The relationship between the integration of CSR and sustainable business performance: Perceptions of SMEs in the South African construction industry

Abstract

Although studies relative to redirecting the unsustainable trajectory of small and medium enterprises (SMEs) in the South African construction industry (SACI) have been extensively conducted, current statistics show that 70–80% of construction SMEs in the SACI fail within their first five years of existence, raising concerns regarding their sustainability. This paper attempts to address the negative trajectory by exploring the concept of corporate social responsibility (CSR), investigating the organisational perceptions of SMEs in the SACI relative to the relationship between the integration of CSR and sustainable business performance (SBP). Existing literature was used to provide an overview of this relationship taking into consideration the views of SMEs in both developed and developing countries. The empirical study was conducted utilising a quantitative research approach in the form of an online questionnaire survey. The research data was analysed using both descriptive (mean, standard deviation, etc.) and inferential (Analysis of Variance ANOVA) statistics. Based on the research approach and data analysis, the findings revealed that SMEs in the SACI similarly perceive the relationship between the integration of CSR and SBP to be a positive one, implying that the practice of CSR within construction businesses should lead to SBP, and serve as a meaningful guide in addressing the unsustainable trajectory of SMEs in the SACI. The findings could guide government agencies such as the construction industry development board (cidb) to embed CSR education within contractor development programs, linking the adoption of CSR to the contractor grading system.