{"title":"Varieties of Capitalism and Small Business CSR: A Comparative Overview","authors":"S. Looser, W. Wehrmeyer","volume":103,"journal":"International Journal of Industrial and Systems Engineering","pagesStart":2340,"pagesEnd":2350,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/10001805","abstract":"
Given the limited research on Small and Mediumsized
\r\nEnterprises’ (SMEs) contribution to Corporate Social
\r\nResponsibility (CSR) and even scarcer research on Swiss SMEs, this
\r\npaper helps to fill these gaps by enabling the identification of supranational
\r\nSME parameters. Thus, the paper investigates the current
\r\nstate of SME practices in Switzerland and across 15 other countries.
\r\nCombining the degree to which SMEs demonstrate an explicit (or
\r\nbusiness case) approach or see CSR as an implicit moral activity with
\r\nthe assessment of their attributes for “variety of capitalism” defines
\r\nthe framework of this comparative analysis. To outline Swiss small
\r\nbusiness CSR patterns in particular, 40 SME owner-managers were
\r\ninterviewed. A secondary data analysis of studies from different
\r\ncountries laid groundwork for this comparative overview of small
\r\nbusiness CSR. The paper identifies Swiss small business CSR as
\r\ndriven by norms, values, and by the aspiration to contribute to
\r\nsociety, thus, as an implicit part of the day-to-day business. Similar to
\r\nmost Central European, Mediterranean, Nordic, and Asian countries,
\r\nexplicit CSR is still very rare in Swiss SMEs. Astonishingly, also
\r\nBritish and American SMEs follow this pattern in spite of their strong
\r\nand distinctly liberal market economies. Though other findings show
\r\nthat nationality matters this research concludes that SME culture and
\r\nan informal CSR agenda are strongly formative and superseding even
\r\nforces of market economies, nationally cultural patterns, and
\r\nlanguage. Hence, classifications of countries by their market system,
\r\nas found in the comparative capitalism literature, do not match the
\r\nCSR practices in SMEs as they do not mirror the peculiarities of their
\r\nbusiness. This raises questions on the universality and
\r\ngeneralisability of unmediated, explicit management concepts,
\r\nespecially in the context of small firms.<\/p>\r\n","references":"[1] Jamali, D. and Mirshak, R., \u201cCorporate Social Responsibility (CSR):\r\nTheory and Practice in a Developing Country Context,\u201d Journal of\r\nBusiness Ethics. Vol. 72(3), 2007, pp. 243-262.\r\n[2] Day, N. E. and Hudson, D., \u201cUS small company leaders\u2019 religious\r\nmotivation and other-directed organizational values,\u201d International\r\nJournal of Entrepreneurial Behaviour & Research. Vol. 17(4), 2010, pp.\r\n361-379.\r\n[3] Blackburn. R. A., Hart. M. and Wainwright, T., \u201cSmall business\r\nperformance: business, strategy and owner-manager characteristics,\u201d\r\nJournal of Small Business and Enterprise Development. Vol. 20(1),\r\n2013, pp. 8-27.\r\n[4] Spence, L. J., \u201cDoes size matter? The state of the art in small business\r\nethics,\u201d Business Ethics: A European Review. Vol. 8(3), 2013, pp. 163-\r\n174.\r\n[5] Vidaver-Cohen, D. and Simcic Broon, D., \u201cReputation, Responsibility,\r\nand Stakeholder Support in Scandinavian Firms: A Comparative\r\nAnalysis,\u201d Journal of Business Ethics, published online.\r\n[6] Fassin, Y. (2008). SMEs and the fallacy of formalising CSR. Business\r\nEthics: A European Review. Vol. 17(4), 2013, pp. 364-378.\r\n[7] Midttun, A., Gautesen, K and Gjolberg, M., \u201cThe political economy of\r\nCSR in Western Europe,\u201d Corporate Governance. Vol. 6(4). 2006, pp.\r\n369-385.\r\n[8] Freeman, I. and Hasnaoui, A., \u201cThe meaning of corporate social\r\nresponsibility: The visions of nations,\u201d Journal of Business Ethics. Vol.\r\n100(3), 2011, pp. 419-443.\r\n[9] Rousseau, J. J., The New Encyclopaedia Britannica, Chicago, Vol. 26.\r\n2003, pp. 938-942.\r\n[10] Freeman, R. E. and Liedtka, J., \u201cCorporate social responsibility: a\r\ncritical approach - corporate social responsibility no longer a useful\r\nconcept,\u201d Business Horizons. 1991, URL:\r\nhttp:\/\/www.accessmylibrary.com\/article-1G1-11015279\/corporatesocial-\r\nresponsibility-critical.html (accessed 06.07.2014)\r\n[11] Friedman M., Capitalism and Freedom, Chicago: The University of\r\nChicago Press, 1962, pp. 12-117\r\n[12] Asongu, J. J., \u201cThe History of Corporate Social Responsibility,\u201d Journal\r\nof Business and Public Policy. Vol. 1(2), 2007, URL:\r\nhttp:\/\/issuu.com\/drvayanos\/docs\/842 (accessed 07.07.2014)\r\n[13] European Commission, A renewed EU strategy 2011-14 for Corporate\r\nSocial Responsibility. 2011, p.6.\r\n[14] Van Marrewijk, M., \u201cConcepts and definitions of CSR and corporate\r\nsustainability: between agency and communion,\u201d Journal of Business\r\nEthics. Vol. 44(2), 2003, pp. 95-105.\r\n[15] Crane, A., Matten, D. and Spence, L. J., \u201cCorporate Social\r\nResponsibility in a Global Context,\u201d In Crane, A., Matten, D. and\r\nSpence, L. J., (Eds.). Corporate Social Responsibility: readings and\r\nCases in a Global Context. 2nd edition. Abington: Routledge. 2013, pp.\r\n3-26. URL: http:\/\/ssrn.com\/abstract=2322817 (accessed 03.08.2014)\r\n[16] Sundaram, A. K. and Inkpen A. C., \u201cThe corporate objective revisited,\u201d\r\nOrganisation Science. Vol. 15(3), 2004, pp. 350-363.\r\n[17] Porter, M. and Kramer, M., \u201cStrategy and society: The link between\r\ncompetitive advantage and corporate social responsibility,\u201d Harvard\r\nBusiness Review. Vol. 8(12), 2006, pp. 78-92.\r\n[18] Schultz, F., Castell\u00f3, I. and Morsing, M., \u201cThe Construction of\r\nCorporate Social Responsibility in Network Societies: A\r\nCommunication View,\u201c Journal of Business Ethics. Vol. 115(4), 2013,\r\npp. 681-692.\r\n[19] Habermas, J., The theory of communicative action: Vol. 1, Reasons and\r\nthe Rationalization of Society. Boston, MA: Bacon Press. 1984, pp. 25-\r\n67.\r\n[20] Scherer, A. G. and Palazzo, G., \u201cTowards as political conception of\r\ncorporate social responsibility: Business and society seen from a\r\nHabermasian perspective,\u201d Academy of Management Review. Vol. 32(4),\r\n2007, pp. 1096-1120.\r\n[21] Matten, D. and Moon, J., \u201c\u2018Implicit\u2019 and \u2018Explicit\u2019 CSR: A conceptual\r\nframework for understanding CSR in Europe,\u201d ICCSR Research Paper\r\nSeries. No. 29, 2004, pp. 1-44.\r\n[22] Matten, D. and Moon, J., \u201cPan-European Approach. A Conceptual\r\nFramework for Understanding CSR,\u201d In Zimmerli, W. Ch., Holzinger,\r\nM. and Richter, K. (Eds.). Corporate Ethics and Corporate Governance,\r\nBerlin Heidelberg: Springer. 2007, pp. 179-200.\r\n[23] Matten, D. and Moon, J., \u201c\u2018Implicit\u2019 and \u2018Explicit\u2019 CSR: A Conceptual\r\nFramework for a Comparative Understanding of Corporate Social\r\nResponsibility,\u201d Academy of Management Review. Vol. 33(2), 2008, pp.\r\n404-424.\r\n[24] Whitley, R., \u201cBusiness systems,\u201d In Sorge, A. and M. Warner, M.\r\n(Eds.). The IEBM handbook of organisational behaviour. London:\r\nInternational Thomson Business Press. 1997, pp. 173-186.\r\n[25] Whitley, R., Divergent capitalisms. The social structuring and change of\r\nbusiness systems. Oxford: Oxford University Press, 1999, pp. 45-48.\r\n[26] Maurice, M., Sorge, A. and Warner, M., \u201cSocietal differences in\r\norganizing manufacturing units: A comparison of France, West\r\nGermany and Great Britain,\u201d Organisation Studies. Vol. 1(1), 1980, pp.\r\n59-86.\r\n[27] Sorge, A., \u201cStrategic fit and societal effect - interpreting cross-national\r\ncomparisons of technology, organisation and human resources,\u201d\r\nOrganisation Studies. Vol. 12(2), 1991, pp. 161-190.\r\n[28] Hall, P. A. and Soskice, D., \u201cVarieties of Capitalism \u2013 The Institutional\r\nFoundations of Comparative Advantage. Oxford: Oxford University\r\nPress. 2001, pp. 1-78.\r\n[29] Campbell, J. L. and Pedersen, O. K., \u201cThe varieties of Capitalism and\r\nHybrid Success: Denmark in the Global Economy,\u201d Working Paper No.\r\n18. 2005, Copenhagen Business School.\r\n[30] Looser, S. and Wehrmeyer, W., \u201cCSR Mapping: Swiss stakeholder\r\nsalience, concerns, and ethics,\u201d Social Science Research Network, 2014,\r\nURL: http:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2541199\r\naccessed 27.01.2015\r\n[31] Schlierer, H.-J., Werner, A., Signori, S., Garriga, E., von Weltzien\r\nHoivik, H., Van Rossem, A. and Fassin, Y., \u201cHow do European SME\r\nOwner-Managers Make Sense of \u201cStakeholder Management\u201d? Insights\r\nfrom a Cross-National Study,\u201d Journal of Business Ethics. Vol. 109,\r\n2012, pp. 39-51.\r\n[32] Billis, D., \u201cTowards a theory of hybrid organizations,\u201d In Billis, D.,\r\n(Ed.) Hybrid Organizations and the Third Sector: Challenges for\r\nPractice, Theory and Policy. Hampshire: Palgrave Macmillan,\r\nBasingstoke. 2010, pp. 46-69.\r\n[33] M\u00fcller, H.-P. and Sigmund, S., Zeitgen\u00f6ssische Amerikanische\r\nSoziologie. Opladen: Leske + Budrich. 2000, pp. 35-109.\r\n[34] DiMaggio, P., J. and Powell, W., W., \u201cThe iron cage revisited:\r\nInstitutional isomorphism and collective rationality in organisational\r\nfields,\u201d American Sociological Review. Vol. 48, 1983, pp. 147-160.\r\n[35] Meyer, J. W. and Rowan, B., \u201cInstitutionalized organisations. Formal\r\nstructure as myth and ceremony,\u201d American Journal of Sociology. Vol.\r\n83, 1977, pp. 340-363.\r\n[36] Meyer, J. W. and Rowan, B., Institutionalized Organisations. New\r\nInstitutionalism in Organisational Analysis. Chicago: The University of\r\nChicago Press. 1991, pp. 35-82.\r\n[37] Kim, C. H., Amaeshi, K., Harris, S. and Suh, C.-J., \u201cCSR and the\r\ninstitutional context: The case of South Korea,\u201d Journal of Business\r\nResearch. Vol. 66, 2013, pp. 2581-2591.\r\n[38] Spence, L. J., Schmidpeter, R. and Habisch, A., \u201cAssessing Social\r\nCapital: Small and Medium Sized Enterprises in Germany and the U.K,\u201d\r\nJournal of Business Ethics. Vol. 47, 2003, pp. 17-29.\r\n[39] Wilkinson, A., \u201cEmployment Relations in SMEs,\u201d Employee Relations.\r\nVol. 21(3), 1999, pp. 206-217.\r\n[40] Campopiano, G., De Massis, A. and Cassia, L., \u201cCorporate Social\r\nResponsibility: A Survey among SMEs in Bergamo,\u201d Procedia - Social\r\nand Behavioral Sciences. Vol. 62, 2012, pp. 325-341.\r\n[41] Jenkins, H., \u201cA critique of conventional CSR theory: an SME\r\nPerspective,\u201d Journal of General Management. Vol. 29(4), 2004, pp. 37-\r\n57.\r\n[42] Jenkins, H., \u201cSmall business champions for corporate social\r\nresponsibility,\u201d Journal of Business Ethics. Vol. 67(3), 2006, pp. 241-\r\n256.\r\n[43] FSO Federal Statistical Office FSO\/BFS, Statistik der\r\nUnternehmensstruktur 2011. 2013, URL:\r\nhttp:\/\/www.bfs.admin.ch\/bfs\/portal\/de\/index\/themen\/06\/01\/new\/nip_det\r\nail.html?gnpID=2013-716 (accessed 06.03.2014)\r\n[44] Worthington, I., Ram, M. and Jones, T., \u201cExploring Corporate Social\r\nResponsibility in the U. K. Asian Small Business Community,\u201d Journal\r\nof Business Ethics. Vol. 67(2), 2006, pp. 201-217.\r\n[45] Murillo, D. and Lozano, J., \u201cSMEs and CSR: an approach to CSR in\r\ntheir own words,\u201d Journal of Business Ethics. Vol. 67(3), 2006, pp. 227-\r\n240.\r\n[46] Worthington, I. and Patton, D. , \u201cStrategic intent in the management of\r\nthe green environment within SMEs: An analysis of the UK screenprinting\r\nsector,\u201d Long Range Planning. Vol. 38(2), 2005, pp. 197-212.\r\n[47] Williams, S. and Schaefer, A., \u201cSmall and medium sized Enterprises and\r\nSustainability: Managers\u2019 Values and Engagement With Environmental\r\nand Climate Change Issues,\u201d Business Strategy and the Environment.\r\nVol. 22(3), 2013, pp. 173-186.\r\n[48] H\u00f6llerer, M. A., \u201cFrom Taken-for-Granted to Explicit Commitment: The\r\nRise of CSR in a Corporatist Country,\u201c Journal of Management Studies.\r\nVol. 50(4), 2013, pp. 573-606.\r\n[49] Looser, S. and Wehrmeyer, W., \u201cAn emerging template of CSR in\r\nSwitzerland,\u201c Corporate Ownership and Control Journal. Vol. 12(3),\r\n2015, pp. 541-560.\r\n[50] Jamali, D., Zanhour, M. and Kehishian, T., \u201cPeculiar strengths and\r\nrelational attributes of SMEs in the context of CSR,\u201d Journal of\r\nBusiness Ethics. Vol. 87(3), 2009, pp. 355-377.\r\n[51] SECO, KMU-Portal: Normierung. 2012, URL:\r\nhttp:\/\/www.kmu.admin.ch\/themen\/01897\/01898\/index.html?lang=de\r\n(03.09.2013)\r\n[52] Federal Administration, Information about Switzerland. 7 July 2008.\r\nURL:\r\nhttp:\/\/web.archive.org\/web\/20100123153543\/http:\/\/www.eda.admin.ch\/e\r\nda\/en\/home\/reps\/ocea\/vaus\/infoch.html (accessed 03.08.2014)\r\n[53] Berger, V., Winist\u00f6rfer, H., Weissert, S., Heim, E. and Sch\u00fcz, M., Swiss\r\nCorporate Sustainability Survey 2012: Nachhaltigkeit in Schweizer\r\nUnternehmen. Winterthur: ZHAW, 2012, pp. 1-59.\r\n[54] Patton, M., Qualitative Evaluation and Research. London: Sage. 2002,\r\npp. 1-56.\r\n[55] Forsyth, D. R., \u201cJudging the morality of business practices: the influence\r\nof personal moral philosophies,\u201d Journal of Business Ethics. Vol. 11(5),\r\n1992, pp. 461-470.\r\n[56] Strauss, A. and J. Corbin, Basics of Qualitative Research, Techniques\r\nand Procedures for Developing Grounded Theory. 3rd ed. Thousand\r\nOaks, CA: Sage. 2008, pp. 23-112.\r\n[57] Thomson Reuters, \u201cJournal Rank, Journal Impact Factor and Article\r\nCitations,\u201d ISI Web of Science. 2011, URL: http:\/\/www.lib4ri.ch\/\r\njournal-citation-reports.html (accessed 10.11.2014)\r\n[58] Hemingway, C. A. and Maclagan, P. W., \u201cManagers\u2019 Personal Values as\r\nDrivers of Corporate Social Responsibility\u201d, Journal of Business Ethics.\r\nVol. 50(1), 2004, pp. 33-44.\r\n[59] Coppa, M. and Sriramesh, K., \u201cCorporate social responsibility among\r\nSMEs in Italy,\u201d Public Relation Review. Vol. 39, 2013, pp. 30-39.\r\n[60] Demuijnck, G. and Ngnodjom, H., \u201cResponsibility and Informal CSR in\r\nFormal Cameroonian SMEs,\u201d Journal of Business Ethics. Vol. 112,\r\n2013, pp. 653-665.\r\n[61] Amashi, K, Adi, B, Obgechie, C. and Amao, O., \u201cCorporate social\r\nresponsibility in Nigeria. Western mimicry or indigenous influences?\u201d\r\nThe Journal of Corporate Citizenship. Vol. 24, 2006, pp. 83-99.\r\n[62] Graafland, J. and Van de Ven, B. (2006). Strategic and moral motivation\r\nfor corporate social responsibility. Journal of Corporate Citizenship.\r\nVol. 22 (Summer), 2006, pp. 1-12.\r\n[63] Bertens, C., Veldhuis, C. and Snoei, J., MVO ambities in het MKB\r\n(\u2018\u2018CSR ambitions among SMEs\u2019\u2019). The Netherlands: EIM, Zoetermeer.\r\n2011, pp. 7-89.\r\n[64] Uhlaner, L. M., Berent-Braun, M. M., Jeurissen, R. J. M. and de Wit, G.,\r\n\u201cBeyond Size: Predicting Engagement in Environmental Management\r\nPractices of Dutch SMEs,\u201d Journal of Business Ethics. Vol. 109(4),\r\n2012, pp. 411-429.\r\n[65] Spence, L. J., Jeurissen, R. and Rutherfoord, R., \u201cSmall business and the\r\nenvironment in the UK and the Netherlands: Towards stakeholder\r\ncooperation,\u201d Business Ethics Quarterly. Vol. 10(4), 2013, pp. 945-965.\r\n[66] Sen, S. and Cowley, J., \u201cThe Relevance of Stakeholder Theory and\r\nSocial Capital Theory in the Context in SMEs: An Australian\r\nPerspective,\u201d Journal of Business Ethics. Vol. 118, 2012, pp. 413-427.\r\n[67] Wartick, S. L. and Cochran, P. L., \u201cThe evaluation of the corporate\r\nsocial performance model,\u201d Academy of Management Review. Vol.\r\n10(4), 1985, pp. 758-769.\r\n[68] Torugsa, N. A., O\u2019Donoghue, W. and Hecker, R., \u201cProactive CSR: An\r\nEmpirical Analysis of the Role of its Economic, Social and\r\nEnvironmental Dimensions on the Association between Capabilities and\r\nPerformance,\u201d Journal of Business Ethics. Vol. 115(2), 2013, pp. 383-\r\n401.\r\n[69] L\u00e4hdesm\u00e4ki, M. and Suutari, T., \u201cKeeping at Arm\u2019s Length or Searching\r\nfor Social Proximity? Corporate Social Responsibility as a Reciprocal\r\nProcess Between Small Businesses and the Local Community,\u201d Journal\r\nof Business Ethics. Vol. 108(4), 2012, pp. 481-493.\r\n[70] Studer, S., Tsang, S., Welfort, R. and Hills, P., \u201cSMEs and voluntary\r\nenvironmental initiatives: a study of stakeholder\u2019s perspective in Hong\r\nKong,\u201d Journal of Environmental Planning and Management. Vol.\r\n51(2), 2008, pp. 285-301.\r\n[71] Li, W., \u201cStudy on the Relationships between Corporate Social\r\nResponsibility and Corporate International Competitiveness. 2012\r\nInternational Conference on Future Electrical Power and Energy\r\nSystems,\u201d Energy Procedia. Vol. 17, 2012, pp. 567-572.\r\n[72] Lin, C.-H., Yang, H.-Y. and Liou, D.-Y., \u201cThe impact of corporate\r\nsocial responsibility on financial performance: Evidence from business\r\nin Taiwan,\u201d Technology Society. Vol. 31(1), 2009, pp. 56-63.\r\n[73] Lee, M. H., Mak, A. K. and Pang, A., \u201cBridging the Gap: An\r\nExploratory Study of Corporate Social Responsibility among SMEs in\r\nSingapore,\u201d Journal of Public Relations Research. Vol. 24(4), 2012, pp.\r\n299-317.\r\n[74] Ortiz Avram, D. and K\u00fchne, S., \u201cImplementing Responsible Business\r\nBehavior from Strategic Management Perspective: Developing a\r\nFramework fro Austrian SMEs,\u201d Journal of Business Ethics. Vol. 82(2),\r\n2008, pp. 463-475.\r\n[75] Gelbmann, U., \u201cEstablishing Strategic CSR in SMEs: an Austrian CSR\r\nQuality Seal to Substantiate the Strategic CSR Performance,\u201d\r\nSustainable Development. Vol. 18, 2010, pp. 90-98.\r\n[76] Ryan, L., \u201cThe Ethics and Social Responsibility of U.S. Small Business:\r\nThe \u201cOverlooked\u201d Research Agenda,\u201d In Harvey, B., Van Lujik, H. and\r\nCorbetta, G. (Eds.). Market Morality and Company Size. London:\r\nKluwer Academic Publishers, 1989, pp. 89-102.\r\n[77] Wilson, E., \u201cSocial Responsibility of Business: What Are The Small\r\nBusiness Perspectives,\u201d Journal of Small Business Management. Vol.\r\n18(3), 1986, pp. 17-24.\r\n[78] Brown, D. J. and King, J. B., \u201cSmall Business Ethics: Influences and\r\nPerceptions,\u201d Journal of Small Business Management. Vol. 20(1), 1982,\r\npp. 11-18.\r\n[79] Chrisman, J. J. and Fry, F. L., \u201cPublic versus Business Expectations:\r\nTwo Views on Social Responsibility of Small Business,\u201d Journal of\r\nSmall Business Management. Vol. 20(1), 1982, pp. 19-26.\r\n[80] Chrisman, J. J. and Archer, R. W., \u201cSmall Business Social\r\nResponsibility: Some Perceptions and Insights,\u201d American Journal of\r\nSmall Business. Vol. 9(2), 1984, pp. 46-58.\r\n[81] de la Cruz D\u00e9niz D\u00e9niz, M., Katiuska Cabrera Su\u00e1rez, M., \u201cCorporate\r\nSocial Responsibility and Family Business in Spain,\u201d Journal of\r\nBusiness Ethics. Vol. 56(1), 2005, pp. 27-41.\r\n[82] Tamaj\u00f3n, L. G. and Fond I Aulet, X., \u201cCorporate social responsibility in\r\ntourism small and medium enterprises evidence from Europe and Latin\r\nAmerica,\u201d Tourism Management Perspectives. Vol. 7, 2013, pp. 38-46.\r\n[83] Von Weltzien Hoivik, H. and Mel\u00e9 D., \u201cCan an SME Become a Global\r\nCorporate Citizen? Evidence from a Case Study,\u201d Journal of Business\r\nEthics. Vol. 88(3), 2009, pp. 551-563.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 103, 2015"}