In industries populated by small and medium enterprises, managers' good intentions frequently incur barriers to superior environmental performance (Tilley, Bus Strategy Environ 8:238-248, 1999). During the period when the U.S. wine industry was beginning to promote voluntary adoption of sound environmental practices, we examined managers' attitudes, norms, and perceptions of stakeholder pressures to assess their intentions to implement environmental management programs (EMP). We found that managers within the simple structures of these small and medium firms (...) are responsive to attitudes, norms, and pressures from internal stakeholders and that voluntarily established EMP increased the success of firms' implementation of energy conservation and recycling practices. Applications of our findings to future research on small and medium enterprises as well as direct practical applications of our results are discussed. (shrink)

A significant part of responsible innovation is engagement with diverse groups of stakeholders; this remains true for projects investigating responsible innovation practices. This chapter discusses strategies for engaging small and medium-sized enterprises in co-creating visions of and plans for implementing responsible innovation, drawing on the example of engagement with United Kingdom cyber security companies. The key aspect of the engagement was building trust between the responsible innovation researchers and the companies. Trust was built by a movement away from (...) traditional recruitment procedures for research projects, towards proactive engagement with the culture and traditions of the sector – participating in company sponsored talks and conferences, finding ways to communicate effectively, and ensuring a tailored message that fit the expectations and requirements of the sector. This chapter reviews the context in which the recruitment took place, the assumptions made prior to recruitment, the approaches taken, the revisions made to these approaches, and ultimately offers some general recommendations for industry engagement in responsible innovation activities. (shrink)

This paper analyzes how national institutions impact corporate social responsibility practices for small- and medium-sized enterprises in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance and the CSR approach. Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in (...) France and Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets. (shrink)

This paper analyzes how national institutions impact corporate social responsibility practices for small- and medium-sized enterprises in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance and the CSR approach. Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in (...) France and Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets. (shrink)

Considering the lack of substantive scientific or theoretical studies about ethics in small and medium sized enterprises (SMEs) in Latin America, this paper examines the context of an existent paradox, based upon the perspective of experts and academicians of Latin America and the Caribbean. These countries live different realities, due to their respective European cultural influences, as well as to racial and economic issues. Such facts impact the size and characteristics of their industries. On the other hand, the (...) SMEs face more similarities in the region, so they will be treated as a group in the discussion of ethics and corporate social responsibility (CSR) in Latin American SMEs. As this topic has not been sufficiently investigated in this geographic area, the objective of this exploratory study is to offer a contribution for future research. It raises the main dilemmas and intends to explain how legislation and common practices enable and perhaps lead SMEs to choose unethical strategies to survive and compete in the market. These enterprises are growing in number and in job creation, but do not participate in the Gross National Product in the same proportion. Informality, tax evasion and corruption are gradually caused or erode morality in business, but can contribute to corporate social responsibility in the region. The paper tries to show positive and negative aspects of apparently unethical practices and discusses challenging ways to solve complex problems that are common in most Latin America. (shrink)

The Covid-19 pandemic posed a serious threat to small and medium-sized enterprises (SMEs). This explorative qualitative study of 100 SMEs from 20 industries and 21 countries investigates how entrepreneurs responded to the Covid-19 pandemic and which cognitive frames guided their actions. Observed cognitive frames prioritize either business survival, conversion of business and stakeholder interest, or acceptance of conflicting social and financial goals. These cognitive frames influence the choice of crisis response without determining it. Four response patterns were found: (...) weathering the storm, bricolage, solidarity and support, and social innovation. Strategic innovation creating access to new markets is the most successful response. The findings support a more encompassing definition of the concept of organizational resilience and shed light on motivations for acts of solidarity and social innovation as crisis responses. (shrink)

All entrepreneurs try to be timely unlimited, constant and successful in their business. In doing so, their company founding, running operations and development all depend on adequate and quality financing. The goal is to ensure a stable financing and growth and the question is how, when and from which sources should the financing be ensured. When talking of financing, it is primarily meant ensuring the money or the capital, a synonym of the entrepreneurship and its main moving strength. In order (...) to be successful, it is of high importance to meet optimal business decisions and specially investing decisions. Even though the focus of the financing process is not solely limited to money, money plays a central role and is also the basis and the requirement for business activity and the very existence and the end goal of a business as well. One important focus of entrepreneurs is the question of an optimal financial structure for their own enterprise. The specifics of every individual company together with the industry they are in and macroeconomic environment they operate in do not allow for a uniform and generally applicable solution to this problem. The focus of this problem lies in the ratio between the size and structure of assets on one side and the size and structure of equity and debt on the other side. Every entrepreneur should also know which amount and structure of long-term assets, fixed assets is necessary for his enterprise. The function of investment planning defines these requirements before the actual investment takes place. An entrepreneur who is already longer in business will at this point analyze his actual financial structure with a focus on capital accumulation and conditions of raising debt. (shrink)

It has been well established in literature that small industry clusters (SICs) have an impressive record of innovation and knowledge transmission. This paper explores the possibilities in this regard in third-world clusters through an empirical study of three SICs in India. The paper first examines the essential reasons for the survival and growth of clusters temporally over centuries. Then, it critically assesses the factors that threaten the clusters at present—some of which, it appears, might actually be fatal for (...) these clusters. And finally, the paper concludes that though an enhancement in capacity to innovate and transfuse knowledge would contribute to the sustenance of these clusters, this cannot happen unless decisive intervention occurs to preserve and sustain the fundamental strengths of these clusters. (shrink)

Employee buy-in is a key factor in ensuring small- and medium-size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi-structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but (...) tradeoff within these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

The concept of responsible ownership was originally developed with reference to large, publicly held firms. However, the relevance of small- and medium-sized closely held firms, such as family firms, in all economies and the specific governance and organisational characteristics of these firms require further examination of the responsible ownership concept and its operationalisation. Based on the existing literature, we define the construct of responsible family ownership to fill this gap in responsible ownership theory. We propose a scale that (...) can be used to assess the responsible family ownership construct in small- and medium-sized family enterprises. The data used in this exploratory study were collected in an ad hoc survey answered by a representative sample of 84 small- and medium-sized family enterprises. The study contributes to the responsible ownership literature by presenting the responsible family ownership construct, a key driver of balance in family and firm systems that is therefore critical to the health of small- and medium-sized family enterprises. In addition, a scale is proposed as a means to operationalise the construct and to derive practical implications for the governance of this kind of firms. (shrink)

Employee buy‐in is a key factor in ensuring small‐ and medium‐size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi‐structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but (...) tradeoff within these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

The purpose of the study is to analyze the features of the placement of small and medium-sized enterprises on the example of the Ural Federal District. It is revealed that the development of small and medium-sized businesses in the Ural Federal District is uneven. The scientific novelty is to identify the key factors influencing the placement of small and medium-sized businesses. As a result, it is proved that factors such as the number of cities, (...) population density and density of railways have a positive effect on the placement of SMEs. As recommendations for the uniform placement of SMEs on the example of the Ural Federal District, the following are proposed: 1) stimulating urban development; 2) conducting demographic policy aimed at supporting population growth; 3) implementing major infrastructure projects, such as the construction of a railway track. (shrink)

Leadership is considered as a significant antecedent of knowledge hiding in SMEs, but the differential dimension of leadership has been evidently neglected in both theoretical and empirical areas. Drawing on conservation of resource theory and social cognitive theory, this research investigates whether and how SME differential leadership influences subordinate knowledge hiding. Specifically, we analyze the underlying mechanisms of a chain-mediator—job insecurity and territorial consciousness and a boundary condition—leadership performance expectation. Multi-wave and multi-source data were collected from a sample of 704 (...) Chinese SME employees and 140 relevant leaders and applied HLM meso-mediational frameworks, and Bootstrap technique with non-parametric percentile residuals for deviation correction. The results show that differential leadership plays a potential role in promoting subordinate knowledge hiding through the serial intervening mechanism of job Insecurity and territorial consciousness in SMEs. Furthermore, the positive relationship between SME differential leadership and job insecurity becomes stronger among subordinates under higher leadership performance expectation; the positive indirect relationship between SME differential leadership and subordinate knowledge hiding is stronger with higher levels of leadership performance expectation. This study contributes to the existing academic literature by empirically analyzing the under-investigated correlation between differential leadership and subordinate knowledge hiding in SMEs, and by exploring the underlying mechanisms and a boundary condition. (shrink)

This research study investigates Victorian consumers’ understanding, awareness and perceptions of organic food products. Analysis of the quantitative data revealed that there are three major segments of consumers, i.e., pro-organics, reluctant consumers and organic sceptics. The buying and usage pattern of these segments has been identified as also their demographic profile. The findings of this study are strategically important for small and medium size organic food producers. They would be better able to practise and implement differentiation strategies for (...) the three identified segments of customers, thus allowing their marketing teams to emphasise the beneficial attributes of organic food products. (shrink)

This article provides a review of what we know, what we do not know, and what we need to know about the relationship between industrial clusters and corporate social responsibility in developing countries. In addition to the drivers of and barriers to the adoption of CSR initiatives, this study highlights key lessons learned from empirical studies of CSR initiatives that aimed to improve environmental management and work conditions and reduce poverty in local industrial districts. Academic work in this area remains (...) embryonic, lacking in empirical evidence about the effects of CSR interventions on the profitability on local enterprises, workers, and the environment. Nor do theoretical frameworks offer clear explanations of the institutionalization and effects of CSR in local industrial districts in the developing world. Other key limitations in this research stream include an excessive focus on export-oriented industrial clusters, the risk that CSR becomes a form of economic and cultural imperialism, and the potential for joint-action CSR initiatives in clusters of small and medium-sized enterprises to offer a new form of greenwashing. From this review, the authors develop a theoretical model to explain why CSR has not become institutionalized in many developing country clusters, which in turn suggests that the vast majority of industrial clusters in developing countries are likely to engage in socially irresponsible behavior. (shrink)

Proactive corporate social responsibility (CSR) involves business strategies and practices adopted voluntarily by firms that go beyond regulatory requirements in order to manage their social responsibilities, and thereby contribute broadly and positively to society. Proactive CSR has been less researched in small and medium enterprises (SMEs) compared to large firms; and, whether SMEs are ideally placed to gain competitive advantage through such activity therefore remains a point of debate. This study examines empirically the association between three specified capabilities (...) (shared vision, stakeholder management and strategic proactivity), proactive CSR and financial performance in SMEs. Using quantitative data collected from a sample of 171 SMEs in the machinery and equipment sector of the Australian manufacturing industry, we find that all specified capabilities are positively associated with adoption of proactive CSR by SMEs, and that proactive CSR is, in turn, associated with an improvement in firm financial performance. Evidence of a fully mediating role for proactive CSR on the association between capabilities and financial performance presented in this study aligns with RBV theory that suggests adoption of value-creating strategies that make the most effective use of a firm’s capabilities is essential to financial success. The study contributes to the CSR literature by demonstrating a case for SMEs being able to maximise financial returns whilst proactively making progress towards CSR. (shrink)

"Social capital" can be considered to be the product of co-operationbetween various institutions, networks and business partners. It haspotential as a useful tool for business ethics. In this article weidentify categories pertinent to the measurement of social capital insmall and medium sized enterprises (SMEs). By drawing on three differentsectors, one business-to-business service, one business-to-customerservice, and one manufacturing, we have enabled the consideration ofsectoral differences. We find sector to play an important part inrelation to business practices and social capital. Our (...) inclusion of SMEsfrom Germany and the United Kingdom has called attention to cultural,institutional and economic aspects of two regions of Europe and how theycan influence SME social capital. Social capital is found to beinfluenced by context and, in particular, institutional arrangements. Inanalysing the data we note particular areas of interest from the pointof view of SMEs and social capital as being: formal engagement,networking within sectors, networking across sectors, volunteerism andgiving to charity, and finally a focus on why people engage. We concludethat there is a considerable amount of further research needed on socialcapital, SME''s and business ethics. (shrink)

In recent years, supply chain finance is exploited to solve the financing difficulties of small- and medium-sized enterprises. SME credit risk assessment is a critical part in the SCF system. The diffusion of SME credit risk may cause serious consequences, leading the whole supply chain finance system unstable and insecure. Compared with traditional credit risk assessment models, the supply chain relationship, credit condition of SME, and core enterprises should all be considered to rate SME credit risk in SCF. (...) Traditional methods mix all indicators from different index systems. They cannot give a quantitative result on how these index systems work. Furthermore, traditional credit risk assessment models are heavily dependent on the number of annotated SME data. However, it is implausible to accumulate enough credit risky SMEs in advance. In this paper, we propose an adaptive heterogenous multiview graph learning method to tackle the small sample size problem for SMEs’ credit risk forecasting. Three graphs are constructed by using indicators from supply chain operation, SME financial indicator, and nonfinancial indicator individually. All the graphs are integrated in an adaptive manner, providing a quantitative explanation on how the three parts cooperate. The experimental analysis shows that the proposed method has good performance for determining whether SME is risky or nonrisky in SCF. From the perspective of SCF, SME financing ability is still the main factor to determine the credit risk of SME. (shrink)

This article contributes to literature on corporate social responsibility exhibited by industrial clusters in developing countries. The authors conceptualize and empirically investigate the role of donor-funded CSR initiatives aimed at promoting collective action by cluster-based small- and medium-sized enterprises. A case study of the Sialkot football-manufacturing cluster in Pakistan indicates that donor-funded support of CSR initiatives in industrial clusters in developing countries may be short-lived, due to the political economy of aid, the national context of CSR implementation, tensions (...) within SME networks, and negative perceptions of CSR by the cluster-based SMEs themselves. The findings and implications of this analysis can inform both research and policy making in this area. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

Adopting a configurational perspective, this study explored the pathways for small and medium-sized enterprises to achieve high levels of radical innovation. On the basis of dynamic capabilities theory, six causal conditions for radical innovation were identified at both external and internal levels—that is, environmental turbulence and absorptive capacity. The results of a fuzzy-set qualitative comparative analysis of 82 Chinese SMEs identified four solutions for high radical innovation. The six causal conditions interacted interdependently and different combinations of these conditions (...) were equally effective pathways for SMEs to achieve radical innovation. Hence, SMEs could generate radical innovation through flexibly allocating resources and capabilities based on the environmental circumstances. By using the fsQCA method, this study contributes to the related literature with an investigation of the complex causal relationship between environmental turbulence, absorptive capacity, and SMEs’ radical innovation. The results resolve some prior contradictory findings and provide new insights for future research. Other theoretical contributions, practical implications, and directions for future research are also discussed. (shrink)

The paper responds to the recent calls for further evidence on corporate social responsibility (CSR) in small and medium‐sized enterprises (SMEs). Drawing on the extant literature, the authors identify four characteristics contended by academicians as peculiarities of SMEs’ approach to CSR: the intrinsic relationship between CSR and corporate strategy motivated by the need to continuously dialogue with stakeholders; the centrality of the entrepreneur's ethos in CSR decisions; the coexistence and the cross‐effect of economically instrumental and ethically motivated CSR (...) policies; and the finalization of CSR initiatives to specific firm growth objectives. These four peculiarities are explored in the case of an Italian medium‐sized company operating in the furniture industry. The outcomes show how the four peculiarities are salient in analyzing the CSR approach by the company and suggest areas for further research aimed at developing a thorough theory of CSR in SMEs. In particular, we deepen the analysis of the nature of the uniqueness of medium‐sized companies’ approach to CSR, providing possible interpretations of the reasons making medium‐sized companies’ approach to CSR different from both small and large companies. (shrink)

The paper responds to the recent calls for further evidence on corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs). Drawing on the extant literature, the authors identify four characteristics contended by academicians as peculiarities of SMEs’ approach to CSR: the intrinsic relationship between CSR and corporate strategy motivated by the need to continuously dialogue with stakeholders; the centrality of the entrepreneur's ethos in CSR decisions; the coexistence and the cross-effect of economically instrumental and ethically motivated CSR (...) policies; and the finalization of CSR initiatives to specific firm growth objectives. These four peculiarities are explored in the case of an Italian medium-sized company operating in the furniture industry. The outcomes show how the four peculiarities are salient in analyzing the CSR approach by the company and suggest areas for further research aimed at developing a thorough theory of CSR in SMEs. In particular, we deepen the analysis of the nature of the uniqueness of medium-sized companies’ approach to CSR, providing possible interpretations of the reasons making medium-sized companies’ approach to CSR different from both small and large companies. (shrink)

The paper responds to the recent calls for further evidence on corporate social responsibility (CSR) in small and medium‐sized enterprises (SMEs). Drawing on the extant literature, the authors identify four characteristics contended by academicians as peculiarities of SMEs’ approach to CSR: the intrinsic relationship between CSR and corporate strategy motivated by the need to continuously dialogue with stakeholders; the centrality of the entrepreneur's ethos in CSR decisions; the coexistence and the cross‐effect of economically instrumental and ethically motivated CSR (...) policies; and the finalization of CSR initiatives to specific firm growth objectives. These four peculiarities are explored in the case of an Italian medium‐sized company operating in the furniture industry. The outcomes show how the four peculiarities are salient in analyzing the CSR approach by the company and suggest areas for further research aimed at developing a thorough theory of CSR in SMEs. In particular, we deepen the analysis of the nature of the uniqueness of medium‐sized companies’ approach to CSR, providing possible interpretations of the reasons making medium‐sized companies’ approach to CSR different from both small and large companies. (shrink)

Business Ethics, the Environment & Responsibility, Volume 31, Issue 1, Page 33-48, January 2022.

Importance of the Small Medium Enterprises sector cannot be overemphasized in the industrial development of a country. 90% of all the enterprises in Pakistan are consisting of Small Medium Enterprises; 80% labor force is employed in non-agriculture sector, Small Medium Enterprises are sharing annually 40% to GDP of the country. However providing huge part in the development of the country Small Medium Enterprises are still encountering with some perilous pitfalls and the survival (...) of the Small Medium Enterprises is getting harder. Now the economy system of the country has been converted from the production based to knowledge-based economy. The review of the previous results pointed out that the twenty first century is the era of technological and intellectual capital and it has added the ultimate importance in the knowledge-based economy. Currently, the economy is based on knowledge-based economy and it is based on the intellectual capital. Therefore, it is difficult for Small Medium Enterprises in Pakistan to transfigure and acquire the concept and applications of intellectual capital in order to counter and mitigate the emerging economics problems. (shrink)

The small- and medium-sized tourism and hospitality enterprises are the main forms of enterprises in Macao. This study put forward a new framework of survival and sustainable development from the perspective of competitive advantage and regional soft environment, which significantly holds theoretical and practical research value. The study obtained cross-sectional data of 317 small- and medium-sized tourism and hospitality enterprises in Macao through a large-scale questionnaire survey. This article used exploratory factor analysis and confirmatory factor analysis (...) to test the reliability and validity of each factor system and its measurement scale. The variance analysis is used to judge the differences between the elements. The regression analysis is used to verify the hypothesis of a causal relationship between factors. The structural equation analysis is used to fit the model and make necessary amendments. The results reveal that the government service environment has a significant positive impact on the ability of an entrepreneur. In addition, the regional soft environment significantly impacts the competitive advantage of small- and medium-sized tourism and hospitality enterprises in Macao. Contrary, the impact of laws of Macao on the acquisition of financial resources and the promotion of entrepreneur ability and innovation ability is found insignificant. In conclusion, the results showed that market of Macao lacks venture investors where enterprises cannot obtain funds through angel financing or risk financing. (shrink)

The theoretical understanding of e-commerce has received much attention over the years; however, relatively little focus has been directed towards e-commerce ethics, especially the SMEs B2B e-ecommerce aspect. Therefore, the purpose of this paper is to develop and empirically test a framework that explains the impact of SMEs B2B e-commerce ethics on buyer repurchase intentions and loyalty. Using SEM to analyse the data collected from a sample of SME e-commerce firms in Egypt, the results indicate that buyers’ perceptions of supplier (...) ethics construct is composed of six dimensions and strongly predictive of online buyer repurchase intentions and loyalty. Furthermore, our results also show that reliability/fulfilment and non-deception are the most effective relationship-building dimensions. In addition, relationship quality has a positive effect on buyer repurchase intentions and loyalty. The results offer important implications for B2B e-commerce and are likely to stimulate further research in the area of relationship marketing. (shrink)

In their book ‘Corporate Social Opportunity’, Grayson and Hodges maintain that ‘the driver for business success is entrepreneurialism, a competitive instinct and a willingness to look for innovation from non‐traditional areas such as those increasingly found within the corporate social responsibility (CSR) agenda’. Such opportunities are described as ‘commercially viable activities which also advance environmental and social sustainability’. There are three dimensions to corporate social opportunity (CSO) – innovation in products and services, serving unserved markets and building new business models. (...) While small‐ and medium‐sized enterprises (SMEs) have traditionally been presented as non‐entrepreneurial in this area, this paper demonstrates how SMEs can take advantage of the opportunities presented by CSR. Using data from 24 detailed case studies of UK SMEs from a range of sectors, the paper explores the numerous CSR opportunities that present themselves to SMEs, such as developing innovative products and services and exploiting niche markets. There are inevitable challenges for SMEs undertaking CSR, but by their very nature they have many characteristics that can aid the adoption of CSR; the paper explores these characteristics and how the utilisation of positive qualities will help SMEs make the most of CSOs. Integrating CSR into the core of a company is crucial to its success. Using the case studies to illustrate key points, the paper suggests how CSR can be built into a company's systems and become ‘just the way we do things’. There are a number of factors that characterise the CSO ‘mentality’ in an organisation, and Grayson and Hodges's book describes seven steps that will move a company in the direction of a ‘want to do’ CSO mentality. This paper adapts these steps for SMEs, and by transferring and building on knowledge from the 24 detailed case studies, it develops a ‘business opportunity’ model of CSR for SMEs. (shrink)

“Political” corporate social responsibility involves businesses taking a political role to address “regulatory gaps” caused by weak or insufficient social and environmental standards and norms. The literature on political CSR focuses mostly on how large multinational corporations can address environmental and social problems that arise globally along their supply chains. This article addresses political CSR of small- and medium-sized enterprises. SMEs represent a major share of economic value creation worldwide and are increasingly exposed to regulatory gaps. Although SMEs (...) differ substantially from MNCs in terms of organizational characteristics, behavioral guiding principles, and financial and human resources, they should still tackle such regulatory gaps by accepting a political role. Drawing on Zadek’s model of CSR-based organizational learning and Young’s concept of social connection, this study develops a conceptual framework as the basis for discussing why SMEs should become involved in political CSR, how they can manage political CSR internally and systematically, and how their progress can be assessed by third-party observers externally. (shrink)

The objective of this paper is to investigate climate change awareness and mitigation effort and their associated motivating and limiting factors to pro-environmental behavior and firm demographics in small and medium-sized enterprises (SMEs) in Switzerland. For this purpose, a questionnaire was developed, conducted, and analyzed on motivating and limiting factors along with firm demographics, using descriptive statistics and ordinary least squares (OLS) and ordered probit regression models. The results show that Swiss SMEs are in general aware of climate (...) change and their resulting consequences. SMEs have taken steps to help mitigate greenhouse gas emissions through recycling, reduction of energy and water consumption, and use of recycled packaging. SMEs could however improve their environmental impact through low-carbon means of transport and use of public transport, sustainable raw material inputs, sustainable energy sources, and setting environmental goals and audits. There was a positive association between climate change awareness and mitigation. Motivating factors to pro-environmental behavior included financial advantage and responsibility towards the environment, while firm size and human resources were limiting factors. Lastly, different mitigation measures might be influenced by different motivating and limiting factors including financial advantage and pressure from interest groups, as well as firm size. (shrink)

The success of the New Deal policies of the current Labour administration - particularly the Welfare to Work and University for Industry initiatives - will depend crucially on the cooperation of the vital small and medium-sized enterprises sector of British industry. In turn, the reaction of small employers to the new policies will be structured by the national vocational education and training efforts and the vocational qualifications system. Against the background of our recent research on (...) SMEs in the West Midlands region, we argue that the New Deal policies will fail to engage with SME needs and interests unless the new Qualifications and Curriculum Authority effectively abandons the old agenda of the former National Council for Vocational Qualifications in its ongoing restructuring and radical review of issues and policies for VET. (shrink)

In their book ‘Corporate Social Opportunity’, Grayson and Hodges maintain that ‘the driver for business success is entrepreneurialism, a competitive instinct and a willingness to look for innovation from non‐traditional areas such as those increasingly found within the corporate social responsibility agenda’. Such opportunities are described as ‘commercially viable activities which also advance environmental and social sustainability’. There are three dimensions to corporate social opportunity – innovation in products and services, serving unserved markets and building new business models. While (...) class='Hi'>small‐ and medium‐sized enterprises have traditionally been presented as non‐entrepreneurial in this area, this paper demonstrates how SMEs can take advantage of the opportunities presented by CSR. Using data from 24 detailed case studies of UK SMEs from a range of sectors, the paper explores the numerous CSR opportunities that present themselves to SMEs, such as developing innovative products and services and exploiting niche markets. There are inevitable challenges for SMEs undertaking CSR, but by their very nature they have many characteristics that can aid the adoption of CSR; the paper explores these characteristics and how the utilisation of positive qualities will help SMEs make the most of CSOs. Integrating CSR into the core of a company is crucial to its success. Using the case studies to illustrate key points, the paper suggests how CSR can be built into a company's systems and become ‘just the way we do things’. There are a number of factors that characterise the CSO ‘mentality’ in an organisation, and Grayson and Hodges's book describes seven steps that will move a company in the direction of a ‘want to do’ CSO mentality. This paper adapts these steps for SMEs, and by transferring and building on knowledge from the 24 detailed case studies, it develops a ‘business opportunity’ model of CSR for SMEs. (shrink)

Rising global food prices have driven 44 million additional people into extreme poverty—and malnutrition—in developing countries since June 2010. Partners in Food Solutions , a nonprofit social enterprise affiliated with General Mills, is proposed as the conduit for food industry managers, engineers, and scientists to initially advise small‐ and medium‐sized African mills and food processors—and later other developing countries—on improving supply chain management by addressing manufacturing problems, developing products, improving packaging, extending product shelf, and finding new product (...) markets. In this article, the “creative capitalism” model of sustainability and social and environmental responsibility is applied to the food manufacturing industry's efforts supporting PFS. Furthermore, the evolution of the sustainable business model developed by PFS is thoroughly described, explained, and analyzed as a generic model of social enterprise to be “scaled up” by the global food manufacturing industry. A summary of salient points conclude the article. (shrink)

Recent downward trends in corporate giving have renewed interest in the factors that shape corporate philanthropy. This paper examines the relationships between charitable contributions, firm size and industry. Improvements over previous studies include an IRS data base that covers a much broader range of firm sizes and industries as compared to previous studies and estimation using an instrumental variable technique that explicitly addresses potential simultaneity between charitable contributions and profitability. Important findings provide evidence of a cubic relationship between charitable (...) giving and firm size and evidence of strong industry effects. The plus-minus-plus regression coefficient sign pattern for the cubic firm size model suggests that small and large firms give more relative to total receipts with lower giving ratios among medium size firms. One interpretation for this finding is that small firms are close to the communities they serve while high visibility creates a need for large firm philanthropy. Strong industry effects provide evidence of inter-industry differences in giving culture and/or different public relations requirements across industries. (shrink)

Corporate governance concerns, discussions and developments have been largely concerned with listed companies and situations in which there is a clear separation of ownership and control. This article examines the relevance of corporate governance to the worlds of smaller companies, family businesses and owner directors. It reports some preliminary findings of an examination of the governance of 60 unlisted SMEs based in the East of England which took place during 2005 and 2006. After assessing the value being added by the (...) directors and boards encountered and the contribution effective boards could make to the growth and development of SMEs, it considers the implications of the findings and areas for further research. (shrink)

The salience of owner-manager values to small and medium sized enterprise (SME) engagement with ethics and social responsibility is well documented. Despite this, understanding of how these values are transposed into and become embedded within the culture, norms and practices of SMEs remains limited. Through drawing on a sample of SMEs in the South West of England, this paper identifies the mechanisms which owner-managers seek to use to embed their values within their organisations—_rational values sharing_, _affective values sharing_ (...) and _building values-aligned relationships_—while distinguishing a number of barriers they meet in the process. It further builds on previous research and explicates such embedding processes by means of discerning and providing rich descriptions of eight key owner-manager values. The work of Alain Locke on values is drawn on theoretically to frame the embedding of such values as a reflexive, ongoing process, while the utility of his work—largely absent from the field of business ethics so far—is highlighted. (shrink)

This paper selected Vanke as the case to study the governance problems of Vanke and the protection of the interests of small and medium shareholders under the situation of equity disputes. At the same time, the study further explored the advantages and disadvantages of the dispersed ownership structure, the long-term impact on the company’s development and the choice of the involved corporate governance methods under the current Chinese capital market conditions. This paper adopted the event research method and (...) selected the period from June 2015 to June 2017 as the observation period to analyze the market performance impact of Vanke in the equity disputes. At the same time, this paper also measured Vanke’s individual stock rate of return and market rate of return, and calculated Vanke’s normal rate of return [E], abnormal rate of return, and cumulative abnormal rate of return during different event windows. Vanke’s shareholding was too dispersed and the stock price had been sluggish for a long time, which had greatly reduced the acquisition difficulty and cost of Baoneng, thus triggering the “barbarian invasion” of Baoneng. In the struggle for control, whether it was Vanke’s anti-takeover measures or China Resources, Baoneng, and Evergrande’s competition for equity, their actions had harmed the interests of small and medium shareholders. The market supervision department was too lenient to supervise and punish the interests of small and medium shareholders, and opportunism made behaviors that infringe on the interests of others more reckless. However, small and medium shareholders cannot actively participate in the company’s management decision-making to safeguard their legitimate rights and interests, which intensifies the violations of all parties in the equity disputes, thus forming a vicious circle. Therefore, the protection of the interests of small and medium shareholders required the joint efforts and consciousness of regulators, small and medium shareholders, and acquirers. (shrink)

Multinational corporations (MNCs) have come under pressure to adopt private regulatory initiatives such as supplier codes of conduct in order to address poor working conditions in global supply chain factories. While a well-known literature explores drivers and outcomes of such monitoring schemes, this literature focuses mainly on large firms and has ignored the growing integration of small- and medium-sized enterprises (SMEs) into global supply chains. Furthermore, the literature on corporate social responsibility (CSR) in SMEs primarily emphasizes domestic initiatives (...) and not global challenges. Focusing on the Business for Social Compliance Initiative (BSCI), this article examines the positions of private actors, who demand and supply private regulation as well as the positions of those firms, who are the targets of such schemes. As the BSCI has grown its membership, MNCs increasingly request that SMEs meet BSCI requirements in global supply chains even though compliance is a “mission impossible” for many smaller firms. As a result of this development, the private regulatory system is facing growing strain. (shrink)

The existing risk assessment and control methods of enterprise risk financing have a large error in mobile data, which leads to inaccurate risk assessment results and low-risk optimization control efficiency. In order to improve the accuracy of risk financing risk assessment for small and medium-sized enterprises and risk control optimization efficiency, this article proposes risk assessment and risk control algorithms for SMEs in the era of big data. Through verifying the information of the loan application and supplementing the (...) data during the loan period, invoke the existing enterprise financing risk database, establish the SME venture financing risk assessment model; build the risk evaluation index system according to the characteristics of the enterprise production organization, process characteristics, and the development of the socioeconomic and technical environment; apply the GA–PSO algorithm to the design of the SME risk financing risk control scheme, and complete the SME risk financing risk assessment and risk control. The experimental results show that the risk optimization control efficiency of the control algorithm reaches more than 70%, and the risk assessment accuracy of SMEs reaches over 95%, and the runtime less than 80 ms, with good convergence performance of risk assessment and control, strong risk optimization control ability, and accurate evaluation effect. (shrink)

The development of product innovations in small and medium enterprises is determined mainly by their financial capabilities. These enterprises usually encounter financial problems when it comes to the introduction of product innovations. Therefore, managers should manage the company’s finances in the way that will enable them using all available means to solve these problems. This means that they ought to use external financial resources to a greater extent (not only in the form of loans). The article focuses on (...) the financial conditions for the development of product innovations in small and medium enterprises, while other forms of innovation are omitted. Product innovations are given the highest priority by mentioned companies. The analysis covered the years 2010-2017. The case study allowed to present changes in this most important form of activity for enterprises in the SME sector during the analyzed periodFor the purpose of this paper, large companies have also been included in the study in order to extend the comparative base.. In the article there were used data published by GUS, NBP, PARP, Eurostat. The article presents the following thesis: The innovative activity of Polish enterprises takes mainly the character of product innovations, which often require large financial outlays. Two hypotheses were used to verify the thesis: HPT1: The increase in the outlays of enterprises on technical progress and on research and development works (R&D) leads to companies' own the development of product innovations. HPT2: The resources are the main source of financing for product investments. Due to the greater capacity of large companies to spend on R&D, they are more active in product innovation than small companies, whose financial resources are significantly limited. Broader implementation of product innovations in SMEs requires wider access to finance and greater involvement of many participants. In order to be able to take advantage of all possible opportunities to renew the production programme, the company should ensure appropriate internal and external integration in the management of the process. (shrink)