Exploring the Links Between CSR, Good Governance, and Corporate Reputation: A Proposal of Indicators in SMEs

Exploring the Links Between CSR, Good Governance, and Corporate Reputation: A Proposal of Indicators in SMEs

Mercedes Rubio-Andrés (CEU San Pablo University, Spain), Mª del Mar Ramos-González (CEU San Pablo University, Spain) and Miguel Ángel Sastre-Castillo (Complutense University of Madrid, Spain)
Copyright: © 2021 |Pages: 25
DOI: 10.4018/978-1-7998-4833-2.ch007
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Abstract

The chapter looks to contribute in a theoretical way to the measurement of the concepts of CSR (corporate social responsibility), good governance, and reputation in SMEs, since they are concepts of great importance in business management and are related. Social responsibility actions through the exercise of good governance means that SMEs can obtain a solid reputation. The purpose of the chapter is to develop how companies that incorporate social responsibility into their business model achieve a better image in the eyes of their stakeholders. Codes of ethics play an important role as an instrument of good governance. As a result, the chapter proposes measurement indicators to be used in future empirical research to verify the effects of causality. They can be a valuable tool for knowledge management as a source of innovation for SMEs.
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Methodology

The present study uses as methodology the review of the literature related to CSR, good governance, codes ethics and reputation, from the last decades and specifically related to SMEs, which needs further study due to the scarcity of specific research and its importance.

The bibliometric study by Bikefe et al. (2020) shows that most CSR publications have focused on identifying the various ways in which SMEs are implementing CSR. Furthermore, most adopted the survey as the dominant research method. These authors propose that future studies should combine a variety of methods to gain a better understanding of CSR issues.

The proposed indicators should be measured using an owner-manager assessment questionnaire with questions with dichotomous answers or Likert scales. As an additional source, sustainability reports that are increasingly used and codes of conduct can be consulted.

Key Terms in this Chapter

Waste Recycling: It is a good practice of CSR, related to environmental management. Recyclable materials include glass, paper, metal, plastic, tires, textiles, batteries, and electronics.

Environment Management: It refers to environmental practices, such as energy and water saving activities, renewable energy sources (solar, wind, biomass), waste recycling, use environmentally friendly products.

Ethical Codes: Codes of Conduct are rules dictated, in most cases, unilaterally by companies whose application is generally not subject to external verification processes. A code is a formal statement of the principles that define the standards of a company's specific behaviour.

Stakeholders: In every organization, in addition to its owners, various key actors and social groups that are made up of people or entities that have direct or indirect interest in the performance of the company participate. In these groups we can count employees, customers, suppliers, shareholders, investors, public entities, non-governmental organizations, unions, civil organizations, the community, and society in general.

Corporate Image: The corporate image or brand image, is the set of beliefs, attitudes, and perceptions that the public have about a company or brand. That is to say, it is the way in which that public interprets the set of signals coming from the products, services and communications, emitted by the brand.

SR-HRM: Socially responsible human resource management. Human resources management initiatives that improve employee welfare such as, good working conditions, employees with stable contracts.

Transparency: Business transparency seeks to increase trust among those who have a relationship with the company, be it employees, customers, shareholders, or suppliers. Through transparency, the company lets society know how it acts, opening the way to possible criticism or value judgments. The way of transparency is communication, so we must strengthen the company's communication system both internally and externally.

Work-Family Balance: It is the balance between the professional, family, and personal life of the employees. Includes flexible work, remote work, short time.

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