Developing social sustainability reporting framework for manufacturing SMEs using ISM approach: an Indian perspective

Purpose Small and medium enterprises (SMEs) constitute an indispensable component of the global economic system. They account for 90% of all business entities and are acknowledged as essential players in export operations, economic advancement and employment generation within an economy. However, these entities often face existential challenges owing to insufficient social evaluation of both direct and indirect concerns. This study aims to delineate the principal material topics (challenges) pertinent to social sustainability and establish a tailored framework of social standards. Design/methodology/approach The current investigation was executed in two distinct phases aimed at identifying material topics and formulating a tailored framework for social sustainability standards applicable to manufacturing SMEs. In Phase I, critical material topics/challenges associated with social sustainability were discerned using the modified nominal group technique (M-NGT), whereas in Phase II, the tailored framework for social sustainability standards was developed through interpretive structural modeling (ISM) and the fuzzy cross-impact matrix multiplication applied to classification technique. Findings The study addressed key social material topics and developed a tailored social standards framework. The tailored framework of social standards reporting enables small organizations to evaluate their resources, operational efficacy and performance standards, thereby aiding in the development of strategies to improve health and safety measures, protect customer privacy and strengthen organizational commitment toward its employees, customers and community. Originality/value The study represents a baseline investigation conducted in a developing economy, i.e. India, that uses the M-NGT and ISM methodologies to establish social sustainability reporting standards for manufacturing SMEs, using the GRI framework.