Article

Does Size Matter? The State of the Art in Small Business Ethics

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Abstract

In this paper the exclusive focus on large firms in the field of business ethics is challenged. Some of the idiosyncrasies of small firms are explained, and links are made between these and potential ethical issues. A review of the existing literature on ethics in small firms demonstrates the lack of appropriate research, so that to date we can draw no firm conclusions in relation to ethics in the small firm. Recommendations are made as to the way forward for small firm business ethics research. Questions for investigation are suggested using micro, meso and macro perspectives. Much exploratory work needs to be done to lay the groundwork for this important area of social and commercial research in the future.

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... To sum up, this dissertation tackles the research gap concerning RBPs in internationalized SMEs, which is marked with a star in Figure 1. This gap is located at the crossroads of research on business responsibility in SMEs (Lund-Thomsen et al., 2014;Morsing & Spence, 2019;Soundararajan et al., 2018;Spence, 1999Spence, , 2016, CSR in MNEs (Kolk, 2005(Kolk, , 2016Kolk et al., 2019;Kolk & van Tulder, 2006;Muller & Kolk, 2010; ...
... However, starting in the 1990s, the traditional focus of ethics and responsibility, which previously only concerned large companies, was challenged in the US and Europe, and the amount of research done on this topic started to rise (Spence, 1999;Thompson & Smith, 1991). A quick search in Scopus for the keywords "CSR," "social responsibility," "environmental responsibility," and "SME," "small business," and "small enterprise" yielded 823 results in April 2021. ...
... The findings of this dissertation contribute to and extend the existing research on SME business responsibility (Ellerup Nielsen & Thomsen, 2009;Jenkins, 2004;Lund-Thomsen et al., 2014;Morsing & Spence, 2019;Soundararajan et al., 2018;Spence, 1999Spence, , 2016, CSR (Kolk, 2005(Kolk, , 2016Kolk et al., 2019;Kolk & van Tulder, 2006;Muller & Kolk, 2010;Pisani et al., 2019), and IE (Bell & Loane, 2010;Coviello & McAuley, 1999;Jones et al., 2011;Oviatt & Mcdougall-Covin, 2005). This dissertation is guided by the effort to unite the two research streams of business responsibility and internationalization in the SME context by building on similarities and integrating theoretical underpinnings from both research streams in one study. ...
Thesis
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This dissertation focuses on the role of responsible business practices (RBPs) in the operations of internationalized small- and medium-sized enterprises (SMEs). Most research has assumed that SMEs are resource-constrained entities, as the existing research in international business is focused on the corporate social responsibility of large multinational enterprises. However, SMEs are the backbone of the economy in most countries, and in recent decades, they have become increasingly involved in international business while practicing social and environmental RBPs and contributing to global sustainability. The research question “What is the role of responsible business practices in internationalized SMEs?” guides this dissertation, and institutional theory and dynamic capability view are the theoretical frameworks used. Four publications examine the antecedents, processes, and performance outcomes of SMEs’ involvement in RBPs and internationalization at the organizational and institutional levels. The dissertation is a mixed-method study, which uses quantitative data collected from Finnish SMEs and qualitative data collected through interviews with partnering SME dyads originating from Finland and Russia. The results suggest that research on SME internationalization and SME business responsibility has common grounds in terms of drivers and outcomes and highlight the intersections of these two streams as a fruitful research area. The main findings of this dissertation demonstrate that social responsibility plays a crucial role in transferring and increasing the contribution of organizational capabilities and environmental responsibility to SMEs’ competitive and international performance.
... This is not a coincidence, since until the late 1990s CSR research, with a few exceptions, focused on large companies, and only in the first half of the 2000s did research start to investigate whether the concept could be applied to smaller companies. The focus of studies was initially on comparing SMEs with large companies and the different CSR characteristics that result from these differences (Spence 1999;Jenkins 2004), and from the late 2000s onwards empirical research began to appear (Csillag 2008;1 Jenkins 2009;Tantalo et al. 2012;Turyakira et al. 2014;Tomšič et al. 2015;Witjes et al. 2017;Zastempowski -Cyfert 2021). ...
... Several authors argue (e.g. Szlávik 2006;Jenkins 2004Jenkins , 2006Spence 1999;Málovics 2009aMálovics , 2009bEC 2011;Rasche et al. 2017) that perhaps one of the most striking differences is that the CSR activities of SMEs are not or less formalised, but rather instinctive, motivated by a focus on helping and typically without a conscious strategy behind them. For this very reason, Málovics (2009a; argues that in the case of SMEs it may not make sense to talk about the impact on competitiveness, since that is mostly a characteristic of conscious, strategically embedded CSR activity, which is less typical for SMEs. ...
Article
The paper examines why there is no consistent answer in either the domestic or the international literature on the relationship between corporate social responsibility and competitiveness and the reasons behind this. The topic has been present in the international literature since the 1970s and has come to the fore in Hungary in the last 15 years. There are many different answers concerning the type of relationship between the two concepts, for a variety of reasons. Drawing on previous research, the paper presents a uniform system, details the causes identified and provides a theoretical framework for empirical research to ensure a complex approach and interpretation.
... Ez nem véletlen, hiszen az 1990-es évek végéig a CSRkutatások néhány kivételtől eltekintve nagyvállalatokat vizsgáltak, csak a 2000es évek első felében indultak kutatások arra, hogy kisebb méretű vállalkozások esetében is értelmezhető-e a koncepció. A tanulmányok fókusza eleinte a KKV-k nagyvállalatokkal történő összehasonlítása és a különbözőségekből adódó, eltérő CSR-jellemzőkön volt (Spence 1999;Jenkins 2004), majd a 2000-es évek végétől megjelentek az empirikus kutatások is (Csillag 2008 2 ;Jenkins 2009;Tantalo et al. 2012;Turyakira et al. 2014;Tomšič et al. 2015;Witjes et al. 2017;Zastempowski -Cyfert 2021). ...
... Több szerző kifejti (pl. Szlávik 2006;Jenkins 2004Jenkins , 2006Spence 1999;Málovics 2009aMálovics , 2009bEC 2011;Rasche et al. 2017), hogy talán az egyik legszembetűnőbb különbség, hogy a KKV-k CSR-tevékenysége nem, vagy kevésbé formalizált, inkább ösztönös, motivációként a segítést előtérbe helyező, és jellemzően nincs mögötte tudatos stratégia. Éppen emiatt hivatkozik Málovics (2009a; 2011) arra, hogy a KKV-k esetében lehet, hogy nincs is értelme a versenyképességre való hatásról beszélni, hiszen az leginkább a tudatos, stratégiába ágyazott CSR-aktivitás jellemzője, mely a KKV-k esetében kevésbé jellemző. ...
Article
A tanulmány azt vizsgálja, miért nincs egységes válasz sem a hazai, sem a nemzetközi irodalomban arra, hogy milyen kapcsolat áll fenn a vállalat társadalmi felelősségvállalása és versenyképessége között, és milyen okok állnak emögött. A témakör az 1970-es évek óta van jelen a nemzetközi szakirodalomban, Magyarországon pedig az utóbbi mintegy tizenöt évben került előtérbe. Sokféle válasz született eddig a két fogalom közötti kapcsolat típusára, melyek mögött számos ok áll. A tanulmány az eddigi kutatásokra támaszkodva egységes rendszerbe foglalja és részletesen bemutatja a feltárt okokat, és elméleti keretet biztosít az empirikus kutatások számára a komplex megközelítéshez és értelmezéshez.
... However, past studies have largely overlooked the fact that in a multi-layered economy, SMEs (micro-, small-and medium-sized enterprises) would also be capable of and have incentives to adopt non-market strategies towards building political and social ties (Jackowicz and Kozłowski 2019). Compared to large firms, SMEs would have peculiar interests in establishing and maintaining political links due to very SME-specific constraints, such as high dependence on personal relationships and informality, being often ownermanaged and independent in decision-making, having strong local business roots (Spence 1999), and relying on internal financing for growth (Lepoutre and Heene 2006;Russo and Perrini 2010). This reliance on internal financing resulting from limited access to finance is considered to be the biggest obstacle to their operations (Beck and Demirguc-Kunt 2006). ...
... Second, various peculiarities cause SMEs to diverge from their larger counterparts in seeking and maintaining political connections. Among them, the rule of a single individual through different corporate governance layers, being reliant on the personal network of that owner-manager and local business infrastructure, can be among the most important drivers of establishing political connections (Spence 1999). ...
Article
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The extant literature on the association of political connectedness and performance of large firms has led to controversial results, while the context of micro-, small- and medium-sized enterprises (SMEs) has largely been overlooked in relevant studies. To resolve these gaps, the objective of this paper is to study the link between the political connections of firm board members and financial performance in the Estonian SME population. Using a wide selection of financial performance and political connectedness variables, the composed regressions indicated that firms with politically connected boards underperform their unconnected counterparts. The findings remained robust not only through different measures of dependent and independent variables, but also periods studied.
... Out of the 16 investors, 8 are owner/managers and 4 individual donors (who all are former owner/managers). Owner-managers are usually a major or sole owner and decision-maker in their organization (Spence 2002). SME owner-managers are also able to enact values other than profit (Curran and Blackburn 2001;Spence 2002;Spence and Rutherfoord 2001). ...
... Owner-managers are usually a major or sole owner and decision-maker in their organization (Spence 2002). SME owner-managers are also able to enact values other than profit (Curran and Blackburn 2001;Spence 2002;Spence and Rutherfoord 2001). Lepotre and Heene (2006) found that small business owner-managers are particularly sensitive to activities related to their immediate internal stakeholders (employees, customers, and suppliers). ...
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What are the motives for private businesses investment in city-branding.? A positive city image may attract new businesses while a contested image may limit the opportunities, also for existing businesses. Our data originates from the Danish city of Horsens. Horsens has over a 20-year period changed image from being nationally known as a prison city to become nationally known as a concert and event city. The key to success has been a private limited liability company in a cross-sectoral partnership between investors from private businesses, the city and third sector organizations. We analyzed business investors motives through a lens of philanthropy, human geography, and social sustainability. We find that investors see their investment as philanthropic, but that traditional motives behind philanthropy are insufficient to describe all motives behind the investment. Instead, we find that investors sense of place, place attachment and city pride was strongly affected by the contested city image in the outside world and a key to their involvement in the project. We believe that the key to change is to affect the perception of the external world, because only the resonance from the outside world can confirm citizens and businesses that a project is successful.
... Nevertheless, a considerable number of small business owners/managers tend to perceive their social and environmental impacts as negligible [36,37]. Spence [38] characterizes SMEs as fortress enterprises, primarily focused on operational duties and somewhat detached from the broader business environment. They tend to respond reactively to urgent issues [35]. ...
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In the 21st century, the primary concerns within our society and economic framework revolve around securing a sustainable future and ensuring our future prospects. The crises witnessed in recent years have both introduced new challenges and revived existing difficulties. The crucial question emerges: can societies and economies demonstrate the resilience necessary to avert impending dangers during such circumstances? This consideration holds particular significance for small and medium-sized enterprises (SMEs) operating in the global economy. SMEs play a vital role in national economies, and their importance is even more pronounced within our national societies. Addressing threats and challenges in the SME sector proves to be more challenging due to their compact size, which lacks the protective shield against various environmental impacts enjoyed by larger enterprises with their greater size and capabilities. On the other hand, due to their smaller size, SMEs may be able to overcome these obstacles more successfully than large enterprises by using the appropriate tools and investing in opportunities. The aim of this article is to investigate to what extent environmental protection investments and other sustainability-related developments increase the resilience of SMEs. In connection with the above mentioned, it was investigated how the combination of marketing communication and sustainability goals, and how appropriate communication of sustainability, contributes to increasing the resilience of Hungarian SMEs. The analysis is based on a grouping of 266 small and medium-sized enterprises using the variables created based on the literature review and expert interviews.
... In contrast, small and new brands have more flexibility to respond to social change and are established in contemporary contexts (Reeves & Deimler, 2012). Small organizations differ from large organizations in some specific ways that affect how consumers view their CSR efforts (1) their owners/founders often start businesses in line with their personal values (Smith & Alexander, 2013), (2) personal relationships, both internally with employees and externally with the local community, are the key to small business success (Russo & Perrini, 2010;Spence, 1999;Smith & Alexander, 2013), and (3) small businesses have fewer resources than large business, which equates to less money to contribute to external causes (Perrini et al., 2007). there is less reason to expect that small/new organizations would need large publicized internal CSR initiatives to promote change. ...
Article
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Corporate social responsibility (CSR) efforts by established legacy brands are often seen as inauthentic. What can brands do to genuinely engage in CSR efforts? This study investigates internal CSR as a potential solution. CSR type (internal and external) and extrinsic cues (brand size and age) interact to affect congruence, authenticity, and subsequent purchase intention for companies that communicate these efforts on social media. Through a series of three experiments, we compare the effectiveness of internal and external CSR in influencing consumer perceptions. Results confirm that CSR is not a one-size-fits-all solution for brands. We find that Internal CSR is more effective for legacy (older, larger) brands, while external CSR is more effective for novel (newer, smaller) brands. This paper is among the first to conceptualize internal CSR as a potential strategy for legacy brands that often struggle for authentic ways to get involved with social issues. Results indicate that consumers want to see larger, older brands try to "fix" themselves before they attempt to fix the world.
... A tendency to form certain expectations and perceptions driven merely by the signal of a company's size has been noted before. For instance, small companies are seen as more capable of developing close and direct relationships with their customers (Spence, 1999), more trustworthy (Green & Peloza, 2014), more communal (Yang & Aggarwal, 2019), and more sincere (De Vries & Duque, 2018). Consumers support small companies for several underlying reasons: willingness to emphasize their beliefs regarding anti-commercialization (Thompson & Arsel, 2004), a tendency to identify with underdogs (Paharia et al., 2011), or a consumer's quest for authenticity (Newman & Bloom, 2012). ...
Article
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Previous research mainly concentrated on the link between the company size and consumer perceptions related to corporate social responsibility (CSR). Here we aim to extend the previous findings to the context of the consumer’s individual trait of social responsibility. Building on signaling theory, we analyze such signals as company size and demonstrate that consumers have a decreased willingness to buy a product originating from a large company as compared to a small company. However, the effect flips for consumers with low social responsibility as they show a higher willingness to buy large company products. We contribute to signaling theory by showing that consumer traits such as consumer social responsibility can play an important role in the effectiveness of the signal. In addition, these findings contribute to consumer social responsibility research as well as consumer behavior literature by showing that the company size effect is moderated by consumer social responsibility. Theoretical and managerial implications are discussed together with directions for future research.
... Sin embargo, existe un amplio consenso de que las PYMES son una fuerza económica importante y considerable y que los resultados estratégicos de la RSE en este grupo de empresas investigación (Morsing & Perrini, 2009). Al mismo tiempo, varios especialistas argumentan que hay características particulares que distinguen las formas en que las PYMES integran los problemas sociales y ambientales en sus estrategias en las empresas más grandes (Johnson & Schaltegger, 2016;Russo & Perrini, 2009;Spence, 1999Spence, , 2007; específicamente, incluso si las PYMES tienen menos recursos disponibles para integrar la RSE en sus estrategias y enfrentan menos atención de los interesados cuando se comparan con grandes empresas. Los motivos pueden estar asociados a incapacidad financiera, falta de información, influencia personal del propietario-gerente (Burton & Goldsby, 2009;Wickert, 2016). ...
Article
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La presente investigación desarrolla un análisis documental sobre como las Pequeñas y Medianas Empresas (PYMES) aplican la Responsabilidad Social Empresarial (RSE) en sus distintos giros de negocio y conocer la problemática que se da. El objetivo de este estudio es explicar la relación que tiene la RSE y las PYMES, así como el impacto que genera este elemento en sus actividades y sus posibles problemáticas. Para llevar a cabo esta investigación se aplicó el método cualitativo de revisión de literatura especializada, cuyos datos son extraídos y analizados de bases de datos como Scopus y WoS. Los resultados preliminares exponen que existe una relación entre la RSE en las PYMES evidenciando su influencia y relevancia en el contexto empresarial y de integración con la comunidad.
... zaczęto podkreślać potrzebę rozszerzenia znaczenia CSR na przedsiębiorstwa małe i średnie, mimo że pierwotnie CSR był zarezerwowany dla korporacji. Nazwa corporate social responsibility wyraźnie wskazywała duże firmy, a w odniesieniu do mniejszych firm stosowano odrębne pojęcia: social responsibility lub social responsibility of business (Spencer, 1999). ...
Book
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Społeczną odpowiedzialność uniwersytetu definiuje się jako dobrowolne działania uczelni, wykraczające poza obowiązek kształcenia i prowadzenia badań, których celem jest poprawa jakości życia ogółu. Mimo że trójczłonowość misji uniwersytetu może sugerować, że jest on społecznie odpowiedzialny „z natury”, wyniki badań pokazują, że społeczna odpowiedzialność nie jest fundamentem, z którego wynikają działania uniwersytetu, lecz raczej dodatkowym elementem jego działalności. USR często jest traktowana przedmiotowo i bagatelizowana, co utrudnia jej rozwój. Jednocześnie otoczenie społeczne postrzega uniwersytet jako inkubator wiedzy i technologii oraz oczekuje, że przyczynią się one do rozwiązania ważnych problemów, takich jak: globalne ocieplenie, zubożenie i rozwarstwienie społeczne, migracje, starzenie się populacji i choroby cywilizacyjne. Uczelnie powinny rozwijać swoją działalność, tak aby sprostać oczekiwaniom i potrzebom swoich interesariuszy oraz zacieśniać współpracę z coraz bardziej zróżnicowanymi grupami reprezentującymi społeczeństwo. Zaadaptowanie CSV do potrzeb i realiów funkcjonowania uniwersytetu może być kolejnym etapem ewolucji obu omawianych powyżej koncepcji. Może też stanowić odpowiedź na wyzwania, z jakimi mierzy się współczesny uniwersytet – zarówno związane z pogłębiającymi się problemami cywilizacyjnymi i środowiskowymi, zwiększającą się świadomością społeczną oraz oczekiwaniami względem zaangażowania uczelni, jak i wynikające z globalnej konkurencji o studentów i środki finansowe, niezbędne uczelni do rozwoju. Monografia składa się z sześciu rozdziałów. Trzy pierwsze poświęcono analizie literatury dotyczącej społecznej odpowiedzialności organizacji (rozdział 1), tworzenia wartości wspólnej (rozdział 2) oraz społecznej odpowiedzialności uniwersytetu (rozdział 3). Metodyka badania empirycznego została opisana w rozdziale 4, a jego wyniki omówiono w rozdziale 5. Rozdział 6 poświęcono natomiast przedstawieniu rekomendacji opracowanych na podstawie badania.
... The findings of this study can be understood that SMEs, which generally have small business sizes, make their capacity to behave unethically, not as large as large companies (Spence, 1999). Knowledge's role may serve as the basis for creating competitive advantage as supported by the resource-based view theory (Grant, 1996). ...
Article
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This study generally describes the usefulness of digital platforms for small and medium-sized micro-enterprises in Makassar city. This research was carried out by the SMEs sector of Makassar City with Snowball Sampling techniques. Data collection methods are observation methods, in-depth interview methods, and documentation. This qualitative study uses a triangulation model that combines interview and observation methods for small and medium-sized micro-enterprises. The results prove that digital platforms make it easier for SME players to provide information and interact directly with consumers, expand market reach, and increase awareness and sales for SMEs.
... Although mainstream CR-related research has been oriented towards large firms, various studies have addressed the importance of CR among SMEs in the last decades (Spence, 1999;Tilley, 2000;Looser and Wehrmeyer, 2015). The role of CR in SMEs should be distinguished from its role in large corporations since SMEs differ from larger enterprises in terms of their legal form, sector, orientation towards profit, national context, historical development and institutional structures (Perrini, 2006). ...
Article
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This study offers a conceptual framework to investigate the role of financial and cultural factors on the understanding of corporate (social) responsibility (CR), and by applying this framework, aims to understand how cultural factors are affecting CR perception of Turkey. Since the impact of cultural factors is especially apparent on the smaller enterprises, the research focuses on SMEs in the manufacturing sector. In total, 15 semi-structured interviews with company representatives were conducted. The acquired data was analyzed with a descriptive analysis method. Results show that although participants were not aware of the extent of CR concept, a majority of them do have philanthropic activities, which are motivated predominantly by moral values. However, they show weak performances in terms of their environmental responsibility and stakeholder dialogue. These findings confirm that the CR perception of participant SMEs is compatible with Turkey's cultural characteristics. Therefore, cultural factors could play a key role for SMEs to embrace the essence of CR as somehow traditional and already existing, rather than considering this notion as 'imported' or 'new'. This research differs from existing literature in its qualitative methodology and conceptual framework, which scrutinizes financial and non-financial factors separately to reveal the CR perception of SMEs. Öz: Bu çalışma, finansal ve kültürel faktörlerin kurumsal (sosyal) sorumluluk (KS) anlayışındaki rolünü araştır-mak için kavramsal bir çerçeve önermekte ve bu kavramsal çerçeve içerisinde kültürel etkenlerin Türkiye'deki KS algısı üzerindeki etkisini anlamaya yönelik bir araştırma sunmaktadır. Kültürel etkenler özellikle küçük işletmeler üzerinde belirgin olduğundan, araştırmada üretim sektöründeki KOBİ'lere odaklanılmıştır. Şirket temsilcileri ile
... Sin embargo, existe un amplio consenso de que las PYMES son una fuerza económica importante y considerable y que los resultados estratégicos de la RSE en este grupo de empresas investigación (Morsing & Perrini, 2009). Al mismo tiempo, varios especialistas argumentan que hay características particulares que distinguen las formas en que las PYMES integran los problemas sociales y ambientales en sus estrategias en las empresas más grandes (Johnson & Schaltegger, 2016;Russo & Perrini, 2009;Spence, 1999Spence, , 2007; específicamente, incluso si las PYMES tienen menos recursos disponibles para integrar la RSE en sus estrategias y enfrentan menos atención de los interesados cuando se comparan con grandes empresas. Los motivos pueden estar asociados a incapacidad financiera, falta de información, influencia personal del propietario-gerente (Burton & Goldsby, 2009;Wickert, 2016). ...
Article
Full-text available
La presente investigación desarrolla un análisis documental sobre como las Pequeñas y Medianas Empresas (PYMES) aplican la Responsabilidad Social Empresarial (RSE) en sus distintos giros de negocio y conocer la problemática que se da. El objetivo de este estudio es explicar la relación que tiene la RSE y las PYMES, así como el impacto que genera este elemento en sus actividades y sus posibles problemáticas. Para llevar a cabo esta investigación se aplicó el método cualitativo de revisión de literatura especializada, cuyos datos son extraídos y analizados de bases de datos como Scopus y WoS. Los resultados preliminares exponen que existe una relación entre la RSE en las PYMES evidenciando su influencia y relevancia en el contexto empresarial y de integración con la comunidad.
... SMEs possess specific characteristics that differentiate them from their larger counterparts [50]. They tend to be owner-managed and personalized, independent, multi-tasking, cash-limited, and based on personal relationships and informality, grouped in local systems of production, closely connected to their local community, and with limited access to financial resources [50][51][52][53][54][55][56]. SMEs are greatly dependent on individual manager's decisions contrary to large companies [30,57]. ...
Article
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Main aim: This paper examines the main topics of research in the literature studying the topic of sustainability in small and medium-sized enterprises (SME), and aims at presenting a future research agenda. Method: We conducted a systematic literature review based on articles published between 2000 and 2020. From an initial set of 88 papers taken from WoS in the period under analysis, 42 papers were effectively analyzed. Main results: The results of an in-depth reading reveal four clusters representing the main topics of research in the field: sustainability and SMEs’ performance; green and environmental management issues; social and cultural issues and their impact on sustainability policies; values, skills, and capabilities. Key findings suggest that the following angles of research appear to be underexplored: theoretically grounded research; research using large samples; articles examining sustainability reporting; research looking into non-manufacturing sectors; work examining settings in developing countries; research undertaking international comparisons; articles exploring the complementarity between the literature on sustainability in SMEs and on family-owned businesses; and the influence of the social and cultural context on SMEs’ engagement with sustainability. Main contribution: This paper offers insights to academia, practitioners, and policy makers to help SMEs engaging with sustainability and may assist also the latter to develop strategies to improve SMEs’ social and environmental reporting. Given the current pandemic crisis, and the urgency for sustainable business practices, we expect to contribute to expanding knowledge in this field of research.
... O/M environmental 'consciousness', 'worldviews', 'action logics' and orientation to learning also seen as key. (Spence, 1999;Jenkins, 2004). As various writers have noted (Conway, 2014(Conway, , 2015Friedman et al., 2000), these factors are rarely addressed directly in studies of enterprise support in this arena. ...
Article
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Whilst there are well-established bodies of knowledge about enterprise support and the role of entrepreneurial learning for SMEs (Small and medium-sized enterprises) in general and a growing body of evidence relating to environmental capabilities, green/eco-innovation, sustainable supply chains and green skills for SMEs in particular, there is little empirical and peer reviewed literature that address approaches to enterprise support specifically focussed on the needs of the growing number of pro-environmental SMEs. This study undertakes a contextualised review of diverse knowledge domains to identify the key features of enterprise support for pro-environmental SMEs. In doing so, the paper plots the knowledge journey of experienced academic programme providers, from the initial design of an enterprise support programme for pro-environmental SMEs, through a thematic review of academic, grey and other related literature and finally presents a propositional and normative conceptual framework that proposes eight key features of enterprise support for pro-environmental SMEs. The resulting ‘framework for action’ aims to offer a practical tool for providers of pro-environmental enterprise support to review and improve their own provision, an analytical frame for other researchers in this field and a benchmark for SMEs seeking guidance on their pathway to net-zero business performance.
... These are typically led by non-profit organisations with links to local authorities, but there is a lack of national coordination, significant variability across regions (Britton & Woodman, 2014), and many projects are hampered by bureaucracy (Hampton, 2018b). While some studies have found a lack of appetite amongst SME ownermanagers for external advice (Spence, 1999 (Painuly, 2009;Sahoo et al., 2016) and South Africa (National Business Initiative, 2015). International environmental NGOs also play a key role in promoting climate action in SMEs. ...
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Collectively, small and medium‐sized enterprises (SMEs) make a significant contribution to carbon emissions. Transformative changes are needed to achieve Net Zero amongst the SME community, presenting policymakers and practitioners with a complex and largely unresolved set of challenges. In this paper, we investigate the unexploited potential of human values in facilitating these changes, with a particular focus on the role and experiences of specialist intermediaries, such as business advisors, as agents of change. The paper reports on four linked, transdisciplinary research projects, which tested and validated a values‐based intervention in collaboration with businesses and advisors, designed to promote more effective, long‐term journeys towards Net Zero. Our study connects research evidence on SME support with key insights from values literature, including the emerging concepts of values practices and values work. We discuss outcomes from the four projects, and the broader implications for research, policy, and practice.
... Moreover, such a management system for the early warning of business crisis conditions in terms of links between the company and its social environment establishes a proactive approach to CSR [31,41,70]. This includes various stakeholders in the political system in such a business model, including representatives of government institutions, educational institutions, political parties, trade unions, and influential NGOs [71][72][73]. Such a wide range of communication between different stakeholders can lead to a better understanding of the perception of business crisis situations. ...
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The main aim of this article was to outline how the appearance of COVID-19 changed the global competitiveness of Slovenian companies through the lenses of corporate social responsibility (CSR) and crisis management. Based on concepts of CSR and crisis management, we analyzed the responses of companies to ensure their competitiveness in a crisis situation. Two surveys among managers in Slovenian companies were carried out, one in March 2020 (N = 618) and the other in May 2020 (N = 486). Our results showed that internationally oriented companies responded more comprehensively and proactively to the challenges of doing business in the COVID-19 crisis compared to the companies that had operated mainly in the domestic market during this period. The analysis also showed that internationally oriented companies responded to the COVID-19 crisis with more comprehensive measures also using the concept of CSR and crisis management in comparison with companies that, in the time of the pandemic, operated mainly in the domestic market and used fewer principles of CSR and crisis management. The main theoretical implications of this survey are related to CSR development. They emphasize the interdependent importance of experience and impact in international business in connection with the concept of CSR and crisis management in times of COVID-19. Practical implications include proposals to streamline operations to maintain competitiveness and to take advantage of new business opportunities and effects, which are also encouraged through the use of the CSR concept and crisis management.
... The resulting impact on social responsibility orchestration within high strategic capability small suppliers is that firms will possess the capacity to engage in formalised, embedded and often sophisticated social responsibility initiatives. Simultaneously, such firms will be far less short-term focused on day-to-day issues, related to firefighting and survival of the type that have been frequently associated with small businesses and their approach to social responsibility issues (Spence, 1999). ...
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Research on socially responsible supply chains has tended to define suppliers over‐simplistically as either responsible or irresponsible. This paper illuminates the varied roles of broadly socially responsible small and medium sized enterprises by seeking to discern the differences and highlight the heterogeneity of the approaches taken. Distinguishing our approach from extant corporate social responsibility categorisations, a typology is outlined, drawing on Jungian Theory of Extraversion and the strategic capability of smaller firms. The analysis suggests four groupings of socially responsible small and medium enterprise supplier: strategic engager; strategic contemplator; active connector and active reflector. Overall, the paper seeks to inject nuance into discussions regarding supplier social responsibility practices, adding to the small business social responsibility literature, as well as unifying a number of strands of research relating to supply chain responsibility. The proposed typology offers firm foundations for further empirical and conceptual research in the area.
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In response to the environmental and social challenges posed by the COVID-19 pandemic, businesses are actively seeking ways to generate social benefits while also boosting their financial performance. Corporations are embracing corporate social responsibility (CSR) practices as a means to achieve this dual objective. This study aims to investigate how global corporations have responded to the pandemic by promoting their CSR commitments through CSR advertising. A quantitative content analysis was conducted to examine how leading global corporations promote their CSR practices on social media during the COVID-19 pandemic. Specifically, the study examined CSR advertising posts from twelve global corporations’ Instagram accounts across the years 2019, 2020, and 2021, totaling 886 posts. The findings show that corporations immediately responded to the COVID-19 pandemic by adopting CSR practices in myriad areas of social concern and strategically framing those efforts through CSR advertising. This study contributes to the CSR literature by providing an instrument for scholars and practitioners to reevaluate the role of business and CSR initiatives during uncertain times. Furthermore, it highlights opportunities for corporations to prioritize CSR initiatives, not only during the pandemic but also in the long term, to achieve a balance between social, environmental, and economic goals
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In the developing economy of Bangladesh, local factory owners in the garment industry have felt great pressure to improve factory safety, but the costs for those improvements are not shared by the global apparel firms that wield immense influence over them. Consequently, we examine whether multi-stakeholder initiatives (MSIs), as vehicles of corporate social responsibility (CSR), offer platforms for democratic oversight or merely serve as new arenas to exercise corporate power. Given their role in connecting global and local contexts and their history of safety incidents, local factory owners possess a unique perspective on the impact and contested nature of CSR in global supply chains. This article presents a qualitative study of MSIs in the Bangladesh garment industry, particularly after the Rana Plaza collapse. Through interviews with local factory owners and executive managers, we explore the reasons behind their opposition to CSR as exercised by global apparel firms, and the contestation of those practices by their local business association. Our findings lead us to conclude that garment industry MSIs are unlikely to be effective without labor procurement practices that harmonize global and local interests to mitigate the competitive pressures on local factory owners.
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Purpose The purpose of this paper is to examine the corporate social responsibility performance among small and medium enterprise (SME) owners in the United Arab Emirates (UAE) before and during COVID-19. This study shows insights into the barriers that could affect the CSR performance practices of UAE SMEs, and related implications are discussed in the study. Design/methodology/approach This study used a longitudinal qualitative research design. The research comprised 30 interviews from 15 SME owners that were studied prior to and during the pandemic. The 15 interview participants are the sole owners of these SMEs and are Emirati citizens. They were identified through personal contacts and referrals. Findings Study findings show that there was a clear shift during the pandemic to place more focus on employees. CSR performance practices are dominated by strategies for caring for the environment and employees. During the pandemic, the priority was paying employees at least a portion of their salary despite financial hardships and ensuring their health and well-being. Prior to the crisis, the key barrier to the implementation of CSR performance practices was a lack of knowledge. During the pandemic, barriers identified included uncertainty and financial constraints. Furthermore, all the owners believe that big corporations should be more socially responsible and SMEs should be the recipients of CSR practices. Lastly, the owners expressed their belief in the values of transparency, integrity, commitment, efficiency and responsibility. Originality/value This study is a novel attempt to gain an in-depth understanding of CSR among SMEs in the UAE in the context of a pandemic. It looks specifically at the performance practices pursued by SME owners in the UAE before and during the COVID-19 crisis.
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Previous research has repeatedly suggested that small (vs. large) companies have a higher appeal to consumers, yet the underlying mechanisms explaining why such an effect occurs remain understudied. Through four experiments, we show that company size cues affect consumer preferences; products originating from small companies are perceived to be healthier than those from large companies, with a downstream positive effect on willingness to buy. Specifically, small (vs. large) company size cues increase the perception of product safety, in turn increasing the perception of product healthiness. This effect is more pronounced for individuals who are more sensitive to safety signals, scoring high on sensitivity to pathogen disgust. Our findings provide managerially relevant insights and show that additional safety‐related signals have the potential to counteract this seemingly inherent disadvantage for large companies.
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In this article, using both cross‐country data including 73 countries, as well as a novel data from a firm level survey covering 1000 firms in Turkey, I investigate the relationship between informality and corporate social responsibility (CSR). Using the firm‐level data, I ask whether corporate social responsibility scores (CSR) and its relationship with firm's expected performance and profitability are different for firms mainly operating in the formal and informal sector. Cross‐country data reveals a significant negative correlation between CSR and informal sector size. On the other hand, using the firm‐level data, I find that firms that tend to engage in informal economic activities have significantly lower CSR scores. Moreover, CSR scores and firms' expected performance are generally positively correlated and this correlation is much less (and even not significantly different from zero in some cases) for informal firms. I also find some evidence that the main reason behind these results might be that firms mainly operating in the informal sector are spending significantly less to R&D and advertising as the relationship between these variables and the firm's performance and profitability is less pronounced for these firms.
Chapter
This chapter seeks to advance research propositions that help explore the relationships between SMEs’ sustainability practices and sustainability performance. Drawing on the resource-based view and institutional theory, the chapter hypothesises how the firm resource context and the coercive, normative, and mimetic institutional forces influence, positively or negatively, SMEs’ adoption of sustainability practices and their sustainability performance in Africa. The chapter develops a conceptual framework that shows the subtle interactions between the firm resources and institutional forces with sustainability practices such as sustainability-oriented innovation, lean manufacturing practices, and socially oriented practices and sustainability performance. The chapter argues that embracing sustainability practices to achieve sustainability performance could be a ‘big uncertain call’ to SMEs as these require having developed appropriate resources and supportive institutional environment.KeywordsInstitutional forcesResourcesSMEsSustainability performanceSustainability practices
Chapter
This chapter explores the firm–territory “nexus,” by disentangling the concept of the firm’s local embeddedness. After retracing the evolution of the concept, its formulation in spatial terms, and the dark side of embeddedness, the chapter sheds light on the entrepreneur’s place attachment underlying the firm’s embeddedness in the local context. Then, it delves deeply into the family firms. By untangling the peculiar place attachment of the owning family, the chapter depicts the local roots embedding the firm in a given locality and the influence on firms’ outcomes. The manuscript ends by analyzing the factors either embedding or disembedding family firms from their home territory and the adverse effects of over-embeddedness.KeywordsEmbeddednessLocalitiesPlace attachmentLock-inLocal rootsFamily firms
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Employees have their own understandings of corporate social responsibility (CSR) motives. This study investigated whether employees' different perceptions of CSR motives, including substantive CSR attribution and symbolic CSR attribution, influence their work attitudes, job satisfaction, and turnover intention. Moreover, we explore the mediating role of person‐organization fit in the relationships among CSR attribution, job satisfaction, and turnover intention. We collected 687 responses for an overall response rate of 16%. The results of structural equation model (SEM) analyses show that substantive CSR attribution decreases employee turnover intention and that symbolic CSR attribution increases employee turnover intention. Based on these results, we provide relevant theoretical and managerial implications.
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Reasons to adopt Corporate Social Responsibility reporting by leather tanning companies must primarily be sought in the specific nature of the industry, where leather is a material from renewable sources, however part of its manufacture process might pose one of the gravest environmental hazards in the world. The tanning industry appears, therefore, as a sector compiling CSR reports expected to confirm its environment-friendly actions. The purpose of this research is to examine and understand CSR roles and diffusion in the small and medium enterprises of the leather tanning industry in Catalonia (Spain), especially in relation with the adoption of other management systems. It identifies the most distinguished CSR practices, procedures and metrics and the profiles of companies more prone to adopt them. We used a qualitative approach to fulfill this aim. Results show that leather companies are familiar with CSR practices, but there is further scope for improvement in terms of formalization of CSR procedures and measurement systems. Results show that the majority of socially responsible practices are related to environmental issues and consequently there is a relation between CSR and the application of environmental management systems. The analysis reveals that the management of CSR activities improves with the diffusion of knowledge on CSR practices.
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Purpose Socially responsible firms are known to improve competitive advantage and create workplaces that protect employees and the society in the long-term. Yet, the transitionary and project-based nature of the construction industry makes it difficult to espouse socially responsible practices. This study aims to adopt a person-centric conceptualisation of social responsibility by drawing on processes of individual sensemaking to gain a deeper understanding of small-business social responsibility (SBSR). Design/methodology/approach The authors conducted semi-structured interviews with 11 people from the construction industry in Sri Lanka to develop retrospective narratives. Findings The findings suggest that individuals in small-business construction firms rely on intraindividual, organisational and wider societal considerations to make sense of SBSR. What drives these interviewees to be responsible is determined not so much by profitability or reputation but by their own SBSR sensemaking process. Originality/value This study examines how individuals make sense of social responsibility in transitionary project-based small businesses in the construction industry.
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The need for SME owner/managers to engage in building and maintaining collaborative business relationships is paramount for their success and the resilience of these relationships can be viewed as a crucial factor in successful supply chain management for SMEs. The present study investigates the relationship between the social intelligence of the SME owner/manager and relationship resilience between firms with which they do business. The objective of this study is to explore the relationship between four components of social intelligence (situational awareness, situational response, cognitive empathy, and social skills) of small to medium sized business owners/managers on the resilience of their supply chain relationships. A survey was conducted, and responses gathered from small business owner/managers and the data was analyzed using structural equation modeling. The study provided evidence that the four components of social intelligence are positively associated with relationship resilience.
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Corporate social responsibility (CSR) has recently been emphasized as an important focus area of small and medium‐sized enterprises (SMEs) for achieving sustainable competitiveness. As most SMEs have scarce resources, however, their CSR implementation has varied significantly. This study investigated why some SMEs actively engage in CSR by suggesting export participation for CSR engagement. This motive differs from the widely believed motive of SMEs for their active engagement in CSR: their relationships with their local communities. Considering the distinctive features of SMEs, this study also examined how the relationship between SMEs' exports and their CSR engagement is moderated by the influence of the SMEs' CEOs and markets. By studying the CSR activities of 614 SMEs in South Korea drawn from a survey of the Ministry of SMEs and Startups, we found that exporters are more likely to be engaged in CSR. Moreover, the relationship between export participation and CSR was stronger in SMEs with family CEOs and in business‐to‐business‐focused SMEs.
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Little is known about SMEs' perceptions of CSR, sustainability, and business ethics, particularly in the fashion industry. We have even less information on the relationship between SMEs' CSR actions and employer branding. This important knowledge gap is addressed in this study. We intend to focus on how small and medium-sized enterprises that are operating and considered sustainable in the fashion industry interpret the concept of sustainability, corporate social responsibility (CSR), and business ethics, which CSR elements appear in relation to employees, and how they contribute to employer branding. In the course of our qualitative research, we conducted semistructured, in-depth interviews with the owners and managers of 10 European businesses, bearing sustainability in mind. Our results show that the organisational culture and the reputation perceived by a wide range of stakeholders are the most essential elements of employer branding, which promotes employees' commitment to sustainable fashion enterprises.
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Purpose Small and medium enterprises (SMEs) across the world are generally found to have a limited interest in wider social issues. SMEs face many barriers in operating in a socially responsible and sustainable manner despite it making a good business sense. This paper explores the barriers and challenges faced by Indian SMEs for engaging in corporate social responsibility (CSR) practices. Design/methodology/approach The research uses interpretive structural modelling (ISM) to explore the structural relationship among barriers faced by Indian SMEs in their CSR engagement which were identified from the past literature and validated by the experts. Findings The study identified thirteen variables as important barriers resulting in a lower CSR engagement by Indian SMEs. The ISM model indicates that Indian SMEs focus on tactical rather on strategic needs along with their limited information and knowledge about CSR are the main driving forces which keep them away from an active and meaningful CSR engagement. Their limited CSR engagement capabilities, limited need to engage with their workforce and lower CSR perceived benefits also constrain their CSR engagement. The Indian SMEs also do not see a need for CSR engagement because of lower community and governmental pressure. Originality/value The study provides a comprehensive listing of CSR engagement barriers faced by Indian SMEs along with the structural relationships among them. The model developed provides CSR professionals and policymakers an understanding of the important impediments in CSR engagement of Indian SMEs based on their driving power and dependence. This insight will help them in designing initiatives to influence identified barriers to promote CSR engagement by Indian SMEs.
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Taking the lead from stakeholder management theory, this study seeks to shed light on the association between the stakeholder pressure and the involvement of small- and medium-sized enterprises (SMEs) in sustainable actions. The study also proposes a moderating role of the business case for corporate sustainability on this relationship. Questionnaire responses from 135 French SMEs were analysed, confirming the positive effect of various stakeholders on the commitment to sustainable business practices among SMEs. The empirical results show that this effect differs according to the three pillars of sustainable development. Empirical results also suggest that a business case for sustainability is the overwhelming driver for the adoption of more responsibility-oriented practices. These results are consistent with the instrumental approach of stakeholder theory, which reveals that incorporating stakeholders’ concerns into a firm’s sustainability strategy depends on the owner-manager’s perception of the economic-financial advantage of such practices.
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La Responsabilidad Social Empresarial es una temática que ha despertado interés en los últimos años, debido al impacto que genera en las empresas que se acogen a este modelo de gestión; de ahí que las pymes como agente capaz de adaptarse a las circunstancias del entorno se ven en la necesidad de ejecutar dichas tareas. En este contexto, la investigación plantea estudiar el comportamiento de las pymes de Machala en la aplicación de responsabilidad social empresarial. Como metodología se empleó un modelo econométrico clásico a 518 pequeñas y medianas empresas del Cantón de Machala de la Provincia el Oro en Ecuador de las cuales se escogió una muestra de 185. Como resultados se obtuvo una correlación lineal positiva fuerte muestran que la estimación realizada es estadísticamente significativa, la variable de conocimiento sobre la responsabilidad social empresarial como variable independiente que impacta en la aplicación de acciones de responsabilidad social empresarial, sin embargo, los resultados arrojaron que las pymes aplican este tipo de actividad en cumplimiento de las obligaciones establecidas en el ordenamiento jurídico ecuatoriano sobre la responsabilidad social empresarial
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The purpose of this chapter is to review and establish a theoretical framework that creates a systematized method to help SMEs willing to adopt a sustainability strategy. There is an increasing interest in SMEs to incorporate CSR and CS as a strategy, but they need a tool that would lower the entry barrier for SMEs struggling to adopt said objectives, such as the sustainable balance scorecard (SBSC). The chapter aims to provide a support tool and guide for SMEs interested in developing a CSR and sustainable strategy. To develop it, a literature review was performed, and the approach proposed by Hansen and Schaltegger was deemed to be feasible for adoption and implementation. As a result, an SBSC hierarchy is proposed for SMEs. Further evidence is necessary to validate the current proposal.
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Purpose Loan officer decisions are of particular importance to entrepreneurial firms which rely heavily on debt financing as a primary source of capital. The authors investigate whether social purpose in these firms impact loan officer response to the violation of a debt covenant and whether there is a differential response in decision making between loan officers that work at local banks and those that work at national banks. Design/methodology/approach In total 332 loan officers from cities in the South and Midwest United States participated in a quasi-experiment comparing entrepreneurial firms that violated their debt covenants. The loan officers were asked to evaluate loan materials and decide whether they would enforce loan covenant provisions of renegotiated interest rate and by what magnitude. In the treatment group, the loan officer evaluated loan materials of an entrepreneurial firm that included information related to the firms social purpose within their community. In the control group, the evaluation materials did not include this information. Findings Consistent with social capital theory, the results suggest that loan officers view community involvement as beneficial to entrepreneurial firm value. Loan officers were less likely to increase interest rates among firms that demonstrated social purpose. Loan officers that decided to increase interest rates punished socially purposeful firms less severely than non-socially purposeful firms. Additionally, loan officers at community banks were less likely to increase interest rates than those at national banks. Originality/value While the prior literature examines loan covenant violations, the authors focus on the impact of loan officer decision making in entrepreneurial firms specifically around covenant enforcement. Loan officer decisions have important implications for debt financing but are typically not observable to researchers. Prior work examining the relationship between social purpose and debt financing focuses on large public firms. This study recognizes that social purpose in entrepreneurial firms is less formalized and explicit and thus should be studied separately from large firms.
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Being green has become a focus in hospitality as evidenced by the rise of sustainable tourism in general and green hotels in particular. The current research examines the impact of willingness to sacrifice for the environment on green hotel evaluations and demonstrates that consumers high in willingness to sacrifice are more likely to embrace green hotels (Study 1). However, this effect is moderated by a green hotel’s positioning strategy (i.e., underdog versus top dog), which signals quality-based information (Study 2), and its green advertising appeals (i.e., competence versus warmth), which signal both quality-based and intent-based information (Study 3). Our research offers a theoretical framework for hotels to develop proper market signals to promote their green focus and it provides guidance for effective brand positioning and advertising strategies.
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Cognitive frames help companies make sense of the intrinsic tensions of sustainability issues and influence how they respond to calls for sustainability over time. Yet, cognitive frames have been investigated as a static feature and previous studies have overlooked the evolutionary dynamics that can lead an organization to change its own frame. This study observes the evolution of life cycle management implementation through the theory of cognitive frames. We conducted a longitudinal multiple case study of 10 SMEs involved in a European‐funded project. Over a three‐year period we examined how cognitive approaches to sustainability issues changed according to different learning mindsets. A total of three cognitive frames and two learning mindsets were revealed from the analysis, thus providing two important contributions. First, cognitive frames are not static in time, but can change to give more importance to the environmental sustainability of a life cycle. Second, the type of learning mindsets that managers in SMEs share can trigger changes in organizational cognitive frames.
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Purpose Corporate social responsibility (CSR) practices are gaining momentum globally but their implementation becomes problematic due to the presence of barriers. So, this study aims to identify the barriers to CSR implementation among manufacturing enterprises, develop their classification and establish relationships among the barriers. Design/methodology/approach An exhaustive list of barriers was identified from the literature, and following surveys and expert opinions, 19 critical barriers were extracted. Interpretive structure modelling was used to understand the hierarchal and contextual relationships among barriers of CSR implementation. Findings The results show that are no autonomous variables present in the study. The proposed conceptual framework presents the hierarchy and interlinkage of barriers to CSR implementation in manufacturing enterprises. The results also indicate that rigidity in culture and corruption in the system and within the governance system of the country are the two most influential barriers that impede CSR implementation in manufacturing enterprises. Originality/value The interactions among CSR barriers provide policymakers, industrial practitioners and managers with a framework to recognise and evaluate mutual relationships and interlinking among barriers. CSR training and undertaking CSR in collaboration can help medium enterprises overcome these barriers and prepare strategies to mitigate their impact.
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Book
This book presents a unique, real-life' analysis of the organization of production in small firms, centring the discussion around three detailed case studies.
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This paper suggests that environmental impacts can be reduced in the SME sector through more detailed, less generic model developments for each industrial sector based on best practices and not on strategic management systems. It also suggests simplification of environmental support organisations and advocates the development of the concept of Energy Performance Contracting to Environmental Performance Contracting. There are undoubtedly many ways in which SMEs can improve their environmental performance but it is questionable that within the present economic system environmental sustainability will ever be achieved. Increased environmental regulation would certainly level the playing field but would not change the fundamental attitudes towards the environment as a generator of maximum wealth for the sole purpose of short term consumption. Self regulation is certainly the ultimate goal, where individuals and businesses recognise and respect the environment on more of an holistic level and where other individual utilities are gained from work aside from financial gain. The argument is that this radical (used here in its true sense to mean from the root) change of economic priorities could be achieved through a fair trading system run on a bioregional level. However at the moment self regulation within the present economic system seems ineffective as the environment is simply not a priority for SMEs. Small scale environmental improvements may occur but results from this research suggest that commitment to the environment on a practical rather than theoretical level needs to exist for substantial change to take place. This commitment is unlikely to increase substantially within an economic system that does not attach higher value to the environment. The attainment of environmental sustainability would require a fresh analysis of the economic system and our own individual consciousness.
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Robert Jackall's Moral Mazes offers an eye-opening account of how corporate managers think the world works, and how big organizations shape moral consciousness. Based on extensive interviews with managers at every level of two industrial firms and of a large public relations agency, Moral Mazes takes the reader inside the intricate world of the corporation. Jackall reveals a world where hard work does not necessarily lead to success, but where sharp talk, self-promotion, powerful patrons, and sheer luck might. Cheerfully-bland public faces mask intense competition in this world where people hide their intentions, and accountability often depends on the ability to outrun mistakes. In this topsy-turvy world, managers must bring often unforgiving technology and always difficult people together to make money, an uncompromising task demanding continual compromises with conventional truths. Moral questions become merely practical concerns and issues of public relations. Sooner or later, managers find themselves wondering how to act in such a world and still maintain a sense of personal integrity. This brilliant, sometimes disturbing, often wildly funny study of corporate thinking, decision-making, and morality presents compelling real life stories of the men and women charged with running the businesses of America. It will interest anyone concerned with how big organizations actually function, or with the current moral malaise in our public life.
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This paper is concerned with the formation and development of ethical standards in businesses as they evolve from the entrepreneurial stage, through family control, to full public company status.
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Forty years of industrial and economic history in West Germany have shown that large and small businesses interact very well, and the distribution of economic weight between large and small companies in Germany has not changed.
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This paper considers future directions of empirical research in business ethics and presents a series of recommendations. Greater emphasis should be placed on the normative basis of empirical studies, behavior (rather than attitudes) should be established as the key dependent variable, theoretical models of ethical decision making should be tested, and empirical studies need to focus on theory-building. Extensions of methodology and the unit of analysis are proposed together with recommendations concerning the need for replication and validity, and building links to managerial and public policy applications.
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Responding to Randall and Gibson''s (1990) call for more rigorous methodologies in empirically-based ethics research, this paper develops propositions — based on both previous ethics research as well as the larger organizational behavior literature — examining the impact of attitudes, leadership, presence/absence of ethical codes and organizational size on corporate ethical behavior. The results, which come from a mail survey of 149 companies in a major U.S. service industry, indicate that attitudes and organizational size are the best predictors of ethical behavior. Leadership and ethical codes contribute little to predicting ethical behavior. The paper concludes with an assessment of the relevant propositions, as well as a delineation of future research needs.
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To date, the study of business ethics has been largely the study of the ethics of large companies. This paper is concerned with owner/managers of small firms and the link between the personal ethics of the owner/manager and his or her attitude to ethical problems in business. By using active membership of an organisation with an overt ethical dimension (for example, a church) as a surrogate for personal ethics the research provides some, though not unequivocal, support for the models of Trevino and others that suggest a link between personal ethics and business ethics.
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This paper describes the methods used to gain access and conduct research on corporate ethics in two large corporations. To date, only a small number of social scientists have pursued such sensitive and highly intrusive field research because of substantial obstacles to gaining access and completing meaningful investigations. Detailed discussion of how we framed the study and then sold the research to the two sites points to the conclusion that the merging of science and action is both difficult and fruitful. This study highlights the need to establish appropriate balance between scholarly and applied objectives, to build collaborative relations with research participants, and to bring an interdisciplinary approach to contextually based studies of corporate ethics and deviancy.
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Like politics, all ethics is local. The key to understanding the most difficult ethical issues is in the relationships of neighbors. Consequently, in studying and teaching business ethics, we rightly begin with the micro-setting of the neighborhood and work outward and upward in complexity and challenge. The author has found the operations of a small, imaginary pizzeria on his real street an ideal (in both senses) entry to all the issues of hiring, liability, environment and so on. The method of proceeding is Socratic inasmuch as it proceeds by conversation and takes for granted an elemental understanding on the part of all conversants. It is Cartesian inasmuch as it moves carefully from the simple situations to the most intricate organizational puzzles without ever forgetting the insights garnered at the outset.
Chapter
Increasing numbers of firms are dealing with ethical matters in a formal systematic fashion. The present study uses the results of an Ethics Resource Center survey of 2,000 US companies to investigate the relationship between size of firm and the adoption of ethics programs.
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The participation of workers in the company'. Paper presented at the European Business Ethics Network Conference on The Ethics of Participation
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Small business and community: the petite bourgeoisie in urban Britain and some implications for the small business'. Paper presented at the Institute of Small Business Affairs Conference on Generating Growth
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Chari-table contributions of small businessesFocus groups: are they viable in ethics researchTowards an understanding of ethical beha-viour in small firms
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