Conceptualizing the Political Role of Small- and Medium-Sized Enterprises as Private Actors in Global Governance

Abstract

In this paper, I theoretically discuss the emerging role of small- and medium-sized enterprises (SMEs) as private actors in global governance – referring to the collective rule-making and rule-implementation among public and private actors on a global scale. Drawing on the theoretical concepts of ‘political’ corporate social responsibility (CSR) and social connection as well as on empirical evidence, I suggest that SMEs are, on the one hand, as much as multinational corporations (MNEs) exposed to governance gaps of social and environmental regulation when operating in the global marketplace; on the other hand they do not follow the same approach to (political) CSR as MNEs, due to different organizational characteristics, limited financial and human resources and motivational factors. Notwithstanding, numerous examples exist where SMEs are already accepting an active role in global governance, e.g., by following the 10 principles of the UN Global Compact and engaging in (multi)stakeholder dialogue. I theoretically develop a conceptual framework for the systematic assessment of how SMEs approach global governance and embed political responsibility in their organizational settings.