Sustainability practices are no longer restricted to large companies because small and medium-sized enterprises (SMEs) are also showing progress in incorporating the practice in their strategic plans. Despite this growth, limited research has been conducted concerning SMEs and sustainable economic development. As a result of this scholarly neglect, SMEs’ leaders are not only less informed about corporate social responsibility (CSR) tools that can work best for their firms, but also on the constraints and success factors that may affect such projects. Being a graduate student with a degree in administrative management and business, and communication, I have come to appreciate the duties of managers in ensuring that firm activities do not adversely affect the people and environment in which they operate, as well as how these organizations can communicate their CSR initiatives to stakeholders. Therefore, this research project will provide a comprehensive overview of viability of CSR initiatives in small and medium-sized enterprises.
Themes and Issues in Literature
Existing literature establishes the feasibility of SMEs to indulge in CSR. A study conducted in Rajasthan revealed that most SMEs are involved in sustainability practices such as community projects and charity donations (Jain, Vyas & Roy, 2017). Similarly, Mayr (2015) identified that Austrian based SMEs showed promising results of implementing corporate strategies in their plans to strengthen corporate activities. Initially, most of the community-based projects were conducted by large companies that had the monetary capability to fund them. However, it is evident from the above results that SMEs are taking significant steps to ensure that CSR becomes part of their business agenda.
While there is an increasing need for SMEs to indulge in CSR, the preliminary readings indicate that many factors may hinder such initiatives. Nagypál (2014) observes that stakeholders are the determinants of the success of CSR projects. Thus, lack of buy-in from such parties can slow down the implementation of sustainable practices. In addition, Meixner, Pollhammer, and Haas (2015) argue that “limited resources and know-how still limit the efforts of SMEs in the food sector (p.360). SMEs have scarce sources of financial and human capital, which affect their capability to undertake CSR projects. These constraints can affect disenfranchised populations, especially those in need of social support from firms, and subject SMEs to unethical issues such as unsafe working conditions for employees. Therefore, leaders should identify effective ways of addressing the above challenges.
A few solutions have been recommended on how SMEs can handle the difficulties involved in CSR. Meixer et al. (2015) propose the use of social media to facilitate open dialogues with stakeholders. Hence, both employees’ and customers’ views can be integrated to identify ideal CSR projects. Wickert (2016) also suggests that SMEs should take a political role to address the regulatory gaps that exist in the environment. Through such initiatives, SMEs can exhibit their effort to facilitate sustainability in their operations.
Conclusion
While the preliminary studies conform with the existing literature on SMEs and CSR, some of their major points appear to differ. For instance, some studies prioritize customers as determinants of success efforts, while others emphasize that employees’ views matter in CSR project selection. Besides, some of the research is constrained within specific regions, such as Hungary and Austria. These results have a significant implication in my field of study because they indicate variations in factors that affect SMEs across the globe. Hence, considering such differences, the proposed research should be conducted to equip SME leaders with knowledge about the viability of CSR in their operations.
References
Jain, P., Vyas, V., & Roy, A. (2017). Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs. Social Responsibility Journal, 13(1), 1-23.
Mayr, S. (2015). Corporate social responsibility in SMEs: The case of an Austrian construction company. International Journal of Business Research, 15(2), 61-72.
Meixner, O., Pollhammer, E., & Haas, R. (2015). The communication of CSR activities via social media: A qualitative approach to identify opportunities and challenges for small and medium-sized enterprises in the agri-food sector. Proceedings in Food System Dynamics, 354-362.
Nagypál, N. C. (2014). Corporate social responsibility of Hungarian SMEs with good environmental practices. Journal for East European Management Studies, 327-347.
Wickert, C. (2016). “Political” corporate social responsibility in small and medium-sized enterprises: A conceptual framework. Business & Society, 55(6), 792-824.
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