Conceptualizing business as social actors: A framework for understanding sustainability actions in small‐ and medium‐sized enterprises

Citation:

Westman, L. , Luederitz, C. , Kundurpi, A. , Alexander, M. , Weber, O. , & Burch, S. . (2019). Conceptualizing business as social actors: A framework for understanding sustainability actions in small‐ and medium‐sized enterprises. Business Strategy and EnvironmentBusiness Strategy and Environment, 28, 388-402.

Abstract:

Small‐ and medium‐sized enterprises (SMEs) can play a crucial role in advancing environmental
and social well‐being. Yet various—often conflicting—explanations have
been offered to clarify why SMEs pursue sustainability. Some arguments foreground
possibilities of profit maximization, whereas others emphasize individual values and
convictions. Research supporting such contradicting explanations is often biased
towards large enterprises or small, innovative frontrunners. In this article, we examine
the underlying drivers of social and environmental interventions of SMEs by exploring
empirical data from a survey of over 1,600 Canadian SMEs and complementary indepth
interviews. We argue that sustainability actions of SMEs can be understood
by viewing these firms as social actors—organizations that are shaped by individual
values, internal and external interpersonal relationships, and are embedded in a social
environment. This conceptualization directs attention to the full range of factors that
shape sustainability engagement of SMEs and highlights frequently overlooked forms
of sustainability‐oriented actions.