Social responsibility practices by SMEs at the bottom of the pyramid

Abstract

Purpose – The purpose of this research to provide insights into the underresearched area of social responsibility practises by SMEs at the bottom of the pyramid (BOP). Design/methodology/approach – Drawing from the literature, the research expands and builds on the previous work of Spence and Gilligan in explaining the daily activities of owner-managers with respect to CSR at the BOP. Also the link between ethic of care and CSR practises by SMEs at the BOP is established.Findings – The ethic of care and the owner-manager’s values are the main drivers of CSR at the BOP. Due to scarce resources, most of the CSR initiatives are linked to the core of the business. CSR is not used as a strategic competitive advantage business model. Also the CSR initiatives do not come from external pressure such as stakeholders, but are internal at a human level. The CSR practices are not linked to the bottom line; self-satisfaction is the ultimate price. Originality/value – Given the limited literature on the social responsibility practices of by SMEs at the BOP, this research makes a contribution to increasing the understanding of CSR initiatives by SMEs at the BOP, as well as to the BoP literature in general.Practical implications – The paper concludes by outlining the implications for managers, policy-makers, and stakeholders, and advancing the agenda of social responsibility for future research in the fields of both the BOP and SMEs.