Abstract
Mechanisms that large organizations employ to facilitate corporate social responsibility (CSR) engagement simply do not apply to start-ups due to distinct differences. The purpose of this study was to gain insight into how start-ups strive for sustainability in their business models by investigating internal and external drivers related to organizational processes, managerial characteristics, and stakeholder expectations. We explored key factors such as decision-making regarding CSR engagement, business values about sustainability, entrepreneurial orientation, and the relevance of the CSR theater (philanthropic orientation, disruptive innovation, or transforming the ecosystem). Multiple case studies and interview data elucidated how start-ups engage with their community and stakeholders to determine the best approach to sustainability demands, how start-ups embed sustainability practices within their business models, and how these practices match with the entrepreneurs’ personalities. On the basis of our case studies and data analysis, we propose that the decision to engage in CSR is treated as an investment decision. The business values of a start-up determine its CSR engagement. The philanthropic drive of a start-up determines its CSR initiatives, which are then in line with the field the start-up is operating in. Entrepreneurs’ willingness to adopt CSR practices is determined by their personalities and organizational expertise and experiences. CSR engagement within the business models of start-ups is based on a combination of financial and social capital, while financial benefits act as a continuous motivator for CSR engagement from inception.
Highlights
Start-ups needs to find a proper balance between entrepreneurial ideas and corporate social responsibility (CSR) endeavors, meaning that a start-up needs to adopt those CSR practices that are relevant to its business and are feasible in relation to the organization’s profitability [1,2] and competitiveness
On the basis of the results outlined above, we propose that the CSR engagement of start-ups is based on a combination of financial and social capital
CSR engagement in the business model of start-ups is based on a combination of financial and social capital, while financial benefits are a continuous motivator for CSR engagement from inception into the business model
Summary
Start-ups needs to find a proper balance between entrepreneurial ideas and CSR endeavors, meaning that a start-up needs to adopt those CSR practices that are relevant to its business and are feasible in relation to the organization’s profitability [1,2] and competitiveness. A start-up is an entrepreneurial venture in its early stages of operations that is typically aimed at resolving a real-life issue with an innovative product or service These ventures are typically small in nature, new, and funded either by a founding entrepreneur or by a group of investors who believe in the entrepreneurial concept. Where a large firm has a formal bureaucratic administration process and professional management, the start-up typically has an informal and flexible organizational structure [16,17]. Another difference is the size of the firm. Large firms have the resources to spend time to create a CSR approach to serve their stakeholders’ needs and demands, whereas start-ups are generally stretched for time and resources [11], constantly balancing between adding value to their product or service and serving stakeholders’ needs
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