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turn generates income for many households there by reducing poverty levels. It confirmed by Jeppesen (2005: 472) that local south African SMEs have indeed created more jobs. Motloug and Mears (2002: 538) comment that SMEs ability to create jobs can be regarded as a vehicle to reduce poverty level in the country.
It thus appears that behaving ethically and acting in a social responsible manner could bring many benefits SMEs.
RESEARCH DESIGN AND METHODOLOGY Research paradigm
A positivistic research methodology (quantitative research) will be adopted in this research project as the data collected is specific, precise, objective and numeric in nature. The research approach is descriptive and exploratory in nature which describes the perceptions of SME's regarding ethics and social responsibility.
Population
The unit of analysis is owners, managers and employees of SME's. The population for this study has been identified as all SME's within Nelson Mandela Bay.
Sampling
A non-probability convenient sample was used and 150 SMEs located within this region were targeted. The sample was selected based on convenience and accessibility due to time and financial constraints.
Data collection
Data was collected using both secondary and primary sources. Secondary data was collected by viewing existing literature sources such as textbooks, journals and the Internet. Primary data was collected by means of a survey using self-administered questionnaires. A total of 150 self- administered questionnaires were distributed to SME's in the designated region and 120 correct completed questionnaires were returned. The effective response rate of this survey was thus 80%. Various measures were taken as to increase the response rate of this study (e.g. follow-up and reminding calls/visits; questionnaires printed in an attractive booklet format; properly worded covering letter).
Questionnaire design
Ÿ A self-administered structured questionnaire was designed for this survey. The questionnaire consists of four sections:
Ÿ Section A assessed the general perceptions of respondents regarding ethics and social responsibility using a five-point Likert ordinal scale.
Ÿ Section B of the questionnaire investigated perceptions regarding ethical practices of SMEs using a five-point Likert ordinal scale.
Ÿ Section C investigated perceptions regarding social responsibility practices of SMEs, using an ordinal scale of measurement (five-point Likert scale).
Ÿ Section D of the questionnaire focused on biographical information of the respondents, using a nominal scale and included 11 categorical variables.
PERCEPTIONS REGARDING ETHICAL AND SOCIAL RESPONSIBILITY PRACTICES: AN SME PERSPECTIVE 143