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Literature (Morsing & Perrini, 2009) shows that CSR can have a direct effect on the following factors:
1
knowledge and capacity to innovate, trust of stakeholders, reputation and contribution to the community
well-being. Existing research underlines that SMEs rely strongly on interpersonal relations with different
stakeholder groups and competitors. Formal engagement, networking and volunteerism are fruitful
opportunities for SMEs to invest in social capital and to cultivate relationships in the social and business
environments. In turn, these relationships might generate mutual help and benefit the company’s stability
and even survival in an increasing competitive market (Morsing & Perrini, 2009). 2

The involvement in CSR enhances company’s reputation which has an effect stimulating loyalty, trust and
confidence among consumers, suppliers, partners and possibly investors.

Like we underlined many times in this module, the positive effects for the workforce and workers
well-being is of outmost value. The pursue of employee’s health and safety improves productivity and
employees performance which is essential for SMEs. It provides an extra source of differentiation and
recognition in increasing complex and dynamic markets (Morsing & Perrini, 2009). 3

To conclude, engagement in CSR is challenging for SMEs and comes with a human and financial cost.
Nevertheless, it benefits them by bringing positive effects related to their reputation, improving
performance and raising business opportunities.

5.3 CSR for SMEs – BEST PRACTICE

SME values and reputation (DHR Communications)

1 https://www.researchgate.net/publication/228148484_CSR_in_SMEs_do_SMEs_matter_for_the_CSR_agenda
2 https://www.researchgate.net/publication/228148484_CSR_in_SMEs_do_SMEs_matter_for_the_CSR_agenda
3 https://www.researchgate.net/publication/228148484_CSR_in_SMEs_do_SMEs_matter_for_the_CSR_agenda