The Relationship between Corporate Social Responsibility and Performance of SMEs

Rahmat, Siti Nurfazlina (2017) The Relationship between Corporate Social Responsibility and Performance of SMEs. Bachelor Degree thesis, UNIVERSITI TUN HUSSEIN ONN MALAYSIA.

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Abstract

In recent years, Corporate Social Responsibility (CSR) has received the increasing amount of interest among today’s organizations since CSR is the critical key to stimulate long-term stability, growth and performance. Nevertheless, research on CSR in small and medium sized enterprises (SMEs) is quite scant and little is known empirically about the level of social responsibility in small firms and its association with performance. To fill the gap, this study conducted a survey among SMEs in order to explore the current practices of CSR among SMEs and to determine the relationship between CSR and performance. Five hypotheses were developed based on four dimensions of CSR: customer relation, community involvement, environmental contribution, employee and supplier and performance in term of financial and innovation outcomes. 250 questionnaires were distributed to SME in Johor and 107 valid replies were obtained. The data were analyzed using descriptive and bivariate analyses. The results indicate that donation to society, training program for employee, provision on medical facilities for employee and giving incentive for employees are the highest CSR practices applied by SMEs.The study also finds that five factors: customer relation, community involvement, environmental contribution, employee and supplier have positive and significant relationships with performance with the highest correlation obtained was CSR for employees at r (107) = 0.720, p<0.05. As such the findings help to understand how CSR is an important driver mechanism for SMEs to be more innovative and successful.

Item Type: Thesis (Bachelor Degree)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Technology Management and Business > Department of Production and Operation Management
Depositing User: PSM Coordinator BPB
Date Deposited: 07 Mar 2018 09:44
Last Modified: 07 Mar 2018 09:44
URI: http://ethesis.uthm.edu.my/id/eprint/374

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