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Chapter 5 CSR, for SME: focus on

company image and company

performance

5.1 Why consider the business case of SMEs when talking about CSR

CSR is usually associated to big companies and corporations who have a high level profile and attract
media attention. The irony is that these companies don’t constitute the bulk of European companies.
Indeed, according to European Commission data, in 2015, SMEs represented 99% of all companies in the
EU. They employed in 2017 over 94 million people or approximately 66% of the EU total workforce.
2
1

CSR is completely compatible with a SME business plan, value and functioning. First of all, because it
makes more sense to introduce social responsibility and CSR standards right at the foundation of the
company and in its beginnings to create a solid basis.

Secondly, because a CSR strategy allows to detect and avoid certain risks focusing on sustainability and
specific demands and consumer expectation on the market. CSR is a valuable tool to detect opportunities.
Furthermore, it gives an overview of the functioning of the whole supply and value chain with concerns
related to the environment, circular economy or community support.

Thirdly, because it values a long term and respectful relation with employees who will tend to engage more
with the company.

SMEs are more likely to scale-up the efficiency gains brought by CSR. Overall, it adds a strong value to the
company.

5.2 The effects of CSR on SMEs performance, image and competitiveness

Many studies analyzing the direct economic effect of CSR for SMEs performance shows a positive (Bnouni,
3
2011) but limited financial effect (Jain et al, 2016) of this policy. Some researchers such as Morsing &
5
4
Perrini (2009) even affirm that after 30 years of research, the effect of CSR on financial performance is still
unclear. Therefore, costly CSR action should be approached cautiously by SME managers.

If only meant for economic purpose, CSR won’t thrive. It is rather a self-driven purpose based on strong
societal belief rather than an institutionalized approach (Morsing & Perrini, 2009). 6

1 https://ec.europa.eu/eurostat/statistics-explained/index.php/Statistics_on_small_and_medium-sized_enterprises
2 https://www.statista.com/statistics/878412/number-of-smes-in-europe-by-size/
3 https://www.researchgate.net/publication/321609261_Corporate_Social_Responsibility_CSR_and_Financial_Perfor-
mance_FP_Case_of_French_SEM’s
4 https://www.researchgate.net/publication/301917380_Corporate_Social_Responsibility_and_Financial_Performan-
ce_in_SMEs_A_Structural_Equation_Modelling_Approach
5 https://www.researchgate.net/publication/228148484_CSR_in_SMEs_do_SMEs_matter_for_the_CSR_agenda
6 https://www.researchgate.net/publication/228148484_CSR_in_SMEs_do_SMEs_matter_for_the_CSR_agenda