A framework for measuring business social responsibility in micro and small business

Abstract

Although much work has been done on the society versus business relation issue, it has yet to cascade business social responsibility (BSR) to small ventures and especially rurally based ones where survival is a more pertinent goal. Most studies to date have focused on corporate and large organisations, thereby suggesting that BSR is not really a small business issue. A major consequence / cause of this apparent bias towards large business is limited research into how small ventures and especially rural ones perceive and apply BSR. This study proposes an instrument for measuring BSR in small ventures. Through empirical analysis the resultant instrument was found to be valid for measuring small business BSR and measured four dimensions thereof namely : Expected benefits; Community / customer practices; Realised / actual benefits, BSR awareness / attitude and employee practices. Through discriminant analysis, the identified factors of BSR are useful to classify ventures as high or low sales and profit performers, suggesting that information on a firm's BSR activities can be used as indicators of firm performance.