Internal marketing as a strategic tool for social sustainability and competitiveness in European SMEs

What is it about?

Small and medium-sized enterprises (SMEs) are increasingly expected to demonstrate responsible business practices and support sustainability goals. While much attention has been given to environmental sustainability, less is known about how organisations can improve the social aspects of sustainability, such as employee wellbeing, fairness, inclusion, and development opportunities. This study examined how Internal Marketing practices influence social sustainability within a service-based SME in Cyprus. Using focus groups with employees and organisational ESG data, the study explored how communication, training, recognition, and managerial support affect employee commitment and service quality. The findings suggest that Internal Marketing can help organisations translate sustainability goals into everyday workplace practices. However, the study also revealed that positive sustainability indicators do not always reflect employees’ actual experiences. Employees were more engaged when they perceived organisational practices as fair, transparent, and inclusive. The findings highlight the importance of ensuring that sustainability initiatives are not only implemented but also experienced positively by employees.

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Photo by jing chen on Unsplash

Photo by jing chen on Unsplash

Why is it important?

This study is important because it highlights the often-overlooked human dimension of sustainability in SMEs. While organisations increasingly report positive ESG indicators, these figures do not necessarily reflect how employees experience sustainability in their everyday working environment. The study shows how Internal Marketing practices such as communication, training, recognition, fairness, and managerial support can help translate sustainability commitments into meaningful employee experiences. By connecting Internal Marketing with social sustainability, the research offers practical insights for SMEs seeking to strengthen employee wellbeing, inclusion, engagement, and service quality while making their sustainability efforts more authentic and effective.