Challenges in implementing corporate social responsibility: A study of SMEs in South Africa's Construction Industry

Abstract

To date, there is a paucity of research on the concept of corporate social responsibility (CSR), particularly the practice of CSR within the  global and local construction industry. This extends to studies identifying CSR implementation challenges affecting construction  organisations. This article investigates the CSR implementation challenges affecting SME owner-managers in the South African  construction industry and analyses whether small and medium enterprises (SMEs) are affected similarly or differently. This article serves  as a guideline for further research regarding mitigating measures towards the CSR implementation challenges experienced by SME  owner-managers in the South African construction industry. Existing literature is reviewed to provide an overview of the current CSR implementation challenges from both the global construction industry and generic business sectors guided by the St. Gallen  Management Model. The study conducts a mixed method research approach, using an online questionnaire survey and structured face- to-face interviews, with the data analysed using both descriptive (mean, standard deviation, rank, and themes) and inferential (Analysis of  Variance ANOVA) statistics. Findings reveal that SMEs in the South African construction industry are affected by CSR implementation  challenges related to a lack of integration in the SME culture and business objectives; limited financial resources to undertake CSR  initiatives; lack of CSR skills and knowledge, and unstable economic conditions. In addition, although SMEs are categorised differently in  terms of their Construction Industry Development Board (cidb) grade and their upper limit of tender value range, the two groups of  contractors’ experience similar CSR implementation challenges across four management levels as guided by the St. Gallen Management Model. This finding will guide future research regarding mitigating factors to address CSR implementation challenges experienced by  SME owner-managers in the South African construction industry.

Tot op hede is baie min navorsing gedoen oor die konsep van korporatiewe sosiale verantwoordelikheid (KSV), veral die praktyk van KSV  binne die globale en plaaslike konstruksiebedryf. Dit strek tot studies wat KSV-implementeringsuitdagings identifiseer wat konstruksie- organisasies raak. Hierdie werk poog om die KSVimplementeringsuitdagings wat klein en medium ondernemings (KMO)-eienaars/ bestuurders in die Suid-Afrikaanse konstruksie bedryf raak, te ondersoek, en om te analiseer of KMO’s soortgelyk of anders geraak word,  wat as ’n riglyn dien vir verdere navorsing rakende versagtende maatreëls teenoor die KSV-implementeringsuitdagings wat deur  KMO-eienaars/bestuurders ervaar word. Bestaande literatuur is gebruik om ’n oorsig te verskaf van die huidige KSV- implementeringsuitdagings van beide die globale konstruksiebedryf sowel as generiese sakesektore gelei deur die St. Gallen Bestuursmodel. ’n Gemengde navorsingsbenadering is gevolg deur gebruik te maak van ’n aanlyn vraelysopname en gestruktureerde  persoonlike onderhoude, met die data wat ontleed is deur beide beskrywende (gemiddelde, standaardafwyking, rangorde en temas) en  inferensiële (Analise van Variansie ANOVA) statistieke te gebruik. Die bevindinge toon dat KMO’s in die Suid-Afrikaanse konstruksiebedryf geraak word deur KSV-implementeringsuitdagings wat verband hou met ’n gebrek aan integrasie in die KMO-kultuur en  besigheidsdoelwitte; beperkte finansiële hulpbronne om KSV-inisiatiewe te onderneem; gebrek aan KMO-vaardighede en -kennis, en onstabiele ekonomiese toestande. Alhoewel KMO’s verskillend gekategoriseer word in terme van hul Konstruksie-industrie  Ontwikkelingsraad gradering en hul boonste limiet van tenderwaarde-reeks, ervaar die twee groepe kontrakteurs soortgelyke KSV- implementeringsuitdagings oor vier bestuursvlakke, soos gelei deur die St. Gallen-bestuursmodel.