Adoption of environmental corporate social responsibility (CSR) among small and medium enterprises (SMEs): an examination through behavioral leadership decision-making

Despite studies on CSR, not a single research study has been conducted on leadership behavior for environmental CSR in SMEs. The CSR spending in the environment was skewed towards sectors other than the environment. In this context, this paper addresses the research gap through the Behavioral Reasoning Theory (BRT). Information was gathered through a structured questionnaire from leaders of 353 Indian SMEs. Confirmatory Factor Analysis, and Structural Equation Modelling were employed to process the data. The leadership “value” positively impacted leadership “motives”, and the “motive” positively impacted behavioral leadership “intention” for environmental CSR. The “Reason for” (improved firm performance, competitive advantage, image, and risk mitigation) had a positive association with the value and motive of SME leaders. The “Reason against” (lack of knowledge, personal commitment, and lack of time) is negatively associated with SME leaders’ “value,” “motive” (attitude, subjective norms, and perceived control), and “behavioral intention” for environmental CSR.