Responsible business practices: Aspects influencing decision-making in small, medium and micro-sized enterprises

Abstract

Society demands responsible business practices (RBP) from all businesses, including small, medium and micro-sized enterprises (SMMEs). The conscious decision to partake in RBP resides with the main decision-makers of SMMEs. This article identifies which aspects influence the decision-makers of SMMEs to utilise business resources for RBP, and the different demographic variables that impact on these influencing aspects.Responses from 84 SMMEs indicate that the company's current financial condition is the greatest influence for SMMEs, while ethics only influences SMMEs to a moderate extent. The age, education level and gender of the decision-makers all have an impact on these influencing aspects.

Social responsibility in micro businesses in an African context: Towards a theoretical understanding

“…corporate social responsibility [CSR]/SR) are represented by members of specific societies, on one hand, and how they are incorporated within existing frames knowledge and cultural practices, on the other. Second, we uncover other non-philanthropic practices that constitute the wider RBPs in microbusinesses-understood in line with the definition of Cronje et al (2017). This definition of RBPs is synonymous with the essence of (C)SR in the academic literature (see Dahlsrud, 2008), which enables us to explore SR-related issues using a concept (RBP) that is non-limiting as in the Nigerian context where SR is synonymous with philanthropy.…”

“…Previous studies have reported the motivations for small business owner‐managers to engage in RBPs (Cronje et al, 2017) and the aspects that affect their decision making with regard to RBPs (Dincer & Dincer, 2013; Lepoutre & Heene, 2006; Moore & Spence, 2006; Wong & Bustami, 2020). Findings from those studies suggest that SMEs have specific characteristics that distinguish them from larger businesses.…”

“…Overall, the degree of localisation of business practices and management tends to be more in microbusinesses, leading to, potentially, different courses of action when it comes to their engagement with SR. Furthermore, the said characteristics can differ between countries and cultures (Cronje et al, 2017), highlighting the need for a better understanding and articulation of how small businesses (micro, small or medium) operating in different nationality contexts perceive and approach SR. However, academic research on SBSR have consistently defined small businesses as those that are not large businesses (see Spence et al, 2018).…”

“…This is particularly the case in the developing countries where the idea of SR is seen as synonymous with philanthropy. What this means is that the term '(corporate) social responsibility' may not be entirely appropriate for understanding and/or explaining the broader Responsible Business Practices (RBPs) of small businesses, that is those practices that enable them to act responsibly towards their stakeholders and/or operating environments in developing country contexts (Cronje et al, 2017). Although the academic literature on small business social responsibility (SBSR) continues to grow, very few studies have thus far focused on understanding why small businesses in developing country contexts may limit their understanding of SR to voluntary philanthropy, and how they understand and approach their other (non)voluntary social responsibilities (see Soundararajan, Jamali, & Spence, 2018).…”

Factors Leading to Sustained Growth of SMES in the U.A.E: A Concept Paper

“…Responsible Business Practices and concern for sustainability in order to protect the Environment is hardly one of the top priorities of SMEs. Company's current financial condition is the greatest influence for SMEs to utilize business resources for Responsible Business Practices while ethics only influences to a moderate extent (Cronje, 2017). The social responsibility of the Managers in the SME will play a significant role and has a positive impact on the SME business (Pletnev, 2016).…”