The development and structural confirmation of an instrument for measuring the social responsibility of small and micro business in the African context (original) (raw)
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Social Responsibility Journal, 2009
Purpose -The purpose of this paper is to propose an instrument, the Small Enterprise Social Responsibility Inventory (SESRI) for measuring business social responsibility (BSR) in the African venture setting. Design/methodology/approach -The approach was to use the components of Dzansi's framework to create an instrument for measuring BSR activities of small ventures that operate in rural Africa. The instrument was tested in a rural community in South Africa for validity, reliability, structure, and its ability to predict firm performance given performance of certain BSR activities. Findings -Through factor analysis of data obtained from 314 small businesses in a rural South African setting, the instrument was found to be valid for measuring small business BSR and identified five factors: expected benefits; community or customer practices; realised or actual benefits; awareness or attitude and performance; and employee practices. Through discriminant analysis, employee practice was found useful for classifying ventures as high or low sales and profit performers, suggesting that information on a firm's BSR related employee practices may be useful predictors of sales and profit. Research limitations/implications -Firstly, the methodology requires self-evaluation by the respondents. However, those respondents who reported low levels of BSR activities (and negative growth in sales and performance) also reflected on their own ''performance'' and recorded it as low signifying some level of realistic reporting. Secondly, there is absence of question items about environmental issues. Thirdly, the sample was taken in a small rural setting, which requires caution when generalising from the results. Originality/value -This study provides an African context specific measurement instrument for addressing small business BSR. Academics will find it useful in their research efforts. Fund managers will also find it useful for evaluating small business BSR performance. Owners/managers will have a benchmark in performing their social obligations.
A framework for measuring business social responsibility in micro and small business
2007
Although much work has been done on the society versus business relation issue, it has yet to cascade business social responsibility (BSR) to small ventures and especially rurally based ones where survival is a more pertinent goal. Most studies to date have focused on corporate and large organisations, thereby suggesting that BSR is not really a small business issue. A major consequence/cause of this apparent bias towards large business is limited research into how small ventures and especially rural ones perceive and apply BSR. This study proposes an instrument for measuring BSR in small ventures. Through empirical analysis the resultant instrument was found to be valid for measuring small business BSR and measured four dimensions thereof namely: Expected benefits; Community/customer practices; Realised/actual benefits, BSR awareness/attitude and employee practices. Through discriminant analysis, the identified factors of BSR are useful to classify ventures as high or low sales and profit performers, suggesting that information on a firm's BSR activities can be used as indicators of firm performance.
The increase on Business Social Responsibility (BSR) understanding in present-day businesses has led to postulations that the related behaviors would facilitate viable benefit to be attained as a firm different itself from its rivalry through such actions. Therefore, the objectives of this study was to carried out Data gathering in respect to Data screening and preliminary analysis in related to effect of business social responsibility on performance of SMEs in Nigeria. 514 respondents were derived from Small Scale Industries in Kano State Nigeria. The study employed purposive sampling techniques, equally the exercises was carried in order to suit the supposition of multivariate analysis. In view of that, an appraisal of Data missing, identify univariate and multivariate outlier and lastly, skewness and kurtosis were checked. In addition, factor analysis through Exploratory Factor Analysis (EFA) was also carried out. Similarly, all the exercises were prepared in Statistical Package for Social Science (SPSS) software version 18, and the preliminary analysis reveals convinced that the data fulfill condition of multivariate analysis. The findings will give an insight to further analysis its hope to provide understanding of how and why this may be diverse in a perspectives rising environment.
Business social responsibility: How are SMEs doing in Gauteng, South Africa?
Social Responsibility Journal, 2012
Purpose -This paper aims to establish the extent to which small and medium-sized enterprises (SMEs) in Gauteng, South Africa involve business social responsibility (BSR) in their practices. It also aims to bring awareness of the importance that BSR has amongst SMEs. The objectives are to measure the involvement of SME's BSR on management performance, identify strengths and areas that need improvement of BSR and expose the potential usefulness of BSR in South African SMEs.
2008
Although much work has been done on the society versus business relation issue, it has yet to cascade business social responsibility (BSR) to small ventures and especially rurally based ones where survival is a more pertinent goal. Most studies to date have focused on corporate and large organisations, thereby suggesting that BSR is not really a small business issue. A major consequence/cause of this apparent bias towards large business is limited research into how small ventures and especially rural ones perceive and apply BSR.
Empirical research on business social responsibility (BSR) in the South African small business context is limited. This creates a number of problems. For example, in South Africa, it is difficult to tell exactly what the attitudes of small businesses are towards BSR. Without such information, policymakers will find it difficult to formulate appropriate support mechanisms to enhance BSR efforts of small businesses bearing in mind that what works for large businesses may not necessarily work for the smaller ones. A structured, attitudinal survey instrument, validated for reliability with R = 0.89, was used to collect data from owners/managers of 173 small businesses in the small industrial estate of Botshabelo in South Africa to determine their general attitude towards BSR. The results reveal interesting findings. First, on less stringent criteria, a somewhat split opinion is found on the matter; however, on more stringent (pessimistic) decision criteria, the results indicate a general negative attitude towards BSR. Significant differences were found in attitude towards BSR based on personal and organizational demographic variables. This exploratory study is important because it has provided a window through which the typical South African small manufacturing firm’s attitude towards BSR can be gauged.
Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs
Journal of Open Innovation: Technology, Market, and Complexity
This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective ...
Analysis of small business social responsibility practices in South Africa
2014
Social responsibility (SR) is a business management concept that originated in the early 1930s after the Wall Street crash of 1929 exposed corporate irresponsibility in large organizations. Whilst the initial interpretation of SR has been modified and refined since it was first used, the significance of this multidimensional concept for the small and medium enterprise (SME) sector has continued to be overshadowed by its application to large and multinational organizations. The knowledge of social activities in the SME sector, particularly in South Africa, has remained unexplored due to relatively little attention being given until recent years. In cognizance of the above mentioned, this study wishes to expand the body of knowledge in respect of the social responsibility of small businesses. This study presented a qualitative content analysis of annual reports from 2008 to 2012 of companies listed on the JSE ALT exchange to explore small business social responsibility practices using NVIVO to analyze data. Findings from this study support the view that small businesses are not always profit driven and that they are therefore fundamentally distinct from large organizations. South African small businesses are however not yet strategic about SR. Creating and maintaining their reputation as good corporate citizens through relationships with stakeholders is their primary motivation for participating in social activities. The study results show that SR in small businesses is still evolving and that year after year there is an increase in involvement and interest in SR issues. The findings of this study, and confirmation of the new knowledge gained will assist policy makers and practitioners in designing plans and policies that will increase socially responsible behaviour of small businesses and develop a comprehensive theory of SR in small businesses in South Africa. This can potentially enhance inclusive economic growth while simultaneously dealing with the country's socio economic problems. Future studies can be extended to include other SMEs in South Africa, specifically micro enterprises and comparisons formed by a larger population may demonstrate and explain trends more clearly. The results of this study can also be compared with large companies listed on the JSE and to other African economies. A longitudinal study investigating SMEs' participation in SR in different economic conditions could test the fact that a change has occurred in the attitudes of small businesses from 2008 to 2012 towards social responsibility.
This study examined the extent to which the concept of social responsibility has permeated the small business mind set of a typical rural African setting located in South African. In order to achieve the above purpose, five hypotheses focusing on social responsibility awareness, performance, focus, perceived benefits, and observable benefits were formulated and tested. The results reveal high levels of awareness and performance of socially responsible activities among the small businesses surveyed. The results further suggest that these businesses may be performing these socially responsible activities with expectations of certain benefits. The results confirm customer, employee, and community issues are important social responsibility activities for the small businesses surveyed. The study illuminates the practice of social responsibility among small businesses in the African context with particular focus on rural communities where these types of businesses are the only form of eco...