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)

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 review essay assesses the contents and contributions of an edited volume on ethics in small and medium-sized enterprises. The volume takes a global perspective on such firms. Dr. Laura J. Spence is director of the Centre for Research Into Sustainability at Royal Holloway, University of London. Dr. Mollie Painter-Morland is associate professor in the Department of Philosophy at DePaul University in Chicago and associate director of DePaul’s Institute for Business and Professional Ethics. Dr. Painter-Morland is (...) editor-in-chief of the Business and Professional Ethics Journal. (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)

To achieve effective stakeholder governance in the context of international social accountability certification requires constructing a network of agreement. In a case study of a small-to-medium-sized enterprise, we examine managers’ attempts at enrolling participants in the supply chain to investigate how they strive to engage these stakeholders. We adopt actor-network theory and sensemaking theory to develop a novel approach to understanding social accountability standards’ certification in stakeholder networks. We argue that the design and operation of any SA (...) standard across a network requires not only attempts at enrolling other participants in the supply chain but management contextualizing and problematizing the terms of their involvement. (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)

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 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)

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)

"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)

Small and medium-sized enterprises (SMEs) play a crucial role in national economic growth and contribute significantly to GDP, acting as the backbone of economies in competitive markets. However, ethical issues in SMEs are often overlooked compared to those in large organisations due to limited public financial exposure and minimal media coverage. Research on ethical culture is still limited, particularly in SMEs, as past studies have predominantly focused on large organisations. To gain deeper insights into the ethical (...) culture of SMEs, more qualitative research is needed to uncover the complexities of ethical conduct and organisational dynamics in SMEs. Therefore, this study employs a qualitative approach to explore the elements of ethical culture implemented in Malaysian SMEs. The data, gathered through in-depth interviews with eleven SME managers in Malaysia, revealed that ethical culture is reflected through formal systems, informal systems, leadership, and the newly highlighted element of religiosity. These four elements were explained with three goals for each element: communication, training, and management. The ethical issues faced by SMEs (favouritisms, selling company inventories, and disrespect towards female-led managers) were also highlighted. Accelerators (family influence, customer retention) and barriers (financial constraints) in implementing ethical culture were identified. Interestingly, this study highlights the significant role of religiosity in the ethical culture of SMEs, contributing to the literature and serving as a framework for future research. It aims to provide valuable insights for policymakers, business leaders, and stakeholders seeking to promote a robust ethical culture within the context of Malaysian SMEs. (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)

Strategic orientation and innovation are vital determinants for accelerating the performance of small-to-medium-sized enterprises. However, there is a lack of empirical evidence confirming the innovation at the product and process levels that instigated the SMEs’ performance. Moreover, the mediating effect of process and product innovation can play a significant role in strategic orientation and manufacturing SMEs’ performance. In this respect, this study aims to examine the mediating effect of product and process innovation between strategic orientation and (...) the performance of Malaysian manufacturing SMEs. The questionnaire survey gathered data from 360 manufacturing SMEs and was analyzed using partial least square structural equation modeling to achieve these research objectives. The study analysis established that customer and entrepreneurial orientation significantly influence product and service innovation. However, the market orientation is significant for process innovation but insignificant for product-level innovation among SMEs. The study’s consequences exposed that process innovation has significantly mediated between the strategic orientation and SMEs performance. It implies that market, entrepreneurial, and customer-related strategies would substantially improve SMEs’ performance by harnessing innovation at product and process levels. The core insights provided by the current work are to strengthen the strategic orientation that can promote product and process innovation, thereby harnessing the SMEs’ performance. Additionally, the study’s significance and limitations were reported at the end. (shrink)

Recent research on corporate social responsibility (CSR) suggests the need for further exploration into the relationship between small and medium-sized enterprises (SMEs) and CSR. SMEs rarely use the language of CSR to describe their activities, but informal CSR strategies play a large part in them. The goal of this article is to investigate whether differences exist between the formal and informal CSR strategies through which firms manage relations with and the claims of their stakeholders. In this (...) context, formal CSR strategies seem to characterize large firms while informal CSR strategies prevail among micro, small, and medium-sized enterprises. We use a sample of 3,626 Italian firms to investigate our research questions. Based on a multistakeholder framework, the analysis provides evidence that small businesses* use of CSR, involving strategies with an important impact on the bottom line, reflects an attempt to secure their license to operate in the communities; while large firms rarely make attempts to integrate their CSR strategies into explicit management systems. (shrink)

This article aims to explore the role of stakeholder engagement in partnerships and the effects that it has on small- and medium-sized enterprises' (SMEs) competitiveness and their ability to expand into foreign markets. This study employs a qualitative approach to research by gathering empirical data from nine SMEs that have engaged in a partnership fostered by a digital platform that operates as an online sales channel. Our study reveals that SMEs engaging in cooperative activities are able (...) to leverage external stakeholders to improve their competitive advantage and increase their capabilities to permeate into foreign markets and better their structural costs and product variety. The insights derived from this study prove useful to both theory and practice. First, the obtained findings underline the significance of cooperative activities in enhancing SMEs' likelihood of growth and thriving amidst the ever-changing global market. Second, the present article underlines the impact partnerships have on all three dimensions of stakeholder engagement, namely strategic, pragmatic and moral. Third, the present manuscript corroborates the influence of digital platforms in fostering collaborative initiatives. Finally, the findings carry insights supporting the significance of shared values, norms and objectives amongst businesses as crucial elements of the stakeholder engagement process. (shrink)

Organizational sustainability in the form of environmental management and sustainable production is becoming more important for small and medium-sized enterprises throughout the world. This research evaluates the factors affecting the understanding of the CEO's and managers' intention to adopt practices of green supply chain management and clean innovation technology in the manufacturing SMEs of Pakistan. This empirical research identifies key determinants influencing the adoption of GSCM practices. Using structural equation modeling, we selected a sample size of (...) 350 different manufacturing firms in Pakistan. The results of the study revealed that six factors, namely, environmental, government, organization, suppliers, market, and operational factors, significantly influence the intention to adopt GSCM and positively impact sustainable production. The study's findings reveal that market and operational factors are highly significant for adopting GSCM practices at a p-value of 0.05. Environmental and organizational factors are equally significant to adopt GSCM practices at a p-value of 0.10. This research also analyzed CIT as a moderator between environmental, government, organization, customer, supplier, economic, market, and operational factors in the context of Pakistan. Hypotheses H9a, H9b, H9f, and H9g were validated and support the use of CIT to boost enterprise production and consumption. The research findings would help policymakers understand how to implement GSCM practices and guide enterprises to implement GSCM and CIT practices for enhancing enterprise performance and environmental sustainability. (shrink)

Although critical differences exist between large companies and small- and medium-sized enterprises (SMEs), limited empirical research has been done on human resource (HR)-related corporate social responsibility (CSR). In this paper we study aging workforce management (AWM) as a component of CSR. Our study was conducted in the Netherlands through a randomly distributed online questionnaire. Managers and team leaders of 201 SMEs responded. The data were analyzed using multiple hierarchical regression analysis. Our results are twofold: first, findings (...) suggest that CSR policies in micro organizations with fewer than five employees seem to be strongly associated with AWM; and second, that companies with a focus on integration of older workers in daily activities do not perceive their actions as HR-related. Using AWM as part of CSR helps to give insight into the role of the owner, company size and the nature of implicit CSR practices. Our study demonstrates that the use of AWM in CSR research can lead to valuable insights and therefore, our overarching research question is answered that AWM can be used when studying CSR. (shrink)

Although critical differences exist between large companies and small‐ and medium‐sized enterprises (SMEs), limited empirical research has been done on human resource (HR)‐related corporate social responsibility (CSR). In this paper we study aging workforce management (AWM) as a component of CSR. Our study was conducted in the Netherlands through a randomly distributed online questionnaire. Managers and team leaders of 201 SMEs responded. The data were analyzed using multiple hierarchical regression analysis. Our results are twofold: first, findings (...) suggest that CSR policies in micro organizations with fewer than five employees seem to be strongly associated with AWM; and second, that companies with a focus on integration of older workers in daily activities do not perceive their actions as HR‐related. Using AWM as part of CSR helps to give insight into the role of the owner, company size and the nature of implicit CSR practices. Our study demonstrates that the use of AWM in CSR research can lead to valuable insights and therefore, our overarching research question is answered that AWM can be used when studying CSR. (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)

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)

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)

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 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)

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)

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)

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 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)

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)

Studies into corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) have suggested that small businesses are different to the large companies on which CSR research usually focusses. Extending this argument, this article raises the question what differences in approaches to CSR there are within the SME category. Analysing the CSR strategy and performance of a medium-sized fashion retailer in the United Kingdom through manager interviews as well as customer and employee surveys, (...) the article develops an analytical framework of CSR in small, medium and large firms. The argument is developed that medium-sized firms occupy a transition stage, where some CSR features that are reminiscent of small enterprises are still important but get overlaid with aspects that are more typical of large companies. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

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)

While Corporate Social Responsibility (CSR) has traditionally been the domain of the corporate sector, recognition of the growing significance of the Small and Medium Sized Enterprise (SME) sector has led to an emphasis on their social and environmental impact, illustrated by an increasing number of initiatives aimed at engaging SMEs in the CSR agenda. CSR has been well researched in large companies, but SMEs have received less attention in this area. This paper presents the findings from a (...) U.K. wide study of socially responsible SMEs. The 24 companies studied were chosen as “exemplars” of␣CSR in SMEs. The aim of this study therefore is to progress understanding of both the limitations on and opportunities for CSR in SMEs through the exploration of exemplary characteristics in the study companies. Key areas of investigation were CSR terminology, the influence of managerial values, the nature of SME CSR activities, motivation for and benefits from engaging in CSR, and the challenges faced. The results of this study demonstrate some of the exemplary goals and principles needed to achieve social responsibility in SMEs, and begin to provide knowledge that could be used to engender learning in other SMEs. In particular, there is evidence that stakeholder theory may provide a framework in which SMEs and CSR can be understood. SMEs prefer to learn through networking and from their peers, so this is a possible avenue for greater SME engagement in CSR. This would require strong leadership or “championing” from individuals such as highly motivated owner–managers and from exemplary companies as a whole. (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)

While corporate social responsibility (CSR) is becoming a mainstream issue for many organizations, most of the research to date addresses CSR in large businesses rather than in small- and medium-sized enterprises (SMEs), because it is too often considered a prerogative of large businesses only. The role of SMEs in an increasingly dynamic context is now being questioned, including what factors might affect their socially responsible behaviour. The goal of this paper is to make a comparison of (...) SME and large firm CSR strategies. Furthermore, size of the firm is analyzed as a factor that influences specific choices in the CSR field, and studied by means of a sample of 3,680 Italian firms. Based on a multi-stakeholder framework, the analysis provides evidence that large firms are more likely to identify relevant stakeholders and meet their requirements through specific and formal CSR strategies. (shrink)