IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i4p3519-d1068361.html
   My bibliography  Save this article

How Does Public Opinion Influence Production Safety within Small and Medium Enterprises in the Sustainability Context?

Author

Listed:
  • Hui Sun

    (School of Business, Jiangsu Ocean University, Lianyungang 222005, China)

  • Dan Xu

    (School of Business, Jiangsu Ocean University, Lianyungang 222005, China)

  • Lu Wang

    (School of Business, Jiangsu Ocean University, Lianyungang 222005, China)

  • Kai Wang

    (School of Business, Jiangsu Ocean University, Lianyungang 222005, China)

Abstract

Safety accidents are a major hazard to the community and impact sustainable development. Production safety, as the basic corporate social responsibility (CSR), is mostly overlooked by small and medium-sized enterprises (SMEs) in China. The traditional safety management model of SMEs has some loopholes. Therefore, it is critical to explore other non-traditional and effective approaches. With the rapid development of the internet and the wide use of social media, the influence of public opinion on the production safety of SMEs has now become more and more powerful. However, the influence mechanism hasn’t been fully studied and understood. Based on grounded theory, this paper conducted an in-depth study on how SME behavior in production safety is influenced by public opinion. The study found that public opinion influences SME production safety through three channels: public awareness, media response, and government guidance. Public opinion influences the production safety of SMEs through intermediaries such as government supervision, the willingness of SMEs to produce safely, the behavior of employees to participate in safety management, and the self-disciplinary behavior of the industry. The impact of the willingness of SMEs to produce safely is affected by the resource guarantee ability of SMEs, therefore, the limited public opinion resources should be combined with the reality of SMEs through information exchange to promote the optimum game relationship between bodies, in order to make up for the lack of production safety resources capacity of SMEs. The conclusion of this study is crucial in understanding how to improve the production safety of SMEs by the means of public opinion to promote SMEs to engage in sustainability practices and reduce the occurrence of safety problems.

Suggested Citation

  • Hui Sun & Dan Xu & Lu Wang & Kai Wang, 2023. "How Does Public Opinion Influence Production Safety within Small and Medium Enterprises in the Sustainability Context?," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3519-:d:1068361
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/4/3519/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/4/3519/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peng, Yala & Li, Jiajie & Xia, Hui & Qi, Siyuan & Li, Jianhong, 2015. "The effects of food safety issues released by we media on consumers’ awareness and purchasing behavior: A case study in China," Food Policy, Elsevier, vol. 51(C), pages 44-52.
    2. Alexander Dyck & Natalya Volchkova & Luigi Zingales, 2008. "The Corporate Governance Role of the Media: Evidence from Russia," Journal of Finance, American Finance Association, vol. 63(3), pages 1093-1135, June.
    3. Alexander Dyck & Luigi Zingales, 2004. "Private Benefits of Control: An International Comparison," Journal of Finance, American Finance Association, vol. 59(2), pages 537-600, April.
    4. Jan Lepoutre & Aimé Heene, 2006. "Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review," Journal of Business Ethics, Springer, vol. 67(3), pages 257-273, September.
    5. Magali A. Delmas & Michael W. Toffel, 2008. "Organizational responses to environmental demands: opening the black box," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1027-1055, October.
    6. Lily Fang & Joel Peress, 2009. "Media Coverage and the Cross‐section of Stock Returns," Journal of Finance, American Finance Association, vol. 64(5), pages 2023-2052, October.
    7. John M. Antle, 1996. "Efficient Food Safety Regulation in the Food Manufacturing Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1242-1247.
    8. Liu, Liqun & Neilson, William S., 2006. "Endogenous private safety investment and the willingness to pay for mortality risk reductions," European Economic Review, Elsevier, vol. 50(8), pages 2063-2074, November.
    9. Sharma, L.L. & Teret, S.P. & Brownell, K.D., 2010. "The food industry and self-regulation: Standards to promote success and to avoid public health failures," American Journal of Public Health, American Public Health Association, vol. 100(2), pages 240-246.
    10. Gehlbach, Scott & Sonin, Konstantin, 2014. "Government control of the media," Journal of Public Economics, Elsevier, vol. 118(C), pages 163-171.
    11. Susan Hart, 2010. "Self-regulation, Corporate Social Responsibility, and the Business Case: Do they Work in Achieving Workplace Equality and Safety?," Journal of Business Ethics, Springer, vol. 92(4), pages 585-600, April.
    12. Yuan, Han, 2016. "Measuring media bias in China," China Economic Review, Elsevier, vol. 38(C), pages 49-59.
    13. Korschun, Daniel & Du, Shuili, 2013. "How virtual corporate social responsibility dialogs generate value: A framework and propositions," Journal of Business Research, Elsevier, vol. 66(9), pages 1494-1504.
    14. Angélique Catharina Elford & Claus-Heinrich Daub, 2019. "Solutions for SMEs Challenged by CSR: A Multiple Cases Approach in the Food Industry within the DACH-Region," Sustainability, MDPI, vol. 11(17), pages 1-31, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yan Shen & Shuo Bian & Xinping Song & Xia Geng, 2024. "Research on Risk Assessment of Enterprise Public Opinion in Cross Social Media Context and Sustainable Development Strategies," Sustainability, MDPI, vol. 16(4), pages 1-23, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Di Giuli, Alberta & Laux, Paul A., 2022. "The effect of media-linked directors on financing and external governance," Journal of Financial Economics, Elsevier, vol. 145(2), pages 103-131.
    2. Wu, Yanling & Tian, Gary Gang, 2021. "Public relations expenditure, media tone, and regulatory decisions," Journal of Corporate Finance, Elsevier, vol. 66(C).
    3. Ruben Enikolopov & Maria Petrova & Konstantin Sonin, 2018. "Social Media and Corruption," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 150-174, January.
    4. Guo, Mengmeng & Liu, Jinge & Yu, Jianyu, 2021. "Social trust and food scandal exposure: Evidence from China," China Economic Review, Elsevier, vol. 69(C).
    5. Dang, Tung Lam & Dang, Man & Hoang, Luong & Nguyen, Lily & Phan, Hoang Long, 2020. "Media coverage and stock price synchronicity," International Review of Financial Analysis, Elsevier, vol. 67(C).
    6. Yuan Wang & Junrui Zhang, 2023. "Corporate Governance, Media Coverage, and Corporate Environmental Protection Investment: Empirical Evidence from Listed Companies in China’s High-Pollution Industries," Sustainability, MDPI, vol. 15(11), pages 1-24, May.
    7. Borochin, Paul & Cu, Wei Hua, 2018. "Alternative corporate governance: Domestic media coverage of mergers and acquisitions in China," Journal of Banking & Finance, Elsevier, vol. 87(C), pages 1-25.
    8. Chen, Chia-Wei & Yi, Bingsheng & Lin, J. Barry, 2013. "Media coverage, board structure and CEO compensation: Evidence from Taiwan," Journal of Multinational Financial Management, Elsevier, vol. 23(5), pages 434-445.
    9. Li, Bin & Yao, Yao & Shahab, Yasir & Li, Hai-Xia & Ntim, Collins G., 2020. "Parent-subsidiary dispersion and executive excess perks consumption," International Review of Financial Analysis, Elsevier, vol. 70(C).
    10. Wunhong Su & Chun Guo & Xiaobao Song, 2022. "Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6953-6983, May.
    11. Graham Beattie & Ruben Durante & Brian Knight & Ananya Sen, 2021. "Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls," Management Science, INFORMS, vol. 67(2), pages 698-719, February.
    12. Bang Dang Nguyen, 2015. "Is More News Good News? Media Coverage of CEOs, Firm Value, and Rent Extraction," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-38, December.
    13. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    14. Ding, Rong & Hou, Wenxuan & Liu, Yue (Lucy) & Zhang, John Ziyang, 2018. "Media censorship and stock price: Evidence from the foreign share discount in China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 55(C), pages 112-133.
    15. An, Zhe & Chen, Chen & Naiker, Vic & Wang, Jun, 2020. "Does media coverage deter firms from withholding bad news? Evidence from stock price crash risk," Journal of Corporate Finance, Elsevier, vol. 64(C).
    16. Yang, Shuai & Wu, Chao, 2021. "Do Chinese managers listen to the media?: Evidence from mergers and acquisitions," Research in International Business and Finance, Elsevier, vol. 58(C).
    17. Baloria, Vishal P. & Heese, Jonas, 2018. "The effects of media slant on firm behavior," Journal of Financial Economics, Elsevier, vol. 129(1), pages 184-202.
    18. He, Qing & Fang, Cai, 2019. "Regulatory sanctions and stock pricing efficiency: Evidence from the Chinese stock market," Pacific-Basin Finance Journal, Elsevier, vol. 58(C).
    19. Liao, Rose & Wang, Xinjie & Wu, Ge, 2021. "The role of media in mergers and acquisitions," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 74(C).
    20. Lucian A. Bebchuk & Zvika Neeman, 2010. "Investor Protection and Interest Group Politics," NBER Chapters, in: Corporate Governance, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3519-:d:1068361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.