How Can SMEs in a Cluster Respond to Global Demands for Corporate Responsibility?

This article argues why and how a participatory approach to implement corporate social responsibility (CSR) in a cluster would be beneficial for small- and medium-sized enterprises (SMEs) who are members of the NCE – Subsea cluster in Bergen, Norway. The political and strategic reasons as well as in...

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Bibliographic Details
Authors: von Weltzien Høivik, Heidi (Author) ; Shankar, Deepthi (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2011
In: Journal of business ethics
Year: 2011, Volume: 101, Issue: 2, Pages: 175-195
Further subjects:B Corporate social responsibility
B Microclusters
B network model
B ISO 26000
B Strategy
B participatory approach
B SMEs
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Summary:This article argues why and how a participatory approach to implement corporate social responsibility (CSR) in a cluster would be beneficial for small- and medium-sized enterprises (SMEs) who are members of the NCE – Subsea cluster in Bergen, Norway. The political and strategic reasons as well as internal motivation for SMEs to incorporate CSR into their business strategies are discussed with support from relevant literature. Furthermore, we offer a discussion on the characteristics of different approaches to incorporating CSR as part of business strategy and provide examples from the Norwegian context. As part of this discussion, we look into some of the clusters in Europe which have adopted a systematic approach to implement CSR as part of their agenda. We propose a means to undertake CSR as part of the cluster through a network model to address the limitations faced by the SMEs when they try to implement CSR individually. A network model (cluster approach) to CSR will motivate the uptake of CSR among SMEs when the network (cluster) is characterized by close geographical proximity and operates in the same sector. The uptake of CSR as part of the network (cluster) agenda can also lead to innovation through cooperation and competition. The particular challenges faced by the SMEs in implementing and sustaining CSR can be also minimized by being part of a network (cluster).
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-010-0708-6