Corporate social responsibility of small and medium enterprises: A case study of elderly employment

Abstract

The study titled “Corporate Social Responsibility of Small and Medium Enterprises: A Case Study of Elderly Employment” aimed: 1) to study the SME entrepreneurs’ perspectives on corporate social responsibility, including their reasons for employing elderly workers, the skills of these workers, the readiness of establishments, compensation and benefits allocation, employment conditions, and the support received from government agencies.; 2) to examine good practices in the employment of the elderly by SMEs; and 3) to propose appropriate employment guidelines for the elderly that are suitable for SMEs. A qualitative research approach was employed, utilizing in-depth interviews with key informants from SMEs in the manufacturing, service, and trade sectors. All participating businesses were legally registered under the Civil and Commercial Code. The sample included three SME business sizes—micro, small, and medium-sized enterprises—with a total of 25 businesses. The key informant groups comprised: (1) entrepreneurs who played a significant role in hiring elderly workers, representing 20 enterprises that employed at least one elderly worker; (2) entrepreneurs from 5 enterprises that did not employ elderly workers; and (3) 22 elderly workers currently employed in those SMEs. The results of the study revealed that entrepreneurs’ perspectives on corporate social responsibility (CSR) are diverse. Some remain uncertain about appropriate guidelines and perceive CSR activities as the responsibility of large companies. Others consider the employment of elderly workers as an expression of CSR, while some entrepreneurs emphasize that financial readiness is a key factor in undertaking such responsibilities. Across businesses of different sizes, the approach to employing elderly workers is generally similar, involving continued employment after retirement through short-term contracts, either monthly or annually, while maintaining remuneration and benefits. Furthermore, the findings highlight that elderly workers should prepare for retirement by developing new skills (up-skilling/re-skilling) and adapting to ongoing changes in technology and knowledge. Entrepreneurs employing elderly workers perceive that hiring them does not negatively affect business operations. They often feel attached to these workers, having worked together for a long time, and do not wish to abandon them if they can still contribute. Such employment is also seen as a social contribution and aligns with life cycle theory, which emphasizes that change is inherent to human existence, and each life stage has distinct characteristics. Entrepreneurs acknowledge the productivity limitations of elderly workers and accordingly adjust job positions or working hours. At the same time, they recognize elderly workers’ advantages, particularly experience, expertise, problem-solving ability, and positive work attitude. They are also willing to support skill development or training, viewing it as an investment that facilitates knowledge transfer to younger generations, consistent with human capital theory. However, certain types of work, especially those requiring significant physical exertion, are considered unsuitable for elderly workers, who are instead regarded as more appropriate for consultant roles. Therefore, the employment of older workers should be recognized as an important organizational strategy. It reflects equality and social responsibility while acknowledging elderly workers as valuable human resources with knowledge, skills, and experience to transfer to younger generations. To help entrepreneurs who have not yet employed elderly workers recognize their importance, organizations should disseminate best practices and introduce incentives through policy support, such as tax benefits, social security deductions, or subsidies. Furthermore, raising awareness in society of the need to employ elderly workers will help highlight the positive impacts not only on the quality of life of the elderly but also on society and the national economy.