

According to the Green Paper presented by the European Commission in July 2001, corporate social responsibility (CSR) is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001b, p. 6). On this basis, in 2002, the Italian Government, and especially the Italian Ministry of Welfare, launched an initiative called CSR-SC (social commitment) in order to foster the proactive social role of (...) Italian enterprises, with great attention on SME involvement. The technical partner of the Italian Ministry of Welfare for this initiative is Bocconi University. The goal of this contribution is to present the main results of CSR–SC research project developed by Bocconi University. The paper provides a detailed picture of the general scheme designed to carry out the research project and a review of the different methodologies used to support the solutions proposed. (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)

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)

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)

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)

In this paper, we explore the role ethics plays in African SMEs. We looked specifically at the role that relationships between SMEs and their stakeholders play in enabling or foreclosing the possibility of ethical business practices. We argue that certain relationships, such as those between SMEs, suppliers, employees and local communities, can be described as enabling. Other relationships, such as those with corrupt governments, are contaminating. What seems to be needed is to expand on and strengthen certain constraining relationships, such (...) as those that exist between peers within a certain industry, professional associations, and civil society. (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)