Skip to main content
Log in

Criteria for Responsible Business Practice in SMEs: An Exploratory Case of U.K. Fair Trade Organisations

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

This paper develops a set of 16 criteria, divided into four groupings, for responsible business practice (RBP) in Small and Medium-Sized Enterprises (SMEs) drawn from the existing SME/RBP literature. The current lack of a general set of criteria against which such activity can be judged is noted and this deficit is redressed. In order to make an initial assessment in support of the criteria so derived, an exploratory feasibility study of RBP in U.K. Fair Trade organisations was conducted. The findings from this study show that most but not all of the RBP criteria seem to be applicable to U.K. Fair Trade organisations but it is recommended that the complete set of criteria continues to be used in further research until such time as there is a general consensus as to which criteria are appropriate. Implications for RBP in small businesses in general, and for Fair Trade organisations in particular, are drawn out and suggestions for further research are identified.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Abor, J., & Biekpe, N. (2007). Corporate Governance, ownership structure and performance of SMEs in Ghana. Corporate Governace, 7(3), 288–300.

    Google Scholar 

  • Bacon, N., & Hoque, K. (2005). HRM in the SME sector: valuable employees and coercive networks. International Journal of Human Resource Management, 16(11), 1976–1999. doi:10.1080/09585190500314706

    Article  Google Scholar 

  • Besser, T., & Miller, N. (2001). Is the good corporation dead? The community social responsibility of small business operators. Journal of Socio-Economics, 33(3), 221–241. doi:10.1016/S1053-5357(01)00094-4

    Article  Google Scholar 

  • CSR Magazine: 2002, ‹Starting Small. Europe’s SMEs and Social Responsibility’, CSR Europe, October, 4–7

  • Curran, J., Rutherfoord, R., & Lloyd Smith, S. (2000). Is There a Local Business Community? Explaining the non-participation of small business in local economic development. Local Economy, 15(2), 128–143. doi:10.1080/02690940050122686

    Article  Google Scholar 

  • Devins, D., Johnson, S., & Sutherland, J. (2004). Employer characteristics and employee training outcomes in UK SMEs: a multivariate analysis”‹. Journal of Small Business and Enterprise Development, 11(4), 449–457. doi:10.1108/14626000410567099

    Article  Google Scholar 

  • European Commission (Observatory of European SMEs): 2002, European SMEs and Social and Environmental Responsibility (Enterprise Publications, Luxembourg)

  • European Commission (Observatory of European SMEs): 2003, SMEs in Europe 2003 (Enterprise Publications, Luxembourg)

  • European Parliament: 2007, ‹Resolution of 13 March 2007 on Corporate Social Responsibility: A New Partnership (2006/2133 (INI))’, http://www.europarl.europa.eu/sides/getDoc.do?Type=TA&Reference=P6-TA-2007-0062&language=EN. Accessed 3 Apr 2007

  • Fassin, Y. (2008). SMEs and the fallacy of formalising CSR. Business Ethics: a European Review, 17(4), 364–378. doi:10.1111/j.1467-8608.2008.00540.x

    Article  Google Scholar 

  • FINE: 2001, www.european-fair-trade-association.org/Efta/Doc/What.pdf. Accessed 16 Jan 2008

  • Fisscher, O., Frenkel, D., Lurie, Y., & Nijhof, A. (2005). Stretching the frontiers: exploring the relationships between entrepreneurship and ethics. Journal of Business Ethics, 60(3), 207–209. doi:10.1007/s10551-005-0128-1

    Article  Google Scholar 

  • Graafland, J., van de Ven, B., & Nelleke, S. (2003). Strategies and instruments for organising CSR by small and large businesses in The Netherlands. Journal of Business Ethics, 47(1), 45–60. doi:10.1023/A:1026240912016

    Article  Google Scholar 

  • Gray, C.: 2006, ‹e-Governance Issues in SME Networks’, Open University Research Centre on Innovation, Knowledge and Development Working Paper Number 10, March

  • Gray, R., Bebbington, J., & Collison, D. (2006). NGOs, civil society and accountability: making the people accountable to capital. Accounting, Auditing & Accountability Journal, 19(3), 319–348. doi:10.1108/09513570610670325.

    Article  Google Scholar 

  • Hannafey, F. (2003). Entrepreneurship and ethics: a literature review. Journal of Business Ethics, 46(2), 99–110. doi:10.1023/A:1025054220365

    Article  Google Scholar 

  • Hayes, M. (2006). On the efficiency of Fair Trade. Review of Social Economy, 64(4), 447–468. doi:10.1080/00346760601024419

    Article  Google Scholar 

  • Hayes, M. and G. Moore: 2005, The Economics of Fair Trade: A Guide in Plain English. Proceedings of an International Workshop on the Economics of Fair Trade, www.fairtraderesearch.net

  • IFAT: 2005, ‹Standards for Fair Trading Organizations, The International Fair Trade Association’, www.ifat.org/ifatstandards.html. Accessed 17 Aug 2005

  • IFAT: 2008, www.ifat.org. Accessed 16 Jan 2008

  • IDC: 2007, Fair Trade and Development, House of Commons International Development Committee (The Stationery Office Limited, London)

  • Jenkins, H. (2004). A critique of conventional CSR theory: an SME perspective. Journal of General Management, 29(4), 37–57.

    Google Scholar 

  • Jenkins, H. (2006). Small Business Champions for Corporate Social Responsibility. Journal of Business Ethics, 67(3), 241–256. doi:10.1007/s10551-006-9182-6

    Article  Google Scholar 

  • Kusyk, S.M., & Lozano, J.M. (2007). SME social performance: a four cell typology of key drivers and barriers on social issues and their implications for stakeholder theory. Corporate Governance, 7(4), 502–515.

    Article  Google Scholar 

  • Krier, J.-M.: 2006, Fair Trade in Europe 2005. Facts and Figures on Fair Trade in 25 European Countries (FLO, IFAT, NEWS! EFTA), www.ifat.org. Accessed 2 Mar 2006

  • Lahdesmaki, M. (2005). When ethics matters – interpreting the ethical discourse of small nature-based entrepreneurs. Journal of Business Ethics, 61(1), 55–68. doi:10.1007/s10551-005-5333-4

    Article  Google Scholar 

  • Lawrence, S., Collins, E., Pavlovich, K., & Arunachalam, M. (2006). Sustainability practices of SMEs: the case of NZ. Business Strategy and the Environment, 15, 242–257. doi:10.1002/bse.533

    Article  Google Scholar 

  • Lepoutre, J., & Heene, A. (2006). Investigating the impact of firm size on small business social responsibility: a critical review. Journal of Business Ethics, 67(3), 257–273. doi:10.1007/s10551-006-9183-5

    Article  Google Scholar 

  • Low, W., & Davenport, E. (2006). Mainstreaming fair trade: adoption, assimilation, appropriation. Journal of Strategic Marketing, 14(4), 315–327. doi:10.1080/09652540600947912

    Article  Google Scholar 

  • Moore, G. (2001). Corporate social and financial performance: an investigation in the UK supermarket industry. Journal of Business Ethics, 34(3–4), 299–315. doi:10.1023/A:1012537016969

    Article  Google Scholar 

  • Moore, G. (2004). The Fair Trade movement: parameters, issues and future research. Journal of Business Ethics, 53(1–2), 73–86. doi:10.1023/B:BUSI.0000039400.57827.c3

    Article  Google Scholar 

  • Moore, G., Gibbon, J., & Slack, R. (2006). The mainstreaming of Fair Trade: a macromarketing perspective. Journal of Strategic Marketing, 14(4), 365–388. doi:10.1080/09652540600947961

    Article  Google Scholar 

  • Moore, G., & Robson, A. (2002). The UK supermarket industry: an analysis of corporate social and financial performance. Business Ethics: a European Review, 11(1), 25–39. doi:10.1111/1467-8608.00256

    Article  Google Scholar 

  • Moore, G., & Spence, L. (2006). Responsibility and small business. Journal of Business Ethics, 67(3), 219–226. doi:10.1007/s10551-006-9180-8

    Article  Google Scholar 

  • Murillo, D., & Lozano, J. (2006). SMEs and CSR: an approach in their own words. Journal of Business Ethics, 67(3), 227–240. doi:10.1007/s10551-006-9181-7

    Article  Google Scholar 

  • Nicholls, A., & Opal, C. 2005, Fair Trade market-driven ethical consumption. Sage publications: London.

    Google Scholar 

  • Perrini, F., Russo, A., & Tencati, A. (2007). CSR strategies of SMES and large firms Evidence from Italy. Journal of Business Ethics, 74(3), 285–300. doi:10.1007/s10551-006-9235-x

    Article  Google Scholar 

  • Raynolds, L., Murray, D., & Wilkinson, J. 2007, Fair Trade The challenges of transforming globalization. Routledge: Abingdon.

    Google Scholar 

  • Renard, M.-C. (2003). Fair trade: quality, market and conventions. Journal of Rural Studies, 19(1), 87-96. doi:10.1016/S0743-0167(02)00051-7

    Article  Google Scholar 

  • Small Business Service. 2002, Encouraging responsible business. London, Small Business Service

    Google Scholar 

  • Southwell, C.: 2004, ‹Engaging SMEs in Community and Social Issues’, in L. Spence, A. Habisch and R. Schmidpeter (eds.), Responsibility and Social Capital. The World of Small and Medium Sized Enterprises (Palgrave Macmillan, Basingstoke), pp. 96–111

  • Spence, L. 2004, Small firm accountability and integrity. In G. Brenkert (eds) Corporate integrity and accountability. Sage Publications: Thousand Oaks, California, pp. 115–128.

    Google Scholar 

  • Spence, L., & Rutherfoord, R. (2001). Social responsibility, profit maximisation and the small firm owner-manager. Journal of Small Business and Enterprise Development, 8(2), 126–139. doi:10.1108/EUM0000000006818

    Article  Google Scholar 

  • Spence, L., & Rutherfoord, R. (2003). Small business and empirical perspectives in business ethics: editorial. Journal of Business Ethics, 47(1), 1–5. doi:10.1023/A:1026205109290

    Article  Google Scholar 

  • Tencati, A., Perrini, F., & Pogutz, S. (2004). New tools to foster corporate socially responsible behaviour. Journal of Business Ethics, 53(1–2), 173–190. doi:10.1023/B:BUSI.0000039407.37497.44

    Article  Google Scholar 

  • Wempe, J. (2005). Ethical entrepreneurship and Fair Trade. Journal of Business Ethics, 60(3), 211–220. doi:10.1007/s10551-005-0129-0

    Article  Google Scholar 

  • Wills, C.: 2006, ‹Fair Trade: What’s It All About?’ in Business Unusual. Successes and Challenges of Fair Trade (FLO, IFAT, NEWS! EFTA, Brussels), pp. 7-27 (see Note 3 for details of the publishing organisations)

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Geoff Moore.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Moore, G., Slack, R. & Gibbon, J. Criteria for Responsible Business Practice in SMEs: An Exploratory Case of U.K. Fair Trade Organisations. J Bus Ethics 89, 173–188 (2009). https://doi.org/10.1007/s10551-008-9992-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-008-9992-9

Key words

Navigation