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Business Case for Corporate Social Responsibility in Small and Medium Enterprises—Employees’ Perspective

Author

Listed:
  • Justyna Berniak-Woźny

    (Department of Management, University of Information Technology and Management, 35-225 Rzeszów, Poland)

  • Artur Kwasek

    (Department of Economics and Management, Faculty of Management and Logistics, University of Technology and Economics, 02-231 Warsaw, Poland)

  • Hubert Gąsiński

    (Faculty of Entrepreneurship and Innovation, WSB University, 03-204 Warsaw, Poland)

  • Magdalena Maciaszczyk

    (Faculty of Management, Lublin University of Technology, 20-618 Lublin, Poland)

  • Maria Kocot

    (Department of Business Informatics, University of Economics, 40-287 Katowice, Poland)

Abstract

The aim of this paper is to define the business case for the involvement of SMEs in CSR from the perspective of employees. The work answers the following questions: (1) What socially responsible activities do SMEs undertake? (2) To what extent are SME employees involved in activities in the area of CSR? (3) How is the business rationale of CSR activities perceived by employees? On the basis of the conducted research, the authors decided to find out what and how socially responsible activities impact business performance. For this purpose, a structural model was estimated, using the maximum likelihood method. As a result of the research, it was found that small- and medium-sized enterprises engage in CSR activities, but their involvement is limited and focused on environmental, health-related initiatives, and social campaigns. This suggests the choice of activities that are related to the formation of responsible attitudes, which are universal but not very engaging for employees. The results also show that employees are not passive observers but are responsible for the implementation of the CSR initiatives, which may have positive and negative impacts on business performance. In the opinion of employees, the most important benefits of involvement in CSR are building trust, building relationships with clients, and image improvement. Motivators such as increased profitability or (surprisingly) sustainable development played a much smaller role. From the theory point of view, the research results define the scope and scale of SMEs involvement in corporate social responsibility activities and indicate the main benefits that result from this involvement for SMEs. The results of research allow for a more effective selection of CSR activities and areas in which companies can use CSR to support the achievement of business goals.

Suggested Citation

  • Justyna Berniak-Woźny & Artur Kwasek & Hubert Gąsiński & Magdalena Maciaszczyk & Maria Kocot, 2023. "Business Case for Corporate Social Responsibility in Small and Medium Enterprises—Employees’ Perspective," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1660-:d:1036233
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    References listed on IDEAS

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    Cited by:

    1. Paraskevi (Evi) Dekoulou & Anna Anastasopoulou & Panagiotis Trivellas, 2023. "Employee Performance Implications of CSR for Organizational Resilience in the Banking Industry: The Mediation Role of Psychological Empowerment," Sustainability, MDPI, vol. 15(15), pages 1-20, August.
    2. Sumi Kar & Anita Pal & Kajla Basu & Achyuth Sarkar & Biswajit Sarkar, 2023. "The Effect of Renewable Energy and Corporate Social Responsibility on Dual-Channel Supply Chain Management," Energies, MDPI, vol. 16(7), pages 1-26, March.
    3. Mohamed M. Shamil & H. A. K. N. S. Surangi & M. A. D. H. Mallawarachchi, 2024. "Exploring values, orientation, and motives towards corporate social responsibility: SME owners’ and managers’ viewpoint in Sri Lanka," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-12, December.
    4. Jong Chao Yeh & Chun-Yen Chung & Chi-yin Hong, 2024. "Research on Critical Factors in University-Corporation Social Responsibility," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(4), pages 1-8.

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