The influence of corporate social responsibility on business performance of a medium-sized manufacturing enterprise in eThekwini Municipal Area

Abstract

Corporate Social Responsibility (CSR) is an organisation's ongoing commitment to ethical behaviour and economic development, as well as improving the quality of life for its employees and their families, the local community, and society at large. It is an unavoidable requirement for long-term development, particularly in developing countries. Although there has been some focus on CSR and business performance in large corporations, research on CSR in SMEs, particularly in economically depressed African countries is becoming increasingly important. To reap the benefits of CSR efforts, SMEs should be encouraged to create strategic CSR frameworks. Hence this study aims to investigate the influence of CSR on the business performance of a medium-sized manufacturing enterprise in the eThekwini metropolitan area. It will contribute to theoretical discussions and improve their performance. The data for this study was gathered in two parts, that is quantitative and qualitative. The pre- and post-CSR quantitative data were derived from business performance values obtained from company records. To collect qualitative data, both semi-structured and focus group interviews with the manager and employees were used. The SPSS was used to analyse the quantitative data, while Nvivo analysed the qualitative data. Furthermore, inferential statistics used in quantitative data included regression analysis and factorial Analysis of Variance (ANOVA), while qualitative data analysis employed thematic content analysis. The findings of this study reveal that the medium-sized enterprise has a positive attitude towards CSR. Emanating from his humanity and Ubuntu, the owner of the organisation was inspired to practise CSR. The benefits gained by a sampled medium-sized enterprise that incorporated CSR into its business operations were highlighted in this study. This study adds to the existing body of knowledge on CSR and business performance in South African SMEs. It adds to the body of knowledge by creating a CSR framework for SMEs.