Ubuntu or Compliance? Knowledge, Attitudes, and Practices of Owners of Small- Medium-Sized Enterprises in Johannesburg, South Africa Regarding Corporate Social Responsibility

Abstract

ABSTRACT There is a paucity of studies demonstrating how small and medium-sized enterprises (SMEs) adopt CSR interventions to enhance social and economic conditions of communities within which they operate. There is also a prevailing stereotype that Corporate Social Responsibility is only applicable to big, multinational companies. The study therefore explored the knowledge, attitudes, and practices of 10 owners of SMEs in Johannesburg, South Africa regarding CSR. Guided by a social development lens, the study adopted a qualitative case study research design. Thematic analysis of interview responses revealed that most of these owners considered their SMEs to be practising CSR, and were motivated primarily by the intrinsic spirit of Ubuntu rather than extrinsic compliance with regulatory requirements. While some CSR interventions (such as skills-transfers as empowerment) were found to be consistent with the social development approach, others, such as philanthropy, were not necessarily developmental but nevertheless important in a developing country such as South Africa with its high levels of poverty. The key contributions of the study to knowledge are first, that it debunks the misconception in the literature that SMEs are too small and financially incapable of implementing CSR interventions; and second, that it enhances understanding from a developing world perspective of the factors motivating SME owners to engage in CSR.