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Global overview of ethics and CSR in SME's - Europe
Spence, Laura Perrini, Francesco
Spence, Laura
Perrini, Francesco
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Spence, Laura
Perrini, Francesco
Perrini, Francesco
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business ethics
corporations
responsibility
corporations
responsibility
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Economic ethics
Business ethics
Business ethics
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Abstract
In this paper we outline the status quo of ethics and corporate social responsibility (CSR) in small and medium sized enterprises (SMEs) in the European Union (EU). Social issues and SMEs is an established topic of research and subject of policy making in Europe, and thus in this paper we are able to draw on existing activities to summarise what we know about the topic. Taking the simplified EU definition of an SME as having fewer than 250 employees, we describe the important position given to SMEs and entrepreneurship as drivers of the economy through job creation, social inclusion and issues such as employee health and welfare. We note that the ethics/CSR practices and strategies of SMEs tend to be greater than expected, but are informal and local community based rather than reflecting large firm approaches. To demonstrate the variety within Europe, we provide some nation-specific perspectives on CSR and SMEs with a closer look at Denmark, Italy, the UK and Central and Eastern Europe and the Baltic States. In order to influence the uptake of CSR practices in SMEs, we note the difficulties of legislatory approaches, and the need for mechanisms and information which are relevant and accessible, avoid bureaucratic initiatives and are sensitive to different sectoral issues. Raising awareness and promoting the advantages of CSR are important starting points. Focusing on the environmental sustainability perspective particularly, of key importance is the new Environmental Compliance Assistance programme. A further important new development is the recent communication of the EU on ‘Implementing the Partnership for Growth and Jobs: Making Europe a Pole of Excellence on Corporate Social Responsibility’. This clarifies the EU approach to CSR for the future as being primarily voluntaristic, and positions SMEs clearly within a European Alliance for CSR framework.
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With permission of the license/copyright holder