Evaluation of Sustainability Practices in Small and Medium-Sized Manufacturing Enterprises in Southern Brazil

Abstract

The purpose of this article is to analyze the performance of small and medium-sized enterprises (SMEs) manufacturing, aiming to identify the main practices of sustainability, including the values and transparency, internal audience, environment, supplier relationships, customer and/or consumer relationships, and community relationships. In order to develop this research, a questionnaire was applied on the subject in question, through which the companies were classified as to their reality in relation to corporate social responsibility. Based on the analysis, it was observed that five of these companies obtained a score that indicates that the companies have already assimilated the associated concepts and are clear of the necessary commitments for a socially responsible action. However, given the results obtained, it is possible to conclude that there is a need to strengthen the actions to be taken with regard to corporate social responsibility, since no company has positioned itself in excellence. In addition, some suggestions for new research were identified and discussed in the analysis of the results. and preservation of the environment are also valued items by customers and should therefore be considered by companies in their production systems [11].Due to market competition and globalization, companies are crossing a wide range of changes in their business environment, adopting more ethical procedures of corporate social action to achieve long-term goals, rather than focusing on the short-term perspective of profit creation [6,12].According to [6,13], the basic purpose of business is to provide profit and figure out ways to maximize earnings. In addition, the authors report that ventures are required to bear some indirect costs that are not directly related to profitability, and which are pressured to commit to in order to survive in a competitive market, one of which is Corporate Social Responsibility (CSR).As said by [14], a CSR presents a win-win scenario, allowing companies to simultaneously increase their profitability and produce social benefits [15]. CSR practices the fostering of relationships of trust between stakeholders, and in addition, sustainability-based business models help companies to create an environment of trust for innovation, which leads to the development of long-term competitiveness [16].In spite of the positive arguments to adopt social responsibility practices, there are some who are against social responsibility. On the other hand, there are certification standards such as the International Organization for Standardization (ISO) 26000, in which the CSR refers to good corporate governance, operating ethically and sustainability, and carrying out a set of voluntary commitments to manage its impact in the social, environmental, and economic fields, obtaining the maximum benefits for the whole society [17,18].The literature on sustainable business practices has focused on large companies, such as multinationals, whose individual impacts are significant [19,20]. However, although SMEs ...

Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms

“…Therefore, as we have already suggested at the beginning of this section, several authors [2,20,24,[42][43][44] posit that CSR influences the long-term corporate reputation. However, as van Gils et al [27] suggest, we can expect more interest in implementing CSR actions in family firms than in non-family firms.…”

“…However, firms are also expected to pay increasing attention to their approach to social and environmental concerns, which may affect the relationships with their stakeholders [11]. In this sense, sustainability involves recognizing that the decisions and results of a companies' activities affect a broad spectrum of social actors, over and above its partners and shareholders [2,12]. For instance, environmental management, when it is adequately managed, may have a positive effect on the firms' competitiveness and should be considered in their global strategy [13].…”

“…In this sense, Schmidt et al [2] have recently commented that practices of sustainability, including the values and transparency, internal audience, environment, supplier relationships, customer and/or consumer relationships, and community relationships contribute to reinforce the firms' positioning. Therefore, we can appreciate that increasingly companies are committed to incorporating these concepts into their core activities, not only in terms of large multinational corporations or listed companies but also those of smaller size [3].…”

“…For some authors, CSR may indicate transparency and goodwill [2]. Societal demand exists for companies to demonstrate a clear commitment to sustainability through the provision of professionalized reports, which identify and prioritize a firm's CSR actions with respect to the Sustainable Development Goals (SDGs) established by the United Nations Global Compact.…”

“…Therefore, the aim of this study is to address this gap and provide further insights through empirical analysis of the outcomes of implementing the concept of sustainability in SMEs. To achieve the aforementioned, CSR is taken as a reference, as recently noted by authors such as Aguado and Holl [7] or Schmidt et al [2], as it considers the main concepts and strategies of firms to integrate environmental concerns in their business operations and activities.…”