Generating Regional-Scale Improvements in SME Corporate Responsibility Performance: Lessons from Responsibility Northwest

Abstract

This paper describes the research carried out into small and medium enterprises (SMEs) and corporate responsibility (CR) in the Northwest of England during Phase I of Responsibility Northwest, a partnership programme designed to significantly increase the CR of the region. By engaging with significant numbers of SMEs and SME support providers across the region, key insights were gained in three key areas: The current attitudes to, understanding of, and management of CR issues in the SME sector. The barriers to greater implementation of CR management. The opportunities for overcoming the barriers and improving regional CR. The research revealed a large diversity both in terms of understanding of the issues and their management. Seven key barriers to improve CR performance were identified which centred round the inappropriateness and inaccessibility of current CR approaches and support services on CR, certain characteristics of SMEs which tend to reduce their interest and opportunities for engaging in CR activities and supply-chain barriers. Fortunately there was significant agreement on the mechanisms which should be used to overcome these barriers, in particular the importance of delivering CR support through existing business networks that are valued and trusted by SMEs. These results have been used to create the partnership programme, Responsibility Northwest Phase II that runs until 2008 and aims to significantly increase the overall CR of Northwest England. Copyright Springer Science+Business Media, Inc. 2006Business networks, corporate responsibility, Northwest England, regional competitiveness, small and medium-sized enterprises,

Fostering Responsible Communities: A Community Social Marketing Approach to Sustainable Living

“…SMEs play a crucial role in the UK economy (Roberts et al, 2006), and are key players in any transition to a low carbon future, representing 99 per cent of all enterprises in the UK (BERR, 2008). SMEs also make up the vast majority of businesses in Europe and North America, and represent 90 per cent of business worldwide (Jamali et al, 2009).…”

“…Small firms often have significant, positive economic and social impacts in their communities (Roberts et al, 2006), and a social contribution that is estimated to be considerably higher than large corporations (DTI, 2002). For example, a decision by local retailers and market traders to stock produce from local suppliers can have a marked impact on the sustainability of local food chains, as well as community and economic regeneration (McEachern et al, 2010).…”

“…They cannot be treated as scaled-down versions of large businesses, and possess distinctive characteristics that influence how they engage with challenges and opportunities (Blackburn and Smallbone, 2008). Such characteristics include limited resources (financial, managerial, skills and knowledge), an organizational culture dominated by the owner-manager, a preference for less formal approaches to business management, and low levels of awareness and reluctance to access advice and support that is available (Roberts et al, 2006). Tilley (1999) identified that often SME owner-managers suffer from a low standard of eco-literacy and poor environmental awareness, and while they may possess pro-environmental attitudes, can experience difficulties translating these aspirations and values into actions.…”

“…These barriers accumulated into powerful resistant forces acting upon the small firm owners, which prevented them from acting to reduce the gap between their environmental attitudes and behavior. Tilley (1999) concludes that SMEs are not fulfilling their environmental performance potential, partly because support needs to be targeted to individual needs (Roberts et. al, 2006), for example, by focusing on a small geographical area or specific sector.…”

“…It was evident in Modbury that each shop had different product requirements in terms of size, appearance, strength or material; the hat shop and the art gallery needed decorative bags, while the butcher and delicatessen had more hygiene requirements. If behavioral change was to take place, providing functional alternatives targeted to the individual needs of each store was essential to enabling the individual traders to achieve their goal (Roberts et al, 2006), and overcome customer resistance to what might be construed as new (and potentially less effective) forms of packaging. Hosking employed the kind of 'twin track' approach Tilley (1999) advocates in order to increase progress towards change whilst weakening any residual resistance.…”