Quantification of social impacts on workers to aid decision-making in micro and small enterprises

Abstract

Micro and Small Enterprises (MSEs) are a great source of social impacts and are more vulnerable to have worse social performance on their workers than bigger firms. Thus, it is important to aid decision-making to optimize the social impacts of MSEs on their workers. Hence, the purpose of this study is to apply a quantification framework to the qualitative results of a previous social life cycle assessment study applied in MSEs and to prove whether the quantification of the social impacts on their workers can aid to decision-making in this type of organizations. The method follows a four-step procedure and uses customized score factors for quantifying the social impacts on workers and was applied in three MSEs from three service activities. The results show several social hotspots that impacts negatively on MSEs' workers (Freedom of association, Fair salary, Working hours, and Social benefits), thus, some actions, such as the encouragement of association of workers to labor unions, the increasing of salaries, the reduction of working hours and the provision of more social benefits, are suggested to enhance the social impacts on MSEs' workers. So, the quantified results of social life cycle assessment allow to recognize social hotspots, they are a guidance to realize in what issues MSEs are impacting negatively on their workers and, thus, it aids to the decision-making, and encourages MSE-owners to take actions on it, in order to be more responsible with their workers and more socially sustainable.