Corporate social responsibility in Small and Medium-Sized Enterprises (SMEs): A Saudi Arabian perspective

Saleh, Adel 2020. Corporate social responsibility in Small and Medium-Sized Enterprises (SMEs): A Saudi Arabian perspective. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

While the interest in Corporate Social Responsibility (CSR) is rising globally, it is frequently portrayed as a ‘luxury good’ that only large companies can afford. However, an emerging stream of literature is recognising the positive affinities between Small and Medium Enterprises (SMEs) and CSR, and the potential advantages that SMEs can gain by engaging in CSR practices. This new approach is mainly limited to studying SMEs operating in developed countries. Moreover, while there is a growing trend in CSR research in developing countries, there is still limited attention to CSR in the economically significant region of the Middle East, particularly in the Kingdom of Saudi Arabia (KSA). This thesis, therefore, aims to critically evaluate how CSR is conceived and practised in Saudi SMEs and how they can engage with CSR as an important contemporary business challenge. By employing stakeholder theory and other CSR theories explaining the SME-society relationship, the study pays particular attention to contextual factors, i.e. cultural, economic, and legal, that shape the understanding of CSR and may promote or hinder CSR engagement. A qualitative research approach was adopted to achieve the objectives of this study. Data was gathered through thirty-two semi-structured interviews with SME owner-managers and representatives of government agencies concerned with the development of the SME sector. The findings reveal that SME owner-managers’ business values are commonly influenced by a mix of social and profit priorities that shape the CSR understanding and decisions of Saudi SMEs. SME owner-managers show a moderate CSR awareness, largely associated with philanthropic modes of giving, highlighting the prevailing role of local Islamic tradition. CSR is informally managed, with no dedicated department, budget, or public reporting. Yet, non-philanthropic CSR activities are strategically practised, across different functions, in terms of mitigating and transforming value chain social impacts with a focus on internal CSR activities. This stems from CSR being mostly internally motivated by the longstanding precepts of Islamic teaching and the practical benefits/challenges such as staff motivation and cash limitations. Hence, CSR benefits are generally intangible with an emphasis on the spiritual benefits resulting from viewing God as a highly salient stakeholder. These results suggest that the CSR phenomenon is essentially context-sensitive, where religion along with other contextual factors identified in this study (e.g. government regulations, education system, social media, and MNCs), have a potential role in stimulating CSR among Saudi SMEs. Addressing these factors may resolve identified challenges relating to CSR awareness, institutional support and pressure, and CSR incentives. This thesis contributes to filling a knowledge gap by providing new insights into CSR behaviour and approaches in an under-researched area, i.e. CSR in SMEs in KSA. It also contributes by extending the application of stakeholder theory to KSA by including a spiritual entity (God) as a primary stakeholder. Further, this work proposes several theoretical/conceptual frameworks, e.g. the Saudi SMEs’ CSR pyramid, and CSR benefits for Saudi SMEs, that may be considered transferable to other nations with a similar context, i.e. Muslim majority countries. Finally, business practitioners and policymakers can use the findings of this thesis to support the CSR strategies of SMEs and increase their CSR engagement.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Business (Including Economics)
Uncontrolled Keywords:	Corporate Social Responsibility, Saudi Arabia, Small and Medium Enterprises (SMEs), Stakeholder theory, Stakeholder management, Religion, Islamic business ethics, SMEs' owner-managers, CSR pyramid
Date of First Compliant Deposit:	18 November 2020
Date of Acceptance:	17 November 2020
Last Modified:	18 Nov 2020 09:15
URI:	https://orca.cardiff.ac.uk/id/eprint/136429

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