Corporate Social Responsibility Orientation of Small Business Owners

Author(s):  
Brian K. Burton ◽  
Michael Goldsby ◽  
Author(s):  
Nor Hadi ◽  
Udin Udin

This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective for empowering SMEs: (1) low-cost revolving funds and (2) production equipment assistance for SMEs. Meanwhile, six other CSR programs showed ineffectiveness: (1) mentoring, (2) marketing, (3) ease of procedure and relief of loan terms, (4) education and training, (5) accessibility of obtaining loans, and (6) the involvement of parties in the implementation of CSR. It indicated that the six CSR programs were not effective in helping to build image and legitimacy. The results of the research make an important contribution to the government and corporations and show that the construction of CSR programs must give attention to the real conditions and needs of SMEs in order to achieve effectiveness in solving problems by SMEs. Especially for the government, regulations are needed that can systemically encourage companies to implement CSR. This research still has limitations, therefore further research should be developed, especially in the area of empirical testing related to the contextual dimensions of CSR that are relevant to assisted stakeholders. Development-based research should be considered.


2017 ◽  
Vol 7 (3) ◽  
pp. 38 ◽  
Author(s):  
Gonzalo Maldonado-Guzman ◽  
Sandra Yesenia Pinzón-Castro ◽  
Cid Leana-Morales

Several investigations are commonly found in marketing literature but there are relatively few theoretical and empirical researches that associate marketing with corporate social responsibility (CSR). There are even less empirical investigations that relate these two important constructs with firm reputation of enterprises aimed to small and medium-size enterprises (SMEs) which shows a clear void in literature regarding the existing relation between CSR activities, brand image of products or services created by enterprises and their firm reputation. For this reason, the main objective of this research paper is the analysis of the existing relation between CSR activities, firm reputation and brand image of products or services of SMEs by using a sample of 308 enterprises from Aguascalientes State. The results obtained show that CSR activities have positive and significant effects in both the firm reputation and brand image of products or services created by SMEs.


2015 ◽  
Vol 31 (1) ◽  
Author(s):  
O. S. Verma

In India, Companies Act-2013 has called upon Corporate Houses having a net worth of Rs.500 crore or more, or a turnover of Rs.1000 crore or more, or a net profit of Rs.5 crore or more to have a CSR-spend of atleast 2 per cent of their average net profits of the preceding three years. The Act has identified 12 Activities relevant for CSR-spend. The CSR beneficiaries are those who live in villages and towns. The CSR is an obligation of the companies to discharge their social, economical, legal, ethical, and philanthropic responsibilities to benefit the common people. Business owners, employees and their families, stakeholders, share holders, suppliers, and dealers are excluded from the purview of CSR beneficiaries. Although the CSR-agenda started with effect from 1<sup>st</sup> April, 2014, the compliance of 2 per cent norm is hardly 13.50 per cent of 16000 and odd companies registered with the Ministry of Corporate Affairs. In order to see mandatory 2 per cent spend in CSR activities, some sort of regulatory authority is much sought after. Similarly, companies own subsidiary Foundations formed especially for implementing their CSR activities should be discouraged, rather dispensed with. Instead, Corporate Houses should come together and form a “National Consortium For CSR Interventions”. Besides, atleast 41 per cent of CSR budget should be allocated to NGOs for implementing their CSR activities.


2017 ◽  
Vol 13 (31) ◽  
pp. 127
Author(s):  
Mouna El Mousadik ◽  
Fatima El Kandoussi

This paper discusses the concept of Corporate Social Responsibility in the Moroccan context. The main purpose of this study is to draw up an inventory current situation of the CSR in Moroccan small business companies, as such to help understand the commitment of this type of business in sustainable economic development. It has been proven, by the survey among forty small Casablanca business leaders representing different sectors of activity, that the managers integrate unknowingly in their management the concept of SR, and that when it comes to social practices a link certainly exist between the company and its stakeholders (costumers, providers…). The survey shows that more than half of the interviewed executives stipulate that either they heard or know about SR; this awareness towards the concept is an increasing function which depend on the size of company. As also Moroccan leaders are aware of the advantages in engaging social responsibility approach in their business; this finding suggests as well that social responsibility can be of direct economic value for the firm.


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