Skip to main content
SpringerLink
Log in

The Alignment Between Social Responsibility and Business Strategy: Implications for Social Responsibility Value Creation in Spanish SMEs

  • Chapter
  • First Online:
Ethics in Small and Medium Sized Enterprises

  • 1940 Accesses

Abstract

In this study we empirically analyse the integration of Social Responsibility (SR) practices in business strategy and its effect over the creation of value for the business itself in the small and medium enterprise (SME context. We consider that SR must contribute to the firm’s core activities and help the firm to achieve its mission. Moreover, we believe that this strategic perspective of SR is crucial for the SME. Regarding these issues, an analysis of the SR behaviour in the SME is presented and, particularly, we study the existence of a significant relationship between the SR strategic alignment and the business value obtained from the SR behaviour . In order to measure all these concepts, we have developed and validated scales SR behaviour in the SME; the alignment of SR behaviour with the business strategy of the firm and finally, the business value created by SR activities, on a representative sample of 245 private SMEs located in Gipuzkoa, a province in the north of Spain. The present study shows how the alignment of SR behaviour with business strategy is significantly related to the generation of business value from SR activities; in the light of these results, the study concludes that SR needs to be embedded in the firm’s strategy in order to contribute to the company’s survival and competitiveness

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Amaeshi, K., Bongo, A. (2007). Reconstructing the corporate social responsibility construct in Utlish. Business Ethics: A European Review, 16(1), 3–18.

    Article  Google Scholar 

  • Aragon, C., Iturrioz, C., Olarte, F.J. (2007). Social responsibility in SMEs: A conceptual framework. The International Journal of Interdisciplinary Social Science, 2(2), 253–262.

    Google Scholar 

  • Aragon, C., Ibañez, A., Iturrioz, C. y Narvaiza, L. (2009). Pyme, responsabilidad social y competitividad en Responsabilidad Social Empresarial. Guibert, J.M. (coord.). Universidad de Deusto. San Sebastián, 85–138.

    Google Scholar 

  • Burke, L., Logsdon, J. M. (1996). How corporate social responsibility pays off. Long Range Planning, 29(4), 495–502.

    Article  Google Scholar 

  • Campbell-Hunt, C. (2000). What have we learned about generic competitive strategy? A meta-analysis. Strategic Management Journal, 21(2), 127–154.

    Article  Google Scholar 

  • Chahal, H., Sharma, R. D. (2006). Implications of corporate social responsibility on marketing performance : A conceptual framework. Journal of Services Research, 6, 205–216.

    Google Scholar 

  • Churchill, G.A. (1979). A paradigm for developing better measures for marketing constructs. Journal of Marketing Research, 16, 64–73.

    Article  Google Scholar 

  • Dess, G. & Lumpkin, G. T. (2003). Dirección Estrategica., 1st edition Mcgraw-Hill Madrid, 173–217.

    Google Scholar 

  • Dex, S., Scheibl, S. (2001). Flexible and family-friendly working arrangements in UK-Based SMEs: Business cases. British Journal of Industrial Relations, 39(3), 411–431.

    Article  Google Scholar 

  • ESADE (2007). Marco catalán de la responsabilidad social de la empresa en las pymes. Instituto de Innovación Social, ESADE Business School, Barcelona, España.

    Google Scholar 

  • European Commission (2002a). European SMEs and social and environmental responsibility. Observatory of European SMEs, 4.

    Google Scholar 

  • European Commission (2002b). Corporate social responsibility: A business contribution to sustainable development. Directorate General for Employment and Social Affairs.

    Google Scholar 

  • European Commission (2003). The new SME definition. Enterprise and Industry Publication.

    Google Scholar 

  • European Commission (2004). European multi-stakeholder forum on CSR: final results and recommendations.

    Google Scholar 

  • European Commission (2007). Opportunity and responsibility. How to help more small businesses to integrate social and environmental issues into what they do.

    Google Scholar 

  • Ghoshal, S. (2005). Bad management theories are destroying good management Practices. Academy of Management Learning and Executives, 4(1), 75–92.

    Article  Google Scholar 

  • Guibert, J. M. (coord.) (2009). Responsabilidad Social Empresarial. Competitividad y casos de buenas prácticas en pymes. Universidad de Deusto, San Sebastián.

    Google Scholar 

  • Griffin, J. J., Mahon, J.F. (1997). The corporate social performance and corporate financial performance debate. Business and Society, 36(1), 5–31.

    Article  Google Scholar 

  • Habisch, A. (2004). Social responsibility, social capital and SMEs in Spence, L.J., Habisch, A., Schmidpeter, R. (Eds.), Responsibility and social capital: The world of small and medium sized enterprises. Palgrave Macmillan, Hampshire, 96–111.

    Google Scholar 

  • Hax, A., Majluf, N. (1996). The strategy concept and process: A pragmatic approach. 2nd Edn. Prentice Hall, London.

    Google Scholar 

  • Hillman, A., Keim, G. (2001). Shareholder value, stakeholder management, and social issues: what’s the bottom line?. Strategic Management Journal, 22, 125–39.

    Google Scholar 

  • Husted, B. W., Allen, D. B. (2000). Is it ethical to use ethics as strategy? Journal of Business Ethics, 27(1), 21–31.

    Article  Google Scholar 

  • Husted, B. W., Salazar, J. J. (2006). Taking Friedman seriously: Maximizing profits ans social performance. Journal of Management Studies, 43(1), 75–91.

    Article  Google Scholar 

  • Igalens, J., Gond, J.P. (2005). Measuring corporate social performance in France: A critical and empirical analysis of ARESE data. Journal of Business Ethics, 56, 131–148.

    Article  Google Scholar 

  • Jenkins, H. (2004). A critique of conventional CSR theory: A SME perspective. Journal of General Management, 29(4),37–57.

    Google Scholar 

  • Jenkins, H. (2006). A business opportunity model of corporate social responsibility for small and medium sized enterprises. Business Ethics: A European Review, 18 (1),21–36.

    Article  Google Scholar 

  • Lantos, G. P. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18(7), 595–630.

    Article  Google Scholar 

  • Larrea, J. L. (2006). El desafío de la innovación. Editorial UOC, Barcelona.

    Google Scholar 

  • Lepoutre, J., Heene, A. (2006). Investigating the impact of firm size on small business social responsibility: A critical review. Journal of Business Ethics, 67, 257–273.

    Article  Google Scholar 

  • Longenecker, J.G., McKinney, J.A., Moore, C.W. (1989). Ethics in small business. Journal of Small Business Management, 27(1),27–31.

    Google Scholar 

  • Longenecker, J.G., Moore, C.W., Petty, J.W., Palich, L.E., Mckinney, J.A. (2006). Ethical attitudes in small businesses and large corporations: Theory and empirical findings from a tracking study spanning three decades. Journal of Small Business Management, 44(2), 167–183.

    Article  Google Scholar 

  • Longo, M., Mura, M., Bonoli, A. (2005). Corporate social responsibility and corporate performance: The case of Italian SMEs. Corporate Governance, 5(4), 28–42.

    Article  Google Scholar 

  • Mandl, I., Dorr, A. (2007). CSR and competitiveness: European SMEs’ good practice: Consolidated European Report. Austrian Institute for SME Research.

    Google Scholar 

  • Margolis, J. D., Walsh, J. P. (2001). People and profits? The search for a link between a Company’s social and financial performance . Mahwah, NJ, Lawrence Erlbaum.

    Google Scholar 

  • McWilliams, A., Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), 117–127.

    Google Scholar 

  • McWilliams, A., Siegel, D., Wright, P. (2006). Corporate social responsibility: Strategic implications. Journal of Management Studies, 43(1), 1–18.

    Article  Google Scholar 

  • Miles, R., Snow, C. (1978). Organizational strategy, structure and process. McGraw-Hill. New York, EUA.

    Google Scholar 

  • Miller, N., Besser, T. (2000). The importance of community values in small business strategy formation: Evidence from rural Iowa. Journal of Small Business Management; 38(1), 68–85.

    Google Scholar 

  • Morales, P. (1988). Medición de Actitudes en Psicología y Educación. Construcción de Escalas y Problemas Metodológicos. Ttartalo. San Sebastián, España.

    Google Scholar 

  • Murillo, D., Lozano, J. (2006). SMEs and CSR: An approach to CSR in their own words. Journal of Business Ethics, 67, 227–240

    Article  Google Scholar 

  • Narvaiza, L. et al. (2009). Social responsibility in SME: A proposal for measuring social responsible activities at SME. In G. Aras, D. Crowther, and S. Vettori (Eds.), Corporate social responsibility in SMEs, SRRNet, Leicester, UK, 978-0-9551577-2-1, 61–89.

    Google Scholar 

  • Orlitzky, M., Schmidt, F. L., Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, 23, 403–442.

    Article  Google Scholar 

  • Ortiz, D., Kühne, S. (2008). Implementing responsible business behavior from a strategic management perspective: Developing a framework for Austrian SMEs. Journal of Business Ethics, 82, 463–475.

    Article  Google Scholar 

  • Perrini, F. (2006). SMEs and CSR theory: Evidence and implications from an Italian perspective. Journal of Business Ethics, 67(3),305–316.

    Article  Google Scholar 

  • Perrini, F., Minoja, M. (2008). Strategizing corporate social responsibility: evidence from an Italian medium-sized, family owned company. Business Ethics: A European Review, 17(1),47–63.

    Article  Google Scholar 

  • Porter, M. E., Kramer, M. R. (2006). Strategy and society. The link between competitive advantage and corporate social responsibility. Harvard Business Review, 78–92.

    Google Scholar 

  • Quazi, A. M., O´Brien, D. (2000). An empirical test of a cross-national model of corporate social responsibility. Journal of Business Ethics, 25, 33–51.

    Article  Google Scholar 

  • Rahman, S. U. (2002). A review of empirical research on total quality management using scale developing methods: An Australian perspective. Total Quality Management, 13(5), 635–649.

    Article  Google Scholar 

  • Roman, R., Hayibor, S., Agle, B. R. (1999). The relationship between social and financial performance. Business and Society, 38(1),109–126.

    Article  Google Scholar 

  • Roberts, S., Lawson, R., Nicholls J. (2006). Generation regional-scale improvements in SME corporate responsibility performance: Lessons from responsibility Northwest, Journal of Business Ethics, 67(3), 275–286.

    Article  Google Scholar 

  • Schwab, D. P. (1980) Construct validity in organizational behaviour, in L. Cummings and B. Staw (eds) Research in organizational behaviour, Volume 2, Jai Press, Greenwich, CT. 3–43.

    Google Scholar 

  • Slater, S. F., Olson, E. M. (2000). Strategy type and performance: The influence of sales force management. Strategic Management Journal, 21, 813–829.

    Article  Google Scholar 

  • Spence, L. J. (1999). Does size matter: The state of art in small business ethics. Business Ethics: A European Review, 8(3), 163–174.

    Article  Google Scholar 

  • Spence, L. J., Lozano, J. F. (2000). Communicating about ethics with small firms: Experiences from the U.K. and Spain. Journal of Business Ethics, 27(1), 43–53.

    Article  Google Scholar 

  • Spence, L. J., Rutherfoord, R. (2003). Small business and empirical perspectives in business ethics: Editorial. Journal of Business Ethics, 47(1), 1–5

    Article  Google Scholar 

  • Spence, L., Schmidpeter, R. (2003). SMEs, social capital and the common good. Journal of Business Ethics, 45, 93–108.

    Article  Google Scholar 

  • Spence, L., Schmidpeter, R., Habisch, A. (2003). Assessing social capital: Small and medium sized enterprises in Germany and the UK. Journal of Business Ethics, 45, 17–29.

    Article  Google Scholar 

  • Starik, M., Carroll, A. (1990). In search of beneficence: Reflections on the connections between firm social and financial performance . Proceeding, International Association for Business and Society Annual Meeting, 1–15.

    Google Scholar 

  • Tencati , A., Perrini, F., Pogutz, S. (2004). New tools to foster socially responsible behavior. Journal of Business Ethics, 53, (1/2),173–190.

    Article  Google Scholar 

  • Thornhill, S., White, R. E. (2007). Strategic purity: A multi-industry evaluation of pre vs hybrid business strategies. Strategic Management Journal, 28, 553–561.

    Article  Google Scholar 

  • Tilley, F. (2000). Small firm environmental ethics how deep do they go? Business Ethics: A European Review, 9(1), 31–41.

    Article  Google Scholar 

  • Toro, D. (2006). El Enfoque Estratégico de la Responsabilidad Social Corporativa: Revisión de la Literatura Académica, Intangible Capital, 14(2), 338–358.

    Google Scholar 

  • Treacy, M., Wiersema, F. (1995). The discipline of market leaders. Addison-Wesley. Reading, MA.

    Google Scholar 

  • Venkatraman, N. (1989a). Strategic orientation of business enterprises: The construct, dimensionality and measurement. Management Science, 35(8), 942–962.

    Article  Google Scholar 

  • Venkatraman, N. (1989b). The concept of fit in strategic research: Toward verbal and statistical correspondence. Academy of Management Review, 14(3), 423–444.

    Google Scholar 

  • Vogel, D. (2005). The market for virtue: The potential and limits of corporate social responsibility. Washington, DC: Brooking Institution Press.

    Google Scholar 

  • Vyakarnam, S., Bailey, A., Myers, A. Burnett, D. (1997). Towards an understanding of ethical behaviour in small firms. Journal of Business Ethics, 16(15), 1625–1636.

    Article  Google Scholar 

  • Xertatu (2005). Conocimiento y actitud de las pymes de Bizkaia ante la RSC y su eventual desarrollo, Departamento de Innovación y Promoción Económica de la Diputación de Bizkaia.

    Google Scholar 

  • Zadek, S. (2005). The path to corporate responsibility. Harvard Business Review, 82(12),125–132.

    Google Scholar 

Download references

Acknowledgments

The authors deeply thank to Jose Mª Guibert for his support and two anonymous referees for their comments on the study. The financial support of Diputación Foral de Gipuzkoa (through the Departamento para la Innovación y la Sociedad del Conocimiento, via Red Guipuzcoana de Ciencia y Tecnología) and Gobierno Vasco (through the Grant Program to support the activities of the research team “Firm Competitiveness and Economic Development” from the Basque University System) is gratefully acknowledged. The remaining errors and omissions are entirely the responsibility of the authors.

Author information

Authors and Affiliations

  1. ESTE – School of Management, University of Deusto, Camino Mundaiz, 50, 20012, San Sebastián, Spain

    Cristina Iturrioz, Cristina Aragón, Lorea Narvaiza & Asunción Ibañez

Authors
  1. Cristina Iturrioz
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Cristina Aragón
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Lorea Narvaiza
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Asunción Ibañez
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Cristina Iturrioz .

Editor information

Editors and Affiliations

  1. University of London, School of Management, Royal Holloway, Egham, Surrey, TW20 0EX, United Kingdom

    Laura Spence

  2. Dept. Philosophy, DePaul University, N. Clifton Ave. 2352, Chicago, 60614, Illinois, USA

    Mollie Painter-Morland

Annexe 1 – SR Behaviour Scale for SMEs: Items’ Description

Annexe 1 – SR Behaviour Scale for SMEs: Items’ Description

Final dimension

Items

Item original dimension

Responsible ownership

53. Company decisions are subject to the owners’ needs, circumstances and preferences

55. The proprietors frequently demand a distribution of dividends over the advisable level for the business, and usually transfer personal non-business expenses

50. There is resistance to allocating the financial resources needed to renovate business

58. The company has limited the careers of capable managers in order to guarantee the presence of owners or members of their families in key management positions

54. Company decisions are not always taken following market criteria

52. The owners of the company personally make and execute day-to-day decisions, besides managing the company

30. The company seeks to obtain maximum short-term yield in each commercial agreement, without evaluating the long-term consequences for the business relation

Good governance

Good governance

Business revitalization

Good governance

Good governance

Good governance

Responsible relationships

with value-chain agents

Environment

8. The company allocates resources to environmental issues despite there being no economic sanctions

11. The company allocates resources to projects to reduce atmospheric emissions and/or acoustic pollution, beyond the established legal minimums

10. The company allocates resources to projects to reduce waste, to reuse and recycling, beyond the established legal minimums

9. The company has ISO-14000 or equivalent environmental certification, or is in the certification process, to guarantee their environmental quality

12. The company allocates resources to projects to optimize energy use: water, electricity, use of clean and renewable energies, etc, beyond the established legal minimums

Environment

Environment

Environment

Environment

Environment

Local community

37. The company knows the community it works in, evaluates the impact of its activities and participates in the solution of problems

36. The company supports social and beneficial activities: it sponsors local sports teams, organizes activities (contests, prizes,…), directly or by giving support to workers involved in them

35. The company works with local agents and institutions on e.g. educational campaigns and/or initiatives of public interest in the community

33. The company participates actively in networks or programmes for negotiations and joint transaction of materials or services

34. The company participates actively in networks or programmes for joint innovation in processes or products and/or to establish business interests in new markets

24. The company has an ethical commitment it publishes and communicates to its clients

45. The company has entered new social and environmental-related businesses

Local community

Local community

Local community

Responsible relationships

with value-chain agents

Responsible relationships

with value-chain agents

Responsible relationships

with value-chain agents

Business revitalization

Innovation

41. The company has begun to sell in new client segments

40. The company has begun to sell in new geographic markets

42. The company has marketed new or improved products or services

43. The company has developed innovations in key internal processes that improve

competitiveness

Business revitalization

Business revitalization

Business revitalization

Business revitalization

Internal community of people

16. The company invests to make the job a place of personal and professional development and has improved staff satisfaction and boasts rates of absenteeism lower than the average in the sector

15. The company seeks to give employees job stability and has obtained rates of rotation lower than the sector average

17. The company reviews wages and salaries in line with the degree of staff members’ professional development

Internal community of people

Internal community of people

Internal community of people

Investments for competitiveness

49. The company has undertaken new investments needed to maintain or improve its competitive position

46. The company has made important investments to renew the business

47. The company gives priority to its continuity and long-term competitiveness , even though it means economic and personal sacrifices for the owner

Business revitalization

Business revitalization

Business revitalization

Responsible relationships

with value-chain agents

26. The company gives priority to suppliers that fulfil the criteria of safety, environment and product quality

25. The company satisfies its clients by fulfilling their quality, safety and environmental requirements

27. Company relations with clients and suppliers are characterized mainly by mutual trust that enables them to be more informal and flexible when necessary

Responsible relationships

with value-chain agents

Responsible relationships

with value-chain agents

Responsible relationships

with value-chain agents

Cooperation networks

31. The company belongs to business or sector associations

32. The company participates actively in networks or programmes to share information, knowledge, experience and to carry out communication actions

Responsible relationships

with value-chain agents

Responsible relationships

with value-chain agents

Equality

13. When recruiting new staff members, the company avoids gender and age discrimination, relations of friendship, nepotism and other similar practices

14. The company applies equality criteria in pay policy and professional career development, eschewing favours to friends or relatives

Internal community of people

Internal community of people

Good governance

60. The Board of Directors maintains contact with company management and asks for information frequently enough, and acts as a foil and support to company management

59. The company plans and communicates transfer of ownership of the business for when the owners retire

61. At least a third of the Board of Directors are independent advisors who participate actively

Good governance

Good governance

Good governance

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer Science+Business Media B.V.

About this chapter

Cite this chapter

Iturrioz, C., Aragón, C., Narvaiza, L., Ibañez, A. (2010). The Alignment Between Social Responsibility and Business Strategy: Implications for Social Responsibility Value Creation in Spanish SMEs. In: Spence, L., Painter-Morland, M. (eds) Ethics in Small and Medium Sized Enterprises. The International Society of Business, Economics, and Ethics Book Series, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-9331-8_13

Download citation

Publish with us

Policies and ethics

Search

Navigation