Small and Medium Enterprises and Corporate Social Responsibility Practice: A Swedish Perspective

Abstract

The purpose of this paper is to investigate the characteristics of corporate social responsibility (CSR) practice in Swedish small and medium-sized enterprises (SMEs). A case study approach is used to investigate the CSR perception, motivation, and activities of two Swedish SMEs. This paper indicates that two Swedish SMEs studied adopt a profitseeking rather than a profit-sacrificing CSR approach. Furthermore, the paper argues that the perception, the motivation, and part of the CSR activities are well incorporated in the decision to engage in CSR. However, the Swedish SMEs in our case studies are often limited in communicating their CSR activities due to a lack of resources and management skills. This communication gap between intended and actual communication drives the overall CSR impact on business performance from marginal to non-existent. As a result, looking at the overall business impact, a meant-to-be profit-seeking strategy is actually turned into a profit-sacrificing activity.According to the Organisation for Economic Co-operation and Development (OECD) (2005), SMEs account for over 95% of in manufacturing and service industries in OECD countries. SMEs are considered to be a main job creator, 90K.-H. Lee et al.The owner-managers in SMEs focus on 'sticking to business' (Dem collective) rather than undertaking CSR activities. SMEs are pursuing CSR activities only when they include a business benefit and value for the company. In other 94 K.-H. Lee et al.

A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

“…Pan, Sha, Zhang, and Ke [18] observed that employee responsibility and environmental responsibility have significant positive relationships with corporate financial performance. Lee, Herold, and Yu [55] suggested that SMEs are motivated to pursue CSR activities when they perceive a business benefit and value for the company. Further, SMEs engage in community CSR when they perceive benefits such as better business and improved customer loyalty.…”

Smes Development and Corruption: Case of Kazakhstan

“…In addition, there is most important to develop social responsibility of the SME (e.g. Lee et al 2015). The experience of Japan shows that the introduction of training programs for entrepreneurs on CSR, allows them to subsequently pursue an effective CSR policy, improve management and business environment (Makoya 2017).…”

Why European Entrepreneurs in the Water and Waste Management Sector Are Willing to Go beyond Environmental Legislation

“…Related to a firm's values and capabilities are the entrepreneur's values and personal commitments, which can be linked to a higher level of environmental concern [61] because their attitudes are directly connected to corporate social activities [37]. The approach of small firms to ER is different from that of large firms in that it is personalized and informal.…”

“…Therefore, following a recent call to study the pro-environmental attitudes of SME entrepreneurs [37], the present paper seeks to examine the environmental responsibility of European SMEs within the water and waste sector and to analyze the motivations that lead them to develop broader environmental management.…”