The aim of this chapter is to present the findings of the research following the research framework, in order to answer the research questions. Last, the discussion of the connection between the findings and formal literature is also presented.
Table 4.1.
Outlines for Research Questions and Findings Research Questions Finding
1. What motivates the SMEs to conduct CSR practices?
Definitions of CSR
A. Return the profit to public
B. Represent core values in operations Motivations
A. The intention of top management
B. Organization identification of employees C. Make society better
A. Developed through the business operation Challenges
A. Resource restrictions B. Specific regulations Advantages
A. Flexibility to solve problems B. Business expertise
3. What are the positive outcomes after the implementation of the CSR program?
A. Increase of customer loyalty B. Better performance in the market C. Diversified business partners
D. Sense of achievement from the employees E. Promotion of industrial development
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Table 4.1 presents the outlines of the main findings for each research question. The findings of the first research question are the definitions of CSR and the motivation of conducting CSR. The definitions of CSR are returning the profit to the public and representing core values in operation. Besides, the motivations of conducting CSR are the intention of top management, organization identification of employees, and making society better. The findings of the second research question include three parts which are the implementation of CSR programs, the challenges of conducting CSR programs, and the advantages of conducting CSR programs. The implementation of CSR programs is developed through the business operation, the challenges are resource restrictions and specific regulations, the advantages are the flexibility and business expertise. Last but not the least, the findings of the third research question are the positive outcomes after the implementation of CSR programs which include an increase of customer loyalty, better performance in the market, diversifying business partners, sense of achievement from the employees, and promotion of industrial development.
The following sections present the explanations of the research findings in detail, which are supported by the data analysis.
The Definition of CSR among SMEs in Taiwan
During the invitation process of the interviews, the researcher found that the definition of CSR is unclear among SMEs in Taiwan. Therefore, before discussing the motivations of conducting the CSR program, the definition of CSR to SMEs in Taiwan should be identified first. According to the replies from some targeted companies who are social enterprises, which means they were founded to solve a specific social issue, they thought CSR is a sort of specific activity. The other SMEs even considered CSR is only for large companies and is mandated by the government.
An outstanding social enterprise that devotes to promoting fair-trade and environmental
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protection had refused the interview with the reason that their operation did not include CSR;
however, their vision and mission presented on their website show concerns to the environment and society. After the discussion about the definition of CSR, the customer service person of the company explained:
Since our company is a social enterprise, every operation of our company is also based on the concepts of social enterprise. Therefore, we think that there are some differences between our operations and your research topic.
Furthermore, during the communications with another company, the customer service person of the company also raised suspicion about the relevance between social enterprise and CSR, the customer service person of the company mentioned:
We are a social enterprise, so there are some differences between the topic of CSR. When we talk about CSR, we often suggest contacting some large companies such as listed or over-the-counter (OTC) companies. Because they would supposedly have implemented the so-called CSR.
However, there is still a similarity between the definitions of CSR between two of the three case companies. A Company and B Company thought under the premise that the company has profit and the operation of the company is stable, the company should return the profit to wherever they received the revenue, it could be the customers, employees, suppliers, environment, and even the society. On the other hand, C Company considered CSR is to represent its core values on all of the operations. The interpretations of the CSR of three case companies are as follows:
A Company
The concept of CSR to A Company is very simple. For any business sector, the profit should return to where they gain it, the sales director of A Company mentioned:
In our opinion, there is no doubt that if a company is seeking profit, and the revenue of the company is from the society, then we should do something as a return to the society. For us, the concept is quite simple, where we received the profit is also where we should use the profit.
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B Company
B Company also considered that return the profit to the society is the concept of CSR. The executive assistant Jennifer stated:
We have been receiving lots of supports from our customers and the society for a long time;
therefore, we determined that once we got the ability we should also support the society. That is the reason why one of our CSR practices is to keep supporting different charitable foundations.
C Company
C Company considered that CSR seems like the self-regulation of the company. To ensure the company has fulfilled its core values in every business operation. The Chief Operation Officer (COO) of C Company, Ann, explained:
We think the most important thing is whether the initial core values that we’re promoting has been implementing in the operations and our customer service. Or we can say to ensure we have integrated our core values in every process of producing and selling, is our corporate social responsibility.
C Company considered that the CSR concerns at the same time are also the fundamentals of the social enterprises running their business. Bill (production management manager) also explained:
We considered to reach sustainable agriculture and retain the biodiversity in Pinglin is our company CSR concerns. Additionally, we have integrated the concerns into the corporate DNA.
Our operation is as well the representative of our CSR concerns. Or you can say it has further become one of our core values. In my opinion, for a social enterprise like our company, the concerns I had mentioned above are the fundamentals of us.
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The Motivations of Conducting CSR Program
Although the business operations and the CSR programs are different among three case companies, there is still one goal in common among three case companies in implementing CSR: they want to make our society better. This stems mostly from the will of the top management which forms the company’s vision and mission and also influences the organizational culture. With a strong connection to the organizational culture, employees in the case companies possess high organizational identification. Therefore, each of the three case companies determined its own mission for making a better society. Overall, the high organizational identification of employees is the motive that drives SMEs to conduct CSR programs and further integrates this concept in business operations. The motivation for conducting CSR programs in three case companies are presented as follows:
A Company
Company mission formed through the will of top management.
The initial purposes of the founder were very simple, he wants to give cattle ranchers a better treat and make the domestic dairy products more reliable to customers by providing clear information of the source. In the beginning, the employees of A Company concentrated on applying their expertise of veterinary into the support to the cattle ranchers. As time passes, they recognized these behaviors are so-called CSR, in addition, these kinds of operations are making good contributions to society; therefore, they should carry on these operations. It was formed as the culture of A Company. The sales director Sandy explained:
The intention of the founder was very simple, he thinks we should not have any doubt about the food we ate. At the same time, he was also a veterinarian for big animals, so he knew how serious the cattle ranchers treat the cattle and how high the quality of their products they had provided;
however, the consumer did not have the opportunity to realize how much effort the ranchers have
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paid for producing the dairy products. Therefore, he considers our company as a bridge between the cattle ranchers and the customers. We make the whole production process transparent, in the case, the customers can purchase products that they have the detail information of the source, besides, the ranchers can receive the affirmation from the customers and the deserved rewards.
Later on, we realized the thing we are doing is CSR and it was making good contributions to our society; therefore, we should continue these behaviors.
Organizational identification.
With the approval of the founder’s purposes, the employees of A Company consider treating cattle ranchers better, and improving the dairy industry in Taiwan is their company mission. Furthermore, their culture is to collaborate with all company members and complete these company missions. It has formed a strong organizational identification, it’s also become a motivation for them to carry on their CSR program. The customer service of A Company, Ella, explained:
We think treating cattle ranchers better and make the industry improved is very important to our company. And our culture is to cooperate with each member of our company. Therefore, the relationship between the employees in our company is very connected. We also think that it is very meaningful for us to support someone who needs help with our extra revenue.
The sales director Sandy also mentioned:
In fact, we just wanted to treat cattle ranchers better, treat our employees better, and treat our society better. Later on, we realized that this is the CSR of our company. We think we should continue these behaviors because we are doing the right things and we are doing good things.
Fortunately, our company members all give a lot of supports to this vision.
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B Company
Company mission formed through the will of top management.
As previously reported by Yeh and Chiu (2020), to promote the traditional Chinese pastry culture has been seen as the responsibility of B Company. It is also considered as the mission of B Company. In order to accomplish this mission, sustainable development is necessary for B Company to maintain competitiveness and influence in both customers and the community.
The top management of B Company also considers implementing CSR into the business operation is one of its strategies to reach their corporate sustainability. Therefore, they formulated a complete CSR program based on the intention mentioned above. Simultaneously, the employees of B Company intensively identify the vision and mission of the company. It is the reason why B Company can persist in the implementation of its CSR program. Jennifer further explained:
Since we have been making Han Bing (traditional Chinese pastry) for over a hundred years, we consider promoting the aesthetics and Han Bing culture is the goal of our company. To accomplish this goal, the sustainable development of our company is necessary. Conducting the CSR program is one of our strategies to reach our corporate sustainability (CS). In addition, the strong intention of promoting the Han Bing culture is also supporting us to insist on the implementation of the CSR program.
Organizational identification.
Passing down the traditional Chinese pastry culture has been seen as the fundamental of B Company’s CSR program by the owner of B Company. In fact, the CSR activity of B Company can be traced back to more than ten years ago, they were trying to teach children about the Chinese culture through the collocation with the traditional pastry and the Chinese legendary story. This was also the prototype of B Company’s CSR program. also, increase the identification of the employees. Jennifer mentioned:
Actually, we have been doing CSR for more than ten years. We have held the storytelling activity
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for children at the Chinese festival such as New year, Mid-autumn, and the dragon boat festival.
We would prepare so related desserts for them to let them know the connection between the Han-Bing and each specific festival. We are trying to pass down these cultures. These activities also increase the determination of our employees in participating in CSR issues.
C Company
Company mission formed through the will of top management.
The motive that drives C Company to conduct CSR program is very clear, which is also the initial purposes of the founder to establish the company, to facilitate an alternative farming style in Pinglin, called intensive and under-contract farming. They expect to reach sustainable agriculture and retain the biodiversity in Pinglin. Ann mentioned:
The reason we established the company is to solve the issue about the restriction of tea farming caused by the construction of the Feitsui Reservoir. If we wish our water resource is reliable for drinking, we should pay attention to the water usage upstream of the river, and the farming style of the farmers should exclude chemical fertilizer and pesticides. Therefore, the core values of our company are to promote a non-chemical fertilizer and non-pesticide watershed, in order to ensure the environment is not been polluted. It is also our responsibility.
Organizational identification.
A strong connection with the core values of the organization is the factor that keeps the high motivation for conducting CSR programs. Bill (production management manager) mentioned:
I used to be interested in the issues related to environmental protection, my last job was more related to environmental education. However, I was seeking an organization that is more sustainable and more directly conducting the protection. This company provides an opportunity for me to work for the environment.
Damon (access management specialist) also mentioned:
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In fact, environmental pollution might have existed for years. However, we are concentrating on the issues which are not focused on by others, and I think we are doing the right things and should keep promoting. Furthermore, it can also link to our core values.
The Implementation of CSR Program
The decision-making phase and the implementation of the CSR program of three case companies are presented as follows.
A Company
All of the CSR practices of A Company are decided base on the capacity of the company.
Adapting its capacity for promoting the industry sustainability, fulfilling the needs of stakeholders, and reaching the common good for the society are the three keys to A Company’s CSR program implementation. They cannot do everything, but they can do what they are expert in. Sandy mentioned:
We will only do the things that we are good at, For the cattle ranchers, we can ensure their revenue and provide the support that they may need. These can make the industry sustainable; therefore, these are the things that we are conducting. Besides, the employees’ benefit is also what we have focused on. Last, the common good of society is also what we are able to do, we have the ability to provide our products for someone who needs them.
Promote the sustainable industry.
The sustainability of the dairy industry in Taiwan is the issue that A Company has been striving for since the company was established. There are two strategies to reach the goal:
facilitating the fair-trade in the dairy industry and cultivating the talents of big animal veterinary in Taiwan? A Company purchases the raw milk from cattle ranchers who devote to optimize the pasture management with a higher price comparing to the market. The company intends to encourage other ranchers to improve their pasture management. Besides, A Company
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also applies its expertise in veterinary, supporting the cooperating ranchers with veterinary knowledge in order to produce high-quality dairy products and assure animal welfare. In addition, the company also provides an internship for students studying in big animal veterinary with an allowance. The company hopes the shortage of big animal veterinarians can be minimized. Sandy explained:
We should guarantee that they receive what they deserve. In fact, the milk source in Taiwan is not sufficient as other countries, and because of the cost considerations, the purchasing price of the large company might not be so high. Therefore, we provide the purchased price which is higher than the market to ensure the cooperating ranchers have higher revenue. Additionally, we also encourage them to upgrade the ranch management with our support. In addition, we apply our veterinarian knowledge to assist the ranchers to make sure the cattle are healthy in order to maintain the quality of the products; at the same time, we also guide the talents of big animal veterinary by providing the internships with an allowance in our cooperating ranches. We consider that once the students have more understanding of the industry, the opportunity for their retention is higher.
Fulfill the needs of stakeholders.
The direct stakeholders of A Company are cattle ranchers, employees, and customers. As the treatment to the ranchers above, A Company also has the responsibility to treat employees and customers well. To employees, A Company is A Company that respects every employee’s opinions, employees in the company have many opportunities to fulfill their ideas. Most of the charitable activities are proposed by the employees periodically, and the management level gives a lot of support for the employees. In addition, employee welfare is one of the terms of the CSR program of A Company. The company attempts to build an amicable environment for employees. Ella explained:
We call our company members as partners. Whenever any of our partners have discovered charitable activity that we are able to help, the partner will propose the idea to the management
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level. Although it is not related to our operation; however, most of the time the managers will approve it. The company empowers us to do many things that we think are meaningful. We have most of the benefits that other companies had, and we even have something more special. For instance, our partners also take turns cooking lunch for all of our members in our kitchen. In addition, we will hold a common-good meeting, to praise the favorable behavior of our partners and have fun together. It’s unique and makes our relationship become more connected.
To customers, A Company produces high-quality products with a transparent source so that customers need not worry about food safety issues. In addition, the company always listens to the feedback from customers in order to ensure their demands have been satisfied. Ella further explained:
Providing the best products is an essential part of our company. We make all the process transparent so that customers can purchase our products without any worry. We also keep in touch with our customers through social media, in this way, we make sure we have satisfied every need
Providing the best products is an essential part of our company. We make all the process transparent so that customers can purchase our products without any worry. We also keep in touch with our customers through social media, in this way, we make sure we have satisfied every need