CSR engagement in SMEs – tactical or strategic?

Research aim and objectives: The aim of the research was to determine what (if any), Corporate Social Responsibility (CSR) activities small and medium-sized enterprises (SMEs)
engage in, including their motivations for undertaking such activities, but also their rationale for not doing so. For those engaging, the objective was to ascertain the perceived benefit these activities provide, and whether this was a strategic or tactical decision for the organisation. For those not engaging, the objective was to understand their reasons for none engagement. Theoretical framework: This paper engages with the strategic CSR literature in framing CSR activities as a set of tools which can address a range of strategic priorities to the long-term benefit of the organisation.

Design/methodology: The study surveyed a range of firms in the East Midlands of the UK, in both manufacturing and service sectors and across the spectrum of different-sized
organisations over three different years (2017, 2018 and 2020). Respondent numbers ranged from 277 (2017), 280 (2018) and 421 (2020). Similar questions were asked across the three
years encompassing a range of CSR-related activities and rationales for engagement or none engagement.

Findings: There has been a growth in interest in CSR activities in the region over the surveyed period. Firm size correlates with increased activity (larger firms engaging more than smaller ones). Different types of activities are associated with different firm sizes: the more common
reason for engagement in micro/small businesses is particularly “personal link with a cause/ altruism;” there is a willingness to build community links in medium businesses, while staff development is slightly more prominent in larger businesses. Larger businesses perceive CSR activities as more important to achieve their long-term strategic goals, and they are more likely to increase their investment in CSR as a result.

Practical/social implications: As perceptions of the need for businesses to support their communities continues to grow, awareness on the positive impact of CSR activities in SMEs
in achieving strategic objectives needs to be encouraged as a gateway to more sustained investment in CSR in a wider range of SMEs.

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