Aspects influencing decision-making regarding responsible business practices in SMME's in the Tshwane district

Abstract

While the concept of Corporate Social Responsibility (CSR) is widely used, it is not seen as the most appropriate to describe responsible business activities in Small, Medium and Micro-sized Enterprises (SMMEs). The concept of Responsible Business Practices (RBP) is better suited to SMMEs, although the theory is still based in the broader literature of CSR. Choices and decisions made by the owners/managers of SMMEs regarding the expenditures for RBP may reflect various influences. These influences may be conscious and purposely orientated toward a personal set of beliefs, but may also be indirectly, subconsciously influenced. This research will explore the influences behind expenditure decisions. Structured questionnaires will be used to reveal conscious influences that play a role in decision-making in SMMEs. The primary objective of this study is to investigate the aspects that consciously influence the decision-makers at SMMEs in Tshwane, South Africa, to expend resources on RBP. The study also aims to determine the awareness of, perceptions about and attitudes towards RBP among SMME decision-makers, as well as to determine the RBP activities SMMEs are involved in. Relationships between the extent of RBP engagement and the level of RBP awareness, the activities involved in, and the respondents’ highest level of education will be discussed. Key differences between the respondents’ age, highest level of education and gender with regards to the influencing aspects are also covered. The study contributes to the body of knowledge on individual-level studies in the RBP field and makes a contribution to the South African SMME literature that focuses on the doing of responsible business. It also addresses the gap in RBP knowledge by investigating the influences on RBP decisions in SMMEs, as the small business decision-making processes might prioritise influencing aspects differently than that in larger organisations.