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MAPPING THE SOCIAL RESPONSIBILITY OF SMALL BUSINESS AS DISCOURSE AND PRACTICE: AN INVESTIGATION OF AFRICAN AND CARIBBEAN MICRO BUSINESSES IN LONDON AND NOTTINGHAM, UK. Igho Anthony Udueni MSc. BSc. AIEMA, ARTPI Thesis submitted to the School of Geograplhy, University of Nottingham, for the degree of Doctor of Philosophy December 2010 IMAGING SERVICES NORTH Boston Spa, Wetherby West Yorkshire, LS23 7BQ www.bl,uk PAGE NUMBERS CLOSE TO THE EDGE OF THE PAGE. SOME ARE CUT OFF Abstract Increasing globalisation, neoliberal policies and migration inflows have in the last few decades transformed the United Kingdom into a largely cosmopolitan nation with a varied and growing population of ethnic minority owned and/or managed businesses. There is however very little knowledge of how the imperatives of social responsibility resonate within this ever expanding cluster of ethnic minority businesses. This study investigates how the concept of social responsibility (SR) is understood and practiced by African and Caribbean small business owner/managers in the UK cities of London and Nottingham. The social, business and institutional networks of owner/managers are examined in order to understand the em bedded ness of their understanding and practice of social responsibility in particular places and spaces. The research also investigates the motivations underlining owner/managers' interpretations, attitudes and involvement in socially responsible practices and activities and identifies different styles of behaviour common within the African and Caribbean small business community. The research adopted an interpretive qualitative methodology to the empirical investigation. It combined semi-structured interview data from African and Caribbean small business owner/managers and key informants in the local small business community, together with participant observation data from case studies of a sample of small businesses, to examine the issue of social responsibility in the two study areas. The key findings of the study include: that African and Caribbean owner/managers of small businesses were oblivious of the terminology of corporate social responsibility and that their interpretation and practice of social responsibility was in many ways incongruent with normative notions of "Corporate Social Responsibility"; that the concept of social responsibility is generally interpreted as a moral imperative to contribute to the welfare of stakeholders and others in society, but in some cases, also understood as a responsibility exclusively owed to co-ethnics; that social responsibility as practiced by African and Caribbean owner/managers was generally inconspicuous, informal and motivated by their idiosyncratic predispositions towards cultural, moral and/or religious traditions; that while the embeddedness of SR practice in co-ethnic business and social networks predominates, nonetheless, second generation African and Caribbean small business owner/managers were more likely to locate their SR activities and I 00 ~Sq oS 8"0 ii practices within mainstream networks and communities; and that the different styles of BSR behaviour of African and Caribbean small business owner/managers can be understood as "insular", "clannish" and "eclectic", On the basis of these findings it was concluded that the SR attitude and behaviour of African and Caribbean small business owner/managers were influenced and shaped by their ethno-cultural and religious beliefs, as well as their embeddedness in social and institutional networks across space and time, iii ACKNOWLEDGEMENTS I would like to express my heartfelt gratitude to my supervisors, Susanne Seymour and Shaun French, for their constant guidance, support and patience during this thesis. I would also like to thank all staff of the School of Geography for their administrative and academic support, with special appreciation to Jon Beaverstock for his advice and comments over the course of this research. Secondly, I would like to thank all the small business owner/managers and key officers of public and private organizations who took part in this study in the form of granting interviews and giving me the opportunity to shadow, observe and participate in their organisation. Without your kind offerings of time, information and interest in this subject, there would have been no research. This thesis could not have been completed without the grace and mercy of God who made this research possible in more ways than one. To my parents, brothers, sisters and friends, I say a big thank you for all your help. This work is dedicated to my wife Margaret and our children Henry, Jedediah and Joanna, whose love, motivation, support and encouragement was pivotal to the success of this thesis. iv TABLE OF CONTENTS ABSTRACT ...........................................................................................i i ACKNOWLEDGM ENTS ............................................................................ iv TABLE OF CONTENTS .............................................................................v LIST OF TABLES AND FIGURES ............................................................... ix LIST OF ABBREVIATIONS ...................................................................... x 1. Introduction ...................................................................................0 1 1.1. Introduction .............................................................................0 1 1.2. Research Background ................................................................ 02 1.3. Research Aims .......................................................................... 05 1.4. Research Objectives .................................................................. 06 1.5. Structure of Thesis ....................................................................0 7 2. The Social Responsibility of Business: Theory and Practice .......... 10 2.1. Introduction ............................................................................. 10 2.2. The Role of Business in SOciety ................................................... ll 2.2.1. The Classical View ........................................................... 12 2.2.2. Social Embeddedness View ............................................... 13 2.2.3. Business Philanthropy ...................................................... 15 2.2.4. Business Ethics ............................................................... 16 2.2.5. Business and Sustainability ................................................ 18 2.3. Corporate Social Responsibility: A Field of Research & Practice ...... 21 2.3.1. A Political History of CSR ................................................... 24 2.3.2. CSR Theories and Typologies ............................................. 28 2.3.3. CSR Practice: The Orthodoxy of Formalisation ..................... 30 2.4. The Small Business Question ..................................................... 33 2.5. Conclusion .............................................................................. 34 3. Small Business Social Responsibility ............................................ 36 3.1. Introduction ............................................................................. 36 3.2. Small Business Characteristics .................................................... 38 3.2.1. The Agency of Small Business Owner/managers .................. 39 3.2.2. Formal Management Structures ......................................... 39 3.2.3. Informal Stakeholder Relations ......................................... .40 3.3. Making a Case for Small Business Social Responsibility .................. 42 3.4. Small Business Attitude &Behaviour to Social Responsibility ........... 45 3.5. Ethnicity, Small Business Ownership and Social Responsibility ........ 48 3.5.1. Contrasting Views of Ethnic Entrepreneurship ..................... 50 v 3.5.2. The Distinctiveness of EMBs and Its Implications ................ 52 3.6. Ethnic Minority Business in the UK .............................................. 56 3.6.1. Population Growth and Composition .................................. 56 3.6.2. Geographical Distribution ................................................ 58 3.6.3. Participation Labour Market ............................................. 60 3.7. African and Caribbean Owner/managers in the UK ....................... 63 3.7.1. Selecting Case Study Business Sectors ............................ 67 3.7.2. The Study Areas ........................................................... 68 4. Research Methodology and Methods ......................................... 74 4.1. Introduction ............................................................................. 74 4.2. Methodological Traditions ........................................................... 74 4.3. Underpinning Methodological Theory ............................................ 77 4.4. Adopting a Qualitative Methodology ............................................. 79 4.5. Research Methods .....................................................................8 4 4.5.1. Semi-Structured Interview .............................................. 84 4.5.2. Participant Observation ................................................... 87 4.6. Research Ethics ........................................................................8 8 4.7. Researcher Positionality ............................................................. 90 4.8. Collecting Data .........................................................................9 4 4.8.1. Purposive Sampling ......................................................... 94 4.8.2. Conducting Interviews ..................................................... 97 4.8.3. Conducting Participant Observations .................................. 99 4.9. Social Desirability Bias ............................................................. 101 4.10. Data Analysis ....................................................................... 102 4.11. Validity and Reliability ........................................................... 104 4.12. Conclusion ........................................................................... 107 5. Owner/Managers Understanding &. Practice of Social Responsibility ............................................................................... 109 5.1. Introduction ............................................................................ 109 5.2. Awareness of the Rhetoric of Corporate Social Responsibility ........ 109 5.3. Making Sense of the Role of Business in Society .......................... 111 5.3.1. Economic Perspectives .................................................... 112 5.3.2. Social Perspectives ......................................................... 113 5.3.2.1. SR as Philanthropy .................................................. 114 5.3.2.2. SR as Ethical Business Behaviour .............................. 116 5.3.2.3. SR as Improving the Welfare of Other Co-ethnics ...... 117 vi 5.4. Attitudinal Orientations towards Social Responsibility .................. 121 5.4.1. Positive Attitudes to SR ................................................. 122 5.4.1.1. A Matter of principle ....................................... 122 5.4.1.2. A Religious Duty ............................................ 123 5.4.2. A Cautious Approach to SR ............................................ 125 5.5. Involvement in Socially Responsible Practices ............................ 128 5.5.1. Ethical SR Behaviour ..................................................... 129 5.5.1.1. Regard for Health, Safety and Welfare of Stakeholders .............................................................. 129 5.5.1.2. Fostering Good Business Relations ................... 134 5.5.2. Philanthropic SR Behaviour ............................................ 138 5.5.2.1. Channels of Philanthropic Behaviour ................ 139 5.5.2.2. Self-Interest Philanthropy ............................... 146 5.5.2.3. Involvement in Pro-Environmental Actions ....... 149 5.6. Conclusion ............................................................................. 156 6. Formal and Informal Networks and the Embedding Of SR Practice ........................................................................................ 158 6.1. Introduction ............................................................................ 158 6.2. Social Ties and Responsibilities .................................................. 159 6.2.1. Scope of Family and Kinship Ties ..................................... 160 6.2.2. Other Interpersonal Relationships .................................... 162 6.2.3. Leveraging on Interpersonal Ties ..................................... 165 6.2.4. Shaping SR Behaviour .................................................... 169 6.3. Socialising Business Relations ................................................... 174 6.3.1. Key Stakeholder Relationships ........................................ 175 6.4. Institutional Linkages and Support for SR .................................. 182 6.4.1. Regulatory Relationships and Formal Obligations .............. 183 6.4.2. Institutional Support for SR ........................................... 187 6.4.3. Relationships with Civil Society Institutions ...................... 196 6.5. Conclusion .............................................................................. 206 7. Chapter Seven: A Heuristic Characterisations of Owner/Mangers' SR Behaviour. .................................................. 208 7.1. Introduction ............................................................................ 208 7.2. Insular Style of SR Behaviour .................................................... 210 7.2.1. Vignette 1: "Charity begins at home" ................................ 212 7.2.2. Vignette 2: "It is everyman for himself" ............................ 215 vii 7.2.3. Reflections on Insular Dispositions ................................... 219 7.3. Clannish Style of SR Behaviour .................................................. 220 7.3.1. Vignette 2: "Black people must learn to unite" .................. 222 7.3.2. Vignette 3: "We have to be true to your roots" ................. 225 7.3.3. Reflections on Clannish Dispositions ................................. 229 7 A. Eclectic Style of SR Behaviour ................................................... 230 704.1. Vignette 5: "No man or woman is an island" ..................... 231 704.2. Vignette 6: "It all depends on one's sense of community" .. 235 704.3. Reflections on Eclectic Dispositions .................................. 240 7.5. Conclusion .............................................................................. 241 8. Chapter Eight: Discussion and Conclusion ................................. 243 8.1. Introduction ........................................................................... 243 8.2. Summary and Discussion of Key Findings ................................... 243 8.2.1. SR Perceptions, Attitudes and Relational Networks ............ 245 8.2.2. Space, Place and SR Behaviour ........................................ 247 8.2.3. Scope and Character of SR Practices ................................. 250 8.204. Heuristic Styles of SR Behaviour ....................................... 252 8.3. Research Propositions .............................................................. 254 8.3.1. Ethno-cultural Values and Traditions ................................. 254 8.3.2. Social and Institutional Ties ............................................. 256 8.3.3. Religious Beliefs and Intensity ......................................... 257 804. Reflections on the Research Process ........................................... 259 8.5. Suggestions for Further Research .............................................. 261 REFERENCES .................................................................................... 264 APPENDIX 1: Letter of Introduction to Potential Participants .................. 295 APPENDIX 2: Information Sheet for Participants .................................... 296 APPENDIX 3a: Key Characteristics of Owner/managers Interviewed ......... 297 APPENDIX 3b: Key Informants Interviewed .......................................... 298 APPENDIX 4: Small Business Owner/managers Interview Schedule .......... 299 APPENDIX 5: Key Informants Interview Schedule .................................. 300 APPENDIX 6: Extracts of Interview Transcripts ...................................... 302 APPENDIX 7: Extracts from Field Diary ................................................. 306 viii LIST OF TABLES Table 3.1 Share of Self-Employment in total employment by place of birth 2007 ..........................................................................................4 9 Table 3.2 Unemployment Rates by Ethnic Group and Sex in the UK ............ 61 Table 4.1 Contrasting Characteristics of Quantitative and Qualitative Methodolog ies ..................................................................................... 81 Table 5.1: Social perspectives on the meaning of SR ............................... 114 LIST OF FIGURES Figure 3.1 Immigration from the New Commonwealth to the UK ................. 57 Figure 3.2 Ethnic Composition of the UK .................................................. 58 Figure 3.3 Geographical distributions of Ethnic Minority Groups in the UK .... 59 Figure 3.4 Self Employment across Ethnic Minority groups in the UK ........... 62 Figure 3.5 Graphical Representation of the Ethnic Diversity of London ......... 69 Figure 3.6 Graphical Representation of the Ethnic Diversity of Nottingham ... 71 Figure 4.1 Positivist and Interpretivist Paradigms ..................................... 77 Figure 4.2 Components of Data Analysis: An Interactive Model ................. 104 Figure 5.1 Awareness of CSR Terminology ............................................. 111 Figure 7.1 Stylised Model of BSR behaviour ........................................... 210 ix

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influenced and shaped by their ethno-cultural and religious beliefs, as well as their embeddedness in social failures resulted in the release of pollutants from the pesticide factory of the. Union Carbide .. the principles of the interpretative methodological tradition and the rationale behind its
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