1

Associate Professor Søren Jeppesen (sj.ikl@cbs.dk)

• Danish• Centre for Business and

Development Studies (CBDS) & cbsCSR Centre, Department of Intercultural Communication and Management

• Visiting Guest Professor at University of Pretoria and at Makerere University Business School

• SMEs and CSR in Developing Country Firms; Successful African Firms & Institutional Change

Associate Professor Søren Jeppesen

2

PhD thesis:Environmental practices and Greening Strategies in small South African manufacturing firms. A Critical Realist Approach (2004)Recent research projects: •Danish MNCs in developing countries and linkages to local firms (Ghana, South Africa, India, Malaysia and Vietnam)•Impact of Codes of Conduct in the garment industry in South Africa, Lesotho and Swaziland•Youth & Employment: The Role of Entrepreneurship in African Economies (YEMP) (Ghana, Uganda and Zambia)•CSR, Competitiveness and SMEs in developing countries (South Africa and Vietnam)•Successful African Firms and Institutional Change (SAFIC) (Kenya, Tanzania and Zambia)

Agenda for presentation

3

Title: The views of SME managers and workers on CSR practices: Contrasting the textiles/garment/footwear industry to the agro-processing industry in Vietnam (with Angie Tran, California State University, Monterey, USA. Funding from AFD acknowledged.)

A.Understanding of CSRB.Methodology and Theoretical frameworkC.Similarities between managers and workers in the two industriesD.Differences between managers and workers in the two industriesE.Comparison to (South) African contextsF.Contributions to the field

A. Understanding of CSR

4

Definition of CSR - Blowfield and Frynas (2005): CSR ‘as an umbrella term for a variety of theories and practices all of which recognize the following: (a) that companies have a responsibility for their impact on society and the natural environment, sometimes beyond legal compliance and the liability of individuals; (b) that companies have a responsibility for the behaviour of others with whom they do business (e.g. within the supply chains); and (c) that business needs to manage their relationship with the wider society, whether for reasons of commercial viability, or to add value to society.’ (p. 503 in Blowfield, M. and J. G. Frynas: (2005) ‘Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World’, International Affairs 81.3: 499–513)

5

Methodology:•Two major industries: Textiles, garments & footwear (TGF) & Agro-processing (AP) Vietnam•Interviews with managers (40) and

workers (218 – mostly women)•Convenience sampling: Quantitative and qualitative•Interviews with government officials, business associations, trade unions and others•Secondary dataTheoretical framework:Institutional theory – Scott 1995/2001

B. Methodology & Theoretical framework

Context: historical, political, economic and social

Societal views: government, unions, industry, communities and consumers

Flow chart on process of investigating CSR practices among SME managers and workers in the Textiles/Garment/Footwear and the Agro-Processing industries in Vietnam (Jeppesen and Tran, 2015)

Formal:* Working environment* Physical environment

* Labor standards and working conditions

Informal:* Informal arrangements

* Support to local communities

-

9

C. Similarities between managers and workers in the two industries

Institution/Industry

Regulatory Normative Cognitive

TGF & AP M: State (and costly)

W: Too little emphasis on wages and labour conditions

W: Flexibility is key (getting leave, loans and doing overtime work when needed)

M & W: Business has a number of (social) responsibilities

M & W: Concept of CSR known among M, not among W

10

D. Differences between managers and workers in the two industries

Institution/Industry

Regulatory Normative Cognitive

TGF M: Private regulation most importantW: Company regulations as a ‘responsibilty’

M: Some importance, but less than APW: Higher level of employment flutuations

M & W: More formal, less ‘family-like’

AP M: State most important

W: State ‘visible’

M: More important than TGF (e.g. industry standards, OSH issues)W: More stable employment

M & W: More ‘family-like’ and less formal

11

Similarities:- Small versus medium-size firms- Managers versus workers

•‘CSR’ is not a well-known concept- But growing awareness

•Still, high level of awareness of ‘business responsibilities’•Multiple and widespread ‘informal practices’Differences:•AP (outward/export) vs. TGF (inward/domestic)•State regulation matters more than private regulation•Higher level of ‘sensitivity’

E. Comparison to (South) African contexts

12

• Institutional theory relevant (in VN and in SA)

• State regulation does matters – if there

• Management and workers’ relations matters

‘CSR points’:• Awareness of adequate phrasing• Lacking demands (no consumer pressure)

‘Academic/African point’:• Need more research – still much to learn!

F. Contributions to the field

13

Thank you

Comments and questions are welcome