Corporate Social Responsibility in Small and Medium-sized enterprises in Guatemala

Abstract

Corporate social responsibility (CSR), in practice and theory, has grown immensely in the last six decades. In addition, the increasing importance of small and medium-sized enterprises (SMEs) in society and of developing nations in the global economy has also raised the interest to include these two in the CSR debate. Taking into consideration that CSR is shaped by contextual factors, such as culture and institutions, and that there is little research on CSR in Guatemalan SMEs, the aim of this study is to explore the current situation of CSR in Guatemalan SMEs.

This thesis is an exploratory and descriptive study, using a quantitative approach to collect the data. A self-administered online questionnaire was used to collect information from 53 Guatemalan SMEs, which were defined as enterprises with no more than 60 employees. The information collected related to current CSR practices (including the internal, external, environmental and supply chain dimension), the perceptions, the barriers, the reasons and the expectations for future engagement in CSR. A more interpretative position was taken to understand and analyse the data, using descriptive statistical tools.

The findings suggest that CSR practices in Guatemalan SMEs are more extensive than commonly believed, especially in practices regarding the wellbeing of employees. They also suggest that the approach of Guatemalan SMEs towards CSR is influenced by two factors. First, by their small size, which means that Guatemalan SMEs share some particularities with SMEs elsewhere. For example, the lack of a strategic approach towards CSR, the great influence of internal stakeholders and the implementation of practices that have direct benefits for the business. Second, contextual factors also influence Guatemalan SMEs. For example, religious beliefs are very influential reasons for CSR, the lack of finances and governmental support are strongly related to the institutional context, and the current CSR practices relate greatly to the needs perceived in the surroundings of SMEs. Finally, some recommendations were made with the purpose of creating favourable conditions for the development of CSR in Guatemalan SMEs.