CSR-related competitiveness and legitimacy in MSMEs

Abstract

Corporate social responsibility (CSR) has emerged as an important strategy in business contexts. This study's main objective was to identify and characterize the basic elements of CSR in micro, small, and medium enterprises (MSMEs) that can contribute to improving these companies' competitiveness and legitimacy. The research was based on the premises defining CSR's scope laid out by the Spanish Association of Accounting and Business Administration and the conceptual framework for corporate responsibility proposed by the European Commission's Directorate-General Enterprise and Industry. A 2004 compilation of good practices in small and medium-sized enterprises in Europe provided the foundation for a systematic analysis isolating elements common to the two cited organizations' frameworks. This is a descriptive study, on a sample of 23 companies belonging to the Autonomous Community of Extremadura, in Spain, involved in the practice of CSR and very sensitized to implement this strategy. Based on this list of features, a theoretical framework of CSR was constructed in order to identify the most significant elements and distinguish those of greatest importance to MSMEs' competitiveness and legitimacy. The originality of this study combined public and private CSR frameworks to categorize the distinctive elements of CSR in MSMEs.

Social expenditure multiplier: Assessment of economic effect and optimal values

“…Relevant data for 2013-2023 were obtained from the Eurostat website (Eurostat, 2023). Based on the specified data, it was calculated  (FCE/GDP); δ (TPI/GDP) and m (IGS/ GDP).…”

“…The data on social expenditures include state expenditures on social protection of the population, education, health care, as well as recreation, culture, and religion. These data were obtained from Eurostat (2023) too. Considering the inconsistencies in availability of data needed for social expenditures share in GDP calculation and multiplier calculations, the main findings are obtained by the authors using time range 2013-2022 when all required data are available.…”

“…To a greater extent, the multiplicative economic impact of social expenditures is estimated at the macroeconomic level, but also at the microlevel, there is numerous evidence of the effectiveness of social expenditures of enterprises (within CSR expenditures) with their impact on the growth of productivity indicators, (Garg & Gupta, 2020;Li et al, 2021;Meyer, 2018;Oliinyk, 2017), achieving a stable economic position in the market, high competitiveness of enterprises (Gallardo-Vázquez & Lizcano-Álvarez, 2020;Kim, 2022;Mishchuk et al, 2023).…”

Interrelationship among CE Adoption Obstacles of Supply Chain in the Textile Sector: Based on the DEMATEL-ISM Approach

“…The implementation of an environmental management system (EMS) in textile firms can also aid in determining the trade-offs among environmental issues, business models, and frameworks for the adoption of CE [91]. Concerns over employee health and safety, as well as the adoption of adequate economic welfare policies, will create the foundation for CE adoption in the textile SC [92].…”

Key factors of organizational and management structures in the formation of competitive strategy

“…Sustainable business strategies are expected to create competitive advantage, build on customer value according to sustainability principles, while protecting the environment and improving human life by meeting different stakeholder expectations in line with the expected outcome (Aluchna, 2018, Seele and Gatti;. In this regard, successful companies develop their social capital, particularly, by implementing tools for CSR development, due to understanding its links with competitiveness (Gallardo-Vázquez & Lizcano-Álvarez, 2020;Mishchuk et al, 2022;Vo et al, 2020). Business strategy should thus ensure building stakeholders´ capital through inclusiveness and fostering innovations even when addressing social or environmental aspects, as due to international competition, reduced pressure in regulation and trade barriers, rapid technological invention and innovation, and changing customer demands, environmental uncertainty may become a major concern for companies (Aluchna, 2018;Areal, McIntosh and Sheppy, 2016;Soltanizadeh, 2016;Edwards, 2021;Arieftiara, Utama and Wardhani, 2017).…”