Mimicking big brothers? The role of SME in Global Governance

The participation of multinational enterprises (MNE) in multi-stakeholder-initiatives/Public-Private-Partnerships is not a new phenomenon. In light of the post national constellation (Habermas 2001), Non-State-Actors have generally begun to fill the governance gap by taking over statal tasks. Companies have particularly been contributing to determine the ‚new global public domain‘ (Ruggie 2004) by playing a regulatory role in deliberative and democratic decision-making processes beyond the nation-state (Zürn 1998; Risse 1999, 2002, 2007; Brühl 2004, Wolf 2005, Matten/Crane 2005; Scherer/Palazzo 2009). Research efforts have thereby been focusing on the multinationals (see also: Hiß 2006; Kollek 2010; Brühl et al. 2004; Scherer/Palazzo 2007, 2008, 2009; Curbach 2009; Rieth 2009; Mühle 2010; Fligstein 1990, 1991).) Recently however, the participation of Small and Medium Enterprises (SME) in international voluntary self-regulatory initiatives for socially responsible engagement (Corporate Social Responsibility- CSR) is also continuously rising. Depending on the defining variables, SME make up to 99,6% of enterprises in Germany (IfM 2008). While their economic relevance is uncontested, they possess characteristics that pose particular challenges in implementing international CSR-measures (different access to resources; different international significance etc.). Concurrently, the progressively act as globally as their big brothers. One prominent example for international CSR-engagement is the Global Compact (GC). Initiated by UN Secretary-General Kofi Annan, the GC engages corporations in implementing ten principles concerning social and environmental standards. Until now, the motivation for international CSR-engagement of SME has been under researched Moore/Spence 2006: 220). In the proposed research paper I will therefore be addressing the central question of why SME, traditionally orientated locally and regionally when undertaking CSR-activities, increasingly engage in international self-regulatory initiatives as international governance actors (namely as active participants in the GC). This is attempted by reconstructing the motivation through drawing on different theoretical approaches, e.g. the sociological institutionalism (Dimaggio/Powell 1991; March/Olsen 1984; Berger/Luckmann 2010), explaining increased CSR-engagement with societal pressure and the deliberative concept (Scherer/Palazzo 2007, 2008, 2009; Habermas 1997, 2001), discussing the proactive role of corporations contributing to solving global environmental and social challenges through deliberative processes. It will be empirically tested, in what way these theoretical frameworks correspond with the self-conception of SME and if it might necessary.