Defining the Role Engagement of Small and Medium-Sized Enterprises (SMEs) in Corporate Social Responsibility (CSR)

Benjamin James Inyang

doi:10.5539/ibr.v6n5p123

Abstract

Corporate social responsibility (CSR) discourse, academic research, public policy and media commentaries, which have burgeoned in the past few decades in response to the desire to define the nexus between business and society tended to focus mainly on large corporate organizations which are expected to behave responsibly. The big businesses have for years attracted large volume of literature on CSR. Very little literature is currently available to enhance our understanding about the engagement of small- and medium-sized enterprises (SMEs) in CSR. The SMEs, often defined variously, in terms of turnover, gross asset value, ownership structure and the number of employees, is a significant sector worldwide in terms of economic, environmental and the social impact they make. This paper attempted to bridge this apparent research gulf, defined the nature of SMEs, the aggregate contributions of the sector to economies of both developed and developing nations and their role engagement in CSR. The study adopted qualitative literature survey method. A review of the paltry literature provided insight and defined the direction of research in this important and underexplored area of study. SMEs were found to perform roles associated with community development, employee initiatives, consumerism, environmental actions and supply chain requirements. To overcome the constraints confronting SMEs engagement in CSR initiatives the paper recommended increased resources, training programmes, development of SMEs-oriented tools and standards to guide adoption and implementation, and government intervention strategies to create the necessary incentives and support services for effective engagement.

Highlights

The concept of corporate social responsibility (CSR) has since its formal emergence through the seminal work of Bowen (1953) on the social responsibility of business generated serious interest and concern among a large spectrum of the people, the academics, corporate planners, the society at large, etc
Several barriers or constraints associated with adoption and implementation of CSR by small and medium sized enterprises (SMEs) have been identified in the emerging literature: 1) The cost of implementing CSR is usually considered too high especially when SMEs lack financial resources and when survival is often the greatest economic imperative
Much of the academic literature on CSR, which is concerned with the obligations organisations owe society, tended to concentrate on large corporate organisations

Summary

Introduction

The concept of corporate social responsibility (CSR) has since its formal emergence through the seminal work of Bowen (1953) on the social responsibility of business generated serious interest and concern among a large spectrum of the people, the academics, corporate planners, the society at large, etc. Sahlin-Anderson (2005:595) considers CSR “as a global trend incorporating business corporations, states, international organizations and civil society organizations”. CSR discourse, academic research, public policy and media commentaries, which have burgeoned in the past few decades in response to the desire to define the nexus between business and society tended to focus mainly on large corporate, organizations which are expected to behave responsibly. The society expects the business organizations to undertake CSR, that goes beyond the legal obligation and profit maximization to include economic, environmental sustainability and social development. The SMEs, another important form of business organization and which is often defined variously, in terms of turnover, gross asset value, ownership structure and the number of employees, is a significant sector worldwide in terms of economic, environmental and social impact they make. SMEs account for more than 90% of the world’s business enterprises

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