CSR Policies: Effects on Labour Productivity in Spanish Micro and Small Manufacturing Companies

Abstract

This paper analyses empirical evidence of efforts to enable Spanish micro and small manufacturing companies to boost their labour productivity rates through the development of the main pillars of their corporate social responsibility (CSR) policies. This study aims to develop new approaches and sensibilities towards work from an ethical, values (virtues) and CSR perspective, showing how internal dimensions of CSR, such those related to relationships with employees and responsibility in processes and product quality, can improve labour performance and labour efficiency, thereby contributing to a better society. The results of a sample of 929 small businesses indicate that the social responsibility policies that most contributed to a short-term increase in labour productivity are those related to internal aspects of the company, in particular its involvement in the quality of processes and products, promotion of innovation and employee care. However, the impact on labour productivity of CSR policies related to external factors, such as relationship with stakeholders and environmental concern, could not be empirically proven in this paper.

Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review

“…The results also highlight that despite the two vastly different cultural and operational contexts, the importance and the role of CSR were found to follow similar logic in how CSR was understood and implemented with the aim of competitive advantage. As the latter, only a few articles target merely a specific sector or industry (El Baz et al, 2016;Esteban Sanchez & Benito-Hernandez, 2015;Li et al, 2016;Testa, Battaglia, & Bianchi, 2012).…”

Employee Treatment, Labor Investment Efficiency and Firm Performance

“…Prior studies show that CSR, including employee-friendly practices, can facilitate higher labor productivity (Faleye and Trahan, 2011;Sun and Stuebs, 2013;Sanchez and Benito-Hernandez, 2015;Hasan et al, 2016).…”

“…For instance, Sanchez and Benito-Hernandez (2015) find that firms' social involvements in internal aspects of the company contribute to a short-term increase in labor productivity. Faleye and Trahan (2011) also argue that top executives derive no pecuniary benefits from labor-friendly practices but suggest that genuine concern for employees facilitates higher productivity and profitability.…”

A Multilevel Model of Responsibility Towards Employees as a Dimension of Corporate Social Responsibility

“…However, contrary to environmental or other social responsibilities, LA and HRM practices are under-researched themes of CSR. Exceptional studies are those of Kundu et al (2015), Sánchez and Benito-Hernández, (2015), Srinivasan and Arora (2015), and Buciuniene and Kazlauskaite (2012). Research on LA-HRM and CSR have moved along different paths, with LA-HRM usually not considered as a unique dimension of CSR.…”