Insights into Corporate Social Responsibility Practices in Supply Chains: A Multiple Case Study of SMEs in the UK

Abstract

The aim of this paper is to investigate the pressure exerted by supply chain partners, especially large-scale business customers and public authorities, on small-and medium-sized enterprises (SMEs) to adopt corporate social responsibility (CSR) practices. More specifically, we analyze how SME suppliers perceive and respond to supply chain pressure and then we investigate if such pressure is effective. The analysis is carried out through four case studies within SMEs in the UK. These cases are deliberately chosen to illustrate to students and CSR practitioners the potential range of different viewpoints in relation to CSR and supply chain management. The article suggests that, in order to enhance the perception of supply chain pressure as a CSR driver by SMEs, derived benefits should be more clearly identified (including moral, rational, as well as economic). There is also the risk that, when CSR requirements are imposed by large-scale business customers and public authorities, SMEs have difficulties in implementing CSR and consequently are tempted to behave opportunistically. An opportunistic behaviour can be associated to the large-scale business customers and the public authorities as well, when their commitment in CSR is perceived as only superficial. Thus there seems to be the need for a higher level of trust in such actors in order to share the potential benefits and costs related to CSR among all supply chain partners. In some cases, supply chain pressure can be detrimental to the existing initiatives voluntarily carried out by SMEs, which can consequently decrease their intrinsic motivation to engage.

Implementing sustainability in small and medium-sized construction firms

“…Supply chain pressure can motivate SMEs to formalise CSR or implement standards (Ciliberti et al, 2009) as companies include CSR requirements in their purchasing specifications or in supply contracts (Ayuso et al, 2013). This means SMEs are more likely to engage in CSR activities when pressured by organisations in the upstream supply chain and as these larger organisations seek to demonstrate responsibility throughout the supply chain, the pressure tends to increase.…”

“…This means SMEs are more likely to engage in CSR activities when pressured by organisations in the upstream supply chain and as these larger organisations seek to demonstrate responsibility throughout the supply chain, the pressure tends to increase. Previous work has also linked supply chain power as a means of diffusing CSR along the supply chain (Amaeshi et al, 2008;Ciliberti et al, 2009) as larger organisations use their power to dictate environmental and social criteria to their smaller suppliers (Ayuso et al, 2013). Therefore CSR activity becomes an important activity for SMEs that operate in such global supply chains.…”

Framework of Stakeholder Reactions on Sustainability Risk Mitigation Practices and Sustainability Performance in Supply Chains

“…Eventually, the role of stakeholders in the adoption of SSCM, driving the sustainability performance, is evident. Ciliberti et al (2009) emphasize the significance of the supply chain pressure (i.e., pressure from suppliers and customers) as a driver of CSR along with ethical values of small and medium companies. Similarly Wolf (2014) identified that both SSCM and stakeholder expectations contribute to the sustainability performance of a company.…”

Research on Corporate Social Responsibility in Dangerous Industrial Environments

“…In the case of SMEs from the developing countries the gap between CSR behaviour of large and small firms, between theory and practice is even more substantial. It has been noted that research on CSR in SMEs is quite scant in developing countries [4], [5]. Hernáez et al [6] presented a research on SMEs, where among other relevant results, it is investigated the situation of CSR policies in the case of SMEs from six European developing countries.…”