Microenterprise and applied corporate social responsibility

Authors

  • Jorge Mendoza-Woodman Pontificia Universidad Católica del Perú

DOI:

https://doi.org/10.37467/revhuman.v11.4142

Keywords:

Corporate Social Responsibility, SMEs, Microenterprise, Entrepreneurship, Institutional Voids, Narrative analysis, Life Stories

Abstract

Corporate social responsibility (CSR) is recognized as having a positive impact on business performance, mainly in large companies, but its sustainability in SMEs is debated. This article proposes a CSR model for SMEs based on a literature review and then examined in a group of microenterprises that practice CSR. Through narrative analysis it was found that it is feasible to carry out CSR actions in these businesses, but family, collaborative work and institutional support must be considered as additional factors that influence its sustainability.

References

Adekunle, B. (2011). Determinants of microenterprise performance in Nigeria. International Small Business Journal, 29(4), 360–373. https://doi.org/10.1177/0266242610369751 DOI: https://doi.org/10.1177/0266242610369751

Amaeshi, K., Adegbite, E., & Rajwani, T. (2016). Corporate Social Responsibility in Challenging and Non-enabling Institutional Contexts: Do Institutional Voids matter? Journal of Business Ethics, 134(1), 135–153. http://doi.org/10.1007/s10551-014-2420-4 DOI: https://doi.org/10.1007/s10551-014-2420-4

Anwar, M., & Clauß, T. (2021). Personality traits and bricolage as drivers of sustainable social responsibility in family SMEs: A COVID-19 perspective. Business and Society Review, 126(1), 37–68. https://doi.org/10.1111/basr.12222 DOI: https://doi.org/10.1111/basr.12222

Asante Boadi, E., He, Z., Bosompem, J., Opata, C. N., & Boadi, E. K. (2020). Employees’ perception of corporate social responsibility (CSR) and its effects on internal outcomes. Service Industries Journal, 40(9–10), 611–632. https://doi.org/10.1080/02642069.2019.1606906 DOI: https://doi.org/10.1080/02642069.2019.1606906

Awan, U., Khattak, A., & Kraslawski, A. (2019). Corporate Social Responsibility (CSR) Priorities in the Small and Medium Enterprises (SMEs) of the Industrial Sector of Sialkot, Pakistan. En: P. Golinska-Dawson & M. Spychała. (Eds) Corporate Social Responsibility in the Manufacturing and Services Sectors (pp. 267-278). EcoProduction. Springer. https://acortar.link/BvRHq7 DOI: https://doi.org/10.1007/978-3-642-33851-9_15

Aya Pastrana, N., & Sriramesh, K. (2014). Corporate Social Responsibility: Perceptions and practices among SMEs in Colombia. Public Relations Review, 40(1), 14–24. http://doi.org/10.1016/j.pubrev.2013.10.002 DOI: https://doi.org/10.1016/j.pubrev.2013.10.002

Azmat, F., & Zutshi, A. (2012). Perceptions of corporate social responsibility amongst immigrant entrepreneurs. Social Responsibility Journal, 8(1), 63–76. http://doi.org/10.1108/17471111211196575 DOI: https://doi.org/10.1108/17471111211196575

Bahta, D., Yun, J., Islam, M. R., & Bikanyi, K. J. (2021). How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation. Economic Research-Ekonomska Istrazivanja, 34(1), 1428–1451. https://doi.org/10.1080/1331677X.2020.1828130 DOI: https://doi.org/10.1080/1331677X.2020.1828130

Baumann-Pauly, D., Wickert, C., Spence, L. J., & Scherer, A. G. (2013). Organizing corporate social responsibility in small and large firms: Size matters. Journal of Business Ethics, 115(4), 693–705. https://doi.org/10.1007/s10551-013-1827-7 DOI: https://doi.org/10.1007/s10551-013-1827-7

Bikefe, G., Zubairu, U., Araga, S., Maitala, F., Ediuku, E., & Anyebe, D. (2020). Corporate Social Responsibility (CSR) by small and medium enterprises (SMEs): a systematic review. Small Business International Review, 4(1), 16–33. https://doi.org/10.26784/sbir.v4i1.243 DOI: https://doi.org/10.26784/sbir.v4i1.243

Bocquet, R., Le Bas, C., Mothe, C., & Poussing, N. (2019). Strategic CSR for innovation in SMEs: Does diversity matter? Long Range Planning, 52(6). https://doi.org/10.1016/j.lrp.2019.101913 DOI: https://doi.org/10.1016/j.lrp.2019.101913

Burlea-Schiopoiu, A., & Mihai, L. S. (2019). An integrated framework on the sustainability of SMEs. Sustainability (Switzerland), 11(21). https://doi.org/10.3390/su11216026 DOI: https://doi.org/10.3390/su11216026

Castka, P., Balzarova, M., Bamber, C., & Sharp, J. (2004). How can SMEs Effectively Implement the CSR Agenda? A UK Case Study Perspective. Corporate Social Responsibility and Environmental Management, 11, 140–149.https://doi.org/10.1002/csr.62 DOI: https://doi.org/10.1002/csr.62

Chadwick, I. C., & Raver, J. L. (2018). Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship. Entrepreneurship Theory and Practice, 44(2), 233-255. https://doi.org/10.1177/1042258718801597 DOI: https://doi.org/10.1177/1042258718801597

Charman, A. (2017). Micro-enterprise predicament in township economic development: Evidence from ivory park and tembisa. South African Journal of Economic and Management Sciences, 20(1), 1–14. https://doi.org/10.4102/sajems.v20i1.1617 DOI: https://doi.org/10.4102/sajems.v20i1.1617

Choongo, P., Paas, L. J., Masurel, E., van Burg, E., & Lungu, J. (2019). Entrepreneurs’ personal values and CSR orientations: evidence from SMEs in Zambia. Journal of Small Business and Enterprise Development, 26(4), 545–570. https://doi.org/10.1108/JSBED-02-2017-0080 DOI: https://doi.org/10.1108/JSBED-02-2017-0080

Czarniawska, B. (1998). A Narrative Approach to Organization Studies. Sage Publications. http://doi.org/10.4135/9781412983235 DOI: https://doi.org/10.4135/9781412983235

Czarniawska, B. (2004). Narratives in Social Science Research. Sage Publications. DOI: https://doi.org/10.4135/9781849209502

Czarniawska, B. (2017). Organization studies as symmetrical ethnology. Journal of Organizational Ethnography, 6(1), 2–10. https://doi.org/10.1108/JOE-12-2016-0023 DOI: https://doi.org/10.1108/JOE-12-2016-0023

Dex, S., & Scheibl, F. (2001). Flexible and family-friendly working arrangements in UK-based SMEs: Business cases. British Journal of Industrial Relations, 39(3), 411–431. https://doi.org/10.1111/1467-8543.00207 DOI: https://doi.org/10.1111/1467-8543.00207

Dias, A., Rodrigues, L. L., Craig, R., & Neves, M. E. (2019). Corporate social responsibility disclosure in small and medium-sized entities and large companies. Social Responsibility Journal, 15(2), 137–154. http://doi.org/10.1108/SRJ-05-2017-0090 DOI: https://doi.org/10.1108/SRJ-05-2017-0090

Dincer, B., & Dincer, C. (2013). Corporate social responsibility decisions: a dilemma for SME executives? Social Responsibility Journal, 9(2), 177–187. http://doi.org/10.1108/SRJ-07-2011-0028 DOI: https://doi.org/10.1108/SRJ-07-2011-0028

Eisenhardt, K. (1989). Building Theories from Case Study Research. Academy of Management Review, 14(4), 532–550.http://doi.org/10.2307/258557 DOI: https://doi.org/10.5465/amr.1989.4308385

European Commission. (2011). A Renewed EU Strategy 2011-14 for Corporate Social Responsability. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52011DC0681

Evans, N., & Sawyer, J. (2010). CSR and stakeholders of small businesses in regional South Australia. Social Responsibility Journal, 6(3), 433–451. http://doi.org/10.1108/17471111011064799 DOI: https://doi.org/10.1108/17471111011064799

Famiola, M., & Wulansari, A. (2019). SMEs’ social and environmental initiatives in Indonesia: an institutional and resource-based analysis. Social Responsibility Journal, 16(1), 15–27. http://doi.org/10.1108/SRJ-05-2017-0095 DOI: https://doi.org/10.1108/SRJ-05-2017-0095

Fassin, Y. (2008). SMEs and the fallacy of formalising CSR. Business Ethics: A European Review, 17(4), 364–378. https://doi.org/10.1111/j.1467-8608.2008.00540.x DOI: https://doi.org/10.1111/j.1467-8608.2008.00540.x

Gangi, F., Meles, A., Monferrà, S., & Mustilli, M. (2020). Does corporate social responsibility help the survivorship of SMEs and large firms? Global Finance Journal, 43(2017). https://doi.org/10.1016/j.gfj.2018.01.006 DOI: https://doi.org/10.1016/j.gfj.2018.01.006

Gelbmann, U. (2010). Establishing strategic CSR in SMEs: An Austrian CSR quality seal to substantiate the strategic CSR performance. Sustainable Development, 18(2), 90–98. https://doi.org/10.1002/sd.448 DOI: https://doi.org/10.1002/sd.448

Grimstad, S. M. F., Glavee-Geo, R., & Fjørtoft, B. E. (2020). SMEs motivations for CSR: an exploratory study. European Business Review, 32(4), 553–572. https://doi.org/10.1108/EBR-01-2019-0014 DOI: https://doi.org/10.1108/EBR-01-2019-0014

Hasan, M. N. (2016). Measuring and understanding the engagement of Bangladeshi SMEs with sustainable and socially responsible business practices: An ISO 26000 perspective. Social Responsibility Journal, 12(3), 584–610. http://doi.org/10.1108/SRJ-08-2015-0125 DOI: https://doi.org/10.1108/SRJ-08-2015-0125

Herrera Madueño, J., Larrán Jorge, M., Martínez Conesa, I., & Martínez-Martínez, D. (2016). Relationship between corporate social responsibility and competitive performance in Spanish SMEs: Empirical evidence from a stakeholders’ perspective. BRQ Business Research Quarterly, 19(1), 55–72. https://doi.org/10.1016/j.brq.2015.06.002 DOI: https://doi.org/10.1016/j.brq.2015.06.002

Hjorth, D., & Steyaert, C. (Eds.) (2004). Narrative and Discursive Approaches in Entrepreneurship. Elgar. https://doi.org/10.4337/9781845421472 DOI: https://doi.org/10.4337/9781845421472

Ikram, M., Sroufe, R., Mohsin, M., Solangi, Y. A., Shah, S. Z. A., & Shahzad, F. (2020). Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan. Journal of Global Responsibility, 11(1), 27–53. https://doi.org/10.1108/JGR-12-2018-0088 DOI: https://doi.org/10.1108/JGR-12-2018-0088

Inyang, B. J. (2013). Defining the Role Engagement of Small and Medium-Sized Enterprises (SMEs) in Corporate Social Responsibility (CSR). International Business Research, 6(5), 123–132. https://doi.org/10.5539/ibr.v6n5p123 DOI: https://doi.org/10.5539/ibr.v6n5p123

Iturrioz, C., Aragón, C., Narbaiza, L., & Ibañez, A. (2009). Social responsibility in SMEs: A source of business value. Social Responsibility Journal, 5(3), 423–434. http://doi.org/10.1108/17471110910977320 DOI: https://doi.org/10.1108/17471110910977320

Jamali, D., & Karam, C. (2018). Corporate Social Responsibility in Developing Countries as an Emerging Field of Study. International Journal of Management Reviews, 20(1), 32–61. https://doi.org/10.1111/ijmr.12112 DOI: https://doi.org/10.1111/ijmr.12112

Jamali, D., Lund-Thomsen, P., & Jeppesen, S. (2017). SMEs and CSR in Developing Countries. Business and Society, 56(1), 11–22. https://doi.org/10.1177/0007650315571258 DOI: https://doi.org/10.1177/0007650315571258

Jamali, D., Zanhour, M., & Keshishian, T. (2009). Peculiar strengths and relational attributes of SMEs in the context of CSR. Journal of Business Ethics, 87(3), 355–377. https://acortar.link/tcYD3Y DOI: https://doi.org/10.1007/s10551-008-9925-7

Jenkins, H. (2004). A Critique of Conventional CSR Theory: An SME Perspective. Journal of General Management, 29(4), 37–57. http://doi.org/10.1177/030630700402900403 DOI: https://doi.org/10.1177/030630700402900403

Jenkins, H. (2006). Small business champions for corporate social responsibility. Journal of Business Ethics, 67(3), 241–256. https://doi.org/10.1007/s10551-006-9182-6 DOI: https://doi.org/10.1007/s10551-006-9182-6

Jo, H., & Na, H. (2012). Does CSR Reduce Firm Risk? Evidence from Controversial Industry Sectors. Journal of Business Ethics, 110(4), 441–456. https://doi.org/10.1007/s10551-012-1492-2 DOI: https://doi.org/10.1007/s10551-012-1492-2

Kechiche, A., & Soparnot, R. (2012). CSR within SMEs: Literature Review. International Business Research, 5(7), 97–104. https://doi.org/10.5539/ibr.v5n7p97 DOI: https://doi.org/10.5539/ibr.v5n7p97

Laudal, T. (2011). Drivers and barriers of CSR and the size and internationalization of firms. Social Responsibility Journal, 7(2), 234–256. http://doi.org/10.1108/17471111111141512 DOI: https://doi.org/10.1108/17471111111141512

Lee, H. Y., Kwak, D. W., & Park, J. Y. (2017). Corporate Social Responsibility in Supply Chains of Small and Medium-Sized Enterprises. Corporate Social Responsibility and Environmental Management, 24(6), 634–647. https://doi.org/10.1002/csr.1433 DOI: https://doi.org/10.1002/csr.1433

Lepoutre, J., & Heene, A. (2006). Investigating the impact of firm size on small business social responsibility: A critical review. Journal of Business Ethics, 67(3), 257–273. http://doi.org/10.1007/s10551-006-9183-5 DOI: https://doi.org/10.1007/s10551-006-9183-5

Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis. Journal of Finance, 72(4), 1785–1824. https://doi.org/10.1111/jofi.12505 DOI: https://doi.org/10.1111/jofi.12505

Lund-Thomsen, P., Jamali, D., & Vives, A. (2014). CSR in SMEs: An analysis of donor-financed management tools. Social Responsibility Journal, 10(4), 602–619. https://acortar.link/eoGoHs DOI: https://doi.org/10.1108/SRJ-02-2013-0012

Lythreatis, S., Mostafa, A. M. S., & Wang, X. (2019). Participative Leadership and Organizational Identification in SMEs in the MENA Region: Testing the Roles of CSR Perceptions and Pride in Membership. Journal of Business Ethics, 156(3), 635–650. https://acortar.link/RiIYrc DOI: https://doi.org/10.1007/s10551-017-3557-8

Magrizos, S., Apospori, E., Carrigan, M., & Jones, R. (2021). Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis. European Management Journal, 39(2), 291–303. https://doi.org/10.1016/j.emj.2020.06.002 DOI: https://doi.org/10.1016/j.emj.2020.06.002

McAdams, D. P. (2016). Life Story. En S. Krauss (Ed.), The Encyclopedia of Adulthood and Aging (pp.1-4). JohnWiley & Sons. https://doi.org/10.1002/9781118521373.wbeaa141 DOI: https://doi.org/10.1002/9781118521373.wbeaa141

Mel, S. de, McKenzie, D., & Woodruff, C. (2010). Who are the Microenterprise Owners? Evidence from Sri Lanka on Tokman versus De Soto. En J. Lerner & A. Schoar (Eds.), International Differences in Entrepreneurship (pp. 63–87). University of Chicago Press. http://doi.org/10.7208/chicago/9780226473109.001.0001 DOI: https://doi.org/10.7208/chicago/9780226473109.001.0001

Moen, T. (2006). Reflections on the Narrative Research Approach. International Journal of Qualitative Methods, 5(4), 56-69. https://doi.org/10.1177/160940690600500405 DOI: https://doi.org/10.1177/160940690600500405

Murillo, D., & Lozano, J. M. (2006). SMEs and CSR: An approach to CSR in their own words. Journal of Business Ethics, 67(3), 227–240. https://doi.org/10.1007/s10551-006-9181-7 DOI: https://doi.org/10.1007/s10551-006-9181-7

Oeyono, J., Samy, M., & Bampton, R. (2011). An examination of corporate social responsibility and financial performance: A study of the top 50 Indonesian listed corporations. Journal of Global Responsibility, 2(1), 100–112. https://doi.org/10.1108/20412561111128555 DOI: https://doi.org/10.1108/20412561111128555

Perrini, F. (2006). SMEs and CSR theory: Evidence and implications from an Italian perspective. Journal of Business Ethics, 67(3), 305–316. https://doi.org/10.1007/s10551-006-9186-2 DOI: https://doi.org/10.1007/s10551-006-9186-2

Santos, M. (2011). CSR in SMEs: Strategies, practices, motivations and obstacles. Social Responsibility Journal, 7(3), 490–508. http://doi.org/10.1108/17471111111154581 DOI: https://doi.org/10.1108/17471111111154581

Schmidt, F. C., Zanini, R. R., Korzenowski, A. L., Junior, R. S., & do Nascimento, K. B. X. (2018). Evaluation of sustainability practices in small and medium-sized manufacturing enterprises in Southern Brazil. Sustainability (Switzerland), 10(7). https://doi.org/10.3390/su10072460 DOI: https://doi.org/10.3390/su10072460

Stoian, C., & Gilman, M. (2017). Corporate Social Responsibility That “Pays”: A Strategic Approach to CSR for SMEs. Journal of Small Business Management, 55(1), 5–31. https://doi.org/10.1111/jsbm.12224 DOI: https://doi.org/10.1111/jsbm.12224

Swanborn, P. (2010). Case Study Research. What, Why and How? Sage Publications. http://doi.org/10.4135/9781526485168 DOI: https://doi.org/10.4135/9781526485168

Thapa, A. (2015). Determinants of microenterprise performance in Nepal. Small Business Economics, 45(3), 581–594. https://doi.org/10.1007/s11187-015-9654-0 DOI: https://doi.org/10.1007/s11187-015-9654-0

Vives, A. (2006). Social and Environmental Responsibility in Small and Medium Enterprises in Latin America. Journal of Corporate Citizenship, 21, 39–50. https://www.jstor.org/stable/jcorpciti.21.39 DOI: https://doi.org/10.9774/GLEAF.4700.2006.sp.00006

WBCSD. (2021). Time to Transform. Vision 2050. https://acortar.link/aouLmm

Webb, J. W., Khoury, T. A., & Hitt, M. A. (2020). The Influence of Formal and Informal Institutional Voids on Entrepreneurship. Entrepreneurship: Theory and Practice, 44(3), 504–526. https://doi.org/10.1177/1042258719830310 DOI: https://doi.org/10.1177/1042258719830310

Webster, L., & Mertova, P. (2007). Using narrative inquiry as a research method. Routledge. http://doi.org/10.4324/9780203946268 DOI: https://doi.org/10.4324/9780203946268

Yao Dzansi, D., & Pretorius, M. (2009). Addressing and measuring small business social responsibility in the African context: A stakeholder framework. Social Responsibility Journal, 5(2), 245–256. http://doi.org/10.1108/17471110910964513 DOI: https://doi.org/10.1108/17471110910964513

Yin, R. K. (2009). Case Study Research: Design and Methods (4th ed.). Sage Publications.

Zbuchea, A., & Pinzaru, F. (2017). Tailoring CSR Strategy to Company Size? Management Dynamics in the Knowledge Economy, 5(3), 415–437. https://doi.org/10.25019/mdke/5.3.06 DOI: https://doi.org/10.25019/MDKE/5.3.06

Published

2022-12-20

How to Cite

Mendoza-Woodman, J. . (2022). Microenterprise and applied corporate social responsibility. HUMAN REVIEW. International Humanities Review / Revista Internacional De Humanidades, 14(4), 1–13. https://doi.org/10.37467/revhuman.v11.4142