An assessment of reporting tools used for corporate social responsibility in the Small, Medium, and Micro Enterprises (SMME) Sector in Kwazulu-Natal

Abstract

Small, Medium and Micro Enterprises (SMMEs) are considered as the key role drivers in order to close the gap of inequality, particularly when it comes to investing in disadvantaged communities. In South Africa, Corporate Social Responsibility (CSR) is proposed as a strategy to revive the competitiveness of SMMEs. As global competitiveness continues to be a momentous trend, the notion of CSR is proposed as an impressive strategy to invigorate the operations and competitiveness of SMMEs. The aim of this study was to assess the reporting tools used for CSR in the SMME sector in KwaZulu-Natal (KZN). In so doing, this study utilised a qualitative research approach to assess the reporting tools used by the SMME sector. Nonprobability and judgmental sampling was used to obtain participants. The target population was selected from the three geographic areas in KZN, namely Pietermaritzburg, Durban and Richards Bay. The population centered on 15 CEO’s, and 15 general public representatives that had benefited from the CSR projects of the 15 selected enterprises. The participants were selected by the researcher based on their involvement on CSR. In-depth interviews, observation, and focus group discussions were conducted by the researcher to collect primary data from the SMME CEO’s and the beneficiaries from their companies. The study revealed that some SMMEs used platforms such as meetings and strategic sessions to report on their CSR engagements. The findings further outlined that social media platforms such as Facebook, Twitter and Instagram were the most preferred reporting tools by SMME owners. The fact that these tools did not cost the company much was considered to be a major motivator for the adoption. Given that majority of SMMEs are actively engaged in CSR, most of them did not report their programmes at all to their stakeholders even though there are free tools that can be utilised. The study has provided additional contribution to the current literature on CSR and SMMEs. It further provided recommendations on how SMMEs can implement CSR programmes efficiently and use appropriate tools to communicate and report their CSR activities competently.