Abstract
Scholarship on Corporate Social Responsibility (CSR) has progressed to encompass a variety of theoretical frameworks. The adoption of Stakeholder Theory is prominent with regard to CSR among big businesses but its applicability towards micro and small businesses is contested. Micro and small businesses possess distinct differences most notably their less formal structure and more pronounced indigenous cultural diversity. To expand scholarship on CSR, this research explores the relatively less studied realm of micro businesses or informal businesses. Due to their rudimentary structure, micro businesses normally operate with other organizations, institutions, and each other, and are thus intricately linked with the local community. Hence, this research explores a locality and institution where micro businesses thrive—Jelutong wet market in Penang, Malaysia. This research offers a rare and arguably novel perspective. Firstly, the micro businesses are operating alongside and constantly interacting with each other within the institutional setting of a wet market (“Wet markets” in Malaysia are akin to farmers’ markets in America. They are usually established and operated by the local city or municipal council. Wet markets typically consist of a main market building and the surrounding roads and open areas. Meats, poultry, seafood, and vegetables are usually sold in the main market building that is sheltered. Slaughtering and de-feathering of poultry, and butchering of pork, beef, and lamb are usually conducted at the building premise and the floor is frequently wet hence the term “wet market.” The surrounding roads and open areas usually sell vegetables, fruits, hardware, clothing, toys, street hawker food, economy rice, savories, and a plethora of other goods and services.). Secondly, the said wet market is located in Penang, Malaysia that is highly diverse in terms of ethnicity, culture, religion, language, age, and socio-economics. The fieldwork employs multiple local languages for a high degree of authenticity and richness in data. Thirdly, this research adopts the methodology of phenomenology with a multi-layered approach. The fieldwork consists of thirty (30) primary interviews followed by five (5) verification interviews all conducted in local languages the respondents are most comfortable in expressing themselves, fifteen (15) non-participant observations, and ten (10) participant observations. An abductive research strategy is adopted and first-order constructs in the form of everyday typifications are adduced. The first-order constructs are analyzed along the layers of Carroll’s Pyramid of CSR. Subsequently, the second-order constructs are iteratively analyzed and three (3) typologies on CSR among micro businesses emerged. Finally, the findings from the second-order constructs are superimposed back onto the Pyramid of CSR. A different Pyramid of CSR emerges with fresh insights on the phenomenon of CSR among micro businesses. Retroductive reflection, reasoning, and analysis reveal Social Capital Theory as the most suitable theoretical framework and the implications for CSR scholarship are discussed.
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Notes
Hereinafter the acronym “CSR” is used for brevity.
Small businesses have more pronounced indigenous characteristics in relation to large corporations. Large corporations typically have modern administrative, management, and legal structures that comply with global standards and are largely homogeneous. In comparison, the phenomenon of small businesses predates that of large corporations and they typically are not highly exposed to globalization. Hence, small businesses are able to retain and exhibit more pronounced indigenous characteristics.
The local City Council only grants licenses to operate in Jelutong wet market to local residents. As such, the businesses operating there are very localized. In the context of Penang’s multi-ethnic, multi-lingual, and multi-religious society where Jelutong wet market resides, “localized” is intrinsically diverse. This is an outcome of Penang having a long history as a trading port with hybridized communities as well as well-conserved social-economic traditions, including Indians’, Malays’, and Chinese’ (Radcliffe 2006; Khoo 2014). Ironically, “globalized” in this context, with the predominant use of English language and modern business management principles, is not necessarily more heterogeneous than the local wet market.
The researcher was rebuffed several times when approaching subjects for interview. Subjects either cite that they do not have the time, were not “worthy” to be interviewed, or just plainly ignore the researcher.
In Visser’s Pyramid of CSR for developing countries in Africa, economic responsibilities still serve as the foundation. However, it is followed by philanthropic, legal, and ethical responsibilities in this specific order, deviating from Carroll’s Pyramid of CSR. On the one hand, Visser observed that philanthropy, specifically of large foreign mining companies operating in Africa like Anglo American and BHP Billiton, is very important. These companies are expected to contribute towards community development as “the economic contribution of companies in Africa is highly prized, by governments and communities alike” (Visser 2006). On the other hand, ethical responsibilities are the least prioritized as “In Africa, however, ethics seems to have the least influence on the CSR agenda” (Visser 2006). Unsurprisingly, ethics are placed at the top of Visser’s CSR Pyramid for Africa suggesting that it is discretionary.
Literarily “people in difficulty” in Malay language.
A parallel concept is that of “guanxi” among ethnic Chinese businesses (Xin and Pearce 1996).
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Wong, T.A., Bustami, M.R. A Case Study of Micro Businesses in Jelutong Wet Market in Penang, Malaysia: Implications for CSR Scholarship. J Bus Ethics 165, 535–546 (2020). https://doi.org/10.1007/s10551-019-04117-8
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DOI: https://doi.org/10.1007/s10551-019-04117-8