# Barriers to the implementation of corporate social responsibility in a network of French retirement homes

Melinda Chehimi, Mickaël Géraudel

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Melinda Chehimi, Mickaël Géraudel. Barriers to the implementation of corporate social responsibility in a network of French retirement homes. Journal of the International Council for Small Business, 2022, 4 (4), pp.330-336. 10.1080/26437015.2022.2108738. hal-05111054

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# Barriers to the implementation of corporate social responsibility in a network of French retirement homes

Melinda Chehimi & Mickaël Géraudel

**To cite this article:** Melinda Chehimi & Mickaël Géraudel (2023) Barriers to the implementation of corporate social responsibility in a network of French retirement homes, Journal of the International Council for Small Business, 4:4, 330-336, DOI: 10.1080/26437015.2022.2108738

**To link to this article:** https://doi.org/10.1080/26437015.2022.2108738

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Published online: 25 Aug 2022.

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# Barriers to the implementation of corporate social responsibility in a network of French retirement homes

Melinda Chehimiª and Mickaël GéraudelIDb

ªMontpellier Business School, Montpellier Research in Management, France; bDepartment of Economics and Management, University of Luxembourg, Luxembourg

## ABSTRACT

Since the early 2000s, scholars in small and medium-sized enterprises (SMEs) have investigated corporate social responsibility (CSR) by focusing on the drivers, practices, and outputs of CSR policies. Nevertheless, little research focuses on the way SMEs that belong to a common network can develop or harmonize their common practices to reach market and stakeholder expectations. Using a grounded theory approach combined with an action research approach, we met 20 key actors in a network of retirement homes in France. We highlight the main barriers that prevent SMEs from implementing a CSR policy within their network. We point out that factors are not only about SME features but also depend on multilevel (environmental, organizational, and individual) dimensions that play an interacting role in the failure of CSR implementation.

## KEYWORDS

Corporate social
responsibility; SME; network

## Introduction

The recent scandal in French retirement homes, in which patients were mistreated (Jérôme, 2022), has emerged as a crucial discussion point in determining the role of governance and corporate social responsibility (CSR) practices in these networks of retirement homes. The European Commission (2011) defined CSR as “the responsibility of enterprises for their impacts on society” (p. 1). This requires that enterprises have “a process in place to integrate social, environmental, ethical human rights, and consumer concerns into their business operations and core strategy in close cooperation with stakeholders.” Even if the CSR literature has mainly focused on big firms’ practices until the end of the 1990s (Russo & Fouts, 1997; Waddock & Graves, 1997), since the early 2000s, scholars in SMEs have also investigated CSR by focusing on the drivers, practices, and outputs of CSR policies (Baden et al., 2011; Stoian & Gilman, 2017; Williamson et al., 2006). Nevertheless, little research focuses on the way SMEs that belong to a common network can develop or harmonize their common practices to reach market and

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stakeholder expectations. There are no clear indicators as to what prevents these organizations from implementing a common CSR policy within their network. In this article, we aim to address the following research question: *What are the barriers to the implementation of a CSR policy within a network of SMEs?*

Using a grounded theory approach (Strauss & Corbin, 1998) combined with an action research approach, we met 20 key actors in a network of retirement homes in France. We highlight the main barriers that prevent members of the network of retirement homes from implementing a CSR policy within their network.

In the first part, we present a review of the literature. Then, we explain our methodology, present our findings, and discuss our results.

## Review of the literature

Scholars have deeply studied CSR in SMEs with different scopes. According to Stoian and Gilman (2017), research on CSR and SMEs focuses on drivers, specificities, and outputs of CSR in SMEs and between SMEs. Thus, CSR between SMEs (Preuss & Perschke, 2009) highlights the role of chief executive officer (CEO) values in bringing about CSR initiatives. Indeed, CSR initiatives of SMEs are informal, local, and less business driven (Jenkins, 2004, 2006; Murillo & Lozano, 2006). Nevertheless, even if we assume that CSR practices in networks of SMEs should follow the same logic of action, we know little about what prevents SMEs from developing CSR policies with stakeholders and, in particular, with other SMEs within a network.

Furthermore, we know little about how retirement homes, viewed as SMEs in this research, deal with CSR practices. Bertezene et al. (2014) highlighted that “a retirement home is linked to its residents in a contractual manner, but the values of respect and freedom of the human being also link the staff and the families” (p. 21). The authors stress the roles of stakeholders in the CSR approach. This means that multiple actors can enhance and, consequently, prevent the implementation of CSR practices. Four approaches are identified (Bertezene et al., 2014): (a) technical CSR that focuses on the customer stakeholder in an operational dimension, (b) total CSR that integrates all the stakeholders in a strategic dimension, (c) hybrid CSR that mixes technical and total CSR approaches, and (d) linked and integrated CSR that loosens the possibility of living together (Morin, 2005). The authors highlight a risk of symbolic strategy development that would use CSR as merely an instrument without a real will to implement the expected practices. Thus, the lack of stakeholder involvement and a kind of CSR whitewashing strategy are potential risks of preventing the implementation of real CSR practices in retirement homes. In the following section, we explain our methods and, then, our findings that investigate what prevents a network of French retirement homes from implementing CSR practices.
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## Methodology

Using a grounded theory approach (Strauss & Corbin, 1998) combined with an action research approach, we met key actors in a network of retirement homes in France. We highlight the main barriers that prevent SMEs from implementing a CSR policy within their network.

The article describes the result of collaborative work between researchers and the top management team (TMT) of a network of SMEs in a network of retirement homes based in France. The researchers interacted with the CEO of the network (holding), the TMT, and the directors of small organizations of the holding. The goal of the project was to perform a CSR diagnosis to establish a CSR approach in line with the holding vision and strategy. To achieve this goal, the CEO hired an external agency specializing in CSR diagnosis and implementation. The researchers were part of the agency team.

In the first phase, the agency ran a CSR diagnosis for both the holding and the SMEs. In a second phase, the agency provided individual support to the research teams to set up the actions that would enable the deployment of CSR procedures at the holding and SME levels.

The diagnosis was run in two parts. First, the diagnosis of the holding was carried out through five individual interviews of 1 hour each with all members of the TMT (CEO, chief financial officer [CFO], chief of human resources officer (CHRO), chief quality officer, and director of exploitation). The diagnoses of the small organizations were conducted through group sessions over 2 full days with the 20 directors of the 20 SMEs. The first step included a round table discussion to collect data from the 20 directors. Second, the CSR diagnosis was discussed between the TMT members, the agency, and the researchers. Through this analysis, we identified a framework and defined an action plan. This allowed our teams to provide a new solution for implementing a CSR process. A generic plan would have been defined and then adapted to each organization regarding their level of CSR maturity.

We describe below the data structure (see Figure 1) from our data analysis based on grounded theory (Strauss & Corbin, 1998).

## Findings

### Individual motivational brakes

The CEO's actions and demeanor toward his top directors influenced the teams that were characterized as lacking motivation and having low morale. The CEO's strong personality and directive management impacted the teams' dynamics toward projects. His only goal was to implement the CSR strategy before his imminent departure. Therefore, he decided on his new vision and strategy and used his authority to impose this new approach on the whole group. Top management directors' opinions were not taken into account.
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<figure><img src="image_17.png" /><figcaption>Figure 1. Data structure.</figcaption></figure>

They were not consulted and did not know in advance what would be the decisions and actions to implement. This led to a lack of motivation by top management. In addition, many CSR projects that have been started and never completed negatively affected employee motivation and involvement.

* CEO: "As long I am here, CSR will be the only priority."

* Human resources officer: "He decides, we do not know what he decided. He will tell us during the meeting. It is like that all the time."

* Director of SME A: "There are so many new projects, but none is completed. This is just another one, like all the others."

* Human resources officer: "We started different projects, but it is difficult to follow and complete them, so they are abandoned."

## Managerial and organizational brakes

We noticed a lack of effective communication. In fact, there were no computers for all staff in the organizations. There are only one or two available computers for each entity, and employees could use them when needed. Communication was made through papers stuck up in the break room of each SME. Each SME has a different level of CSR maturity. Thus, some do not understand the relevance of a CSR approach. There is a lack of effective coordination between new decisions and their implementation.
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* Director of SME B: "Communication is made through printed papers in the break room [...] I am not sure everyone reads them."

* Director of SME C: "In our organization, CSR is absolutely not developed compared to organization B."

* CFO: "It is difficult to communicate data to employees because only the directors have computers."

* Director of SME D: "It is just another group project, but our organizations are different in each company. We have to coordinate first, and then start new projects."

## Environmental brakes

Directors of each entity have to deal with the COVID-19 context, which leads to many frequent changes in organizations and changes regarding sanitary rules. The activity of the network is also sensitive. The pandemic has added another layer of stress as residents are dealing with sickness and loved ones passing away. This leads to a stressful environment and makes the implementation of new processes difficult.

* CHRO: "The CSR project is no longer a priority for now, the directors of organizations are very stressed. Every day, residents die, and we have to deal with changes about COVID rules."

* Director of exploitation: "We have too many emergencies to deal with, sorry but we will contact you later to continue this project. We were not prepared for COVID, and we have to deal with directors of each organization who do not know how to lead that."

* CFO: "It is difficult to ask a director to implement CSR actions when all his residents are sick."

## Discussion

We contribute to the current theory on CSR and SMEs (Baden et al., 2011; Stoian & Gilman, 2017; Williamson et al., 2006) by highlighting the main factors that prevent CSR implementation in a network of SMEs. We point out that factors are not only about SME features but also depend on multilevel (environmental, organizational, and individual) dimensions that play an interacting role in the failure of CSR implementation (see Figure 2).

Furthermore, we investigate the retirement home sector, which is little studied, whereas this is a growing sector, especially in Western countries. In France, almost 10 percent of people 75 years and older live in a retirement home (Delanglade, 2020). Thus, we confirm the work of Bertezene et al. (2014) that stakeholders (policy makers, retirement home key actors, and people in retirement homes and
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<figure><img src="image_20.png" /><figcaption>**Figure 2.** Brakes on CSR implementation in an SME network.</figcaption></figure>

their relatives) should be fully involved in CSR implementation. Nevertheless, we
outline that this involvement should take into account several levels and should
not only focus on the organization itself.

We propose two main strategies to implement the findings. First, the net-
work members need to be more involved in the ownership of the projects.
They should help determine solutions to support the entire network to feel
more included in the decision-making process. Second, increasing commu-
nication by digitalizing processes should foster the sharing of information
among the holding and the organizations.

Disclosure statement

No potential conflict of interest was reported by the authors.

ORCID

Mickaël Géraudel http://orcid.org/0000-0002-4921-5788

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