The impact of Covid-19 on the CSR of social enterprises: An empirical study of changing factors

Abstract

The main aim of this study is to critically examine the factors affecting the corporate social responsibility (CSR) strategy development and implementation in social enterprises (SEs) during the three years of the COVID-19 pandemic. This research pursues five research objectives. First, to critically evaluate the existing literature to understand how SEs respond to unpredictable crises. The second one is to explore the changes of CSR strategies and policies of SEs during COVID-19. Third, to evaluate the impact of COVID-19 on the sustainable survival of SEs. Fourth, to examine the key factors influencing SEs' ability to serve the public during crises. The last one is to develop recommendations for practice social entrepreneurs in making CSR decisions in the face of unpredictable crises.An interpretative research and qualitative research design were adopted in this study. Prior to the formal research, the researcher conducted a pilot study with six Scottish SEs, involving eight participants recruited through convenience sampling, to refine the interview approach. Subsequently, 33 in-depth interviews were carried out with SE managers through both online and offline channels, using a combination of convenience and snowball sampling. The researcher used Nvivo14 for thematic analysis in this study. The research was subject to comprehensive scrutiny through the Data Management Plan (DMP) and Privacy Impact Assessment (PIA) processes at Edinburgh Napier University, resulting in full authorisation for the study.A primary contribution of this research is the redefinition of traditional agency theory to new theory called SEs’ agency theory, that filling a critical theoretical gap in explaining dynamic conflicts of hybrid organisations. Furthermore, the study integrates institutional theory with SEs’ agency theory to construct a novel theoretical framework which is empirically examined and clearly demonstrates how external institutional pressures shape internal agency conflicts within SEs during crises.The findings indicate that both external and internal factors significantly influenced SE responses throughout the pandemic. External factors such as government funding support reduce the pressure on SEs to survive and allow them to adjust their services and pursue innovative strategies during the pandemic. Internal factors, including staff health, operational costs and SEs’ flexible survival strategies, were critical considerations. Maintaining staff health ensure operational continuity and enhance sustainability survive, while effective cost management improve efficiency and cost-effectiveness. Furthermore, flexible survival strategies enable SEs to gain external support more rapidly and diversify their operational channels.The theoretical implications of this study are to advance the understanding of dynamic conflict relationships within social enterprises. The proposed SEs’ agency theory illustrates the evolving roles of principals and agents during crisis period, revealing how these relationships shift in response to external pressures. The study offers practical guidance for SEs in strengthening CSR governance in future crises. It also provides insights for policymakers seeking to support hybrid organisations.

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DOI

https://doi.org/10.17869/enu.2025.4920120

Repository URI

http://researchrepository.napier.ac.uk/Output/4920120