Is the good corporation dead? the community social responsibility of small business operators

Abstract

This study examined whether social responsibility is a meaningful characteristic with which to differentiate businesses given its supposed demise in the new global economy. The analysis focuses on small businesses and the social responsibility of businesses toward their community. Community social responsibility and competitive strategies were measured by the self reports of 675 small business operators in 10 Iowa cities. Cluster analysis revealed four categories of business operators designated as civic leaders, alienated business operators, followers in high collective action communities, and followers in low collective action communities. Findings demonstrate that business owners and managers can be differentiated on the basis of community social responsibility. The clusters so created are associated with meaningful business and operator demographic features and with the operator’s belief in the importance of community support as a strategy for business success. This analysis shows that in spite of changes in the economy, a significant segment of small business operators believe in tenets of the enlightened self interest model of business social responsibility, that is, that doing good is good business.