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University of Vaasa - Vaasan yliopisto

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805<br />

are mostly tailor made for large companies. There is no systematic structure in CSR<br />

that companies can follow. Meanwhile, all <strong>of</strong> the above studies focus on developed<br />

countries and mostly based on generic surveys. The effective samples <strong>of</strong> the survey<br />

conducted by Cochius (2006) are too small in numbers. Some questions only receive<br />

four replies. There is a lack <strong>of</strong> statistical empirical study exploring the correlation<br />

between motivations and CSR implementations.<br />

When facing an increasingly difficult market competition and business environment<br />

as well as a need to maintain trust and satisfaction from the public, SMEs are<br />

expected to respond better to the expectations for CSR in order to upgrade company<br />

pr<strong>of</strong>iles and create sustainable niches. The lists <strong>of</strong> CSR tasks and solutions<br />

mentioned in literature include the development and training <strong>of</strong> employees,<br />

enhancement <strong>of</strong> work motivations <strong>of</strong> employees, protection <strong>of</strong> health and safety <strong>of</strong><br />

employees, provision <strong>of</strong> equal opportunities to the physically or mentally challenged,<br />

new immigrants and women, reduction <strong>of</strong> impacts and pollutions to the environment,<br />

submission <strong>of</strong> environmental reports, moral persuasion to suppliers or downstream<br />

players, suspension <strong>of</strong> dealing with companies not legally compliant, <strong>of</strong>fering safe<br />

and high-quality products and comprehensive product information, handling <strong>of</strong><br />

customers’ complaints, <strong>of</strong>fering fair prices to support local campaigns in culture,<br />

sport, safety or social welfare, donations to charities, and participation <strong>of</strong> volunteer<br />

workers. Cochius (2006) provided a detailed classification <strong>of</strong> CSR items and tasks<br />

for SMEs in the Netherlands, and extracted the CSR activities and initiatives in the<br />

questionnaire with factor analysis, in order to ensure the reliability <strong>of</strong> the<br />

questionnaire. Many researches indicated that the motivations for CSR<br />

implementations include long-term interests, short-term interests, enhancement <strong>of</strong><br />

competitive advantages, improvement <strong>of</strong> corporate image or reputation, cost<br />

reduction and efficiency upgrade, recruitment <strong>of</strong> valuable employees, consistency<br />

with social needs, compliance with government regulations to avoid breaking the law,<br />

compliance with customers’ needs, pressure from shareholders, pressure from supply<br />

chains, pressure from communities, pressure from NGOs and moral reasons. Table 1<br />

summarizes the factors influencing for CSR initiatives based on literature review.<br />

In this section, the theory <strong>of</strong> innovations and diffusion will be adopted to construct<br />

the perceptions <strong>of</strong> factors affecting CSR implementing model. The theory <strong>of</strong><br />

diffusion <strong>of</strong> innovations is first proposed by Rogers (1962), who defined the<br />

diffusion <strong>of</strong> innovations as a procedure to deliver a new concept through specific<br />

channels over time to the members <strong>of</strong> a social system. This is a unique<br />

communication format, with a focus on the distribution <strong>of</strong> new concepts (Rogers,<br />

1983). Rogers (1962) first defined innovations as the adoption <strong>of</strong> new concepts,<br />

techniques or objects by individuals or organizations. Bradford and Kent (1977)<br />

defined innovations as the successful introduction <strong>of</strong> new concepts to the internal <strong>of</strong><br />

a social organization. As long as the region or social organization concerned believes<br />

that the concept is, in essence, new, it can be qualify as an innovation. According to<br />

this definition, the innovation recognized by the region or social organization in<br />

question may have appeared or existed in other forms in other places. However, as<br />

long as the concept is new for the companies that decide to adopt CSR policies, CSR<br />

can be regarded as an innovative management concept for management decisions.<br />

Therefore, this paper suggests that it is a reasonable approach to apply the idea <strong>of</strong><br />

diffusion <strong>of</strong> innovations as the conceptual foundation for the research.

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