A Corporate Social Responsibility (CSR) Model to Achieve Sustainable Business Performance (SBP) of SMEs in the South African Construction Industry

Lance Wentzel (), Julius Ayodeji Fapohunda and Rainer Haldenwang
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Lance Wentzel: Department of Construction Management and Quantity 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

Sustainability, 2023, vol. 15, issue 13, 1-28

Abstract: This paper purposes to develop a corporate social responsibility (CSR) model to guide small and medium enterprises (SMEs) in the South African construction industry (SACI) towards sustainable business performance (SBP). A theoretical CSR model was developed from the literature and validated through Partial Least Squares Structural Equation Modelling (PLS-SEM), using primary questionnaire data obtained from 110 SMEs in the SACI, who are registered on the construction industry development board (cidb) register of contractors between Grade 1 and 6 general building (GB) and/or civil engineering (CE). The PLS-SEM results indicate that CSR drivers influencing the CSR practices of SMEs, along with CSR implementation challenges experienced by SMEs, influence the perception of SMEs pertaining to the relationship between the integration of CSR and SBP all of which influences the CSR activities considered by SMEs to achieve SBP, thus implying that the holistic adaption of the PLS-SEM (CSR model) by SMEs in the SACI equates to more SBP. However, SMEs practicing CSR activities to achieve SBP are subjected to specific CSR: drivers and implementation challenges as well as SME owner perceptions.

Keywords: corporate social responsibility; sustainable business performance; small and medium enterprises; construction industry; South Africa (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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