Tailoring CSR Strategy to Company Size?
Abstract
Corporate Social Responsibility (CSR) is one of the most debated topics in the academic and professional business literature, being analyzed in a myriad of perspectives, from philosophy, to marketing, management practice, managerial strategies or financial impact. The very term of CSR implies that involving with society in a structural way that is part of a business DNA is or should be understood as a characteristic of big size companies (e.g. ‘corporations’). Academic literature and financial reports show a direct relationship between a company size and its CSR budget, therefore some conclusions have been taken that CSR is effective mostly in cases of big budgets and, consequently, of big companies. Academic research also tends to favor large corporations. Most of the literature on CSR is dedicated to large companies. Nevertheless, in the past decade, increasingly more studies have investigated the social responsibility assumed by other types of companies (such as SMEs), by public institutions or by nonprofit organizations. Our present empirical analysis based on structured academic literature review (comprehensive selection of relevant international papers and content analysis) demonstrates that CSR should go beyond the classical understanding of the ‘corporation’ concept and that it should be tailored to SMEs as well. Innovation and top management support are the drivers of effective CSR adoption by SMEs, for positive results meeting specific business model requirements, as well as for society. Going beyond social responsibility as a philosophical duty, correctly tailored CSR strategies can be efficient for small and medium enterprises in meeting strategic business objectives.References
Aras, G., Aybars, A., and Kutlu, O. (2010). Managing corporate performance: Investigating the relationship between corporate social responsibility and financial performance in emerging markets. International Journal of productivity and Performance management, 59(3), 229-254.
Arend, R.J. (2013). Ethics-focused dynamic capabilities: a small business perspective. Small Business Economics, 41(1), 1-24.
Baden, D., Harwood, I.A., and Woodward, D.G. (2011). The effects of procurement policies on ‘downstream’ corporate social responsibility activity: Content-analytic insights into the views and actions of SME owner-managers. International Small Business Journal, 29(3), 259-277.
Barnett, M.L., and Salomon, R.M. (2006). Beyond dichotomy: The curvilinear relationship between social responsibility and financial performance. Strategic Management Journal, 27(11), 1101-1122.
Battisti, M., and Perry, M. (2011). Walking the talk? Environmental responsibility from the perspective of small‐business owners. Corporate Social Responsibility and Environmental Management, 18(3), 172-185.
Baumann-Pauly, D., et al. (2013). Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters. Journal of Business Ethics, 115(4), 693-705.
Becker-Olsen, K.L., Cudmore, B.A., and Hill, R.P. (2006). The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59(1), 46-53.
Bénabou, R. & Tirole, J. (2009). Individual and corporate social responsibility. IZA Discussion Papers, No. 4570.
Bhattacharya, C.B., and Sen, S. (2004). Doing better at doing good: when, why and how consumers respond to corporate social initiatives. California Management Review, 47(1), 9-24.
Blombäck, A. and Wigren, C. (2009). Challenging the importance of size as determinant for CSR activities. Management of Environmental Quality: An International Journal, 20(3), 255-270.
Bohlin, I., and Wiebe, J. (2016). Does it Pay for SMEs to be Good and Green?: Evidence on the impact of CSR on Financial Performance in the contextual setting of European and Asian SMEs. Retrieved online from http://www.diva-portal.org/smash/get/diva2:941922/FULLTEXT01.pdf.
Brammer, S., and Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, 29(12), 1325-1343.
Brine, M., Brown, R., and Hackett, G. (2007). Corporate social responsibility and financial performance in the Australian context. Economic Round-up, Autumn, 47-58.
Brower, J., and Mahajan, V. (2013). Driven to be good: A stakeholder theory perspective on the drivers of corporate social performance. Journal of Business Ethics, 117(2), 313–331.
Callan, S.J., and Thomas, J.M. (2009). Corporate financial performance and corporate social performance: an update and reinvestigation. Corporate Social Responsibility and Environmental Management, 16(2), 61-78.
Camilleri, M.A. (2015). The business case for corporate social responsibility. In S. Menzel Baker and M. Mason (Eds.), Marketing & public policy as a force for social change conference (pp. 8–14). Washington DC: American Marketing Association. Retrieved from https://www.ama.org/events-training/Conferences/Documents/2015-AMA-Marketing-Public-Policy-Proceedings.pdf.
Cassells, S., and Lewis, K. (2011). SMEs and environmental responsibility: do actions reflect attitudes?. Corporate Social Responsibility and Environmental Management, 18(3), 186-199.
Cassells, S., and Lewis, K.V. (2017). Environmental management training for micro and small enterprises: the missing link? Journal of Small Business and Enterprise Development, 24(2), 297-312.
Cespa, G., and Cestone, G. (2007). Stakeholder activism, managerial entrenchment, and the congruence of interest between shareholders and stakeholders, Journal of Economics and Management Strategy, 16(3), 741-771.
Chen, H., and Wang, X. (2011). Corporate social responsibility and corporate financial performance in China: an empirical research from Chinese firms. Corporate Governance: The International Journal of Business in Society, 11(4), 361-370.
Choi, J.S., Kwak, Y.M., and Choe, C. (2010). Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 35(3), 291-311.
Chou, S.Y., Chang, T., and Han, B. (2016). A Buddhist application of corporate social responsibility: qualitative evidence from a case study of a small Thai family business. Small Enterprise Research, 23(2), 116-134.
Cochran, P.L., and Wood, R.A. (1984). Corporate social responsibility and financial performance. Academy of management Journal, 27(1), 42-56.
De Clercq, D., and Voronov, M. (2011). Sustainability in entrepreneurship: A tale of two logics. International Small Business Journal, 29(4), 322-344.
Devinney, T., Auger, P., Eckhardt, G., and Birtchnell, T. (2006). The Other CSR: Consumer Social Responsibility. Stanford Social Innovation Review, 4(3), 30-37.
Dodd, M.D., and Supa, D.W. (2011). Understanding the Effect of Corporate Social Responsibility on Consumer Purchase Intention, Public Relations Journal, 5(3), 1-19.
Dodd, M.D., and Supa, D.W. (2014). Conceptualizing and Measuring Corporate Social Advocacy” Communication: Examining the Impact on Corporate Financial Performance, Public Relations Journal, 8(3), 2-23.
Du, S., Bhattacharya, C.B., and Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews, 12(1), 8-19.
Fabling, R.B., and Grimes, A. (2007). Practice makes profit: Business practices and firm success. Small Business Economics, 29(4), 383-399.
Fassin, Y. (2008). SMEs and the fallacy of formalising CSR. Business Ethics: A European Review, 17(4), 364-378.
Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach. Management Science, 61(11), 2549-2568.
Freeman, E. (1984). Strategic Management: a Stakeholder Approach. Boston: Pitman.
Garay, L., and Font, X. (2012). Doing good to do well? Corporate social responsibility reasons, practices and impacts in small and medium accommodation enterprises. International Journal of Hospitality Management, 31(2), 329-337.
Gilley, K., Worell, D., and EI-Jelly, A. (2000). Corporate Environmental Initiatives and Anticipated Firm Performance. Journal of Management, 26(6), 1199-1216.
Hansen, M.T., Ibarra, H., and Peyer, U. (2013). Can Companies Both Do Well and Do Good?, HBR Blog Network, January 7, 2013. Retrieved from http://blogs.hbr.org/2013/01/can-companies-both-do-well-and.
Hasan, M.N. (2016). Measuring and understanding the engagement of Bangladeshi SMEs with sustainable and socially responsible business practices: an ISO 26000 perspective. Social Responsibility Journal, 12(3), 584-610.
Henriques, A. and Richardson, J. (2004). The Triple Bottom Line: Does it All Add Up? Assessing the Sustainability of Business and CSR. London - Sterling: Earthscan. Retrieved from http://www.culturaldiplomacy.org/academy/content/pdf/participant-papers/2012-03-biec/The_Impact_of_Corporate_Social_Responsibility_on__Business_Performance_-_Malte_Kaufmann.pdf.
Hillman, A.J., and Keim, G.D. (2001). Shareholder value, stakeholder management, and social issues: What's the bottom line? Strategic Management Journal, 22(2), 125-139.
Hoogendoorn, B., Guerra, D., and van der Zwan, P. (2015). What drives environmental practices of SMEs?. Small Business Economics, 44(4), 759-781.
Houtbeckers, E. (2016). The tactics of ecopreneurs aiming to influence existing practices. Small Enterprise Research, 23(1), 22-38.
Inoue, Y., and Lee, S. (2011). Effects of Different Dimensions of Corporate Social Responsibility on Corporate Financial Performance in Tourism-Related Industries. Tourism Management, 32(4), 790-804.
Iraldo, F., et al. (2017). Greening competitiveness for hotels and restaurants. Journal of Small Business and Enterprise Development, 24(3), 607-628.
Isaksson, L., Kiessling, T., and Harvey, M. (2014). Corporate social responsibility: Why bother?. Organizational Dynamics, 43(1), 64-72.
Jamali, D., Lund-Thomsen, P., and Jeppesen, S. (2017). SMEs and CSR in Developing Countries. Business & Society, 56(1), 11-22.
Jenkins, H. (2004). A Critique of Conventional CSR Theory: An SME Perspective. Journal of General Management, 29(4), 37-57.
Jenkins, H. (2009). A ‘business opportunity’ model of corporate social responsibility for small- and medium-sized enterprises. Business Ethics: A European Review, 18(1), 21-36.
Johnson, H.H. (2003). Does it pay to be good? Social responsibility and financial performance. Business Horizons, 46(6), 34-40.
Johnson, M.P., and Schaltegger, S. (2016). Two decades of sustainability management tools for SMEs: how far have we come?. Journal of Small Business Management, 54(2), 481-505.
Johnson, M.P. (2015). Sustainability Management and Small and Medium‐Sized Enterprises: Managers' Awareness and Implementation of Innovative Tools. Corporate Social Responsibility and Environmental Management, 22(5), 271-285.
Kaufmann, M., & Olaru, M. (2012). The Impact of Corporate Social Responsibility on Business Performance – Can It Be Measured, and if so, How?”. Paper presented at the Berlin International Economics Congress 2012, March 7-10.
Kechiche, A., and Soparnot, R. (2012). CSR within SMEs: Literature Review. International Business Research, 5(7), 97-104.
Laguir, I., Laguir, L., and Elbaz, J. (2016). Are Family Small‐and Medium‐Sized Enterprises More Socially Responsible Than Nonfamily Small‐and Medium‐Sized Enterprises?. Corporate Social Responsibility and Environmental Management, 23(6), 386-398.
Lee-Wong, B.Y., and More, E. (2016). Management of corporate social responsibility in Hong Kong small and medium enterprises: Communication dimensions. Journal of Global Responsibility, 7(2), 146-162.
Li, N., Toppinen, A., and Lantta, M. (2016). Managerial perceptions of SMEs in the wood industry supply chain on corporate responsibility and competitive advantage: evidence from China and Finland. Journal of Small Business Management, 54(1), 162-186.
Lima Crisóstomo, V., de Souza Freire, F., and Cortes de Vasconcellos, F. (2011). Corporate social responsibility, firm value and financial performance in Brazil. Social Responsibility Journal, 7(2), 295-309.
Lin, C.H., Yang, H.L., and Liou, D.Y. (2009). The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan. Technology in Society, 31(1), 56-63.
Looser, S., and Wehrmeyer, W. (2015). Stakeholder mapping of CSR in Switzerland. Social Responsibility Journal, 11(4), 780-830.
López‐Pérez, M., Melero, I., and Javier Sesé, F. (2017). Does Specific CSR Training for Managers Impact Shareholder Value? Implications for Education in Sustainable Development. Corporate Social Responsibility and Environmental Management, 24(5), 435-448.
Louche, L. & Michotte, E. (2011). La Responsaiblite Sociale des Entreprises dans les Petites and Moyennes Entreprises: Revue de la literature 2006-2009 et strategies de recherce. CEB Working Paper No.11/003.
Lundgren, T. (2007). On the economics of corporate social responsibility. Working Paper, Sustainable Investment Research Platform.
Mackey, A., Mackey, T.B., and Barney, J.B. (2007). Corporate Social Responsibility and Firm Performance: Investor Preferences and Corporate strategies, Academy of Management Review, 32(3), 817-835.
Malik, M. (2015). Value-enhancing capabilities of CSR: A brief review of contemporary literature. Journal of Business Ethics, 127(2), 419-438.
Mangolis, J.D., Elfenbein, H.A., and Walsh, J.P. (2009). Does it pay to be good? And does it matter? A meta-analysis of the relationship between corporate social and financial performance. Retrieved from http://www.hks.harvard.edu/m-rcbg/papers/seminars/margolis_november_07.pdf.
McGuire, J.B., Sundgren, A., and Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854-872.
Meiseberg, B., and Ehrmann, T. (2012). Lost in translation? The prevalence and performance impact of corporate social responsibility in franchising. Journal of Small Business Management, 50(4), 566-595.
Mickiewicz, T., Sauka, A., and Stephan, U. (2016). On the compatibility of benevolence and self-interest: Philanthropy and entrepreneurial orientation. International Small Business Journal, 34(3), 303-328.
Mohr, L.A., Webb, D.J., and Harris, K.E. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer affairs, 35(1), 45-72.
Nelling, E., and Webb, E. (2009). Corporate social responsibility and financial performance: the “virtuous circle” revisited. Review of Quantitative Finance and Accounting, 32(2), 197-209.
Niehm, L.S., Swinney, J., and Miller, N.J. (2008). Community social responsibility and its consequences for family business performance. Journal of Small Business Management, 46(3), 331-350.
Orlitzky, M., Schmidt, F.L., and Rynes, S.L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, 24(3), 403-441.
Parker, C.M., et al. (2015). SME stakeholder relationship descriptions in website CSR communications. Social Responsibility Journal, 11(2), 364-386.
Pava, M.L., and Krausz, J. (1996). The association between corporate social-responsibility and financial performance: The paradox of social cost. Journal of Business Ethics, 15(3), 321-357.
Peloza, J. (2006). Using corporate social responsibility as insurance for financial performance. California Management Review, 48(2), 52-72.
Perrini, F., Russo, A., and Tencati, A. (2007). CSR strategies of SMEs and large firms: evidence from Italy. Journal of Business Ethics, 74(3), 285-300.
Peters, R., and Mullen, M.R. (2009). Some evidence of the cumulative effects of corporate social responsibility on financial performance. Journal of Global Business Issues, 3(1), 1.
Rangan, K., Chase, L. & Karim, S. (2012). Why every company needs a CSR Strategy and how to build it. Working Paper 12-088, Harvard Business School. Retrieved from http://www.hbs.edu/faculty/Publication%20Files/12-088.pdf.
Rhou, Y., Singal, M., and Koh, Y. (2016). CSR and financial performance: The role of CSR awareness in the restaurant industry. International Journal of Hospitality Management, 57(1), 30-39.
Rodgers, C. (2010). Sustainable entrepreneurship in SMEs: a case study analysis. Corporate Social Responsibility and Environmental Management, 17(3), 125-132.
Russo, A., and Tencati, A. (2009). Formal vs. Informal CSR Strategies: Evidence from Italian Micro, Small, Medium-sized, and Large Firms. Journal of Business Ethics, 85(S2), 339-355.
Saeidi, S.P., et al. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341-350.
Saulquin, J.-Y., and Schier, G. (2007). Des perceptions managérials aux pratiques RSE: une étude exploratoire. Gestion 2000, 24(6), 181-195.
Schmitz, J. and Schrader, J. (2015). Corporate Social Responsibility: A Microeconomic Review of the Literature. Journal of Economic Surveys, 29(1), 27-45.
Scholtens, B. (2008). A note on the interaction between corporate social responsibility and financial performance. Ecological Economics, 68(1), 46-55.
Servaes, H., and Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), 1045-1061.
Soto-Acosta, P., Cismaru, D.-M., Vătămănescu, E.-M., and Ciochină, R.S. (2016). Sustainable Entrepreneurship in SMEs: A Business Performance Perspective. Sustainability, 8(4), 342.
Sprinkle, G.B., and Laines, L.A. (2010). The benefits and costs of corporate social responsibility. Business Horizons, 53(5), 445-453.
Stoian, C., and Gilman, M. (2017). Corporate Social Responsibility That “Pays”: A Strategic Approach to CSR for SMEs. Journal of Small Business Management, 55(1), 5-31.
Surroca, J., Tribó, J.A., and Waddock, S. (2010). Corporate responsibility and financial performance: The role of intangible resources. Strategic Management Journal, 31(5), 463-490.
Tang, Z., Hull, C.E., and Rothenberg, S. (2012). How corporate social responsibility engagement strategy moderates the CSR-financial performance relationship. Journal of Management Studies, 49(7), 1274-1303.
Thornton, D., Kagan, R.A., and Gunningham, M. (2003). Sources of Corporate Environmental Performance. California Management Review, 46(1), 127-141.
Tirole, J. (2001). Corporate governance. Econometrica, 69(1), 1-35.
Torugsa, N.A., O’Donohue, W., and Hecker, R. (2012). Capabilities, proactive CSR and financial performance in SMEs: Empirical evidence from an Australian manufacturing industry sector. Journal of Business Ethics, 109(4), 483-500.
Tsoutsoura, M. (2004). Corporate social responsibility and financial performance. Center for Responsible Business. Retrieved from http://escholarship.org/uc/item/111799p2.
Udayasankar, K. (2008). Corporate social responsibility and firm size. Journal of Business Ethics, 83(1), 167-175.
Ullmann, A.A. (1985). Data in search of a theory: a critical examination of the relationships among social performance, social disclosure, and economic performance of US firms. Academy of Management Review, 10(3), 540-557.
van Beurden, P., and Gössling, T. (2008). The Worth of Values – a Literature Review on the Relations between Corporate Social and Financial Performance. Journal of Business Ethics, 82(2), 407-424.
Vázquez-Carrasco, R., and López-Pérez, M.E. (2013). Small & medium-sized enterprises and Corporate Social Responsibility: a systematic review of the literature. Quality & Quantity, 47(6), 3205-3218.
Wagner, M., et al. (2002). The Relationship between the Environmental and Economic Performance of Firms: An Empirical Analysis of the European Paper Industry. Corporate Social Responsibility and Environmental Management, 9(1), 133-146.
Wang, Q., Dou, J., and Jia, S. (2016). A meta-analytic review of corporate social responsibility and corporate financial performance: The moderating effect of contextual factors. Business & Society, 55(8), 1083-1121.
Worthington, I., et al. (2008). Researching the Drivers of Socially Responsible Purchasing: A Cross-National Study of Supplier Diversity Initiatives. Journal of Business Ethics, 79(3), 319-331.
Zbuchea, A. (2013). Are Customers rewarding social responsible companies? Management Dynamics in the Knowledge Economy, 1(3), 367-386.
Downloads
Published
How to Cite
Issue
Section
License
Under the Creative Commons Attribution-NonCommercial-NoDerivs license, the users are free to share (copy, distribute and transmit the contribution) with the condition to attribute the contribution in the manner specified by the author or licensor. They may not alter, transform, or build upon this work.
