Corporate social responsibility for SMEs: A proposed hypothesised model
AbstractIn a competitive, globalised world, corporate social responsibility (CSR) is proposed as a strategy to invigorate the competitiveness of small‐ and medium‐sized enterprises (SMEs). The primary objective of this paper is to identify CSR factors that influence the competitiveness of SMEs and to develop a hypothesised model that can be tested on SMEs. Although SMEs in Uganda are increasingly becoming the backbone of the economy, their rate of survival and competitiveness are a cause for concern. The outcomes of CSR activities can help to improve the survival rate of SMEs, and may offer great oppor‐ tunities for business competitiveness, locally and globally.
Aaronson, S.A. (2003). Corporate responsibility in the global village: The British role model and the American laggard. Business and Society Review, 108 (3), 309‐38.
Ali, Rehman, I., Yilmaz, K.U., Nazir, S. and Ali, J.F. (2010). Effects of corporate social responsibility on consumer retention in cellular industry of Pakistan. African Journal of Business Management, 4 (4), 475‐85.
Ambastha, A. and Momaya, K. (2004). Competitiveness of Firms: Review of theory, frameworks and models.
Ararat, M. (2008). A development perspective for Corporate Social Responsibility: Case of Turkey. Journal of Corporate Governance, 8 (3), 271‐81.
Aydin, B. and Ceylan, A. (2008). The employee satisfaction in metalworking manufacturing: How do organizational culture and organizational learning capacity jointly affect it? Journal of Industrial Engineering and Management, 1 (2), 143‐68.
Beyene, A. (2002). Enhancing the Competitiveness and Productivity of Small and Medium Scale Enterprises (SMEs) in Africa. An Analysis of Differential Roles of National Governments Through Improved Support Services. Africa Development, 27 (3), 130‐56.
Bibu, N., Sala, D., Pantea, M. and Bizoi, G. (2008). Considerations about the influence factors on the competitiveness of SMEs from Western Region of Romania. The Annals of the University of Oradea, 4 (1), 77‐82.
￼￼Brdulak, A. (2006). CSR as a Way of Competition between Corporations: CSRM – Corporate Social Responsibility and Sustainable Management. [Online]. Available: http://www.feem.it/Feem/Pub/ Publications/CSRPapers [Accessed October 2006].
Brimpong, M.A. (2008). The Effect of Customer Satisfaction on Loyalty. A case study of the First Allied Savings and Loans Ltd. Unpublished master’s dissertation, Kwame Nkrumah University of Science and Technology.
Chong, H.G. (2008). Measuring performance of small and medium‐sized enterprises: the grounded theory approach. Journal of Business and Public Affairs, 2 (1), 1‐13.
COzigbo, N. and Ezeaku, P. (2009). Adoption of information and communication technologies to the development of small and medium scale enterprises (SMEs) in Africa. JBAS, l (1).
Del Baldo, M. (2006). SMEs and corporate social responsibility. Some evidences from an empirical research: Proceedings on emerging issues in international accounting and business conference 2006, 1: 314‐43. University of Padua, July 20–2.
Depperu, D. and Cerrato, D. (2005). Analyzing International Competitiveness at the Firm Level: Concepts and Measure. Working Paper No. 32, Dipartimento Scienze Sociali‐Sezione Economia Aziendale, Universita Cattolica del Sacro Cuore, Piacenza.
Eberl, M. and Schwaiger, M. (2005). Corporate reputation: disentangling the effects on financial performance. European Journal of Marketing, 39 (7/8), 838‐54.
European Commission (2001). Promoting a European framework for corporate social responsibility: Green Paper. Office for Official Publications of the European Communities, Luxembourg.
European Commission (2005). Enterprise and innovation in deprived urban areas: sharing the European experience. The European Learning Network Policy Bulletin Issue 3, July 2005.
European Competitiveness Report. (2008). Overview of the links between Corporate Social Responsibility and Competitiveness. [Online]. Available: ec.europa.eu/enterprise/csr/documents.
Ewing, M., Caruana, A., and Loy, E.R. (1999). Corporate reputation and perceived risk in professional engineering services. Corporate Communication: An International Journal, 4 (3), 121‐8.
Farrington, S.M. (2009). Sibling Partnership in South African Small and Medium‐sized Family Businesses. Unpublished doctoral thesis, Nelson Mandela Metropolitan University.
Flatt, S.J. and Kowalczyk, S.J. (2006). Corporate Reputation as a mediating variable between corporate culture and financial performance. Paper submitted to the 2006 Republic Institution Conference, San Francisco State University, San Francisco.
Fuller, T. (2003). Small business futures in society. Futures, 35 (4), 297‐304.
Gable, M., Fiorito, S.S. and Topol, M.T. (2008). An empirical analysis of the components of retailer customer loyalty programs. International Journal of Retail and Distribution Management, 36 (1), 32‐49.
Gan, C., Cohen, D., Clemes, M., and Chong, E. (2006). A Survey of Customer Retention in the New Zealand Banking Industry. Banks and Bank Systems, 1 (4).
Granerud, L. and Boesby, D. (2009). CSR, work environment and trust creation in SMEs. Impact of ethical behaviour at the firm level. Paper præsenteret på den internationale conference. USE 2009.
Hannun, R. (2004). Review of Government Procurement SME Policies. U.S. Agency for International Development/Jordan. The World Bank Research Program 2004. Washington DC.
Harvie, C. (2004). East Asian SME Capacity Building, Competitiveness and Market Opportunities in a Global Economy. Working paper 04‐16, Department of Economics, University of Wollongong, 2004.
Hatega, G. (2007). SME development in Uganda. Private Sector Foundation Uganda. Paper presented at a Local SMEs Conference on 14th‐March, 2007, Sheraton Hotel, Kampala, Uganda.
Heisler, W.J. (2007). Ethical Choices in the Design and Administration of Executive Compensation Programs. Business Horizons, 50, 277‐90.
Islam, M. S. (2008). The Analysis of Customer Loyalty in Bangladesh Mobile Phone Operators Industry. World Journal of Management, 2 (2), 130‐45.
Jamaludin, Z. and Hasun, F.M. (2007). The importance of staff training to the SMEs’ performance. Paper presented at the International Colloquium on Business and Management (ICBM), Bangkok Palace Hotel, Bangkok, Thailand.
Jenkins, H. (2006). Small Business Champions for Corporate Social Responsibility. Journal of Business Ethics, 67 (3), 241‐56.
Jenkins, H. (2007). Small and Medium Sized Enterprises (SMEs) and Corporate Social Responsibility (CSR): The ESRC Centre for Business Relationships, Accountability, Sustainability and Society, (BRASS), Cardiff University.
Kassins, G.I. and Soteriou, A.C. (2003). Greening the Service Profit Chain: The Impact of Environmental Management Practices. Journal of Production and Operations Management, 12 (3), 386‐402.
Kate, N., Rebecca, J. and Leeora, B. (2007). The involvement of small and medium businesses in corporate social responsibility. Australian Centre for Corporate Social Responsibility. [Online]. Available: http://www.accsr. com.au [Last accessed on October 2007].
Kerby, D. (2001). Government and Corporate Social Responsibility: An Overview of Selected Canadian, European and International Practices. A report by Canadian Business for Social Responsibility (CBSR).
Kramer, M., Pfitzer, M. and Lee, P. (2005). Competitive Social Responsibility: Uncovering the Economic Rationale for Corporate Social Responsibility among Danish Small‐ and Medium‐sized Enterprises. John F. Kennedy School of Government, Harvard University.
Lai, Q. (2006). Corporate Social Responsibility of SMEs in China: Challenges and Outlooks. Unpublished master’s thesis, University of Bremen, Germany.
Lantos, G.P. (2002). The ethicality of altruistic corporate social responsibility. Journal of Consumer Marketing, 19 (3), 205‐30.
Lee, J., Lee, J. and Feick, L. (2001). The impact of switching costs on the customer satisfaction‐loyalty link: Mobile phone service in France. Journal of Services Marketing, 15 (1), 35‐48.
Li, J. and Wang, H. (2007). An Empirical Examination of Competitive Advantage and Corporate Social Responsibility. A Chinese Banking Industry Investigation.
Li‐Hua, R. (2007). Benchmarking China firm competitiveness: A strategic framework. Journal of Technology Management in China, 2 (2), 105‐18.
Mahmood, S. (2008). Corporate Governance and Business Ethics for SMEs in Developing Countries: Challenges and Way Forward. Paper presented at the International Society of Business, Economics, and Ethics World Congress. 15‐18 July 2008. Cape Town, South Africa.
Maimunah, I. (2009). Corporate Social Responsibility and its Role in Community Development: An International Perspective. The Journal of International Social Research, 2 (9), Fall.
Man, T.W.Y., Lau, T. and Chan, K.F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17 (2), 123‐42.
Mandl, I. (2007). CSR and Competitiveness. European SMEs’ Good Practice, Consolidated European Report, Vienna.
Mandl, I. (2009). The Interaction between Local Employment Development and Corporate Social Responsibility, Austrian Institute for SME Research, Elise Crunel, Vienna, January 2009.
Mandl, I. and Dorr, A. (2007). CSR and Competitiveness. European SMEs’ Good Practice, Consolidated European Report, Vienna.
Markovics, K. (2005). Competitiveness of Domestic Small and Medium Enterprises in the European Union. European Integration Studies, Miskolc, 4 (1), 13‐24.
Moeti, K.B. (2000). Evaluating Projects and Programmes in the South African Public Sector. Journal of Public Administration, 35 (4), 279‐94.
Money, K. and Gardiner, L. (2005). Reputational management: ignore at your own peril. Handbook of Business Strategy, 6 (1), 43‐6.
Nejati, M. and Amran, A. (2009). Corporate social responsibility and SMEs: exploratory study on motivations from a Malaysian perspective. Journal of Business Strategy Series, 10 (5), 259‐65.
Ocici, C. (2003). The Generic Challenges faced by SMEs in Uganda. Proceedings of the Symposium on Modalities for Financing SMEs in Uganda. United Nations Conference on Trade And Development. New York￼￼and Geneva, 2003.
Okpara, J.O. and Wynn, P. (2007). Determinants of small business growth constraints in a sub‐Saharan African economy. International Review of Business Research Papers, 5 (6), 195‐211.
Omar, M., Williams, R.L. and Lingelbach, D. (2009). Global brand market‐entry strategy to manage corporate reputation. Journal of Product and Brand Management, 18 (3), 177‐87.
Perez‐Sanchez, D. (2003). Implementing environmental management in SMEs. Corporate Social Responsibility and Environmental Management, 10 (2), 67‐77.
Polášek, D. (2010). Corporate Social Responsibility in Small and Medium‐Sized Companies in the Czech Republic. Unpublished doctoral thesis, Czech Management Institute, Czech Republic.
PW Partners (2007). Mainstreaming CSR among SMEs in the Baltic States, quantitative research final report Estonia. [online]. Available: www. ec.europa.eu/enterprise/policies/./files/csr/./csrrepo rtv002_en [Accessed 28 November 2008].
Roberts, P.W. and Dowling, G.R. (2002). Corporate Reputation and Sustained Superior Financial Performance. Strategic Management Journal, 23, 1077‐93.
Rossouw, D., Prozesky, M., Van Heerden, B. and Van Zyl, M. (2007). Ethics for Accountants and Auditors. Oxford University Press, NY.
Rusu, C. (2003). Change Management. Economica Publishing House, Bucharest.
Salavou, H. and Avlonitis, G. (2008). Product innovativeness and performance: a focus on SMEs. Management Decision, 46 (7), 969‐85.
Sarbutts, N. (2003). Can SMEs ‘do’ CSR? A practitioner’s view of the ways small and medium sized enterprises are able to manage reputation through corporate social responsibility. Journal of Communication Management, 7 (4), 340‐7.
Segal, G., Borgia, D. and Schoenfeld, J. (2010). Founder human capital and small firm performance: An empirical study of founder‐managed natural food stores. Journal of Management and Marketing Research, 4 (1), 71‐83.
Shamma, H.M. and Hassan, S.S. (2009). Customer and non‐customer perspectives for examining corporate reputation. Journal of Product and Brand Management, 18 (5), 326‐37.
Silberhorn, D. and Warren, R. (2007). Defining corporate social responsibility: A view from large companies in Germany and the UK. European Business Review, 19 (5), 352‐72.
Singh, R.J., Garg, S.K. and Deshmukh, S.G. (2008). Strategy development by SMEs for competitiveness: A review. An International Journal, 15 (5), 525‐47.
Sirota Survey Intelligence. (2007). Accessed from CSR boosts employee engagement, Social responsibility boosts employee engagement. [Online]. Available: http://www.management‐issues.com/2007/5/9/research/ social‐responsibility‐boosts‐employee‐engagement.asp [Accessed on 9 May 2007].
Southwell, C. (2004). Engaging SMEs in Community and Social Issues in Spence, L.J., Habisch, A. and Schmidpeter, R. (Eds.), Responsibility and Social Capital: The World of Small and Medium Sized Enterprises. Palgrave MacMillan, Hampshire.
Spence, L.J., Schmidpeter, R., and Habisch, A. (2003). Assessing Social Capital: Small and Medium Sized Enterprises in the UK and Germany. Journal of Business Ethics, 47 (1), 17‐29.
Stajkovic, A.D. and Luthans, F. (1997). Business ethics across cultures: A Social Cognitive Model. Journal of World Business, 32 (1), 17‐34.
Sultan, S.S. (2007). The Competitive Advantage of Small and Medium Sized Enterprises: The Case of Jordan’s Natural Stone Industry. University of Maastricht.
Suprawan, L., DeBussy, N. and Dickinson, S. (2009). Corporate Social Responsibility in the SME Sector: An Exploratory Investigation, 2009, p. 4‐10.
Szabo, A. (2008). The Corporate Social Responsibility: An Opportunity for SMEs. [Online]. Available: http://www.unglobalcompact.org/http:// www.unece.org/indust/sme ResponsibleEntrepreneurship (Accessed on 20 June 2008).
Tsai, K. Yu, K. and Fu, S. (2005). Do Employee Benefits really offer no Advantage on Firm Productivity? An Examination of Taiwan’s Shipping Industry. Journal of the Eastern Asia Society for Transportation Studies, 6, 838‐50.
Tuppen, C. (2004). The BT Business Case for CSR. Presentation at Seminar The Business Case for CSR: Reflections on Research and Experience. Commission of the European Communities, Brussels, Belgium.
Tushabomwe‐Kazooba, C. (2006). Causes of Small Business Failure in Uganda: A Case study from Bushenyi and Mbarara Towns. African Studies Quarterly, 8 (4): 1‐13.
UNIDO (2002). Corporate Social Responsibility. Implications for Small and Medium Enterprises in Developing Countries. Survey Report. Vienna, Austria.
UNIDO. (2008). CSR Perceptions and Activities of Small and Medium Enterprises (SMEs) in seven geographical clusters: Survey Report. Vienna, Austria.
Vives, A. (2005). Social and Environmental Responsibility in Small and Medium Enterprises in Latin America. Journal of Corporate Citizenship, 21, 39‐50.
Viviers, S. and Venter, D.J. (2007). Corporate social responsibility – A SMME perspective. African Journal of Business Ethics, 2 (1), 20‐7.
Vos, J.P. (2005). Developing strategic self descriptions of SMEs. Technovation, 25 (9), 989‐99.
Weber, M. (2008). The business case for corporate social responsibility: A company‐level measurement approach for CSR. European Management Journal, 26 (4), 247‐61.
World Bank. (2004). Corporate social responsibility. [Online]. Available: www.worldbank.org/developmentcommunications/where I/environment/ csr.htm [Accessed on August 25 2006].
Zsolnai, L. (2006). Competitiveness and Corporate Social Responsibility: CSR Paper 2. 2006. Business Ethics Center, Corvinus University of Budapest, Hungary.
This journal is an open access journal, and the authors and journal should be properly acknowledged, when works are cited.
Authors may use the publisher's version for teaching purposes, in books, theses, dissertations, conferences and conference papers.
A copy of the authors’ publisher's version may also be hosted on the following websites:
- Non-commercial personal homepage or blog.
- Institutional webpage.
- Authors Institutional Repository.
The following notice should accompany such a posting on the website: “This is an electronic version of an article published in AJOBE, Volume XXX, number XXX, pages XXX–XXX”, DOI. Authors should also supply a hyperlink to the original paper or indicate where the original paper (http://ajobe.journals.ac.za/pub) may be found.
Authors publisher's version, affiliated with the Stellenbosch University will be automatically deposited in the University’s’ Institutional Repository SUNScholar.
The following license applies:
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.