Ethics in Small and Medium Sized Enterprises (eBook)

Foreword 6
Acknowledgements 8
Contents 9
Contributors 11
About the Contributors 14
1 Introduction: Global Perspectives on Ethics in Small and Medium Sized Enterprises 21
How Are SMEs Different? 22
Ethics in SMEs: The State of the Art 23
Developing Theory and Concepts 24
Strengthening Empirical Research 25
Case Examples 27
References 28
Part I Global Overviews 30
2 Africa: Ethics and Sustainability Within SMEs in Sub-Saharan Africa: Enabling, Constraining and Contaminating Relationships 31
Introduction 31
Methodology 32
Patterns Emerging from the Data 34
Theoretical Propositions 37
Enabling Relationships 37
Constraining/Conditioning Relationships 38
Contaminating/Debilitating Relationships 40
The Interaction Between Enabling, Conditioning and Contaminating Relationships 40
Supporting Research Trends from the Literature Review 41
Conclusions and Further Research Questions 47
Notes 48
References 49
Appendix 1: Country Representation 50
Appendix 2: SME Owners/Managers Telephonic Questionnaire 51
Ethics in Small and Medium Enterprises on the African Continent 51
Appendix 3: Intermediary Organisations Telephonic Questionnaire Ethics in Small and Medium Enterprises on the African Continent 52
3 Europe: Practice and Politics: Ethics and Social Responsibility in SMEs in the European Union 53
Introduction 53
Defining SMEs 55
Role of SMEs in Society 55
Ethics/Social Responsibility Practices Within SMEs 56
Country-Specific Traits: Denmark, Italy, the UK and Central and Eastern Europe and the Baltic States 58
Denmark -- North European 58
Italy -- Mediterranean and Southern Europe 60
UK -- Anglo-Saxon 61
Central and Eastern Europe and the Baltic States 62
Influencing SMEs 63
SMEs and Sustainability 66
Current and New Developments 67
Conclusion 68
Notes 69
References 69
4 India: CSR and Ethics in MSMEs in India 73
Introduction 73
SMEs in India 74
Definition of SMEs 75
CSR and Ethics in India 76
Implications for Future Research on CSR 78
Conclusion 79
References 80
5 Latin America: Ethics and Corporate Social Responsibility in Latin American Small and Medium Sized Enterprises: Challenging Development 82
Introduction 82
Defining Small and Medium Sized Enterprises in Latin America 83
The Role of Latin American SMEs in Society 85
CSR Activities in Latin America 87
Informality 88
Poverty Alleviation and Job Creation 90
Corruption 91
Interaction with External Stakeholders 92
Ethics Within SMEs 92
Ethics and Sustainability 93
Developments of CSR in Latin America 94
Final Considerations 97
References 98
6 New Zealand & Australia: A New Zealand and Australian Overview of Ethics and Sustainability in SMEs
Introduction 101
The Australian and New Zealand Context 101
Defining SMEs in New Zealand and Australia 103
Role of SMEs in Society 104
Ethics and Sustainability in New Zealand 105
Ethics and Sustainability in Australia 108
Perceived Barriers 109
Conclusion 110
Notes 111
References 112
7 USA: An Overview of Empirical Research on Ethics in Entrepreneurial Firms Within the United States 114
Introduction 114
Defining Entrepreneurs in the US 115
The Role of Entrepreneurs in the US 118
Ethics Versus Stakeholder Theory, CSR and CSP 119
Ethics in Entrepreneurship 120
Research Conducted in and by Scholars in the US 121
Ethical Attitudes of Entrepreneurs 121
Ethical Issues for Entrepreneurs 122
Ethical Decision Making 124
Ethical Climate and Organisational Factors 126
Type of Entrepreneurial Activity and the Entrepreneur 128
Corporate Social Responsibility and Entrepreneurship Research 129
Conclusion 130
References 131
Part II Individual Research: Theory Development 135
8 Entrepreneurial Social Responsibility: Scoping the Territory 136
Introduction 136
Introducing ESR Ethics, CSR and Positive Social Change Through an Entrepreneurial Lens 138
Developing the Terminology: Building on Aguilera et al. (2007) 138
Scoping the Territory 139
Entrepreneurship and Social Responsibility 140
Defining Entrepreneurship 140
Entrepreneurial Process as a Multi-level Phenomenon 141
Three Approaches to Entrepreneurial Social Responsibility 142
Mainstream Approaches 143
Counter-Cultural/Critical Approaches 144
Reformist Approaches 145
Conceptualising the ESR Territory 147
Exploring the Tensions Between Commercial Orientation and Social Responsibility 147
Concluding Remarks 152
Implications for Business Ethics/CSR 152
Implications for Entrepreneurship 153
Implications for Policy and Practice 153
Notes 154
References 155
9 A Comprehensive Model for SMEs: Measuring the Dynamic Interplay of Morality, Environment and Management Systems - Towards Continuous Improvement 159
Introduction 159
Design of the SME Model 160
SME Model 160
Elements of SMEs 160
SMEs Embedded in an Environment 161
Society 162
Economy 162
Physical Environment 162
Management of SMEs ' Steering Within 'Spaces of Freedom' or Influence Capabilities 163
Morality 163
Mission, Strategies, Traditions 164
Management Systems -- Tools Supporting Long-Term Success 165
Design of the SME Model 166
Methodology to Test Compliance with the SME Model and to Detect Possibilities for Continuous Improvement 169
Basic Matrix 169
Characteristics of the Four Quadrants 170
No Concepts ' Be at the Market's Mercy 170
Shop Floor/Process Optimisation 170
External Pressure -- Image 170
Embedded Circularity -- Integration 171
Specifications 171
Examination by Research 172
Outline 172
Some Brief Results 174
Common Issues of Specifications 174
Excursus: Weighting of Values -- Specifications of Moralities 177
Basic Matrix -- Positions of the 27 SMEs -- Analysis 178
Conclusions 179
References 179
10 CSR and SMEs in Portugal: The Strategy of Obligation 184
Introduction 184
Research Theory and Model 185
CSR Perspectives 185
Conceptual Model 187
Concept of SME Social Responsibility Practices 188
SME Business Strategy Concept 188
Concept of Stakeholder Relationships 188
Concept of Attitude Towards CSR 188
Strategic Typology 189
Research Methodology 192
Research Results 192
SME and CSR Practice Profiles 192
SMEs CSR Strategies 194
Discussion of Results and Conclusions 196
Notes 200
References 201
Part III Individual Research: Empirical Research 202
11 In Search of Sustainability? SMEs in Brittany, France 203
Corporate Social Responsibility in France:Dveloppment durable 203
Cultural Specifics of CSR 204
Research on CSR Activities of French SMEs 205
Methodology 207
Background 207
Sample 207
Methods 208
Results 209
Manager's Definitions of Sustainable Development 209
Perception of the Impacts of CSR on Company and Its Relationships 210
Perceived Advantages and Disadvantages of Implementing CSR 212
How Do Breton Managers Implement CSR? 212
Strategy 212
Formalisation of Aims and Practices 213
Codes of Conduct 213
Measuring Social and Environmental Performance 213
Cooperation with External Stakeholders 214
Internal Organisation of CSR 214
Environmental Action 215
Social and Societal Action 215
Present and Future Needs of Companies in Terms of Support for the CSR Process 216
Drivers and Brakes of CSR 217
Companies with No CSR Activities in Place 217
Companies with a CSR Policy in Place 219
Comparison of Companies With and Without a CSR Policy 219
Governmental Policy, Societal Expectations and Needs in the Local Community -- What Is Driving the CSR Movement in France? 222
References 223
12 Corporate Social Responsibility and Stakeholder Relations -- The Perspective of German Small and Medium-Sized Enterprises 225
SMEs -- The Hidden Perspective 225
Stakeholders and the CSR Debate 226
CSR in SMEs -- Empirical Findings 227
Research Questions and Methodology 227
Results 228
Understanding of CSR 228
CSR Activities 229
Intrinsic Motivation 230
Regional Specifics 231
The Employee as a Key Stakeholder 231
Conclusion 232
Notes 233
References 234
13 The Alignment Between Social Responsibility and Business Strategy: Implications for Social Responsibility Value Creation in Spanish SMEs 236
Introduction 236
Social Responsibility in SMEs 237
SR Value Creation in Business 242
SR Strategic Alignment 242
Hypotheses 244
Methodology and Data 245
The Development of an SR Scale for SMEs 245
The Measurement of SR Strategic Alignment 247
The Measurement of SR Business Value 248
The Database Obtained 248
Main Results 249
Conclusions 255
Notes 256
References 256
14 Business Ethics and Corporate Social Responsibility Practice in Small and Medium Sized Enterprises: Sampling from Thailand and Hong Kong 263
Introduction 263
Method(s) 265
Research Sites and Interview Protocol 266
Presentation of Findings 268
Thailand 268
Hong Kong 276
Reflection 280
Notes 280
References 280
Part IV Individual Research: Case Examples 283
15 Fostering Corporate Social Responsibility in Small and Medium Size Enterprises. Recent Experiences in The Netherlands 284
Recent Developments 284
CSR/SMEs in the Netherlands: Facts and Figures, Means and Methods 285
Findings in Practice and Literature 287
Comments and Reflections 289
References 295
16 Small Business Social Responsibility in the Supply Chain: A Literature Review 297
Introduction 297
Corporate Social Responsibility in Supply Chains 298
Results 299
Role and Practices 300
Drivers 309
Risks 310
Barriers 310
Means to Overcome Barriers 311
Conclusions 311
Research Agenda and Managerial Implications 313
Notes 314
References 314
17 Ethics in Agricultural and Stockbreeding SMEs: An Argentinean Case Study 318
Introduction 318
Family Enterprises Characteristics 319
Geographic Enclave 320
The Small Towns of the Santa Fe Province 324
Predominant Activities: Agriculture and Stockbreeding7 325
Piedmontese Immigrants 326
1st Phase: Start-up and Consolidation of an Agricultural and Stockbreeding SME 328
SMEs: Corporate Social Responsibility 329
2nd Phase: Female Enterprise 331
3rd Phase: The Youngest Ones 335
Notes 335
References 337
Conclusion: The Road Ahead for Research on Ethics and SMEs 338
The Hidden Territory of Ethics and SMEs 338
Finding a Language for the Social and Ethical Role of SMEs 338
SMEs: Good or Bad? 339
Influencing SMEs 340
The Need to Promote a Developing Country Perspective 341
Learning from SMEs 341
Ethics and SME Researchers: Getting Out of the Corporate Shadow 342
References 343
Author Index 344
Countries Index 345
Subject Index 346