Improving employee satisfaction and business performance in SMMEs through business social responsibility

Enterprises are increasingly becoming aware of the need to make positive contributions to society and to consider the needs of their stakeholders. Business social responsibility (BSR) is an important tool that can assist enterprises in doing so. Prior research has indicated that employees are important stakeholders in enterprises because of their interaction with customers and their importance in the performance of enterprises. Therefore, it is important to identify how certain BSR dimensions can lead to employee satisfaction and improved business performance, as the literature investigation has revealed the benefits that can accrue to enterprises for ensuring employees are satisfied. This paper discusses how BSR can be used in improving employee satisfaction and business performance in Small, Medium and Micro-sized enterprises (SMMEs). 164 usable questionnaires from SMME owners/managers from the Nelson Mandela Bay area were subjected to various statistical analyses, such as multiple regression analyses to examine the relationships between BSR dimensions, employee satisfaction and business performance. The empirical findings revealed that the BSR dimensions with the most significant influence on employee satisfaction and ultimately business performance are Physical work environment, Ethical and legal considerations and Environmental considerations. Finally, the paper presents recommendations to SMME owners/managers on how BSR can be used to improve employee satisfaction and business performance.