Business, Management and Education, Vol 8 (2010)

Obstacles to Implementing Initiatives of Social Responsibility in Small and Medium-Size Firms

Rima Česynienė (Vilnius University, Lithuania)
Marina Neverkevič (Vilnius University, Lithuania)

Abstract


The purpose of the paper is to analyse the obstacles to implementing social responsibility initiatives in small and medium-size business firms. The implementing fields and the importance of corporate social responsibility (CSR) initiatives in small and medium-size business firms are stressed in the paper. The current situation of CSR in Lithuanian small and medium-size firms is presented. The research data allowed discovering that the main obstacle to implement social responsibility in the small and medium-size firms is the managers’ attitude that social responsibility is a matter of great concern only to large companies. 43% of respondents indicated this obstacle. On the other hand, the research data allowed finding out that in our turbulent environment social responsibility in small and medium-size business firms is not a random phenomenon (71 %), and it is constant concern to managers, which provides for the budget (54 %). The understanding that social responsibility initiatives are only charity or philanthropy is also declined, only 5% of the respondents think so, however, 32 % of firms are supporting charitable initiatives. The most stimulating factors in the implementation of CSR are: staff loyalty and job satisfaction, a better image of the company, long-term competitiveness of the business advantage, the increased consumers requirements. Socially responsible behaviour disincentives are: the lack of human resour-ces (51 %), lack of information about gain from socially responsible activities (50 %), lack of financial resources (28 %). Both theory and practice agree that the implementation of CSR issues is most dependent on the leader’s attitude. The managers of small and medium-size business firms mostly are coordinating the implementation of CSR initiatives (70% of respondents). The results of the empirical research of CSR initiatives implementation in business prac-tices were presented in the possible model of tools which stimulates social responsibility initiatives in small and medium-size business firms. This integrated model includes pu-blic, government and business efforts and interests: 1) improvement of public policy, 2) revitalization of public organizations; 3) encourage and support research, 4) integration of CSR into education, 5) singleness of purpose (depending on companies’ specifics), 6) increase of managers’ consciousness, 7) implementation of a step-by-step approach.

Article in: Lithuanian

Article published: 2010-12-20

Keyword(s): corporate social responsibility; small and medium-size enterprise; sustainable development

DOI: 10.3846/bme.2010.18

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