Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment
* Correspondence to: Dr Massimo Battaglia, Assistant Professor, Sant’Anna School of Advanced Studies, Piazza Martiri della Libertà 33, Pisa, 
Italy. E-mail: battaglia@sssup.it
Corporate Social Responsibility and Environmental Management
Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
Published online 17 March 2010 in Wiley InterScience
(www.interscience.wiley.com) DOI: 10.1002/csr.224
An Innovative Model to Promote CSR among SMEs 
Operating in Industrial Clusters: Evidence from 
an EU Project
Massimo Battaglia,* Lara Bianchi, Marco Frey and Fabio Iraldo
Sant’Anna School of Advanced Studies, Pisa, Italy
ABSTRACT
This paper presents the fi ndings of our EU co-funded project, an idea developed to better 
understand the opportunities to formalize corporate social responsibility (CSR) practices 
for small and medium enterprises (SMEs) in a clustered system. Small companies often 
have to compete in a global market; for this reason, cooperation among SMEs, and with 
local stakeholders and intermediary institutions, might be facilitated by a collective answer 
to new market requests. Cooperation and social capital are key elements to facilitate trust 
amongst involved local actors. Moreover, they can also play a key role in the formalization 
of CSR policies and practices for small companies. In our project, we aimed at identifying 
and understanding the role of the ‘intermediary institutions’ (such as trade unions, local 
authorities, business consortia) in the cluster. Throughout the paper, we focus on the 
analysis of three industrial clusters in Tuscany (Italy). Copyright © 2010 John Wiley & Sons, 
Ltd and ERP Environment.
Received 16 October 2009; revised 4 January 2010; accepted 5 January 2010
Keywords: SMEs; CSR tools; industrial cluster; intermediary institutions
Introduction and Theoretical Framework
THIS PAPER FOCUSES ON THE IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY (CSR)-RELATED TOPICS FOR SMALL and medium enterprises (SMEs) operating in industrial clusters.In an SME, like in any other business organization, the effi ciency and effectiveness of business activities are infl uenced by societal problems (Spence and Schmindpeter, 2003). The SME has a tight connection 
with the context in which it is located and this fact induces a strong development of CSR-related actions; each fi rm 
is, in this way, inclined to integrate local social and environmental issues in the business activity.
On the other hand, with respect to the CSR concept, according to the European Commission (2001) defi nition 
‘CSR is a concept whereby companies integrate social and environmental concerns in their business operations 
and in their interaction with their stakeholders on a voluntary basis.’ As in other defi nitions of CSR, this one also 
emphasizes the close relationship between the organization’s behavior and social/environmental issues. Thus, if 
it is proven true that in recent years CSR has become relevant in business studies, it is still necessary to better 
134 M. Battaglia et al.
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
explain the way in which SMEs apply CSR (Thompson and Smith, 1991; Spence, 1999; Observatory of European 
SMEs, 2002; Perrini, 2006; Perrini et al., 2006; Spence, 2007).
During the past decades, literature and research have identifi ed some common characteristics of SMEs. They 
have very heterogeneous sizes and organizational structures. They are owner-managed and not very bureaucratic 
out of necessity to solve day-to-day problems. They have similar fi nancial turnover and informal relations and 
communication process. They recognize the importance of interpersonal relationships and have a high interrela-
tion with the local community and the local environment. They often operate in a local network of SMEs and/or 
in a local supply chain or a large enterprise’s network of suppliers (Spence, 1999; Lepoutre and Heene, 2006; 
Murillo and Lozano, 2006). These characteristics underline a deep difference between large and small/medium 
fi rms which can be often linked to the presence of social capital in a specifi c context. This element facilitates the 
use of informal CSR policies adopted by SMEs (Chiesi, 2005; Perrini et al., 2007; Russo and Tencati, 2009), a 
process also known as ‘implicit CSR’ (Matten and Moon, 2004; 2008), or ‘silent CSR’ (Jenkins, 2004). As Perrini 
(2006) emphasizes, whilst large enterprises interpret CSR as a multistakeholder approach, in SMEs, CSR practices 
are based on synergies and relationships between different subjects; i.e., they are based on social capital. The 
concept of social capital is generally associated with the intangible assets of reputation, trust, legitimacy and con-
sensus (Putnam et al., 1993; Spence et al., 2000; Tilley, 2000; Adler and Kwon, 2002; Spence and Schmindpeter, 
2003; Habisch et al., 2005). Socially responsible behaviors are often able to originate and endorse trust links 
between different actors: this represents the basis of the long-term performance of SMEs embedded in the local 
communities in which they operate.
If it is true that the use of informal CSR is very common among SMEs, the transition toward a formalized CSR, 
on the other hand, is often very diffi cult. The lack of human, technical and organizational resources found in SMEs 
makes the implementation of formalized CSR policies very diffi cult, both because of the perceived costs and the 
complexity of the operation (European Commission, 2002; 2004; Luetkenhorst, 2004; Fox, 2005; Lepoutre and 
Heene, 2006). An investment in CSR is often considered hard and uncertain: hard because the enterprise needs 
to fi nd resources for it; and uncertain because there is not enough empirical evidence explaining the benefi ts 
achieved by social responsibility strategies. Moreover, enterprises perceive CSR as a complex business issue that 
requires a specifi c expertise.
On the basis of the results of our EU Project, this paper proposes a way to overcome these diffi culties and remove 
the barriers to the adoption of CSR-related tools. Our approach is based on the idea that the barriers faced by SMEs 
can be overcome in a networked system, called a ‘cluster’, in which companies tend to operate as a meta- 
organization (Spence, 1999). In a cluster, social capital is strengthened by the proximity of fi rms, the availability 
of local resources, and close correlation with local institutions. For this reason, an industrial cluster is defi ned as 
a geographically proximate group of interconnected enterprises and associated institutions (Porter, 1998). As the 
literature posits (Piore and Sabel, 1987; Becattini, 1989; 1990; Piore, 1991; Ferrucci and Varaldo, 1996; 1997) the 
cluster organizational structure and culture are characterized by the presence of a relational environment, built on 
systematic relationships among local actors. This allows the sharing of a collective identity based on common 
values, also with respect to the way the business is run. In an industrial cluster, SMEs have similar social and 
environmental impacts; the fi rms have similar interactions with local actors; and they often face common social 
and environmental pressures from stakeholders. It is possible to reduce the costs of action and to improve the 
results for each fi rm with a clustered management approach to these issues (European Commission, 2007). 
Therefore, high concentration of SMEs with similar production processes often causes signifi cant social and envi-
ronmental problems. This requires integrated management in order to prevent accumulated negative externalities 
on CSR-related issues. The management of CSR through the cluster can enhance the possibility of defi ning 
common effective policies and strategies, and it can improve relations with the local stakeholders (community, 
institutions, control bodies, etc.).
From this point of view, an active role in the cluster system could be played by the so-called ‘intermediate insti-
tutions’, such as trade associations, business consortia, chambers of commerce (European Commission, 2007; 
Frey and Iraldo, 2008). Intermediate institutions are defi ned ‘intermediate’ since they operate among fi rms, local 
communities, local economies and local politics. These institutions have a primary role in industrial clusters, with 
reference to the integration of local and social values (Trigilia, 1991). In addition, intermediate institutions facilitate 
the improvement of communication between local communities and fi rms, and the innovation processes on a 
CSR Promotion in Clustered Systems 135
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
cluster scale (Arrighetti and Serravalli, 1999; Dei Ottati, 2002; Visser and Atzema, 2008). Finally, they infl uence 
the promotion of shared strategies to tackle common problems at cluster level, in the environmental fi eld, for 
example (Iraldo, 2002; Montini and Zoboli, 2004). Therefore, intermediate institutions could also play a key role 
in the implementation and diffusion of CSR policies among the cluster fi rms.
Research Design
Our research is based on the experience of the COOPERATE Project (COmpanies OPErating in a Responsible Area 
and with Transparent Ethics), co-fi nanced by the European Commission (DG Enterprise & Industry) within the 
Mainstreaming CSR among SMEs EU Program. The aim of the research was to promote and to spread CSR con-
cepts, practices, and tools among SMEs operating in industrial clusters in the Tuscany region (Italy). The project 
relied on strong, consolidated and trusted information channels and knowledge-sharing networks and it empha-
sized CSR-oriented business strategies as a relevant competitive opportunity for SMEs. Our research involved three 
Tuscan industrial clusters: the Capannori (LU) paper cluster, the Santa Croce s/Arno (PI) tanning cluster, and the 
Empolese-Valdelsa (FI) clothing cluster. In each cluster, an innovative approach for cooperative CSR management 
was proposed, based on the role of local ‘intermediary institutions and organizations’. A number of industrial 
(SMEs) and non-industrial organizations (e.g., trade associations, local authorities, service providers) selected, 
adapted and developed a series of CSR ‘formalized’ practices and tools, relying on some cooperative and collective 
actions, with the goal of defi ning a new method for mainstreaming CSR among SMEs. As a fi rst step, a working 
group was created in each cluster with the goal of designing and implementing a territorial cooperative approach 
to CSR:
• In the tannery cluster, fi ve actors participated (i.e., three local business associations, the representatives of the 
main local trade union and the provincial local authority).
• In the clothing cluster, there were seven participants (i.e., the local development agency, the local public authority 
representative of ten municipalities, three local business associations, the local offi ce of Regional Environmental 
Protection Agency, and a local sectorial trade union).
• Finally, in the paper cluster, four members took part in the research (i.e., the bureau of Lucca Province, the main 
local business association, the local Paper Cluster Committee and the local Chamber of Commerce).
In each working group, the Sant’Anna School had the role of scientifi c expert. In each cluster, the composition of 
the working groups was different, due to the differences in the three productive sectors. The tanning and clothing 
clusters are mostly composed of small and micro-enterprises operating in fragmented supply chains (Dunford, 
2003; Nordas, 2004; IFM, 2007), whose representatives are the artisans associations (not only the industrial ones). 
On the other hand, the paper cluster is composed of medium-sized enterprises, represented only by industrial 
associations. Many activities were carried out in the project; the most important in terms of research results were 
the following three: the drafting of the Sustainability Report of the Cluster, the identifi cation and dissemination 
of CSR tools for individual SMEs, and, fi nally, the organization of a thematic focus group.
Findings
The Sustainability Report is a document specifi c to a cluster summarizing the fi ndings of direct interviews with 
fi rms and local actors. The report is concerned with the social, economic and environmental performance of the 
cluster. A special panel of indicators shared by each working group measured these performances. The utility of 
the Sustainability Report is multifaceted and relates to both the overall size of the cluster and the individual SMEs. 
In particular:
• In terms of the overall cluster: the report allowed for the defi nition of a set of indicators for each territory to 
measure its economic, social, and environmental performance. The document highlighted the strategic position 
136 M. Battaglia et al.
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
of each cluster with respect to the three principles of sustainability. It also represented a fi rst opportunity to study 
the relationships between public and private actors in the cluster on sustainability-related issues. In addition, it 
was an important experience to provide third parties with information about the cluster dynamics. Finally, the 
collected information provided opportunities for local working groups to determine the needs of SMEs with 
respect to CSR tools.
• In terms of the single SME: the report provided an aggregated overview of social and environmental perfor-
mances. This represented a benchmark for each fi rm evaluating its path toward the adoption of CSR tools. It 
could be considered as a sort of local average value performance.
There were 92 companies directly involved in the interviews on which the report was based. The questions mainly 
concerned the level of awareness of CSR issues; the presence of ethical/environmental certifi cations; the identifi -
cation of local key stakeholders; information about the organizational structure; and information on employee 
training. A report was drafted in each cluster.
From the results of the interviews, it was possible to draw some interesting fi ndings:
• In all clusters, employees and clients were identifi ed as privileged stakeholders for the fi rms. This fact underlines 
not only the importance of clients from a commercial point of view, but also recognition of the importance of 
workers as a factor to stimulate increased productivity.
• In the fashion system (tanning and clothing), suppliers were also considered important stakeholders. On the 
other hand, in the paper industry communities and local government institutions roles were also relevant.
• These fi ndings were confi rmed as part of the answers concerning corporate value systems, in which the major-
ity of respondents focused on the health and safety of their workers, production, and, for tanneries and paper 
mills, environmental protection.
• The knowledge of and the level of diffusion of CSR tools were very different for the three clusters, as well per-
ceptions of their utility. In the clothing industrial cluster, a rather low number of fi rms held certifi cation, and a 
lack of knowledge of these tools (except for the national INAIL standard, Ecolabel, and ISO14001 certifi cation) 
was evident. On the contrary, in the paper cluster, the level of knowledge of management standards and report-
ing tools was particularly high. Finally, in the tanning cluster, the level of knowledge of CSR tools was much 
higher in the tanneries than for third party contractors.
• In terms of preferences for CSR tools, a prevalence of management tools with respect to reporting tools was 
expressed. In particular, the fashion fi rms had a general orientation in favor of management systems complying 
with SA8000/EMAS. On the other hand, the paper producers focused more on the issue of employee health 
and safety.
• In the fashion industry, weak concerns emerged regarding the perception of benefi ts associated with CSR tools, 
especially in a short-term strategy.
• With regard to the fi rms that already adopt CSR tools, external pressures were identifi ed as one of the main 
reasons for their decision in both the clothing and the paper clusters.
Based on evidence emerging from both interviews and collected performance indicators, the working groups 
identifi ed and implemented a series of actions aimed at encouraging the spread of CSR tools among SMEs. First, 
the working groups organized training and informative activities for SMEs about the benefi ts linked to the imple-
mentation of management systems in accordance with international standards (with particular attention to the 
ISO14001/EMAS, OHSAS18001 and SA8000 standards). Overall, 26 fi rms participated in the training/informa-
tive initiatives. In the Santa Croce and Empoli clusters, the working groups identifi ed the need for drafting a 
guideline document, which they distributed among businesses. This document outlined the requirements of 
environmental certifi cation schemes (ISO14001/EMAS), the patterns of ethical certifi cation (SA8000), and the 
possible ways of their implementation within the clothing and tanning sectors. In the Capannori cluster, procedural 
schemes to assist the integration of environmental and safety management systems were established and diffused 
among local enterprises.
From a research perspective, these initiatives demonstrated the feasibility of collective action at cluster level and 
showed the existence of a local relational system that could support their implementation.
CSR Promotion in Clustered Systems 137
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
To these initiatives, which have operational and informative value, we can add a third type tested under the 
project; i.e., activities carried out in ten sample companies oriented to experience the adoptability of CSR tools 
directly. Four companies were involved in the clothing sector, three in paper mills and three in the tanning sector. 
We visited each company a few times with the purpose of providing information about the gap between the fi rm’s 
performance and CSR standards. Then we investigated the perceived barriers to the adoption of CSR-formalized 
tools. In this phase of the project, we confi rmed some of the diffi culties that had emerged during the interviews. 
In particular, SMEs from the tanning and clothing clusters pointed out two critical aspects relating to the adoption 
of CSR tools: high costs and complex bureaucracy. Secondly, it was stressed that the perceived short-term benefi ts 
are still very few, mainly due to end-market preference for low prices over CSR principles. A possible solution 
could be to simplify the adoption of formalized CSR tools, which would meet the needs of local fi rms. Finally, 
with regard to the issue of local competition, a specifi c issue emerged from the meetings: the companies expressed 
concern about the increasing risk of unfair local competition that can be induced by the opportunistic behavior of 
some fi rms that push their suppliers to drastically lower their prices at the expense of products and processes 
quality. This phenomenon is dangerous because it undermines the trust that keeps local relationships from falling 
apart. An approach that seeks to disseminate tools for transparency between companies, such as CSR, can help 
limit these risks.
The latest initiative of our project that deserves particular attention was the organization of a thematic focus 
group to detect the point of view of internal and external stakeholders with reference to a cluster approach to CSR.
Thirty-eight people participated at the event. The participants were classifi ed into three categories:
1. Eight trade associations representing the cluster fi rms.
2. Twelve subjects representing banks/insurances and market actors operating in the characterizing sectors 
involved in the project.
3. Eighteen external stakeholders (institutions, associations, trade unions, NGOs, etc.).
Each participant was asked to express his preferences in ten closed questions with predefi ned answers. We now 
report the series of fi ndings and considerations that emerged from this consultation:
• The importance of developing CSR practices within the policies and strategies of clusters was unanimously 
highlighted. Maintaining competitive positions in the market and the need for ensuring regulatory compli-
ance are two key reasons for adopting CSR practices (with more than 50% consensus), as recognized by 
the representatives of SMEs themselves. The ease of access to fi nance is also an important stimulus, but 
more for stakeholders, such as banks, insurance companies and institutions, than for SMEs. This highlights 
the need to effectively promote these tools from an operative point of view, rather than only by means of 
co-fi nancing.
• With reference to the reasons why SMEs perceive that CSR tools are not necessary, indications from the stake-
holders focused on the excessive complexity and costs of the tools (34%).
• Regarding internal diffi culties faced by SMEs in the development and implementation of CSR practices, a lack 
of top management on cultural CSR emerged from the stakeholders (40%). This indication highlights an impor-
tant problem related to the cultural and knowledge growth of organizational leadership as the main obstacle, 
followed by the lack of resources and expertise (27%) and the scant knowledge of CSR tools (25%). From these 
indications, the need to stimulate the spread of a new managerial culture amongst SMEs emerged.
• With regard to the different ways of supporting the adoption of CSR tools by SMEs operating in clusters, there 
was a particular focus on the issue of administrative and normative simplifi cation (24%), and toward the devel-
opment of cluster tools (27%), in a framework of cooperation and sharing of experiences and approaches. The 
defi nition of collective instruments seems to be the most viable path, alongside initiatives of public decision-
makers that can enable SMEs to receive short-term benefi ts related to the development of CSR instruments. 
Local institutions are identifi ed by the stakeholders (34% of preferences) as those who should increase their 
support of SMEs in the development of CSR practices at the cluster level.
138 M. Battaglia et al.
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
Conclusions
Cluster Approach to CSR and its Benefi ts
This paper aims to show that the proposed cluster approach allows the achievement of sustainable objectives and 
the adoption of CSR-related tools by SMEs. This is made possible by the set up of specifi c cluster tools: local mul-
tistakeholder working groups, communication tools to disseminate expertise and best practices, operational models, 
guidelines to support organizations toward CSR, and audits at the local level. The cluster approach is based on a 
methodology by which the CSR tools are developed by a local productive system as a whole and not simply by the 
enterprises it is made up of. In other words, the traditional approach to CSR at the local level among SMEs pro-
poses the promotion of sustainability management within the productive system, while our ‘cluster’ approach 
promotes CSR of the productive system.
The experience of the COOPERATE project showed that the results of the proposed cluster approach are inti-
mately linked to the characteristics of the cluster in the relational environment. This is made possible by a number 
of synergies at the managerial and technological level to promote the inclusion and diffusion of innovative ele-
ments based on the partnership between the different fi rms operating within a cluster. Some results of a cluster 
approach can be identifi ed with reference to different levels of analysis: the macro level is connected with the rela-
tions external to the cluster; the meso level, refers to the relations implemented inside the cluster; and, fi nally, the 
micro level, which is the point of view of the organizations operating in the cluster.
From the macro level, we notice that the benefi ts connected with CSR management at the individual fi rm level 
can be strengthened and amplifi ed if CSR is applied at the territorial level to an entire industrial cluster. This 
aspect can positively affect the opportunities related to a global ethical and green supply chain management (Walton 
et al., 1998; Carter, 2000; Theyel, 2001). The industrial clusters of traditional sectors (such as clothing and tanning) 
are today competing in national and international markets. In this global competitive arena, diversifi cation emerged 
in the COOPERATE experience as a potential strategic variable (as shown in the focus groups, or in the opinion 
of leader SMEs) and the territorial characterization of a new strategic opportunity (e.g., a territorial brand). There-
fore, the promotion of CSR policies and actions at the cluster level – as proposed in this paper – can improve 
the image of the cluster brand and, consequently, the competitive capability of many SMEs located in the same 
territory.
From the point of view of the cluster’s internal relations (meso level), the application of a cluster approach to 
CSR can improve the management of social and environmental cumulative impacts caused by the concentration 
of a large number of SMEs operating in the same sector/territory (Iraldo, 2002; Frey and Iraldo, 2008). The 
cooperative nature of the approach proposed in this paper, in fact, prevents these impacts being undermined or 
not managed at all. Furthermore, there is a waste of resources in the territory, since the different actors implement 
actions individually to manage the ‘cumulative’ effects. At the meso level, the cluster approach promotes coopera-
tion and the consequent use of common resources. In many cases, this is developed with the contribution of all 
the cluster’s organizations, such as the Cluster Sustainability Report. It can also generate an improvement in the 
awareness of social and environmental topics, not only by the organizations operating in the cluster but also by 
the local community and public actors.
Finally, from the point of view of the organizations operating in the local productive system (micro level), the 
application of the cluster approach resulted in a fundamental instrument to overcome the barriers that prevent 
them developing systematic CSR initiatives (costs and complexity of the operation). SMEs involved in the project 
clearly expressed this need, and the opportunity of a coordinated approach was identifi ed as interesting with 
positive effects perceived from both economic and organizational points of view.
The cooperative approach proposed in the COOPERATE project can help exploit the opportunities to share, the 
burden of innovation and development within the cluster, interacting with the same public authorities and social 
stakeholders. The proposed approach can also improve the coordination of the management of CSR-related issues 
(diversity management, health and safety of the workers, guarantees on child labor or illegal subcontracting, waste 
separation, collection and recovery, water sewage collection and purifi cation, etc.) and of specifi c production phases 
(supply-chain management, investment planning, common audits, etc.).
CSR Promotion in Clustered Systems 139
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
Moving Toward a Formalized Cluster Approach to CSR
The experience of the COOPERATE project also showed some elements that have to be carefully considered in 
order to guarantee the effectiveness of the approach. First of all, strong and legitimized leadership at local level is 
needed while proposing and managing the cooperative approach to CSR: the creation of policies and instruments 
at the cluster level has to be guided by a group of local intermediary institutions whose actions and promotions 
can be considered innovative by the local enterprises. Another relevant aspect is connected to the existence of common 
social and environmental problems to be managed at the cluster level. This aspect was clear, for example, in the 
paper cluster in Lucca, where the interest in a common approach to safety management represented the basis for 
a large participation in common initiatives promoted at local level. The proposed approach, in fact, strongly relies 
on the hypothesis that a set of organizations located in the same local context, operating in the same sector or 
supply chain and having the same stakeholders, face a large number of common social and environmental prob-
lems. In some cases, this is not completely true (for example, when the number of common impacts are the least 
important ones, while the most relevant ones are fi rm-specifi c) so the identifi cation of common resources (models 
of procedures, training initiatives, etc.) can be extremely hard and, consequently, the cluster approach would have 
poorer results. Finally, as it emerged in all the clusters characterized by small enterprises, the benefi ts for fi rms 
of a cluster approach are evident, but not those deriving from the implementation of CSR tools. The fi rms perceived 
the opportunities of a cooperative approach and they demonstrated integration with local communities but, on the 
other hand, they expressed the need to receive short-term benefi ts from a formalized CSR approach.
Therefore, in opposition to a series of benefi ts that emerge from the experience of COOPERATE, we also note 
a number of critical factors that should be considered at the working group level in order to limit the extent and 
effectiveness of the approach. From this point of view, it is considered that, in our opinion, the defi nition of a 
formal model of a cluster approach could reasonably maximize the benefi ts and to respond to the real needs of 
local businesses. This formalization, based on what emerged in our research and from other research specifi c to 
the environment (Frey and Iraldo, 2008), can be described in fi ve main phases.
The fi rst phase should be the constitution of local working group, which represents the interests of the public 
and private sector, and should guide the creation of the entire process. The drafting of an initial declaration of 
intent (CSR policy), which may take the form of a voluntary agreement between the parties is desirable, in order 
to outline a course of work for the following years. The second step of the approach should be the study of the 
local cluster and its internal relationships between business and externally, from an economic, social and environ-
mental standpoint. At this stage, the following aspects are important: the defi nition of a set of performance indica-
tors and the direct and indirect recognition of the needs of local SMEs with respect to CSR. The collected 
information should constitute a document of analysis and social/environmental reporting, that could be made 
public. The third step would be the defi nition of a formalized program of initiatives geared toward the implemen-
tation and dissemination of CSR tools to the SMEs of the cluster, (e.g., through collective training, documentation 
management support, conduction of internal audits, identifi cation of possible simplifi cations and economic ben-
efi ts for businesses, etc.). Moreover, the construction of an external communication plan is important to enhance 
the social-economic performance of the cluster. The fourth step is to implement the previous phases. At this stage, 
a series of cluster indicators relating to the overall performance of CSR should be monitored. These indicators 
represent the basic element for the fi fth and fi nal phase, i.e., the follow up, in which the working group should 
monitor the effectiveness of initiatives implemented, possibly redefi ning new ones.
The approach described above, which outlines a circular managerial PDCA (Plan, Do, Check, Act) path, could 
reasonably assure the continuity of local initiatives and ensure a good spread of CSR tools among SMEs in the 
cluster. For the future, the capability of the three clusters to continue the promotion of CSR-related initiatives at 
local level is considered essential in order to fully assess the effectiveness of the approach.
In terms of future outlook, the research fi nally opened the possibility of investigating an important aspect for 
SMEs: the relationship between competitiveness and CSR. This is true in particular for SMEs operating in tradi-
tional manufacturing sectors, which are among the most affected by competition from developing countries. The 
possible competitive advantage is a central element for the Commission’s new program, Responsible competitiveness: 
fostering corporate social responsibility in European industrial sectors, from which it will be interesting to assess what 
results emerge.
140 M. Battaglia et al.
Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 17, 133–141 (2010)
 DOI: 10.1002/csr
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