Business social responsibility (BSR) in combating hiv/aids: an exploratory study of smme practices in Cape town, South Africa

Abstract

This exploratory study investigated the business social responsibility (BSR) activities of SMMEs in Cape Town in combatting HIV/AIDS. The main objective was to determine the nature and level of commitment to addressing HIV/AIDS challenges by SMMEs. The secondary objectives were to determine SMME motivations for engaging in BSR activities, their strategic practices and main challenges, and identify HIV/AIDS BSR influential stakeholder groups. The study adopted a quantitative survey methodological approach and collected data from a sample of 300 SMMEs located in Cape Town using a 7-point Likert scale questionnaire. One hundred eighty-five (185) of these were returned, resulting in a 62 per cent response rate. SPSS version 27 statistical tool was used to analyse the data collected to extract descriptive, correlational, and inferential results reported in the study. Descriptive and ANOVA, and correlation tests were performed. Results indicated that SMMEs performed informal HIV/AIDS activities with employees and customers and were less likely to focus on community stakeholders. The community stakeholder group is not of much concern to SMMEs. Nonetheless, consistent with literature analysis results, SMMEs employed local people and provided health and safety education to employees. However, it was found that a significant proportion of SMMEs had no budget and did not know how much they spent on HIV/AIDS BSR activities. Through correlation statistics, it was found that a positive and statistically significant relationship between BSR understanding and BSR motivations. Moreover, it was also found that there is a strong correlation between BSR budget resources and stakeholder-oriented HIV/AIDS BSR activities. T-tests revealed a statistically insignificant difference between males and females regarding propensity for BSR action and a statistically significant difference in BSR practices between formally registered and informal businesses. Moreover, the literature review analysis revealed that financial challenges, a lack of institutional and government support, and business size factors impacted BSR execution capabilities. As a result, the study found that few SMMEs applied the concept as part of everyday business strategy. This study has various limitations. Firstly, typical of survey research, this study did not register a 100% response rate since some respondents chose not to cooperate during the survey. Secondly, the study was concentrated in Cape Town, limiting the findings' generalisability to other excluded areas. Thirdly, resource limitations limited the researcher to having only two assistants, which delayed the data collection process. Lastly, the research overlapped with the coronavirus period, disrupting the research environment. This study asks whether it is practicable to legitimise SMMEs as vehicles that can solve all social problems, as often claimed in the literature, considering their limited contributions to combatting HIV/AIDS in Cape Town. Specifically, the study highlights gaps between SMMEs, the level of commitment to HIV/AIDS BSR, and the needs of society.