“…Extant research fails to acknowledge how critical CSR and diversity are to SMEs' business strategies and long-term planning, often focusing solely on large firms (European Commission, 2017a). Although CSR literature has begun to explore CSR in relation to small firms (Ferramosca Verona, 2019), suggesting how CSR might contribute to their diversity (Grosser, 2009;Grosser and Moon, 2005), help SMEs retain their qualified employees, or improve their innovative capacity (Surroca et al, 2010), we know of no studies that consider how diversity might alleviate the inherent challenges that SMEs face, including resource constraints and difficulties recruiting and retaining high quality staff (Freel, 1999(Freel, , 2000Ruiz-Jiménez et al, 2016). Recently, such difficulties have been highlighted by Terruel and Segarra-Blasco (2017) who identify firm size as a moderator of the relationship between gender diversity and innovation.…”