SMEs and CSR Theory: Evidence and Implications from an Italian Perspective

Abstract

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. Copyright Springer Science+Business Media, Inc. 2006corporate social responsibility, Italy, multi-stakeholder approach, small and medium enterprises, social capital,

Corporate social responsibility in tourism small and medium enterprises evidence from Europe and Latin America

“…Given the heterogeneous nature of SMEs (Hillary, 2004) it is important to note that the reasons for introducing CSR in SMEs may be different from those of large enterprises (Udayasankar, 2008) and may be consistent with the owner's values (Murillo & Lozano, 2006), the need to improve community relationships (Chrisman & Archer, 1984), to promote a climate of trust with internal stakeholders, especially employees (Ciliberti, Pontrandolfo, & Scozzi, 2008;Graafland, Van de Ven, & Stoffele, 2003;Perrini, 2006) or gain reputation in the community (Jenkins, 2006).…”

“…In any case, CSR can be a problem for SMEs if they follow the same processes set for large companies, given the bureaucratic demands of standards and reporting procedures. SMEs use more informal channels to have closer relationships with stakeholders resulting in greater capacity for dialogue and engagement (Murillo & Lozano, 2006;Perrini, 2006;Sarbutts, 2003;Spence, 2007). Simple organizational structures mean adapting more quickly to changes (Jenkins, 2006).…”

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“…For example, SMEs are already engaged with a number of social, economic and environmental impacts, but do not generally use the language of CSR to describe it (Roberts et al, 2004). Vives (2006) suggests that SMEs may be willing to sacrifice some of their profits while serving a greater goal, while commentators note a certain amount of CSR falls 'under the radar' such that SMEs are often unknowingly socially responsible (Perrini, 2006;.…”

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“…For example, without the resources to implement, measure, and evaluate CSR practice Raynard and Forstater suggest the CSR activists may place unreasonable expectations upon business practice. To alleviate such pressures, Perrini (2006) propose that SMEs should focus on social capital-where SMEs are able to capture intellectual capital, strengthen supplier relationships, and facilitate entrepreneurship in the surrounding community. Indeed, the ability to understand the local community is seen as the difference to that of MNCs.…”