Reasons for CSR engagement in SMES and MNCS: a qualitative perspective

¹ School of Business, Asia Pacific University of Technology & 57000, Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
² Faculty of Economics and Management, Universiti Putra Malaysia, Selangor, Malaysia

^* Corresponding author: atirah.tan@staffemail.apu.edu.my

Abstract

The purpose of this paper was to explore the reasons for Corporate Social Responsibility (CSR) engagement among Small Medium Enterprise (SMEs) and Multinational Corporations (MNCs) in Malaysia. The research is situated within an interpretive approach. The interview technique was employed to explore the issue. Interviews were conducted with 8 firms including 4 SMEs and 4 MNCs. The firms were selected based on the firms that are actively engaging in CSR and the detail of CSR activities have been identified via their companies websites. Five themes emerged as the reasons for CSR engagement in SMEs and MNCs: leadership styles, competitiveness, alignment with company mission, vision, and objectives, and resource availability. From the results, this study helps researchers to understand in depth the CSR terminologies, the differences in CSR activities between MNCs and SMEs, and the factors that would influence firms to engage in CSR activities. Other than that, this study will help in initiating programs workshops, seminars, and training to educate managers and SME owners on the benefits of CSR.