Corporate Social Responsibility for the Sustainability of Small Enterprises

Abstract

Corporate Social Responsibility has proved as a significant segment in today’s business environment as mounting efforts by the Small and Medium Enterprises are witnessed. Social role has become an area of all the enterprises irrespective of its size. According to Antonio Dias (2019) enterprises provide importance to CSR activities that helps them to maintain their business and to accomplish economic results. This research analyses the practice of CSR in stakeholder perspective who has the capacity to accelerate or decelerate the enterprise performance. Primary stakeholders considered in this study are employees, customers, community and environment. As far as SMEs are concerned, they are closely bonded to the local community where they operate which makes them to contribute more to the community development. Imran Ali (2010) in his research proved that CSR activities targeted towards employees improves organisation performance which in turn improves sustainability. Russo and Fouts (1997) concluded that commitment towards environment enhanced the profitability of the firm. Customers reward organisations that take efforts to produce quality products and stick to safety measures (Graafland and van de Ven, 2006). Structural Equation Modelling is used to identify the impact of CSR engagement of its primary stakeholders to attain sustainability.