Chapter 1 presented the main purpose and motivation of the study. The main objective of this study was identified as a need to get in-depth understanding on the nexus between CSR and SMEs in Pietermaritzburg in South Africa. Five research constructs (CSR perceptions, CSR drivers, CSR implementation, CSR challenges and CSR strategies) were identified and used to answer research questions presented in Chapter 1, Section 1.3.1. The chapter also presented the rationale of the study. The study was motivated by fact that CSR is widely associated with large businesses and is under researched in SMEs in Pietermaritzburg in South Africa. Finally the chapter presented the structure of the dissertation.
114 Chapter 2
This chapter presented a review of literature on CSR. The chapter discussed various CSR concepts relevant for the study. Stakeholder, economic and social capital theories were selected and reviewed in line with research objectives. Stakeholder theory was used to assist the researcher in identifying and understanding stakeholder’s perceptions on CSR. Economic theory also was selected to understand business views that guides and influence CSR investments while social capital theory was chosen and reviewed to get a deeper understanding of society’s expectations from businesses.
Chapter 3
Chapter 3 outlined the nature and significance of SMEs globally and in South Africa. The chapter identified SMEs as key drivers of economic growth in the global economy. However, the chapter acknowledged that there is no universal definition for SMEs and that the definition varies from country to country. It highlighted the challenges experienced by SMEs in implementing CSR programs. The chapter also outlined CSR strategies for SMEs and discussed various CSR related benefits for SMEs.
Chapter 4
This chapter outlined the research methods used by the researcher to address objectives of the study. Since the research was exploratory in nature, a triangulation approach was adopted to collect data. A comprehensive literature review was done where insights were drawn from theoretical frameworks and business concepts from a wide range of secondary sources such as peer reviewed journal articles and non-peer reviewed publications on the topic. A mixed method approach was used to collect primary data and to understand the interplay between CSR concepts in SMEs. An exploratory sequential design was used as a mixed methods approach to collect primary data. Primary data was collected in two phases. In-depth interviews were conducted first and results were used to design questions used in the second phase. Phase two consisted of a questionnaire survey with sampled SME entrepreneurs, managers/supervisors and employees of sampled SMEs. A convenience sampling technique was used as a non-probability method to select participants for the study. Thematic analysis was used to analyse qualitative data (in-depth interview data). Statistical Package for Social Science (SPSS) was used to analyse quantitative data. The chapter also outlined how validity, reliability and a pre-test were used to check the effectiveness of the research instruments used in the study.
115 Chapter 5
This chapter presented and interpreted the empirical findings of the study. Various themes were identified from in-depth interviews while SPSS (descriptive and inferential statistics) results were presented and analyzed in line with the objectives of the study.
Chapter 6
Chapter 6 discussed the research findings in line with research objectives of the study.
Objective one
The findings showed that entrepreneurs have positive attitude towards CSR practices. The findings also revealed varied perceptions of SMEs are influenced by the nature and functions of the business. Additionally entrepreneurs acknowledged various benefits they get from engaging in CSR activities. These benefits influence their understanding and association with CSR in their business activities.
Objective two
The findings revealed that there are various drivers that influenced SMEs to engage in CSR activities. The identified key CSR drivers in SMEs were the shared perceptions that CSR increases competitive advantage, helps in increasing sales, improves brand image, and attract customers, improves employee satisfaction and motivation.
Objective three
The results show that SMEs uses various activities as ways of implementing CSR. Some of the identified activities include donating food parcels to children and elderly homes, participating in community HIV/AIDS awareness programmes, help in building and donating to communities clinics, schools and less privilege pupils and donating food parcels to children and elderly homes. The findings also showed that SMEs consult stakeholders when implementing CSR initiatives.
Objective four
The research findings also showed that SMEs faces various challenges when implementing CSR activities. These challenges include lack of finance, lack of government funding, access to bank loan, lack of managerial skills, lack of information and time and inadequate workers.
116 Objective five
The results showed that SMEs form partnerships as a strategy of dealing with challenges they face when implementing CSR initiatives. The findings revealed that this approach helps SMEs the advantage of pulling their limited resources, learn from each other and having the ability to achieve successful CSR programmes.
Chapter 7
This chapter gave a summary of the study. It also outlined research contributions and discussed recommendations for further research. This is discussed in the subsequent sections below.