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CSR and SME in Korean Market

Affiliations

  • Department of Accounting, 298 Daesungro, Cheongju, 28503, Korea

Abstract


Background/Objectives: There is an increasing call for a strategic approach to CSR, but small and medium-sized enterprises (SMEs) have often stalled at the awareness-raising and mainstreaming levels of CSR. Methods/Statistical Analysis: This study reviews the relevant CSR literature on SMEs and analyzes CSR from SMEs perspective in a Korean context using CSR related stakeholder and social capital theories. I suggest that the major barriers to CSR are the personal characteristics of firm owners, their financial constraints, and technical support issues. Findings: The practice of Corporate Social Responsibility is an accepted tool for achieving sustainability. CSR’s major drivers are customer satisfaction, higher employee motivation and loyalty, better reputation, better networking with business partners and authorities, and increased sales through competitive advantage. Improvements/Applications: This research contributes to motivating CSR in SMEs by investigating how SMEs’ understand CSR and communicate with their stakeholders.

Keywords

Corporate Social Responsibility (CSR), Small and Medium Sized Enterprises, Shareholder Theory, Social Capital Theory.

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