Corporate Social Responsibility in SMEs: A Shift From Philanthropy to Institutional Works?

Abstract

Corporate Social Responsibility (CSR) amongst Small and Medium Enterprises (SMEs) is often characterised in the literature as unstructured, informal, and ad hoc discretionary philanthropic activities. Drawing insights from recent theoretical/analytical frameworks (i.e. Crane, Matten, and Spence, 2013; and Valente and Crane, 2010), and on empirical data collected from both Nigeria and Tanzania, we found that CSR practices in SMEs are much more nuanced than previously presented. In addition, SMEs undertake their CSR practices to varying degrees in multiple spaces – i.e. the workplace, marketplace, community and the ecological environment. These CSR practices go beyond philanthropy and in some instances involve institutional works aimed at addressing some of the institutional gaps in the environments where these SMEs operate. The paper makes a contribution by drawing attention to the multiple spaces of CSR practices amongst SMEs, and the institutional works they do, which are often taken for granted in the extant literature. We provide a unique perspective – by arguing that what is frequently conceptualised as philanthropic CSR in Africa is (or may include) ‘institutional works’.

Keywords: Corporate Social Responsibility (CSR), Nigeria, Tanzania, Sub-Saharan Africa, SMEs, Institutional works