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)

Smith defines the business enterprise primarily as the endeavor of an individual who remains fully embedded in the broader society and subject to its moral demands. For him, the conceptions of the local community and its normative framework, of the enterprise, and of the individuals within it need to be aligned with each other and developed together. Over time, four processes have, however, led to a widening gap between the business world and the local community. These are the dissemination of (...) the corporate model, the transformation of the entrepreneurial role toward an agency role, changes in the ownership structure, and changes in the relation to the local community. This article presents Smith’s integrative conception of business and its contributions to the development of integrative theories of organizations and of business–society relations in the twenty-first century. Among others, it discusses the necessity to develop a normative-relational dimension of organizations that addresses the relations between the organization, its members, and the normative framework of the local community. This integrative approach of business–society relations challenges current business ethics research which often suggests that solutions to the current scandals lie either within the framework, the organization, or the individuals. (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)

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)

This study examines the relationship between cooperative business relations in small businesses and environmental protection, one of the most important policies of social responsibility in manufacturing. We reviewed the literature and carried out an empirical study of 930 small manufacturing firms in Spain. Results indicate that small businesses that maintain and improve their cooperative relations through business networking with universities, competitors, suppliers and customers spend more on environmental protection. The managerial, practical, research and policy implications of the obtained research findings (...) are discussed. (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)

This article argues why and how a participatory approach to implement corporate social responsibility (CSR) in a cluster would be beneficial for small-and medium-sized enterprises (SMEs) who are members of the NCE -Subsea cluster in Bergen, Norway. The political and strategic reasons as well as internal motivation for SMEs to incorporate CSR into their business strategies are discussed with support from relevant literature. Furthermore, we offer a discussion on the characteristics of different approaches to incorporating CSR as part of business (...) strategy and provide examples from the Norwegian context. As part of this discussion, we look into some of the clusters in Europe which have adopted a systematic approach to implement CSR as part of their agenda. We propose a means to undertake CSR as part of the cluster through a network model to address the limitations faced by the SMEs when they try to implement CSR individually. A network model (cluster approach) to CSR will motivate the uptake of CSR among SMEs when the network (cluster) is characterized by close geographical proximity and operates in the same sector. The uptake of CSR as part of the network (cluster) agenda can also lead to innovation through cooperation and competition. The particular challenges faced by the SMEs in implementing and sustaining CSR can be also minimized by being part of a network (cluster). (shrink)