Reconciling Business Social Responsibility Goals, Activities and Practices in Hospitality SMMES in an Emerging Economy

Abstract

Despite the prominence of business social responsibility (BSR) studies in advanced economies and their gradual maturation in emerging economies, no systematic attempt has been made to reconcile BSR goals, activities and entrenched practices that support them. In emerging economies where BSR is gaining currency but remains vaguely understood, the pernicious effect of small, micro and medium enterprises‘ (SMMEs) casual approach to BSR is sheer reductionism that narrows down BSR goals, activities and practices exclusively to philanthropy. This ideological illusion often precludes SMMEs from leveraging their competitive advantage due to their negation of paramount ethical, legal, and economic considerations. Drawing on quantitative approach, a survey was conducted on 92 owner/managers of hospitality SMMEs in the Free State province, South Africa to explore the relationship between BSR goals, activities and practices. Evidence suggests that hospitality SMMEs‘ goals are crystallised in conformity to laws and regulations and in what society conceives as legitimate norms. While their BSR activities are concentrated predominantly in philanthropy, they also extend to other economic and social concerns like giving discounts to long term customers, combating crime in local communities, maintaining employee satisfaction and conducting business ethically. When BSR goals and activities are reconciled, BSR economic activities and BSR-based economic growth will be positively affected as these variables are significantly correlated to the latter. The other BSR goals and activities are not significantly correlated with the BSR practices. Recommendations for leveraging economic dimensions of BSR should be considered to improve SMME competitiveness.