Factors affecting SMEs motivations for corporate social responsibility

Abstract

This paper empirically explores the motivational factors for small and medium enterprises (SMEs) to engage in corporate social responsibility (CSR) practices. A structured questionnaire was used to collect data from members of the Hunter Business Chamber, resulting in 122 usable responses. Exploratory factor analysis identified four underlying dimensions in the CSR motivation of SME managers. Four motivational dimensions emerged that reflected themes ranging from caring for the customer and society to the financial self-interest of SMEs. These findings corroborate the previous findings of Quazi and O’Brien (2000) and have important managerial implications for SMEs. SME managers are motivated towards CSR for the profit viability and growth of their businesses whilst also caring for customers and the community. Limitations and areas for further research are also discussed.