Social responsibility paradox of small business human resource management practices

Abstract

This article investigates social responsibility (SR) and human resources management practices focused on internal stakeholders, namely employees, in a context of small business. SR is defined as ‘obligations to constituent groups in society other than stockholders and beyond that prescribed by law and union contract’ Jones (1980, pp. 59–60). Numerous studies have addressed the economic significance and effects of small business but contributions to HR within small businesses have remained relatively unexplored in contemporary SR literature. A case research methodology employing theoretical replication was used to select 10 small businesses across industry sectors. These were chosen with the assistance of the Hunter Business Chamber, Australia. A semi-structured face-to-face interview with the owner of the business who also functioned as the manager was undertaken using a research instrument comprising eight qualitative and open-ended questions. The questions specifically addressed the small business owner's HR priorities, motivations, and financial contribution to SR. This research is designed to fill a gap that exists in the literature and can be considered innovative and timely given the growing interest by society in SR. The principal objective of this research is to broaden the understanding of small business by addressing the research problem: ‘Are human resource management practices of small businesses socially responsibility or market driven?’

Keywords:

• human resource management
• small business
• social responsibility