Corporate Social Responsibility in Family Businesses: Exploring barriers and drivers

Details

Supervisors

Denis, Sabine

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

Corporate Social Responsibility (CSR) practices have become vital in response to the imminent threat of climate change. However, the literature on CSR in Family Firms (FFs) is still in its early stage, despite FFs' significant economic importance and unique characteristics that could impact their CSR performance. Consequently, this thesis delves into CSR and FFs. The originality of this thesis lies in its practical focus on untangling barriers and drivers of CSR in FFs, an area that has not been extensively researched. The research design includes a comprehensive scientific literature review on related subjects coupled with exploratory research through structured interviews with 11 family members from diverse FFs. The findings from this thesis reveal that FFs possess distinct advantages for implementing CSR. Their long-term focus, family values, strong relations with their stakeholders, and commitment to social welfare contribute to better CSR practices. Despite these positive characteristics, FFs face a delay in adopting climate-related considerations and CSR strategic planning, possibly due to the "first mover disadvantage" phenomenon. Several other challenges hinder their CSR progress, including technical barriers, financial constraints, resistance to change, lack of dedicated CSR personnel, and limited communication and reporting to external stakeholders. In a nutshell, this research contributes to the understanding of CSR implementation in FFs and offers practical insights to enhance CSR practices in these types of firms. Indeed, it provides valuable information for policymakers, family business owners, and researchers seeking to advance CSR in family firms.