Environmental and social responsibility within SMEs : managerial perspectives from Western Sydney, Australia

Abstract

SMEs in the Western Sydney Region operate in a complex and competitive environment and are an integral part of the community in which they are based. They provide employment in the region and are also significant drivers for the growth, development and maintenance of the Western Sydney economy. It is not known nevertheless the extent to which these SMEs practice environmental and social responsibility (ESR). In order to address this knowledge gap, this thesis investigates the relationship between micro, small and medium-sized enterprises (SMEs), and ESR. More specifically, through a combination of qualitative and quantitative methods it explores four themes: a) owners/managers' conceptualisations of ESR; b) patterns of adoption of ESR practices; c) drivers of, and barriers to the implementation of ESR initiatives; and d) the role of relationships between owners/managers and their stakeholder networks in the adoption of ESR practices. The findings of the research revealed that the SME community in Western Sydney is particularly heterogeneous, and that their behaviour and approach to ESR varies according to the size and complexity of the business. For example, while the owners/managers of medium organisations adopted a more instrumental approach to ESR practices (i.e. ESR as a means to an economic end), the owners/managers of the smaller organisations (i.e. micro and small businesses) tended to display a more ethical perspective in relation to ESR (i.e. the 'right thing to do'). It was found that the smaller organisations were unable to implement formal ESR practices due to factors such as cost, time pressures and lack of knowledge. The findings also demonstrate the centrality of relationships in the SME community, revealing that, where there was a meta-purpose to common good in the relationships between SME owners/managers and their stakeholder network, members of the network were inclined to work together towards ESR practices beyond legislation. Personal relationships seemed particularly important among small and micro SMEs, notably between employees and the local community, where the business was geographically situated nearby key stakeholders. These relationships were generally tied and personal, and shaped by a high level of trust and sense of reciprocity. This research contributes to knowledge in two ways: first it enhances understanding of how SMEs in Western Sydney conceptualise and implement ESR practices. Second, it fosters a better understanding of the role and dynamics of stakeholder social capital (i.e., relationships xi between companies in a stakeholder network) which, it is argued, can to some extent, ensure outcomes associated with ESR. In more practical terms, this research provides valuable data that may be helpful to assist SMEs in dealing more effectively with environmental and social concerns in their dynamic and ever changing business context. By strengthening the relationship ties in their stakeholder network to share knowledge and resources, SMEs can overcome the common barriers to ESR such as: failure to see the economic benefits of environmental protection activities, limited information on ESR, and limited time and resources. The thesis recommends that further research be carried out to assist SMEs in Western Sydney in understanding and dealing with current and future ESR challenges, and also on the extent to which government agencies support them in ESR endeavours. Further studies should also be conducted to compare and contrast businesses of different sizes, sectors and geographical locations to find out how they can contribute to enhance knowledge of the SME-ESR relationship.

Date of Award	2014
Original language	English