This chapter consists of four parts, which are the conclusion, implications, limitations, and recommendations. The conclusion part concludes the research through a summary of the findings. The implications are presented for SMEs to conduct CSR programs. Lastly, the recommendation for future research is offered.
Conclusion
Figure 5.1 presents the conclusion framework of the research developed through the research framework in Chapter Three, the following is the detailed descriptions of each category.
Figure 5.1. Research conclusion framework
Motivations for Conducting CSR Program
The first research question explored the motives for Taiwanese SMEs in the food industry to conduct CSR programs. However, the research found that the definition of CSR among SMEs is unclear, and the motives are relative to the concepts of CSR. For example, some
64
companies had great strategies for the fulfillment of benefits for the society and the environment, which is the concept of CSR; however, the company did not consider this is something related to CSR. The reason that leads to a lack of knowledge about the concepts of CSR among SMEs may be governmental regulation, which forces only the listed or over-the-counter (OTC) companies to conduct CSR programs. Therefore, it is important for SMEs to recognize that CSR is not only related to large enterprises but for any kind of organization. The interpretation of CSR of the case companies are: (1) the profit should pay back to the society and the environment, and (2) it is like self-regulation of the company to ensure that the company has fulfilled its core values in every business operation.
The will of the top management is the initial driver for SMEs to start the CSR program, and the high organizational identification of the employees is the key factor to sustain the CSR program. There is one goal in common for the three case companies which is making a good contribution to society. In addition, the value of the top management intensely impacts the companies’ visions and missions among the SMEs. It forms the company’s culture, which is also the initial driver of the CSR program. Besides, employees are the people who operate the CSR program. Employees of the case companies possess high organizational identification.
With the approval of the organizational culture and the value of the top management, employees are willing to implement the CSR program. At the same time, high organizational identification is also a motive for the employees to continue the CSR program.
Implementation of CSR Program
The second research question intended to discover the implementation phase of the SMEs conducting CSR program. The research found that compare to the large enterprises, CSR programs in SMEs are more related to the specific sectors which they are in as their business operations. For example, the CSR program of A Company is extended from dairy products, the CSR program of B Company is extended from Han Bing, and the CSR program of C Company is extended from the tea products. The reason is that the size and the available resources from
65
SMEs are not as adequate as large enterprises, therefore they cannot invest a great number of funds to establish a program that covers all other aspects of CSR. However, SMEs have the expertise in their profession, and this is what they can apply to their CSR programs.
The challenges that SMEs may face during the implementation phase are the limited resources and governmental regulations. Because of the size of the companies, SMEs do not have much extra budget to sponsor the CSR program. In addition, some regulations from the government had clearly set the criteria in specific sectors such as the ecology products and environmental protection. These regulations somehow restrict the development of SMEs.
However, SMEs can overcome the challenges through the following advantages. The flexibility of problem-solving and the expertise in their profession are the advantages that SMEs have in conducting CSR program, and the sources for them to overcome the challenges. Comparing to large companies, SMEs do not have to go through too many administrative layers to communicate with top management; this allows them to rapidly identify problems and figure out solutions. Typically, the business that SMEs are running becomes the key to identify their specific social responsibility, and then they will use their unique business expertise to conduct CSR programs.
Positive Outcomes after Conducting CSR Program
The third research question focuses on the positive outcomes that the case companies have gained from their CSR policies. There are a variety of benefits that SMEs can gain after implementing the CSR program. From the business aspect, implementing CSR programs leads to an increase in customer loyalty, better performance in the market, diversified business partners, and the promotion of industrial development. From the psychological aspect, implementing CSR program bring a sense of achievement to the employees.
From the business aspect, through the CSR program of the case companies, not only the products maintain a high-quality, but also the value of both the products and the companies are enriched. The customers present more confidence and loyalty after the CSR implementation of
66
the case company. The results of higher customer loyalty and the good reputation in the society also lead to a better financial performance of the case companies. The well-run CSR program and the expertise of each specific profession also provide opportunities for the case companies to cooperate with different business partners and also promote the development of the industry by exerting the new concepts into the industry.
From the psychological aspect, the employees who have experienced from the beginning of implementing CSR programs to witnessing the outcomes that the implementation has brought, gain a sense of achievement. The achievement also links back to the high organization identification and makes them want to continue the CSR programs.
Implications
This section informs several implications for SMEs to conduct CSR programs as follows.
Strong organizational identification of employees motivates CSR program
The research discovers one of the motivations not been discussed in the literature, which is the strong organizational identification of employees, and it is a key factor that motivates the company to continue CSR program. All of the three case companies possess a common goal of their own company that is consented by all employees in the company. Every employee strives for reaching the goal which also forms the strong organizational identification of the employees. Strong organizational identification motivates the effort on the implementation of the CSR programs.
The top management has a significant influence on the initiation of CSR program
The motivation of top management is the most important approach (Lepoutre & Heene, 2006;
Longenecker et al., 1989; Vyakarnam et al., 1997). The research also found that the intentions of the top management are the initial drivers for the case companies to conduct CSR programs. That also shows the value of the top management has a great impact on the company culture and the core values among SMEs. Furthermore, strong core values can be an activator that involves employees. The value of top management of three case companies plays an important role to promote the implementation
67
of the CSR programs. Therefore, top management as the leader to lead the integration of CSR concepts and the company operations can be more effective and sustainable.
To define CSR based on the core values
The research found that the definition of CSR is quite different among SMEs. Each company may have a different interpretation of CSR. Therefore, it is important to define its meaning of CSR, while establishing a structure to follow during the implementation phase. According to the research findings, the CSR program of case companies is developed through the core values of the company.
Furthermore, the CSR program has been attached as the core values in the case companies. Therefore, this research suggests that SMEs should define the concepts of CSR in their own words. In addition, the definition can base on the core values of the company.
CSR integration leads to sustainable development
Due to the size of the business, SMEs do not have unlimited resources and budgets for implementing CSR programs. How to allocate the budgets is an important issue for SMEs. According to the research findings, the case companies had integrated the CSR concepts into the business operations of the company. In this case, the investment of the CSR program can also bring two main advantages for SMEs. First, the company can apply the expertise of its profession in the CSR program, which means the company does not have to invest in something they are not familiar with, and this avoids the failure. Second, the implementation of CSR also improves business operations. For example, the case companies are serving in the food industry and they attach the CSR concepts in their business operation; therefore, the products they provide are able to remain high quality and ecofriendly.
The government should provide essential supports for SMEs while promoting CSR As the research discovered, a part of the regulations launched by the Taiwanese government seems to cause some difficulties for SMEs' operation or the CSR implementation. Therefore, the suggestion from the research is that the government could hold some forums for SMEs, in order to create opportunities of direct communication with SMEs and to know more about the needs of SMEs.
68
The government should provide essential supports for SMEs while promoting CSR among SMEs in Taiwan.
Limitations
The findings of this study have to be seen in the light of some limitations as follows.
First, the research findings have stated that the intentions of the top management have a significant impact on the core values of the companies, however, during the data collection phase, the researcher did not have the opportunity to directly interview the owner of the case companies. Therefore, the opinions and the value of the owners were collected from three different sources, which are the participants of the interview, the official documents of the case companies, and the news reports about the companies. This limits the research from obtaining a full comprehension of the opinions from the owners of the case companies.
Second, although all three case companies are Taiwanese SMEs in the food industry, however, there are some differences in the types of companies. Two of the case companies (A Company and C Company) are both social enterprises and startup companies, on the other hand, B Company is a traditional pastry shop with a long history. There are many different types of SMEs in Taiwan, therefore, the research findings may only speak for similar types of SMEs like the case companies.
Third, there are only three case studies conducted in this research, and each of them only includes a small number of interviewees, the sample of the research might be too small for generalizing the findings. Moreover, the list of customers was provided by the case companies after they confirmed the aspirations from the customers; therefore, the data from the customers might have some biases. In order to ensure the quality of the finding, the researcher had referred to the secondary data such as CSR reports and the news reports from the social media for support during the data analysis phase.
69
Recommendations for Future Research
There are two main recommendations for future research which are presented as follows.
First, future studies are advised to focus on a more specific sector in the food industry.
Although the three case companies all belong to the food industry, the operations, products, and management styles are all different among them. Therefore, the researcher suggests that future studies should examine whether there are different patterns in the general CSR implementation in a specific sector of the food industry.
Second, future studies are advised to focus on the CSR implementation in a specific type of SME, since there are more and more business types appearing in recent years, such as social enterprise, micro-enterprise, and startup company. In spite of some differences between these companies, all of them are classified as SMEs. The researcher suggests that future studies can explore if there are common concepts of CSR in a specific type of SMEs.
70
71
Reference
Aguinis, H. (2011). Organizational responsibility: Doing good and doing well. In Zedeck, S.
(Ed.). Handbook of Industrial and Organizational Psychology. Vol. 3 (pp.855–879).
Washington, DC: American Psychological Association.
Aguinis, II., & Cleves, A. (2012). What We Know and Don't Know About Corporate Social Responsibility. Journal of Management, 38(4), 932-968. doi:10.1177/0149206311436079 Block, J. H., & Wagner, M. (2013). The Effect of Family Ownership on Different Dimensions of Corporate Social Responsibility: Evidence from Large US Firms. Business Strategy and the Environment, 23(7), 475-492. doi:10.1002/bse.1798
Branco, M. & L. C. Rodrigues. (2006). Corporate Social Responsibility and Resource-Based Perspectives, Journal of Business Ethics, 69, 111–132.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance.
Academy of Management Review, 4, 497-505
Carroll. A. B. (1991) The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, July-August, 34, 30-48.
Carter, C. R., R. Kale, & C. M. Grimm (2000), Environmental Purchasing and Firm Performance: An Empirical Investigation. Transportation Research, Part E 36(3), 219-228.
CommonWealth Magazine (2019). Eligibility of 2019 excellence in corporate social responsibility. Retrieved from: http://topic.cw.com.tw/csr/report_EN.aspx
Corporate Governance Center, Taiwan Stock Exchange. (2019). Corporate Social Responsibility Overview. Retrieved from https://cgc.twse.com.tw/frontEN/responsibility CSRone. (2020). 2020 Status and Trends of Sustainability Report of Food Industry in Taiwan”
Retrieved from https://csrone.com/reports/3667
Dahlsrud, A. (2008). How corporate social responsibility is defined: an analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15(1), 1-13. doi:10.1002/csr.132
Davis, K. (1960). Can Business Afford to Ignore its Social Responsibilities? California Management Review, 2, 3 (1960): 70-76
Davis, K. (1967). Understanding the social responsibility puzzle. Business Horizons, 10(4), 45-50. doi:10.1016/0007-6813(67)90007-9
De Clercq, D., & Voronov, M. (2011). Sustainability in entrepreneurship: A tale of two logics.
International Small Business Journal, 29(4), 322-344. doi:10.1177/0266242610372460
72
Department for Business, Energy and Industrial Strategy (BEIS), United Kingdom. (2011). A Guide to Legal Forms for Social Enterprise. November. 21, 2011. Retrieved from:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment _data/file/31677/11-1400-guide-legal-forms-for-social-enterprise.pdf
Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability.
Business Strategy and the Environment, 11(2), 130-141. doi:10.1002/bse.323
Eells, R. & C. Walton, (1974), Conceptual Foundations of Business, 3rd Edition. Burr Ridge, IL: Irwin.
Eisenhardt K.M. (1989). Building theories from case study research. Academy of Management Review 14(4), 532-550.
Elkington, J. (1998). Partnerships from cannibals with forks: The triple bottom line of 21st-century business. Environmental Quality Management, 8(1), 37-51.
doi:10.1002/tqem.3310080106
Emmelhainz M. A., Adams R. J. (1999) The Apparel Industry Response to “Sweatshop”
Concerns: A Review and Analysis of Codes of Conduct. Journal of Supply Chain Management, 35(3), 51–57.
E
uropean Commission. (2001). Green paper: Promoting a European framework for corporate social responsibility. July 21, 2015. Retrieved from http://europa.eu/rapid/press-release_DOC-01-9_en.pdfEuropean Commission. (2006). Implementing the partnership for growth and jobs: Making Europe a pole of excellence on corporate social responsibility. July 21, 2015. Retrieved from http://docs.china-europa-forum.net/eesc_excellence_pole.pdf
Financial Supervisory Commission (FSC). (2014). Requiring certain listed companies to compile Corporate Social Responsibility Reports. Retrieved from https://www.fsc.gov.tw/en/home.jsp?id=54&parentpath=0,2&mcustomize=multimessag e_view.jsp&dataserno=201409240002&aplistdn=ou&dtable=News
Garriga, E., & Melo, D. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1/2), 51-71. doi:10.1023/b:
busi.0000039399.90587.34
Garber, A. (2005) McD Seeks Less Cruel Way to Kill Chickens, Nation’s Restaurant News 39(4), 1.
Gibbert, M., Ruigrok, W., & Wicki, B. (2008). What passes as a rigorous case study? Strategic Management Journal, 29(13), 1465-1474. doi:10.1002/smj.722
Global Views Monthly. (2019). Corporate Social Responsibility Award. Retrieved from https://csr.gvm.com.tw/2020/index.html
Granovetter, M. S. 1985. Economic action and social structure: The problem of embeddedness.
American Journal of Sociology, 91, 481-510.
73
Howard R. Bowen (1953). Social Responsibilities of the Businessman. New York, NY: Harper and Brothers.
Hsieh, H.F., & Shannon, S. E. (2005). Three Approaches to Qualitative Content Analysis.
Qualitative Health Research, 15(9), 1277-1288.doi:10.1177/1049732305276687.
Inoue, Y., & Lee, S. (2011). Effects of different dimensions of corporate social responsibility on corporate financial performance in tourism-related industries. Tourism Management, 32(4), 790-804. doi:10.1016/ j. tourman.2010.06.019
Jamshed, S. (2014). Qualitative research method-interviewing and observation. Journal of Basic and Clinical Pharmacy, 5(4), 87. doi:10.4103/0976-0105.141942
Jenkins, H. (2009). A “business opportunity” model of corporate social responsibility for small- and medium-sized enterprises. Business Ethics: A European Review, 18(1), 21-36.
doi:10.1111/j.1467-8608.2009. 01546.x
Kaptein, M. and J. Wempe: 2002, The Balanced Company: A Theory of Corporate Integrity.
Oxford, UK: Oxford University Press.
Karl V. Lins., Servaes, H., & Tamayo, A. (2017). Social Capital, Trust, and Firm Performance:
The Value of Corporate Social Responsibility during the Financial Crisis. The Journal of Finance, 72(4), 1785-1824. doi:10.1111/jofi.12505
Kimberlin, C. L., & Winterstein, A. G. (2008). Validity and reliability of measurement instruments used in research. American Journal of Health-System Pharmacy, 65(23), 2276–2284.
Kong, D. (2012). Does corporate social responsibility matter in the food industry? Evidence from a natural experiment in China. Food Policy, 37(3), 323-334. doi:10.1016/j.
foodpol.2012.03.003
Lepoutre, J., & Heene, A. (2006). Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review. Journal of Business Ethics, 67(3), 257-273.
doi:10.1007/s10551-006-9183-5
Leung, S. (2003). McDonald’s Wants Suppliers of Meat to Limit Antibiotics Use. Wall Street Journal, B2.
Linnanen, L. & V. Panapanaan, (2002). Roadmapping CSR in Finnish Companies, Helsinki University of Technology.
Lincoln, YS. & Guba, EG. (1985). Naturalistic Inquiry. Newbury Park, CA: Sage.
Liu, S. K (2016). The Evolution of Social Capital in Implementing Corporate Social Responsibility in Small and Medium Enterprises. (master’s thesis). Retrieved from https://hdl.handle.net/11296/h6s8rg
Longenecker, J. G., McKinney, J. A., & Moore, C. W. (1989). Ethics in small business. Journal of Small Business Management, 27(1), 27-31.
74
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. doi:10.1111/j.1540-627x.2006. 00162.x
Lu, Y. R., & Xia, D. Y. (2009). CSR? Nearly Fifty Percent SMEs Have Love-Hate Relationship.
[Text in Chinese.] Taiwan Environmental information Association (TEIA). Retrieved from:
https://e-info.org.tw/node/44362
Maon, F., Lindgreen, A., & Swaen, V. (2010). Organizational Stages and Cultural Phases: A Critical Review and a Consolidative Model of Corporate Social Responsibility Development. International Journal of Management Reviews, 12(1), 20-38.
doi:10.11116.1468-2370.2009. 00278.x
Maloni, M. J., & Brown, M. E. (2006). Corporate Social Responsibility in the Supply Chain:
An Application in the Food Industry. Journal of Business Ethics, 68(1), 35-52.
doi:10.1007/s10551-006-9038-0
Matten, D., & Moon, J. (2008). “Implicit” and “Explicit” CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility. Academy of Management Review, 33(2), 404-424. doi:10.5465/amr.2008.31193458
McWilliams. A., & Siegel. D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review, 26(1), 117-127.
doi:10.5465/amr.2001.4011987
Merriam, S B. (2009). Qualitative Research: A Guide to Design and Implementation. San Francisco. CA: Jossey-Bass
Mertens, D.M. (2005). Research methods in education and psychology: Integrating diversity with quantitative and qualitative approaches. (2nd ed.) Thousand Oaks, CA: Sage.
Miles. J., & Gilbert. P (2005). A Handbook of Research Methods for Clinical and Health Psychology. (P.65-76) Oxford, UK: Oxford University Press
Montiel, I. (2008). Corporate Social Responsibility and Corporate Sustainability. Organization
& Environment, 21(3), 245-269. doi:10.1177/1086026608321329
Moir, L. (2001). What do we mean by corporate social responsibility? Corporate Governance:
The International Journal of Business in Society, 1(2), 16-22.
doi:10.1108/eum0000000005486
Murillo, D., & Lozano, J.M. (2006). SMEs and CSR: An Approach to CSR in Their Own Words. Journal of Business Ethics, 67(3), 227-240. doi:10.1007/s10551-006-9181-7.
Ordonez, J. (2000). ‘McDonald’s Hen-Care Guidelines Lead Egg Producers to Warn of Higher Prices’, Wall Street Journal, B16.
75
Porter, M. E., & Kramer, M. R. (2006). Strategy and society: The link between corporate social responsibility and competitive advantage. Harvard Business Review, 84(12), 78-92.
Scott, W. (1995). Three Pillars of Institutions. in Institutions and Organizations, Thousand
Scott, W. (1995). Three Pillars of Institutions. in Institutions and Organizations, Thousand