Navigating Social Responsibility with a Social Innovation Focus in SMEs

Abstract

The study explores features influencing small and medium-sized enterprises (SEMs) adopting social responsibility and its potential link to social innovation. The method used was qualitative, multiple-case study, with a semi-structured interview frame. The interviews were conducted with 29 representatives in ten SMEs in Netherland. The findings revealed diverse approaches to social responsibility. Despite variations, all companies shared common goals of prioritizing employee well-being, social welfare, environmental sustainability, and adopting sustainable practices. However, in most cases, there were no formal measures of social responsibility; only two companies had structured reporting frameworks, and many lacked a strategic approach to social responsibility. Employees were identified as the key innovators, driving societal progress. Their well-being served as a primary motivator for active participation in social responsibility activities. Furthermore, the influence of employees, customers, and the community on social responsibility decisions surpasses that of shareholders and investors. While specific stakeholders wield considerable influence over SEMs commitment to social responsibility, these firms often fail to recognize the strategic benefits of such integration. Bridging this awareness gap could be achieved through the active involvement of stakeholders and the strategic hiring of professionals with expertise in sustainable management. This study lays the groundwork for future research, encouraging investigations into the relationship between social innovation and SMEs engagement in socially responsible activities and exploring stakeholder motivations driving participation in socially responsible endeavours.