Little is known about SMEs’ perception of Enterprise Social Responsibility (ESR), and to date no ... more Little is known about SMEs’ perception of Enterprise Social Responsibility (ESR), and to date no research has been dedicated to investigating this issue. Generally, SMEs are associated with businesses that are conducted informally, and that therefore avoid paying taxes, exploit their own labour and provide intolerable working conditions, pollute the environment and apply production methods that jeopardize workers’ health. However such preconceptions can make us blind to the SMEs’ responsible behaviour and to their contributions to labour, community and the environment. Concentrating on UNIDO supported clusters of enterprises within one industrial sector; we investigated the behaviour of SMEs with respect to their social responsibility. Our findings derive from surveys conducted in India, Ecuador and Senegal, and are summarised in this consolidated report.
In the development of organizational strategies, firms must realize that they
are responsible to ... more In the development of organizational strategies, firms must realize that they are responsible to numerous internal and external stakeholders. Each stakeholder group has a different set of expectations relating to firms’ performance. These different expectations may cause conflict to arise between the firm and its stakeholders. Such conflict can be extremely detrimental for the industrial marketer, as industrial marketers tend to be more integrated with their customers and suppliers, two key stakeholder groups. Any strategic process which reduces potential conflict, such as the stakeholder management process, should therefore be extremely beneficial to industrial marketers.
Stakeholder theory as it has evolved—or unfolded—in recent years has begun to focus
attention on ... more Stakeholder theory as it has evolved—or unfolded—in recent years has begun to focus attention on the importance of the relationships that companies have with stakeholders, relationships that go well beyond those that companies naturally have with shareholders. Generally, perspectives on stakeholder theory have moved away from an entirely corporate- centric focus in which stakeholders are viewed as subjects to be managed towards more of a network-based, relational and process-oriented view of company–stakeholder engagement, where at least there is consideration of mutuality, interdependence and power. In this chapter we will argue that unfolding stakeholder relationships, and in particular emerging processes for stakeholder engagement, can best be understood by beginning to integrate corporate social performance/responsibility, stakeholder and strategic relationship theories.
This article leverages insights from the body of
Adam Smith’s work, including two lesser-known ma... more This article leverages insights from the body of Adam Smith’s work, including two lesser-known manuscripts— the Theory of Moral Sentiments and Lectures in Jurisprudence—to help answer the question as to how companies should morally prioritize corporate social responsibility (CSR) initiatives and stakeholder claims. Smith makes philosophical distinctions between justice and beneficence and perfect and imperfect rights, and we leverage those distinctions to speak to contemporary CSR and stakeholder management theories. We address the often-neglected question as to how far a company should be expected to go in pursuit of CSR initiatives and we offer a fresh perspective as to the role of business in relation to stakeholders and to society as a whole. Smith’s moral insights help us to propose a practical framework of legitimacy in stakeholder claims that can help managers select appropriate and responsible CSR activities.
Abstract This paper uses the resource curse hypothesis
to explore diamond exploitation in Sierra ... more Abstract This paper uses the resource curse hypothesis to explore diamond exploitation in Sierra Leone during the period 1930–2010. Focusing on national and local level analysis, it examines whether the net impact of diamond exploitation was a ‘resource curse’ or ‘blessing’ during four time periods: colonial and early post-independence era, the APC era, the civil war period, and post-war era. The paper argues that the net impact of diamond exploitation in Sierra Leone has not been constant; rather it has changed between resource blessing and curse over different major periods of Sierra Leone’s history and at local and national scales since inception of diamond exploitation. This paper illustrates that during the period 1968–1992 patrimonial politics undermined official diamond exploitation and significantly contributed to a pendulum shift in the net effects of diamond exploitation from resource blessing to curse. The study shows that the net effect of diamond exploitation was: a resource blessing (especially at the national level) prior to 1968; more of a resource curse during the APC era; a full blown manifestation of the curse during the civil war period; and that governance of the diamond sector has improved sufficiently in post-civil war Sierra Leone to start the gradual transformation of diamonds to resource blessing, at national and local levels.
CSR Perceptions and Activities
of Small and Medium Enterprises (SMEs)
in seven geographical clust... more CSR Perceptions and Activities of Small and Medium Enterprises (SMEs) in seven geographical clusters . The entrepreneur, regardless of firm size, is driven mainly by personal values, which determine the scope and scale of any intervention. From internal ESR, the entrepreneur expects mainly economic returns; therefore, actions focus on improving business performance or securing orders with international buyers. External charity driven ESR activities are dominated by the ‘feel-good’ factor, offering emotional returns. At the same time, entrepreneurs do not seek publicity for their benevolence; therefore, many of their actions remain unknown. The position of SMEs in the value chain shapes their activities and their financial size. In some instances, markets and more so buyers put pressure on suppliers, which impacts internal ESR activities such as worker education or improvement of health and safety conditions. External pressure raises awareness and forces the implementation of improvements as prescribed by local law or code of conduct; even when combined with other interventions, these do not guarantee compliance. Regardless of market demands, some clusters developed their own ESR agenda respecting the outside pressure, and designed bottom-up solutions to persistent problems. We observed that virtually all SME activities discussed in the interviews were sustained by financial contributions, and that the absolute monetary contribution towards ESR increased with the size of the enterprise. However, as a percentage of turnover, the contribution towards ESR was essentially pegged below 1% of turnover, and thus decreased with an increase in enterprise size. Enterprise position in the value chain also shaped spending and allowed medium sized enterprises, often represented by exporters, to diversify their spending across all categories. The interviewed cluster SMEs pointed out limited collective engagement, and repeatedly stressed that ESR is predominantly an enterprise internal activity, and that when selecting partners for cooperation, religious organisations topped the list, largely due to the trust bestowed to their mission. Some collective ESR activities were initiated by the financially stronger enterprises; with their dominant position in the cluster, they were more competent in designing programmes and negotiating with local institutions. The prevalence of social institutions facilitates the implementation of collective ESR activities. Partnering demands the definition of common objectives and the development of programmes that, once successfully implemented, may yield even the smallest of successes and contribute towards the building of trust. Trust is vital for the collective ESR; however, it does not guarantee effective implementation of agreed activities or directly translate into mutual benefits. The survey findings indicate that an imposed ESR agenda provides a stimulus for change; however, home-grown activities that address the problems from the inside may in the long term guarantee sustainability of the interventions. SMEs unanimously responded that they will continue their ESR activities, despite any negative changes in their company performance. Essentially they will not abandon their ESR agenda, but will change scope, scale and form of its implementation. In conclusion, for SMEs, the sustainability of their economic business performance is the foundation for their ESR engagement. Indisputably, compliance with local laws must be reinforced if any additional ESR actions are to be developed. Further growth, however, is also governed by the strength of linkages within the supply chain, so that SMEs can consciously engage in building the supplier environment rather than outsourcing their problems up the supply chain. Approaching the issue from the development prospective, a shift from pressure to appropriation is required. Fostered by trust-building mechanisms, the current ad-hoc approach of implementing of ESR activities must be formalised and become an integrated part of strategic business planning. Consequently, building on small successes, SMEs can scale up their engagement slowly, gaining confidence while learning about the multiple impacts of their ESR actions. SMEs acting alone will bring upon a limited impact on the ESR agenda of the cluster, and therefore multi-stakeholder or public–private partnerships are instrumental in the development of comprehensive programmes. In addition, partnering along the supply chain or with international buyers may bring the twofold benefit of improving business performance and increasing emotional returns through increased social engagement for both parties.
Little is known about SMEs’ perception of Enterprise Social Responsibility (ESR), and to date no ... more Little is known about SMEs’ perception of Enterprise Social Responsibility (ESR), and to date no research has been dedicated to investigating this issue. Generally, SMEs are associated with businesses that are conducted informally, and that therefore avoid paying taxes, exploit their own labour and provide intolerable working conditions, pollute the environment and apply production methods that jeopardize workers’ health. However such preconceptions can make us blind to the SMEs’ responsible behaviour and to their contributions to labour, community and the environment. Concentrating on UNIDO supported clusters of enterprises within one industrial sector; we investigated the behaviour of SMEs with respect to their social responsibility. Our findings derive from surveys conducted in India, Ecuador and Senegal, and are summarised in this consolidated report.
In the development of organizational strategies, firms must realize that they
are responsible to ... more In the development of organizational strategies, firms must realize that they are responsible to numerous internal and external stakeholders. Each stakeholder group has a different set of expectations relating to firms’ performance. These different expectations may cause conflict to arise between the firm and its stakeholders. Such conflict can be extremely detrimental for the industrial marketer, as industrial marketers tend to be more integrated with their customers and suppliers, two key stakeholder groups. Any strategic process which reduces potential conflict, such as the stakeholder management process, should therefore be extremely beneficial to industrial marketers.
Stakeholder theory as it has evolved—or unfolded—in recent years has begun to focus
attention on ... more Stakeholder theory as it has evolved—or unfolded—in recent years has begun to focus attention on the importance of the relationships that companies have with stakeholders, relationships that go well beyond those that companies naturally have with shareholders. Generally, perspectives on stakeholder theory have moved away from an entirely corporate- centric focus in which stakeholders are viewed as subjects to be managed towards more of a network-based, relational and process-oriented view of company–stakeholder engagement, where at least there is consideration of mutuality, interdependence and power. In this chapter we will argue that unfolding stakeholder relationships, and in particular emerging processes for stakeholder engagement, can best be understood by beginning to integrate corporate social performance/responsibility, stakeholder and strategic relationship theories.
This article leverages insights from the body of
Adam Smith’s work, including two lesser-known ma... more This article leverages insights from the body of Adam Smith’s work, including two lesser-known manuscripts— the Theory of Moral Sentiments and Lectures in Jurisprudence—to help answer the question as to how companies should morally prioritize corporate social responsibility (CSR) initiatives and stakeholder claims. Smith makes philosophical distinctions between justice and beneficence and perfect and imperfect rights, and we leverage those distinctions to speak to contemporary CSR and stakeholder management theories. We address the often-neglected question as to how far a company should be expected to go in pursuit of CSR initiatives and we offer a fresh perspective as to the role of business in relation to stakeholders and to society as a whole. Smith’s moral insights help us to propose a practical framework of legitimacy in stakeholder claims that can help managers select appropriate and responsible CSR activities.
Abstract This paper uses the resource curse hypothesis
to explore diamond exploitation in Sierra ... more Abstract This paper uses the resource curse hypothesis to explore diamond exploitation in Sierra Leone during the period 1930–2010. Focusing on national and local level analysis, it examines whether the net impact of diamond exploitation was a ‘resource curse’ or ‘blessing’ during four time periods: colonial and early post-independence era, the APC era, the civil war period, and post-war era. The paper argues that the net impact of diamond exploitation in Sierra Leone has not been constant; rather it has changed between resource blessing and curse over different major periods of Sierra Leone’s history and at local and national scales since inception of diamond exploitation. This paper illustrates that during the period 1968–1992 patrimonial politics undermined official diamond exploitation and significantly contributed to a pendulum shift in the net effects of diamond exploitation from resource blessing to curse. The study shows that the net effect of diamond exploitation was: a resource blessing (especially at the national level) prior to 1968; more of a resource curse during the APC era; a full blown manifestation of the curse during the civil war period; and that governance of the diamond sector has improved sufficiently in post-civil war Sierra Leone to start the gradual transformation of diamonds to resource blessing, at national and local levels.
CSR Perceptions and Activities
of Small and Medium Enterprises (SMEs)
in seven geographical clust... more CSR Perceptions and Activities of Small and Medium Enterprises (SMEs) in seven geographical clusters . The entrepreneur, regardless of firm size, is driven mainly by personal values, which determine the scope and scale of any intervention. From internal ESR, the entrepreneur expects mainly economic returns; therefore, actions focus on improving business performance or securing orders with international buyers. External charity driven ESR activities are dominated by the ‘feel-good’ factor, offering emotional returns. At the same time, entrepreneurs do not seek publicity for their benevolence; therefore, many of their actions remain unknown. The position of SMEs in the value chain shapes their activities and their financial size. In some instances, markets and more so buyers put pressure on suppliers, which impacts internal ESR activities such as worker education or improvement of health and safety conditions. External pressure raises awareness and forces the implementation of improvements as prescribed by local law or code of conduct; even when combined with other interventions, these do not guarantee compliance. Regardless of market demands, some clusters developed their own ESR agenda respecting the outside pressure, and designed bottom-up solutions to persistent problems. We observed that virtually all SME activities discussed in the interviews were sustained by financial contributions, and that the absolute monetary contribution towards ESR increased with the size of the enterprise. However, as a percentage of turnover, the contribution towards ESR was essentially pegged below 1% of turnover, and thus decreased with an increase in enterprise size. Enterprise position in the value chain also shaped spending and allowed medium sized enterprises, often represented by exporters, to diversify their spending across all categories. The interviewed cluster SMEs pointed out limited collective engagement, and repeatedly stressed that ESR is predominantly an enterprise internal activity, and that when selecting partners for cooperation, religious organisations topped the list, largely due to the trust bestowed to their mission. Some collective ESR activities were initiated by the financially stronger enterprises; with their dominant position in the cluster, they were more competent in designing programmes and negotiating with local institutions. The prevalence of social institutions facilitates the implementation of collective ESR activities. Partnering demands the definition of common objectives and the development of programmes that, once successfully implemented, may yield even the smallest of successes and contribute towards the building of trust. Trust is vital for the collective ESR; however, it does not guarantee effective implementation of agreed activities or directly translate into mutual benefits. The survey findings indicate that an imposed ESR agenda provides a stimulus for change; however, home-grown activities that address the problems from the inside may in the long term guarantee sustainability of the interventions. SMEs unanimously responded that they will continue their ESR activities, despite any negative changes in their company performance. Essentially they will not abandon their ESR agenda, but will change scope, scale and form of its implementation. In conclusion, for SMEs, the sustainability of their economic business performance is the foundation for their ESR engagement. Indisputably, compliance with local laws must be reinforced if any additional ESR actions are to be developed. Further growth, however, is also governed by the strength of linkages within the supply chain, so that SMEs can consciously engage in building the supplier environment rather than outsourcing their problems up the supply chain. Approaching the issue from the development prospective, a shift from pressure to appropriation is required. Fostered by trust-building mechanisms, the current ad-hoc approach of implementing of ESR activities must be formalised and become an integrated part of strategic business planning. Consequently, building on small successes, SMEs can scale up their engagement slowly, gaining confidence while learning about the multiple impacts of their ESR actions. SMEs acting alone will bring upon a limited impact on the ESR agenda of the cluster, and therefore multi-stakeholder or public–private partnerships are instrumental in the development of comprehensive programmes. In addition, partnering along the supply chain or with international buyers may bring the twofold benefit of improving business performance and increasing emotional returns through increased social engagement for both parties.
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Papers by Navdeep Singh Mehram
are responsible to numerous internal and external stakeholders. Each
stakeholder group has a different set of expectations relating to firms’
performance. These different expectations may cause conflict to arise
between the firm and its stakeholders. Such conflict can be extremely
detrimental for the industrial marketer, as industrial marketers tend to be
more integrated with their customers and suppliers, two key stakeholder
groups. Any strategic process which reduces potential conflict, such as the
stakeholder management process, should therefore be extremely beneficial
to industrial marketers.
attention on the importance of the relationships that companies have with stakeholders,
relationships that go well beyond those that companies naturally have with shareholders.
Generally, perspectives on stakeholder theory have moved away from an entirely corporate-
centric focus in which stakeholders are viewed as subjects to be managed towards
more of a network-based, relational and process-oriented view of company–stakeholder
engagement, where at least there is consideration of mutuality, interdependence and
power. In this chapter we will argue that unfolding stakeholder relationships, and in particular
emerging processes for stakeholder engagement, can best be understood by beginning
to integrate corporate social performance/responsibility, stakeholder and strategic
relationship theories.
Adam Smith’s work, including two lesser-known manuscripts—
the Theory of Moral Sentiments and Lectures in
Jurisprudence—to help answer the question as to how
companies should morally prioritize corporate social
responsibility (CSR) initiatives and stakeholder claims.
Smith makes philosophical distinctions between justice and
beneficence and perfect and imperfect rights, and we
leverage those distinctions to speak to contemporary CSR
and stakeholder management theories. We address the
often-neglected question as to how far a company should
be expected to go in pursuit of CSR initiatives and we offer
a fresh perspective as to the role of business in relation to
stakeholders and to society as a whole. Smith’s moral
insights help us to propose a practical framework of
legitimacy in stakeholder claims that can help managers
select appropriate and responsible CSR activities.
to explore diamond exploitation in Sierra Leone
during the period 1930–2010. Focusing on national
and local level analysis, it examines whether the net
impact of diamond exploitation was a ‘resource curse’
or ‘blessing’ during four time periods: colonial and
early post-independence era, the APC era, the civil
war period, and post-war era. The paper argues that the
net impact of diamond exploitation in Sierra Leone has
not been constant; rather it has changed between
resource blessing and curse over different major
periods of Sierra Leone’s history and at local and
national scales since inception of diamond exploitation.
This paper illustrates that during the period
1968–1992 patrimonial politics undermined official
diamond exploitation and significantly contributed to
a pendulum shift in the net effects of diamond
exploitation from resource blessing to curse. The
study shows that the net effect of diamond exploitation
was: a resource blessing (especially at the national
level) prior to 1968; more of a resource curse during
the APC era; a full blown manifestation of the curse
during the civil war period; and that governance of the
diamond sector has improved sufficiently in post-civil
war Sierra Leone to start the gradual transformation of
diamonds to resource blessing, at national and local
levels.
of Small and Medium Enterprises (SMEs)
in seven geographical clusters .
The entrepreneur, regardless of firm size, is driven mainly by personal values, which determine
the scope and scale of any intervention. From internal ESR, the entrepreneur expects mainly
economic returns; therefore, actions focus on improving business performance or securing orders
with international buyers. External charity driven ESR activities are dominated by the ‘feel-good’
factor, offering emotional returns. At the same time, entrepreneurs do not seek publicity for their
benevolence; therefore, many of their actions remain unknown.
The position of SMEs in the value chain shapes their activities and their financial size. In some
instances, markets and more so buyers put pressure on suppliers, which impacts internal ESR
activities such as worker education or improvement of health and safety conditions. External
pressure raises awareness and forces the implementation of improvements as prescribed by local
law or code of conduct; even when combined with other interventions, these do not guarantee
compliance. Regardless of market demands, some clusters developed their own ESR agenda
respecting the outside pressure, and designed bottom-up solutions to persistent problems.
We observed that virtually all SME activities discussed in the interviews were sustained by
financial contributions, and that the absolute monetary contribution towards ESR increased
with the size of the enterprise. However, as a percentage of turnover, the contribution towards
ESR was essentially pegged below 1% of turnover, and thus decreased with an increase in
enterprise size. Enterprise position in the value chain also shaped spending and allowed medium
sized enterprises, often represented by exporters, to diversify their spending across all
categories.
The interviewed cluster SMEs pointed out limited collective engagement, and repeatedly
stressed that ESR is predominantly an enterprise internal activity, and that when selecting
partners for cooperation, religious organisations topped the list, largely due to the trust bestowed
to their mission. Some collective ESR activities were initiated by the financially stronger
enterprises; with their dominant position in the cluster, they were more competent in designing
programmes and negotiating with local institutions.
The prevalence of social institutions facilitates the implementation of collective ESR activities.
Partnering demands the definition of common objectives and the development of programmes
that, once successfully implemented, may yield even the smallest of successes and contribute
towards the building of trust. Trust is vital for the collective ESR; however, it does not guarantee
effective implementation of agreed activities or directly translate into mutual benefits.
The survey findings indicate that an imposed ESR agenda provides a stimulus for change;
however, home-grown activities that address the problems from the inside may in the long term
guarantee sustainability of the interventions. SMEs unanimously responded that they will
continue their ESR activities, despite any negative changes in their company performance.
Essentially they will not abandon their ESR agenda, but will change scope, scale and form of its
implementation.
In conclusion, for SMEs, the sustainability of their economic business performance is the
foundation for their ESR engagement. Indisputably, compliance with local laws must be reinforced
if any additional ESR actions are to be developed. Further growth, however, is also governed by
the strength of linkages within the supply chain, so that SMEs can consciously engage in building
the supplier environment rather than outsourcing their problems up the supply chain.
Approaching the issue from the development prospective, a shift from pressure to appropriation is
required. Fostered by trust-building mechanisms, the current ad-hoc approach of implementing of
ESR activities must be formalised and become an integrated part of strategic business planning.
Consequently, building on small successes, SMEs can scale up their engagement slowly, gaining
confidence while learning about the multiple impacts of their ESR actions.
SMEs acting alone will bring upon a limited impact on the ESR agenda of the cluster, and
therefore multi-stakeholder or public–private partnerships are instrumental in the development of
comprehensive programmes. In addition, partnering along the supply chain or with international
buyers may bring the twofold benefit of improving business performance and increasing
emotional returns through increased social engagement for both parties.
are responsible to numerous internal and external stakeholders. Each
stakeholder group has a different set of expectations relating to firms’
performance. These different expectations may cause conflict to arise
between the firm and its stakeholders. Such conflict can be extremely
detrimental for the industrial marketer, as industrial marketers tend to be
more integrated with their customers and suppliers, two key stakeholder
groups. Any strategic process which reduces potential conflict, such as the
stakeholder management process, should therefore be extremely beneficial
to industrial marketers.
attention on the importance of the relationships that companies have with stakeholders,
relationships that go well beyond those that companies naturally have with shareholders.
Generally, perspectives on stakeholder theory have moved away from an entirely corporate-
centric focus in which stakeholders are viewed as subjects to be managed towards
more of a network-based, relational and process-oriented view of company–stakeholder
engagement, where at least there is consideration of mutuality, interdependence and
power. In this chapter we will argue that unfolding stakeholder relationships, and in particular
emerging processes for stakeholder engagement, can best be understood by beginning
to integrate corporate social performance/responsibility, stakeholder and strategic
relationship theories.
Adam Smith’s work, including two lesser-known manuscripts—
the Theory of Moral Sentiments and Lectures in
Jurisprudence—to help answer the question as to how
companies should morally prioritize corporate social
responsibility (CSR) initiatives and stakeholder claims.
Smith makes philosophical distinctions between justice and
beneficence and perfect and imperfect rights, and we
leverage those distinctions to speak to contemporary CSR
and stakeholder management theories. We address the
often-neglected question as to how far a company should
be expected to go in pursuit of CSR initiatives and we offer
a fresh perspective as to the role of business in relation to
stakeholders and to society as a whole. Smith’s moral
insights help us to propose a practical framework of
legitimacy in stakeholder claims that can help managers
select appropriate and responsible CSR activities.
to explore diamond exploitation in Sierra Leone
during the period 1930–2010. Focusing on national
and local level analysis, it examines whether the net
impact of diamond exploitation was a ‘resource curse’
or ‘blessing’ during four time periods: colonial and
early post-independence era, the APC era, the civil
war period, and post-war era. The paper argues that the
net impact of diamond exploitation in Sierra Leone has
not been constant; rather it has changed between
resource blessing and curse over different major
periods of Sierra Leone’s history and at local and
national scales since inception of diamond exploitation.
This paper illustrates that during the period
1968–1992 patrimonial politics undermined official
diamond exploitation and significantly contributed to
a pendulum shift in the net effects of diamond
exploitation from resource blessing to curse. The
study shows that the net effect of diamond exploitation
was: a resource blessing (especially at the national
level) prior to 1968; more of a resource curse during
the APC era; a full blown manifestation of the curse
during the civil war period; and that governance of the
diamond sector has improved sufficiently in post-civil
war Sierra Leone to start the gradual transformation of
diamonds to resource blessing, at national and local
levels.
of Small and Medium Enterprises (SMEs)
in seven geographical clusters .
The entrepreneur, regardless of firm size, is driven mainly by personal values, which determine
the scope and scale of any intervention. From internal ESR, the entrepreneur expects mainly
economic returns; therefore, actions focus on improving business performance or securing orders
with international buyers. External charity driven ESR activities are dominated by the ‘feel-good’
factor, offering emotional returns. At the same time, entrepreneurs do not seek publicity for their
benevolence; therefore, many of their actions remain unknown.
The position of SMEs in the value chain shapes their activities and their financial size. In some
instances, markets and more so buyers put pressure on suppliers, which impacts internal ESR
activities such as worker education or improvement of health and safety conditions. External
pressure raises awareness and forces the implementation of improvements as prescribed by local
law or code of conduct; even when combined with other interventions, these do not guarantee
compliance. Regardless of market demands, some clusters developed their own ESR agenda
respecting the outside pressure, and designed bottom-up solutions to persistent problems.
We observed that virtually all SME activities discussed in the interviews were sustained by
financial contributions, and that the absolute monetary contribution towards ESR increased
with the size of the enterprise. However, as a percentage of turnover, the contribution towards
ESR was essentially pegged below 1% of turnover, and thus decreased with an increase in
enterprise size. Enterprise position in the value chain also shaped spending and allowed medium
sized enterprises, often represented by exporters, to diversify their spending across all
categories.
The interviewed cluster SMEs pointed out limited collective engagement, and repeatedly
stressed that ESR is predominantly an enterprise internal activity, and that when selecting
partners for cooperation, religious organisations topped the list, largely due to the trust bestowed
to their mission. Some collective ESR activities were initiated by the financially stronger
enterprises; with their dominant position in the cluster, they were more competent in designing
programmes and negotiating with local institutions.
The prevalence of social institutions facilitates the implementation of collective ESR activities.
Partnering demands the definition of common objectives and the development of programmes
that, once successfully implemented, may yield even the smallest of successes and contribute
towards the building of trust. Trust is vital for the collective ESR; however, it does not guarantee
effective implementation of agreed activities or directly translate into mutual benefits.
The survey findings indicate that an imposed ESR agenda provides a stimulus for change;
however, home-grown activities that address the problems from the inside may in the long term
guarantee sustainability of the interventions. SMEs unanimously responded that they will
continue their ESR activities, despite any negative changes in their company performance.
Essentially they will not abandon their ESR agenda, but will change scope, scale and form of its
implementation.
In conclusion, for SMEs, the sustainability of their economic business performance is the
foundation for their ESR engagement. Indisputably, compliance with local laws must be reinforced
if any additional ESR actions are to be developed. Further growth, however, is also governed by
the strength of linkages within the supply chain, so that SMEs can consciously engage in building
the supplier environment rather than outsourcing their problems up the supply chain.
Approaching the issue from the development prospective, a shift from pressure to appropriation is
required. Fostered by trust-building mechanisms, the current ad-hoc approach of implementing of
ESR activities must be formalised and become an integrated part of strategic business planning.
Consequently, building on small successes, SMEs can scale up their engagement slowly, gaining
confidence while learning about the multiple impacts of their ESR actions.
SMEs acting alone will bring upon a limited impact on the ESR agenda of the cluster, and
therefore multi-stakeholder or public–private partnerships are instrumental in the development of
comprehensive programmes. In addition, partnering along the supply chain or with international
buyers may bring the twofold benefit of improving business performance and increasing
emotional returns through increased social engagement for both parties.