Sustainable development in the Spanish region of Valencia and the social responsibility of SMEs. A multi-stakeholder vision on the role of public administrations

Abstract

The complexity associated with the public and private management of sustainable development is causing the increasing involvement of various European Union governments in issues related to the social responsibility of organisations. However, the debate about the nature of this involvement is still open. The study here shows the results of a survey conducted in the Spanish region of Valencia among businesses and social agents, paying special attention to Corporate Social Responsibility (CSR) in Small and Medium Enterprises (SMEs). The outcomes of the interviews display the nascent state of CSR implementation both in the companies of the region and the government initiatives related to encouraging the development of the concept.

Keywords:

• corporate social responsibility
• SMEs
• public administration

Acknowledgements

The authors would like to acknowledge the sponsorship of Valencian Regional Government, co-financed by the European Social Fund via CTBPRB/2003/87 and 07I 150.01/1, of the CICYT DPI2006-14708 and SEJ2006-08317/ECON projects, as well as the University Jaume I via the P1•1A2006-16 investigation project.

The interviews which form the basis of this paper have taken place in the framework of the project ‘Technical Assistance and Research in the Sphere of Corporate Social Responsibility and Sustainable Development’ in association with Pangea Consulters, PLS, and the Department of Territory and Housing in the Valencian Regional Government. The authors would like to acknowledge both organisations for their willingness to allow the results to be treated from a scientific perspective upon condition of respecting the confidentiality of those interviewed.

Notes

1. The types of businesses found in the region of Valencia make discussing smaller companies inevitable when exploring CSR-related issues.

2. The definition divided SMEs into three different sizes; micro, small and medium. A micro enterprise consists of less than 10 employees with an annual turnover of less than €2 million, a small enterprise has less than 50 employees and an annual turnover of less than €10 million and a medium-sized enterprise conducts their business with less than 250 employees and an annual turnover less than €50 million. An enterprise was here defined as “any entity engaged in an economic activity, irrespective of its legal form” (The European Commission 2008).

3. Application of the relationship model in CSR policies (Lozano et al. 2005).

4. The OECD guidelines are voluntary recommendations set for companies in terms of human rights, labour, or the environment. The document can be accessed at http://www.oecd.org/dataoecd/56/36/1922428.pdf

5. The list of interviewees has not been included to avoid a possible identification of the opinions with the organisations and to preserve confidentiality.

6. The authors mention other functions, i.e. partnering, but this has not been considered because the results show little difference between this and the endorsement function.