Corporate social responsibility practices: evidence from the automotive manufacturing SMEs in the Ethekwini Metropolitan area

Abstract

Small and Medium sized Enterprises (SMEs) are regarded as a vital business sector in the South African economy. They elevate employment, reduce poverty, and increase the overall economic growth of any country.  It is essential that SMEs should develop and grow.  In ensuring their survival and growth, SMEs must be flexible and agile in every growth stage.  Thus, Corporate Social Responsibility (CSR) is one of the strategic tools for business survival and growth.  CSR is when organisations act responsibly and ethically towards society, the environment and other stakeholders, to maximise positive impact not just for profit. It is expected that the implementation of CSR can enhance the performance of SMEs.  Consequently, the study assesses CSR practices applied by SMEs in the eThekwini Metropolitan Area. The study was quantitative in nature.  It targeted 120 SME owners in the automotive manufacturing sector of the eThekwini Metropolitan Area.  Data collected from 110 SME owners was analysed using version 27 of the Statistical Package for Social Sciences (SPSS).  The results established that business performance increases when SME organisations support community, particularly when there is employee involvement in such support activities.  Hence, the original value of this study is in its approach in uncovering the perceptions and involvement of SMEs operating in the automotive manufacturing sector in the eThekwini Metropolitan Area in KwaZulu-Natal (in South Africa) on their CSR practices.