Corporate social responsibility among SMEs in Italy

Much of the scholarly discussion on CSR has focused on large corporations even though small and medium enterprises (SMEs) constitute the bulk of businesses in many countries of the world. According to the Organization for Economic Co-operation and Development (OECD), 99.9% of the corporations in Italy are SMEs employing fewer than 250 people. This study sought to explore the CSR among SMEs including whether they practice CSR as a strategic function, who the main stakeholders were for their CSR activities, the drivers of CSR, and the motivations to engage in CSR. Data were collected from three sources: a survey of executives of a sample of 105 SMEs; qualitative in-depth interviews of the owner–managers of five SMEs and élite interviews with opinion leaders. The sample organizations practiced CSR mainly through informal, internally oriented and relational methods with very little, if any, managerial and strategic approach. A large number of sample organizations viewed employees as the most important stakeholders for CSR communication whereas customers, suppliers, and business partners trailed far behind. Interestingly, the media, government, NGOs, and unions were relegated to the bottom of the list. Networks of personal relationships (including that of owner–managers and top executives) were frequently used to conduct CSR activities.

► This is the first empirical study of CSR among SMEs in Italy even though 99% of businesses in Italy are SMEs according to OECD.
► Italian SMEs practice CSR through informal, internally oriented, relational methods.
► Family and Catholic tenets played a role in the perceptions and practice of CSR.
► Italian SMEs are not concerned much about pressure from activists and other NGOs.