Csr in Sme

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The importance of Corporate Social Responsibility (CSR) has been increasing rapidly over the past few years (Crawford and Scaletta, 2005) although meaning of the term CSR remains a subject of much debate (Roberts, 2003; Hopkins, 2003). The reason behind the debate is that the beliefs and attitudes on the nature of CSR have varied over time (Hill et al., 2003). However, according to European Commission’s Green Paper on CSR (2001), CSR is a concept whereby the companies integrate social and environmental concerns in their daily business operations and in their interaction with their stakeholders on a voluntary basis. On the other hand, CSR can also be understood as the business contribution to sustainable development (EC, 2002). Regardless the definitions, CSR is all about effectively managing the relationships that can affect the business and taking responsibility for the consequences that running the business has on society (Mallen Baker, 2008). Again, the arguments so far shows that all organizations have an impact on society and the environment through their operations, products and services and through their interaction with key stakeholders and therefore CSR is important in all firms, large and small (Williams, 2005; Hopkins, 2003; Roche, 2002). But it seems that less research have been made regarding the engagement of CSR in SME (Vyakarnam et al., 1997; Schaper and Savery, 2004; Perrini et al., 2006; Spence et al., 2000). This literature review has been prepared with the aim of clarifying the engagement of CSR in SMEs. Small and Medium Enterprises as defined by DTI and EU are those organizations with a turnover of under 40 million Euros (£27 million) and either has employees below 250 or over 25% owner-managed is proven to be important both numerically and economically since the last couple of decades (Jenkins H., 2004). According to the research conducted by...
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