Corporate social responsibility and SMEs

Abstract

Purpose This paper aims to investigate corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) in transition and developed economies. Design/methodology/approach Building on social capital theory, the creating shared value approach and institutional theory, the authors study why and how six SMEs in the food sector implement CSR. Findings The authors show that CSR adoption by SMEs is motivated by company values and beliefs, relationships with the local community, a desire to abide by rules and regulations and business motives. They also show that SMEs are involved in various CSR-related activities such as respecting their employees, infusing CSR in the supply chain and philanthropy. Originality/value The findings suggest that although there are similarities between the CSR motives and activities of SMEs in developed and transition countries, there are also some differences, which can be explained by differences in institutions and related to the maturity of the CSR construct in each setting. The authors consequently call for a more holistic approach when investigating CSR across countries, in particular when such investigation concerns SMEs.

How CSR Affects Polish Enterprises

“…According to Wagner-Tsukamoto (2019), not only ethics, but also economics permeate all other fields of CSR. A similar conclusion can be made on the basis of institutional theory in relation to legal responsibility, even more so, because legal regulations largely explain the differences in the approach to CSR in different countries (Gaughan and Javalgi, 2018;Colovic et al, 2019).…”

The Role of Top Managers in Implementing Corporate Sustainability—A Systematic Literature Review on Small and Medium-Sized Enterprises

“…Recent literature evidenced that such a mindset could be especially investigated in the context of SMEs (Fitjar 2011;Longo et al 2005;Spence and Lozano 2000) as oftentimes, the executives of SMEs are both the driver as well as the implementer of enterprise values. Colovic et al (2019) and Jenkins (2006) state that top managers of SMEs have a greater possibility to express their values regarding enterprise decisions compared to larger enterprises' top executives. Several studies investigate that surveyed SMEs' executives perceive CS as important and necessary to engage in related activities (Fassin et al 2011;Jenkins 2006;Nkiko 2013;Lamberti and Noci 2012;Lenssen et al 2007;Spence et al 2003).…”

“…The study undertaken in an African setting shows that SMEs' executives offer their employees vaccinations and HIV information supplementary to fair payment. Colovic et al (2019); Ciliberti et al (2008); and Eweje (2020) equally emphasize SMEs' top managers' pronounced social and environmental engagement as they find moral reasons and personal values were both the main drivers of responsible behavior for most SMEs' executives.…”

“…Furthermore, Nkiko (2013) finds that the own experiences of executives of SMEs represent another internal motivation for engaging in local community activities. To consider local or regional needs, many enterprises support non-governmental organizations, local sports clubs as well as local farmers (Aragón et al 2016;Fraj-Andrés et al 2012;Colovic et al 2019;Spence et al 2003). Aragón et al (2016) especially highlight the importance for SMEs' top managers to have a well-maintained relationship with the local community, which could additionally enhance the enterprise's reputation.…”

“…They argue that most CS conducted resulted in an enhanced enterprise's market position, and could be reasoned by the competitive advantage gained through differentiation. Colovic et al (2019) analyzed a French wine producer and likewise state that CS is used for differentiation purposes to gain a competitive advantage. Moreover, studies find that engaging in social and environmental activities could enhance the enterprise's reputation, leading to a potentially increased financial performance in the long run (Aragón et al 2016), thus, arguing that SMEs' executives oftentimes get involved in philanthropic activities for business motives alike.…”