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)

While Corporate Social Responsibility (CSR) has traditionally been the domain of the corporate sector, recognition of the growing significance of the Small and Medium Sized Enterprise (SME) sector has led to an emphasis on their social and environmental impact, illustrated by an increasing number of initiatives aimed at engaging SMEs in the CSR agenda. CSR has been well researched in large companies, but SMEs have received less attention in this area. This paper presents the findings from a U.K. wide study (...) of socially responsible SMEs. The 24 companies studied were chosen as “exemplars” of␣CSR in SMEs. The aim of this study therefore is to progress understanding of both the limitations on and opportunities for CSR in SMEs through the exploration of exemplary characteristics in the study companies. Key areas of investigation were CSR terminology, the influence of managerial values, the nature of SME CSR activities, motivation for and benefits from engaging in CSR, and the challenges faced. The results of this study demonstrate some of the exemplary goals and principles needed to achieve social responsibility in SMEs, and begin to provide knowledge that could be used to engender learning in other SMEs. In particular, there is evidence that stakeholder theory may provide a framework in which SMEs and CSR can be understood. SMEs prefer to learn through networking and from their peers, so this is a possible avenue for greater SME engagement in CSR. This would require strong leadership or “championing” from individuals such as highly motivated owner–managers and from exemplary companies as a whole. (shrink)

Recent research on corporate social responsibility (CSR) suggests the need for further exploration into the relationship between small and medium-sized enterprises (SMEs) and CSR. SMEs rarely use the language of CSR to describe their activities, but informal CSR strategies play a large part in them. The goal of this article is to investigate whether differences exist between the formal and informal CSR strategies through which firms manage relations with and the claims of their stakeholders. In this context, formal CSR strategies (...) seem to characterize large firms while informal CSR strategies prevail among micro, small, and medium-sized enterprises. We use a sample of 3,626 Italian firms to investigate our research questions. Based on a multistakeholder framework, the analysis provides evidence that small businesses* use of CSR, involving strategies with an important impact on the bottom line, reflects an attempt to secure their license to operate in the communities; while large firms rarely make attempts to integrate their CSR strategies into explicit management systems. (shrink)

: We discuss the role that transnational corporations should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social (...) responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity. (shrink)

This article reviews the interdisciplinary literature on the UN Global Compact. The review identifies three research perspectives, which scholars have used to study the UN Global Compact so far: a historical perspective discussing the Global Compact in the context of UN-business relations, an operational perspective discussing the composition and impact of its participants, as well as a governance perspective discussing the constraints and opportunities of the initiative as an institutionalized arena for addressing global governance gaps. The authors contrast these three (...) perspectives and identify key empirical as well as conceptual scholarly contributions. The remainder of this article contains focused summaries of the articles selected for this Special Issue. All articles are introduced and evaluated against the background of the three research perspectives. (shrink)

In this editorial to a collection of papers on ethics in small firms, the case is made for greater use of high quality empirical research on business ethics. Sociological perspectives have much to offer to the field of business ethics that continues to be dominated by normative, moral philosophy. The second contribution of the paper is to argue for a reorientation away from the large multi-national firm as a benchmark subject of business ethics research. One important point of view to (...) be included is that of the small firm, which remains the dominant organisational form throughout all the OECD countries. (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)

The role of multinational corporations in fostering or undermining development within poor communities in developing countries has been a subject of intensive debate within academic and practitioner circles. MNCs are not only considered an obstacle to development but also as sources of solutions to some of the pressing social and environmental problems facing these communities. This article reviews the way in which companies frame sustainable community development, and their engagements in the community. It then considers the implications of both for (...) sustainable community development and poverty alleviation in developing countries. The article then proposes an agenda for future research centering on how corporations innovate in their governance roles and the conditions in which community development innovations are created, take shape, and are put into practice. The article concludes with an introduction to the other articles presented in this special issue highlighting also their main contributions. (shrink)

The United Nations Global Compact (UNGC) is a Global Public Policy Network supporting ten universal principles in the areas of human rights, labor standards, environmental protection, and anticorruption. Networks such as the UNGC are an organizational form with distinct structural properties and specific requirements regarding coordination. Relationships among network partners are typically complex, reciprocal, and trust based. Despite the relevance of trust for a successful coordination of networks, the literature on the UNGC remains relatively silent when it comes to this (...) phenomenon. The conditions and mechanisms that contribute to the constitution of trust in the UNGC are poorly understood. Based on research in network theory, the authors argue that the trust of participants and other stakeholders supporting the UNGC is a key precondition to enhance collaboration and to further develop the initiative. Against this background, the aim of this article is to develop a systematic approach to foster the constitution of trust in the UNGC. A thorough investigation of the connection between trust and the UNGC may help identify concrete measures for increasing the scale and scope of collaboration between stakeholders and stimulating not only collective learning but also the implementation of the Global Compact’s ten principles. (shrink)