Although studies relative to redirecting the unsustainable trajectory of small and medium enterprises (SMEs) in the South African construction industry (SACI) have been extensively conducted, current statistics show that 70–80% of construction SMEs in the SACI fail within their first five years of existence, raising concerns regarding their sustainability. This paper attempts to address the negative trajectory by exploring the concept of corporate social responsibility (CSR), investigating the organisational perceptions of SMEs in the SACI relative to the relationship between the integration of CSR and sustainable business performance (SBP). Existing literature was used to provide an overview of this relationship taking into consideration the views of SMEs in both developed and developing countries. The empirical study was conducted utilising a quantitative research approach in the form of an online questionnaire survey. The research data was analysed using both descriptive (mean, standard deviation, etc.) and inferential (Analysis of Variance ANOVA) statistics. Based on the research approach and data analysis, the findings revealed that SMEs in the SACI similarly perceive the relationship between the integration of CSR and SBP to be a positive one, implying that the practice of CSR within construction businesses should lead to SBP, and serve as a meaningful guide in addressing the unsustainable trajectory of SMEs in the SACI. The findings could guide government agencies such as the construction industry development board (cidb) to embed CSR education within contractor development programs, linking the adoption of CSR to the contractor grading system.

This paper purposes to develop a corporate social responsibility (CSR) model to guide small and medium enterprises (SMEs) in the South African construction industry (SACI) towards sustainable business performance (SBP). A theoretical CSR model was developed from the literature and validated through Partial Least Squares Structural Equation Modelling (PLS-SEM), using primary questionnaire data obtained from 110 SMEs in the SACI, who are registered on the construction industry development board (cidb) register of contractors between Grade 1 and 6 general building (GB) and/or civil engineering (CE). The PLS-SEM results indicate that CSR drivers influencing the CSR practices of SMEs, along with CSR implementation challenges experienced by SMEs, influence the perception of SMEs pertaining to the relationship between the integration of CSR and SBP all of which influences the CSR activities considered by SMEs to achieve SBP, thus implying that the holistic adaption of the PLS-SEM (CSR model) by SMEs in the SACI equates to more SBP. However, SMEs practicing CSR activities to achieve SBP are subjected to specific CSR: drivers and implementation challenges as well as SME owner perceptions.

To date, very little research has been done on the concept of corporate social responsibility (CSR), particularly the practice of CSR within the global and local construction industry. This extends to studies identifying CSR implementation challenges affecting construction organisations. This work attempts to specifically identify CSR implementation challenges affecting small and medium-sized enterprises (SMEs) within the South African construction industry (SACI). Existing literature was used to provide an overview of the current CSR implementation challenges from both the global construction industry as well as generic business sectors guided by the St. Gallen Management Model. An empirical quantitative research approach study using an online questionnaire survey, with the data analysed using both descriptive (mean, standard deviation, etc.) and inferential (Analysis of Variance ANOVA) statistics was conducted. The findings revealed that SMEs in the SACI are affected by CSR implementation challenges related to a lack of integration in the SME culture and business objectives; Limited financial resources to undertake CSR initiatives; Lack of CSR skills and knowledge, and unstable economic conditions. In addition, novelty in the findings were importantly linked to the fact that although SEs and MEs are categorised differently in terms of their cidb grade and their upper limit of tender value range, the two groups of contractors’ experience similar CSR implementation challenges across four management levels as guided by the St. Gallen Management Model, carefully guiding future research into investigating mitigating factors pertaining to SEs and MEs.

The risks arising from contractual claims in the civil engineering construction industry in South Africa are a concern. Currently, there are no risk mitigation models available for managers to help reduce such risks. A theoretical risk mitigation model was developed from the literature and validated through partial least squares structural equation modelling (PLS-SEM), using primary questionnaire data obtained from 166 respondents drawn from a pool of South African construction industry professionals, including project directors, project managers, supervisors, consultants, and contractors. The descriptive results indicate significant patterns, trends, and distributions of the variables across the three constructs in the study. The PLS-SEM results indicate that factors causing contractual claims risk in civil infrastructure projects have a significant relation to the impact of risk occurrence on these projects, influencing the strategies to be implemented to mitigate such risks. The PLS-SEM results also indicate a significant direct relation between the factors causing contractual claims risk and the strategies to be implemented to mitigate risks, thus implying that the holistic adaptation of the PLS-SEM (risk mitigation model) by construction industry professionals in South Africa should reduce contractual claims risk in civil infrastructure projects. The findings serve as a valuable guide not only to construction industry professionals but also to government agencies such as the Department of Public Works and Infrastructure.