CSR and Small Business Innovation Assessment Answer

Introduction

This research proposal will attempt to gain critical insight into how implementing CSR into small businesses impacts their ability to innovate. There is very little research related to small online businesses implementing CSR and how that impacts their ability to innovate, this proposal will specifically address this gap. By the end of this proposal, it will have explained the research aims and how the research will be carried out. Additionally, it will contain a literature review describing this topic in more depth as well as a methodology, which will explain how the study will be conducted. It will look into small online businesses who have and have not implemented CSR and the differences in their expansion levels in order to highlight the main aim of the research as well as create an understanding of the reasons as to why some businesses were not able to innovate as much.(Sweet, 2022) states that incorporating CSR within small businesses leads to higher brand awareness and a better financial performance. (Sweet, 2022) also mentions that ‘36% of UK businesses believe CSR initiatives are very important, with 52% of them stating that it adds value to their business’ which accentuates the importance of the implementation of CSR.

Research Objectives

The aim of this research is to identify how small online businesses implement CSR and how this impacts their level of innovation. This then narrows down to the sub question, which is ‘what are the financial and social factors of CSR that affect small online business ability to innovate’. The purpose of this question is to investigate how small online businesses are able to achieve high profits and expand on their products and services when incorporating CSR. The environmental and financial benefits will also be explored. The final aim of this research is to discuss whether it is possible for a small online business to be able to implement CSR within their operations without incurring losses but instead establishing more opportunities and being further exposed to their target market and stakeholders which will in turn allow for higher levels of innovation.

Literature Review

Corporate social responsibility (CSR) is a firm's pledge to conduct business in an ethical and sustainable manner. This includes considering the social and environmental impact of its operations, as well as the health and well-being of its employees and the surrounding community (Hack et al.,2014). Implementing CSR in a small business can enable innovation in several ways. For example, CSR initiatives can assist a small business in standing out in the market and distinguishing itself from competitors (Mendes et al., 2021). A small business that focuses on sustainability, may attract customers who value these principles since CSR has grown in popularity throughout the twenty-first century, both in the corporate and public sectors.

With awareness of environmental and societal issues (such as climate change and modern slavery), society's consciousness on the influence of an individual’s behavior has grown (Valjakka, 1970). Therefore, according to small businesses CSR plays a crucial role in their ethos. If not incorporated in their operations or corporate goals there will be a risk of downfall and a loss of profits not allowing them to pass the maturity stage of the product/service life cycle(Polli & Cook,1969). Furthermore, the reason for this loss will be due to the consumers’ uninterest in the businesses products/service as they are not being socially responsible within the production process. Therefore, small businesses must distinguish themselves to their target market and make it clear through their campaigns that this is incorporated. In turn building customer trust and loyalty further allows for higher profits and innovation for business.

Not only is CSR important for customers but it's also crucial for the stakeholders and employees of the business as implementing CSR practices can help companies attract and retain top talent, as many employees are looking for companies that share their values and make a positive impact in the world. A strong CSR reputation can also help a company's relationships with customers and suppliers, resulting in a more stable and supportive environment for innovation (Kong et al., 2021).

Another reason CSR allows for innovation for small businesses is that its practices can also lead to cost savings for the business. For example, implementing energy-efficient measures can reduce energy costs, while reducing waste can save money on disposal fees. CSR for a small business is regarded as an investment not a cost because the publicity they will receive is an investment for future innovations. Many CSR actions related to environmental protection (recycling, energy efficiency, etc.) imply a savings for the business, and thus do not result in an increase in costs, but reduce them (Worldcoo, 2017). Linking this back to small business and their ability to innovate, whilst being eco-friendly it will allow for small firms to reduce costs giving them an opportunity to expand rapidly and innovate.

The triple bottom line theory is a framework for measuring a company's sustainability and success. It suggests that when evaluating a company's performance, three dimensions should be considered: economic, social, and environmental. This is also known as "people, planet, and profits” (Zak ,2017). In terms of small business and innovation, the triple bottom line theory can inspire businesses to think creatively about how to meet their economic, social, and environmental objectives. A small business, for example, may create a new product or service that meets a customer need while also being more sustainable and environmentally friendly. This can help the company stand out in the market and attract customers who want to support companies that share their values. Elkington (1997) states that This can result in the development of new processes or technologies that allow the company to operate more efficiently and sustainably, lowering costs and increasing profitability. Furthermore, the use of this theory will aid small businesses in order to reduce costs, gain customer loyalty as well as creating higher revenues in order to expand in the future.

Yuen & Lim (2016) opines, implementing CSR initiatives, on the other hand, can be difficult for small businesses, particularly those with limited resources. Implementing new processes and technologies, for example, to reduce environmental impact, can be costly and time-consuming. For example, small businesses may not have the same financial resources as larger corporations, making large-scale CSR initiatives difficult to implement. Furthermore, meeting CSR commitments can divert time and attention away from other priorities, such as developing new products or services. However, understanding these potential barriers can help businesses avoid or overcome them, increasing their chances of implementing strategic CSR successfully.

Methodology

An article's research methodology is an essential part as it systematizes the investigation and enables the research to be directed by the suggested objectives (Pandey and Pandey, 2021).By following the guidelines of Saunders’s onion and analyzing various customer relationship management models used by small companies to handle customers and maintain retention; the study will produce results by employing a suitable research design, choices, and data collection methods and techniques (Saunders et al. ,2007).

Figure 1: Saunders et al. (2007): Theory of Research Onion

Furthermore, this research will use the interpretivism philosophy approach. In contrast to positivism, interpretivism suggests that reality is subjective, socially constructed, as well as a composite of multiple perspectives. Researcher, who brings their own subjective view of observed phenomena based on personal experience, shapes the research through their lens (Rogers, 2020). Using qualitative data, specifically interviews, it will allow for the interviewees to describe how different their experience was with implementing CSR within their business in the beginning. This will then allow for a discussion due to a variety of different results and answers from the interviewees which will allow for a higher validity as there are a range of different views shared.

According to Siedlecki (2020), certain approaches largely assist a researcher in formulating the best course of action so that the study can confront each domain of the study topic. Ledford et al. (2019) stated, that an appropriate design facilitates the choice of the data collection methodologies, tools, and analysis strategies in order to produce an indicative result. Abductive designs combine both inductive and deductive reasoning to concentrate on a particular aspect. Based on Cramer-Peterson et al. (2019), the deductive design explains the possible causation between the two research variables. In comparison, an inferential design relies on inspection of the researched data obtained using primary means, as described by Vogel et al. (2011), and builds on the research assumptions. As a result, the research will assess implementing CSR behavior toward companies, the study will employ a mixed design of research by incorporating an abductive design. Assessing the data patterns discovered via primary research will consequently support or refute advancements using secondary analysis.The abductive approach allows for creativity and intuition to inform theoretical evolution and to comprehend the generalizable and specific aspects of observed phenomena (Conaty,2021).This means that despite the small sample size the data will still allow for references to be made regarding the interviewees responses.

A 15 min interview with each participant will take place. The questions asked will be open and closed in order to allow for more detailed information on their experiences. Allowing for their experiences to be applied to the theories mentioned, and working within the aims of this research study.

Interviews allow researchers to probe for additional information and ask follow-up questions. This can help to clarify and deepen the researcher's understanding of the subject. The interviewees will also be able to explain more about how they differ in terms of innovation and whether CSR plays a role in this. Interviews are a valuable research tool because they provide rich, detailed data that can help researchers gain a better understanding of a subject (Clements, 2022).

The participants of the study will be 6 small online business owners in Portsmouth and London, who will be interviewed online. Conducting through an online zoom video call which will potentially streamline the process, allowing for more practicality, less cancellations, faster data collection and a more effective time scale. Effective time management will possibly increase research productivity.

Improving time management skills is critical to developing and maintaining a successful research program (Chase et al., 2013). In interviews for qualitative research, the conversation is frequently audio-recorded and then transcribed, or recreated verbatim as a word-processed account. Additionally, we emphasized that as an interviewer, you would be interested in both the participants' words and their delivery. Preparing the data for analysis considers both the participants' actual words and their spoken expressions. As a result, transcription of audio-recorded interviews will likely take some time since you will need to not only note exactly what was said and by whom, but also attempt to indicate the speaker's emotional state and nonverbal cues. Without this additional contextual knowledge, significant events that have an impact on the way your interview or observation is conducted could go unnoticed. It is crucial to make sure that it can be connected to the background knowledge that situates the interview (Saunders et al., 2019).To avoid this from happening within interviews, voice recognition software will be used.

With regards to the sampling method theoretical sampling will be used. This is a method of collecting data and deciding what data to collect based on the theory and categories that emerge from your data. This will be useful for the research since conducting interviews questions will be asked in the interviews will allow me to find evidence for my research.This in turn will allow for a higher chance of reliable and valid results.

Overall this research proposal has explained how the research will be conducted as well as the impacts of implementing csr on small businesses has on their innovation and ability to expand.This will further be examined in the dissertation.

References

Cramer-Petersen, C.L., Christensen, B.T. and Ahmed-Kristensen, S., 2019. Empirically analysing design reasoning patterns: Abductive-deductive reasoning patterns dominate design idea generation. Design Studies, 60 (7), pp.39-70.

Clements, J. (2022, October 13). Benefits of using interviews in research. MOS Transcription Company. Retrieved January 4, 2023, from https://www.legaltranscriptionservice.com/blog/what-the-benefits-of-using-interviews-in-research/

Conaty, F. (2021). Abduction as a methodological approach to case study research in management accounting–an illustrative case. Accounting, Finance, & Governance Review, 27 (1), 21-35.

Chase, J. A., Topp, R., Smith, C. E., Cohen, M. Z., Fahrenwald, N., Zerwic, J. J., Benefield, L. E., Anderson, C. M., & Conn, V. S. (2013). Time management strategies for research productivity. Western journal of nursing research, 35 (2), 155–176. https://doi.org/10.1177/0193945912451163

Elkington, J. (1997). The triple bottom line. Environmental management: Readings and cases, 2, 49-66.

Hack, L., Kenyon, A. J., & Wood, E. H. (2014). A critical corporate social responsibility (CSR) timeline: How should it be understood now? International Journal of Management Cases, 16 (4), 46-55.

Kong, L., Sial, M. S., Ahmad, N., Sehleanu, M., Li, Z., Zia-Ud-Din, M., & Badulescu, D. (2021). CSR as a potential motivator to shape employees’ views towards nature for a sustainable workplace environment. Sustainability, 13 (3), 1499

Ledford, J.R., Barton, E.E., Severini, K.E. and Zimmerman, K.N., 2019. A primer on single-case research designs: Contemporary use and analysis. American Journal on Intellectual and Developmental Disabilities, 124 (1), pp.35-56.

Mendes, T., Braga, V., Correia, A., & Silva, C. (2021, October). Linking corporate social responsibility, cooperation and innovation: The triple bottom line perspective . Innovation & Management Review. Retrieved January 3, 2023, from https://www.emerald.com/insight/content/doi/10.1108/INMR-03-2021-0039

Pandey, P. and Pandey, M.M., 2021. Research methodology tools and techniques. Bridge Center.

Polli, R., & Cook, V. (1969). Validity of the product life cycle. The Journal of Business, 42(4), 385-400.

Rogers, jen. (2020, October). The interpretive lens – what design study as a method of inquiry can teach us. Home. Retrieved January 4, 2023, from https://vdl.sci.utah.edu/blog/2020/10/30/interpret-lens

Saunders, M., Lewis, P., & Thornhill, A. (2019). Analyzing data qualitatively. In Research methods for business students (eighth, pp. 644–645). essay, Pearson.

Saunders, M., Lewis, PHILIPPHILIP and Thornhill, ADRIANADRIAN, 2007.Research methods. Business Students 4th edition Pearson Education Limited, England. Stockemer, D., Stockemer, G. and Glaeser, 2019. Quantitative methods for the social sciences , 50 (185). Quantitative methods for the social sciences: Springer International Publishing. (FIGURE 1)

Sweet, W. by P. (2022). Pat Sweet. Asset Finance International. Retrieved January 13, 2023, from https://www.assetfinanceinternational.com/index.php/equipment-finance/news-emea/emea-articles/20953-half-of-uk-smes-failing-to-address-CSR-needs

Siedlecki, S.L., 2020. Understanding descriptive research designs and methods. Clinical Nurse Specialist, 34 (1), pp.8-12.

Vogel, S., Herron, C., Cole, S.P. and York, H., 2011. Effectiveness of a guided inductive versus a deductive approach on the learning of grammar in the intermediate‐level college French classroom. Foreign Language Annals, 44 (2), pp.353-380.

Valjakka, M. (1970, January 1). CSR and company reputation - a case study of Nike. Theseus. Retrieved January 3, 2023, from https://www.theseus.fi/handle/10024/76536

Worldcon. (2017, February 15). 5 reasons why CSR is not a cost, but an investment. Worldcoo Blog. Retrieved January 3, 2023, from https://www.worldcoo.com/blog/en/5-reasons-why-CSR-is-not-a-cost-but-an-investment/

Yuen, K. fai, & Lim, J. ming. (2016, April 6). Barriers to the implementation of strategic corporate social responsibility in shipping. The Asian Journal of Shipping and Logistics. Retrieved January 3, 2023, from https://www.sciencedirect.com/science/article/pii/S2092521216300062

Żak, A. (2015). Triple bottom line concept in theory and practice. Social Responsibility of Organizations Directions of Changes, 387, 251-264.

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