Solutions for SMEs Challenged by CSR: A Multiple Cases Approach in the Food Industry within the DACH-Region

Elford Elford,Daub Daub

doi:10.3390/su11174758

Abstract

Antecedent research has recognized a difference in the participation in Corporate Social Responsibility (CSR) practices between big companies and small- and medium-sized enterprises (SMEs). Certain characteristics of SMEs create challenges which influence the manner with which they treat the CSR topic. However, literature has failed to provide solutions as to how these challenges can successfully be overcome or avoided by SMEs. In an attempt to contribute to these solutions, this paper explores the reasons why some SMEs face challenges as well as how such problems can be mastered. Furthermore, this article provides input that could encourage more SMEs to incorporate CSR practices into their business strategies. The research follows a qualitative approach; data being collected in 2018 through a total of 12 interviews with managers of SMEs in the food industry within the DACH-region as well as with experts in the field of study. The paper reveals that if the managers and owners of SMEs become committed towards CSR and if sufficient resources are allocated and advice on how to implement CSR is obtained, the opportunity certainly exists to persuade larger numbers of SMEs to adopt CSR practices as a core company strategy.

Highlights

Examining the developments in Corporate Social Responsibility (CSR) literature in the past as well as today, antecedent research has recognized a difference in the participation in CSR practices between big companies compared to small- and medium-sized enterprises (SMEs) [1] (p. 423), [2] (p. 285)
Since an objective of this study is to discover how challenges when integrating CSR practices into a company’s business strategy can be avoided or overcome, the focus lies on SMEs which successfully pursue CSR efforts
With respect to challenges from literature which SMEs face on the normative management level, both theory and practice claim that a key reason why some SMEs are so successful in their CSR practices is the high commitment and involvement of their top management and/or owner towards sustainability [23]

Summary

Introduction

Examining the developments in CSR literature in the past as well as today, antecedent research has recognized a difference in the participation in CSR practices between big companies compared to SMEs [1] (p. 423), [2] (p. 285). Such developments have accentuated the demand for greater transparency and accountability which is reflected, for example in the general principles and requirements of food law established by the European Union [EU]. These regulations demand traceability of all ingredients of food products as well as of the finished goods, throughout the entire supply chain [4] (p.11). Through such principles, companies— only large ones—are obliged to officially disclose of CSR related matters [3] A further reason for the focus on large companies is their size and the amount of resources available to firms of this magnitude, making them meaningful players with high levels of influence on the CSR topic [3] (p. 242)

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Discussion

Conclusion