Abstract
Although studies relative to redirecting the unsustainable trajectory of small and medium enterprises (SMEs) in the South African construction industry (SACI) have been extensively conducted, current statistics show that 70–80% of construction SMEs in the SACI fail within their first five years of existence, raising concerns regarding their sustainability. This paper attempts to address the negative trajectory by exploring the concept of corporate social responsibility (CSR), investigating the organisational perceptions of SMEs in the SACI relative to the relationship between the integration of CSR and sustainable business performance (SBP). Existing literature was used to provide an overview of this relationship taking into consideration the views of SMEs in both developed and developing countries. The empirical study was conducted utilising a quantitative research approach in the form of an online questionnaire survey. The research data was analysed using both descriptive (mean, standard deviation, etc.) and inferential (Analysis of Variance ANOVA) statistics. Based on the research approach and data analysis, the findings revealed that SMEs in the SACI similarly perceive the relationship between the integration of CSR and SBP to be a positive one, implying that the practice of CSR within construction businesses should lead to SBP, and serve as a meaningful guide in addressing the unsustainable trajectory of SMEs in the SACI. The findings could guide government agencies such as the construction industry development board (cidb) to embed CSR education within contractor development programs, linking the adoption of CSR to the contractor grading system.
Highlights
small and medium enterprises (SMEs) in South Africa employ 47% of the workforce, contribute to more than 20% of GDP and pay approximately 6% of all corporate taxes, many show signs of unsustainable business performance in their first year of existence [1]
In an attempt to address this, it should be noted that limited research considering corporate social responsibility (CSR) and its link to stakeholder theory as a driver to the sustainable business performance (SBP) of SMEs in the South African construction industry (SACI) exist, this study explored the concept of CSR, by investigating the perceptions of SMEs in the SACI relative to the relationship between the integration of CSR and SBP
The findings indicate that the surveyed SMEs within the SACI perceive that a positive relationship exists between the integration of CSR within their businesses and SBP from both an internal and external perspective
Summary
SMEs in South Africa employ 47% of the workforce, contribute to more than 20% of GDP and pay approximately 6% of all corporate taxes, many show signs of unsustainable business performance in their first year of existence [1]. This raises huge concerns with regard to the sustainability of construction SMEs in South Africa To address this problem various authors such as [3,4,5,6,7,8], have all conducted research on SMEs in the SACI and have highlighted factors threatening the SBP and survival of SMEs relative to the lack of: SME owner managers’ management knowledge (planning capacity, resourcing, leadership and controlling capacity); business knowledge and self-knowledge; industry experience in the chosen area of business such as construction; business acumen, aptitude, and entrepreneurial mind-set to form and raise a successful enterprise. These studies have not considered the notion of CSR and its link to stakeholder theory
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