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The Relationship between the Integration of CSR and Sustainable Business Performance: Perceptions of SMEs in the South African Construction Industry

Author

Listed:
  • Lance Wentzel

    (Department of Civil Engineering and Surveying, Cape Peninsula University of Technology, Bellville 7530, South Africa)

  • Julius Ayodeji Fapohunda

    (Department of Construction Management and Quantity Surveying, Cape Peninsula University of Technology, Bellville 7530, South Africa)

  • Rainer Haldenwang

    (Department of Civil Engineering and Surveying, Cape Peninsula University of Technology, Bellville 7530, South Africa)

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.

Suggested Citation

  • Lance Wentzel & Julius Ayodeji Fapohunda & Rainer Haldenwang, 2022. "The Relationship between the Integration of CSR and Sustainable Business Performance: Perceptions of SMEs in the South African Construction Industry," Sustainability, MDPI, vol. 14(3), pages 1-22, January.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1049-:d:726959
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    Citations

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    Cited by:

    1. Lin Zhang & Xiaochen Zhang & Jingjing An & Wei Zhang & Jingshen Yao, 2022. "Examining the Role of Stakeholder-Oriented Corporate Governance in Achieving Sustainable Development: Evidence from the SME CSR in the Context of China," Sustainability, MDPI, vol. 14(13), pages 1-22, July.
    2. Anna N. Zhilkina & Marina V. Karp & Anna V. Bodiako & Samal M. Smagulova & Tatiana M. Rogulenko & Svetlana V. Ponomareva, 2022. "Socially-Oriented Approach to Financial Risk Management as the Basis of Support for the SDGs in Entrepreneurship," Risks, MDPI, vol. 10(2), pages 1-18, February.
    3. Iman Harymawan & Mohammad Nasih & Dian Agustia & Fajar Kristanto Gautama Putra & Hadrian Geri Djajadikerta, 2022. "Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1186-1202, September.
    4. Guihua Wang & Quan Guo & Qiong Jiang & Butong Li, 2022. "A Study on the Relationship between Corporate Social Responsibility and Supply Chain Profit Distribution in the Context of Common Prosperity," Sustainability, MDPI, vol. 14(19), pages 1-18, September.
    5. Lance Wentzel & Julius Ayodeji Fapohunda & Rainer Haldenwang, 2023. "A Corporate Social Responsibility (CSR) Model to Achieve Sustainable Business Performance (SBP) of SMEs in the South African Construction Industry," Sustainability, MDPI, vol. 15(13), pages 1-28, June.
    6. Alla Mostepaniuk & Elsie Nasr & Razan Ibrahim Awwad & Sameer Hamdan & Hasan Yousef Aljuhmani, 2022. "Managing a Relationship between Corporate Social Responsibility and Sustainability: A Systematic Review," Sustainability, MDPI, vol. 14(18), pages 1-23, September.

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