Social responsibility in the SMMEs of the Botshabelo industrial estates

Abstract

Research evidence suggests that South African small, medium and micro enterprises (SMMEs) are not making the desired impact on their societies because they are unable to create jobs. The normative assertion is that by engaging in socially responsible activities, SMMEs will be able to enhance their impact on society. Much “noise”, effort and resources are being made available to South African SMMEs to encourage them to embrace this concept of social responsibility as it is also touted to result in business benefits. Socially responsible behaviour by SMMEs has therefore become an important national issue in South Africa. However, in spite of this realisation, very little is known about how seriously the South African SMMEs really consider and approach the whole issue of business social responsibility (BSR) precisely because of the dearth of empirical research on the subject.

Without empirical evidence from systematic research, it becomes extremely difficult to tell for sure what these SMMEs think of and are really doing in terms of BSR; what obstacles they face in their BSR endeavours; what support they need; among others. Without such information, policy makers cannot reasonably be expected to formulate appropriate support mechanisms to enhance the BSR efforts of these SMMEs. In the end, communities like Botshabelo (in the Free State Province of South Africa) might lose out on the benefits that are usually associated with BSR performance of SMMEs.

The purpose of this study was to provide such information. Specifically, the research investigated the following issues: SMMEs understanding of BSR; BSR as a sound business philosophy/practice for SMMEs; Why SMMEs undertake BSR; SMMEs’ attitude towards BSR; Barriers to SMMEs’ BSR engagement; and main BSR activities of SMMEs.

In this study, research was conducted on the SMMEs of the Botshabelo industrial estate. After a thorough literature review, data were collected from 170 respondents on 137 out of the 150 SMMEs operating in Botshabelo.

The results of the data analysis suggest that the SMMEs investigated have a good understanding of the concept and its value. However, the SMMEs focus mainly on employee and customer issues while showing less concern for community and environmental issues. The SMMEs also encounter barriers to BSR engagement which mostly have to do with lack of time. Based on these findings, recommendations are made regarding policy and further research.