Social responsibility of small businesses in a typical rural African setting: Some insights from a South African study (original) (raw)
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Social responsibility and rural businesses seem to be unaligned in the NorthWest Province of South Africa. This paper establishes how rural businesses in the study area apply social responsibility issues in business. The rationale is to show the importance of incorporating social responsibility components to rural businesses to enhance their sustainability. This study used a mixed methods approach in which quantitative research dealt with numerical accounts and qualitative research was involved with non-numeric descriptions. The research tool was a questionnaire. Closed-ended and open-ended questions were used to ensure that the responses address the study needs. A total of 107 willing businesses were investigated. Tables and graphs were used quantitative data while themes were formed in the qualitative section. Empirical findings show that these rural businesses tend to perform in large proportions with regards to social responsibility activities that are compulsory to retain their business licenses. They show a tendency to ignore, or do little on the optional social responsibility activities. It is recommended that these rural businesses should embark on all social responsibility activities without neglecting others. They should make social responsibility part of their strategic mission. They lack conscience of social responsibility. In their activities, they aim to comply with the laws for licenses. This study intends to make them aware that they have started to embark on social responsibility by pointing out the activities they do, and then encourage them to increase by including the ones that they have not been doing in large scale.
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.
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.
Social responsibility in micro businesses in an African context: Towards a theoretical understanding
Business Ethics, the Environment & Responsibility
Society demands that businesses, including micro, small and medium enterprises, act responsibly towards their stakeholders and operating environments. Size and nationality contexts determine how businesses understand and approach their social responsibilities. Specific to size, evidence from the academic literature shows that small businesses understand the idea of social responsibility (SR) differently from large businesses. Small businesses may engage in SR without knowing it or without referring to their actions as SR (Hsu & Cheng, 2012
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.
Insights into Corporate Social Responsibility in Small and Medium Enterprises in South Africa
International Journal of Special Education, 2022
Small and Medium Enterprises (SMEs) are recognised around the world for their contribution to a country's social and economic growth. They are the fertile generators of economic growth and development for South Africa. It has been recognised that one of the strategies that contributes to the longevity and success of businesses is Corporate Social Responsibility (CSR). Hence, this study provides an insight into the influence of CSR on business growth in South Africa. Various scholars assert that CSR is more evident in major corporations with structured CSR strategies. Such businesses have separate divisions dedicated to CSR initiatives. However, CSR activities in SMEs in South Africa are still sketchy. They are based on the personal judgement and beliefs of owners and managers. There is a lack of awareness of the advantages of CSR in SMEs in South Africa. The lack of top management commitment has also been identified as a barrier to SMEs participating in CSR in South Africa. Consequently, there is more focus on the application of CSR in big corporations, thus neglecting SME participation in this initiative. It has thus been established that CSR remains a development tool that facilitates growth for SMEs in South Africa. Not all CSR activities require businesses to spend millions on such activities. SMEs may choose projects that are within their economic means. Hence, CSR awareness campaigns are useful to assist SMEs to make their projects more explicit.
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.
Social Responsibility Journal, 2009
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.
Small Business Social Responsibility
Business & Society, 2014
This article seeks to expand business and society research in a number of ways. Its primary purpose is to redraw two core corporate social responsibility (CSR) theories (stakeholder theory and Carroll’s CSR pyramid), enhancing their relevance for small business. This redrawing is done by the application of the ethic of care, informed by the value of feminist perspectives and the extant empirical research on small business social responsibility. It is proposed that the expanded versions of core theory have wider relevance, value, and implications beyond the small firm context. The theorization of small business social responsibility enables engagement with the mainstream of CSR research as well as making a contribution to small business studies in scholarly, policy, and practice terms.
Although a Corporate Social Responsibility(CSR)knowledge base exists among Zimbabwean SMEs, there hasbeen no comprehensive studies which have been conducted. In Zimbabwe the drive for CSR cannot be complete without the active engagement of Small to Medium Enterprises (SMEs) yet CSRpractices by SMEs in some parts of Zimbabwe, in particular, Chegutu, are currently unknown. It is against this background that this study investigated corporate social responsibility practices among SMEs in Chegutu. The study sought to gain an understanding of the meaning and impact attached to CSR by SMEs and also examine legal, economic and ethical barriers to CSR.Data used in this study was collected through 220 questionnaires and six semi-structured and open-ended interviews administered on owner-managers of SMEs. The systematic random sampling method was used to select respondents for quantitative research while the purposive method was used to select respondents for qualitative research. SPSS version 20.0 was adopted to analyze quantitative data while the reduction method was adopted for qualitative data. Findings reveal that there is no clear understanding and standard meaning for CSR. SMEs consider corporate social responsibility as having no quantifiable benefits. Legal, economic and ethical factors motivate SMEsto engage in CSR.The study results point at weak legislation and managerial attitudes as major barriers to CSR practices.