Challenging the importance of size as determinant for CSR activities

Abstract

Purpose -This paper aims to contribute to the development and understanding of corporate social responsibility (CSR) by discussing two interrelated characteristics of current literature: a tendency in discourses to portray CSR as equal to the societal activities displayed by and demanded from large, multinational firms; and an increasing focus on and description of "small firm CSR" in research. These two characteristics instigate a limited approach to the meaning of CSR and an unjust dichotomization of CSR based on firm size are posited. A distinction that risks stimulating an un-nuanced CSR discourse. Design/methodology/approach -From reviewing the field, it has been concluded that firm size should not be a feasible main criterion when trying to understand or predict CSR behavior. From examples of far-reaching CSR activities in the small business community and local initiatives by large firms, the distinctions suggested in the current discourse do not appear in practice are shown. Findings -Additional firm features and contextual characteristics to explain the CSR approach in companies are proposed. Local embeddedness, corporate governance, and individual motivation are examples of issues that appear to explain a firm's CSR activities and characteristics, regardless of firm size. Originality/value -The paper concludes by articulating a number of propositions. These are presented as a basis for research to further understand how CSR activities relate to various organizational and operational features.

Determinant of Corporate Social Responsibility: Case From Indonesia

“…The third hypothesis testing this study did not find support for previous studies conducted Robert (1992) and Blombäck and Wigren (2009) who found that age is an important factor that into the company's CSR disclosure determination. In this study, statistical results showed regression coefficient 0.004, t-statistics 2.047 with 0.042 significance.…”

“…Study Blombäck and Wigren (2009) explain that company size is an important factor in doing CSR. This study use size of the company (proxied by lnTotal Asset) as determinant of CSR.…”

“…Robert (1992) and Blombäck and Wigren (2009) states that the size is a determinant of the disclosure. Most of the research findings indicate that the size of the firm sometimes negatively related to the broad disclosure.…”

“…This study use size of the company (proxied by lnTotal Asset) as determinant of CSR. Blombäck, A. and Wigren (2009) explains that many of the features and characteristics of the company (such as local embeddedness, corporate governance, and individual motivation) that can be a determinant of CSR, but the size is a determinant that is challenging the importance. Godfrey and Merrill (2009) theorized that company size plays an important role in to value of CSR activities.…”

Tailoring CSR Strategy to Company Size?

“…For instance, a study of Baumann-Pauly et al (2013) shows that inner characteristics of SMEs facilitate the integration of CSR in business practices, while some characteristics of large corporations influence the communication and reporting of these activities. Nevertheless, size of the company in itself is not necessary a predictor of the CSR behavior, many other factors might be considered to better understand this phenomenon: corporate governance and owner structure; charismatic individuals or leaders; delegation of (financial) decision-making; type of market offer/visibility; place in value chain, closeness to end-user; existence of industry practices and culture; financial resources; relative size of business/unit on location; social embeddedness of business unit (Blombäck & Wigren, 2009). …”