Socially Responsible Activity of Micro-, Small-, and Medium-Sized Enterprises—Benefits for the Enterprise

Abstract

As a research hypothesis, it was assumed that micro-, small-, and medium-sized enterprise SMEs undertake Corporate Social Responsibility (CSR) mainly guided by the benefits obtainable from this activity. The aim of the study was to identify the achievable and achieved benefits of undertaking CSR by SME enterprises. SMEs are not obliged to report this activity. The exploration included literature studies and empirical research, according to the expert method, in three stages: (1) selection of experts, (2) collection of information using the CAWI and CATI method, (3) development and interpretation of research results. Research has indicated that CSR is becoming closer to SMEs. The research has shown that experts are implementing CSR and gaining benefits from it. It has also shown that experts’ knowledge of CSR is insufficient, which results in many opportunities resulting from the implementation of this activity being overlooked. The European Commission (EC) guidelines introduced an obligation of reporting CSR only for listed companies; indirectly, this obligation will also affect other companies. Voluntary reporting will increase the knowledge of CSR and bring many benefits to SMEs, provided that a legal framework is created to facilitate the implementation of CSR and its reporting.

Cost and Benefits of Sustainability Reporting: Literature Review

“…Benefits sometimes emerge only when the effects of companies' social and environmental commitment become visible. The results of the research indicate that, in many cases, the relationship between CSR and the unmeasurable effects of this activity, e.g., employee loyalty and customer loyalty, are visible only in specific situations (Bielawska, 2022).…”

“…To obtain relevant information to be included in a sustainability report, companies must undertake diverse sustainability initiatives aligned with the sustainable development goals (SDGs). Costs appear at the first moment of implementing strategy in the company (Bielawska, 2022). The implementation of such strategies incurs costs from the outset, with the most significant challenges stemming from the need to conform to Corporate Social Responsibility (CSR) requisites.…”

“…The implementation of such strategies incurs costs from the outset, with the most significant challenges stemming from the need to conform to Corporate Social Responsibility (CSR) requisites. To fully understand social responsibility, it is crucial to collaborate with suppliers, ensure responsible production processes, deliver sustainable services, engage with stakeholders, and practice good corporate governance (Bielawska, 2022). Costs can emerge from the regular operations of the company and can be classified into different categories.…”

“…Similarly, hiring highly skilled employees may increase wage costs; however, their competence may lead to a reduction in production costs, ultimately strengthening the company's competitiveness. These activities must be carried out systematically, integrated into the long-term strategy of the company, and aligned with its values and objectives (Bielawska, 2022). Rassier and Earnhart (2011) found a positive relationship between publicly owned firms in the 53 chemical manufacturing industries between tighter clean water regulation and financial performance in both the short run and long run, with a stronger effect in the long run.…”

“…The research of Bielawska (2022) has shown that the implementation of CSR brings many benefits to micro-, small-, and medium-sized enterprises SMEs. Bielawska (2022) identified 11 benefits possible from CSR activity: 1) improving organizational governance; 2) the production of (obligatory or voluntary) standardized CSR/ESG reports can facilitate the transformation towards a socially responsible enterprise, can contribute to cooperation opportunities with large enterprises, and can be an incentive for investors to co-finance the enterprise. These reports can also enable SMEs to cost-effectively communicate information to contracting parties; 3) the benefits a company obtains from implementing CSR, to a large extent, are determined by the attitude of its employees.…”