The effects of procurement policies on ‘downstream’ corporate social responsibility activity

Abstract

The majority of businesses are small and medium-sized enterprises (SMEs), and yet the main thrust of research into corporate social responsibility (CSR) to date focuses on the practice and behaviour of large organizations. The present study is based on the content analysis of free-flow narrative responses to a survey by 68 SME owner-managers. Insights are gained into the environmental and social criteria these firms face when tendering contracts and opinions are sought on issues such as voluntary versus imposed CSR standards. Evidence provided in the survey suggests that there are many examples of positive CSR practice among the SME community. However, we find that the burden of imposed standards, with related increases in bureaucracy and costs, can create frustrations for such firms, resulting in a potential ‘ceiling effect’ and lower overall engagement with CSR.