Simon Bennett

Social Responsibility Issues in Small and Medium-Sized Enterprises:
Evidence from Cornwall

The research project to which this paper relates seeks to identify the advantages and disadvantages to non-urban communities of the adoption by SMEs (Small and Medium-sized Enterprises) of policies which explicitly address issues of social responsibility, especially in terms of community development and social exclusion. Policies promoting social responsibility are examined through a series of case studies of SMEs in Cornwall, one of the most deprived rural areas in England. The research has identified that social responsibility can be a positive force for business growth in terms of engaging the community, forming business networks and promoting local employment growth through the application of diversity in the workplace, particularly in the inclusion of part-time, female and disabled employees. It is found that in rural pockets of population where a sense of community is strong, local business reputation is consistent with long-term growth. Examples include the willingness of construction firms to prioritise affordable homes for local people rather than pursuing the lucrative second home market, and the opening of retail outlets where the initial goal is social, e.g. the support of the local town, rather than short-term business profitability. It is argued that policies of social responsibility, explicitly defined by larger corporate bodies, are implied in the context of relationships between SMEs and their stakeholders in such communities.

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