Corporate Social Responsibility in SME

  Project Report on Corporate Social Responsibility in Small and Medium Enterprises (SME)

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 SMEs based at Rajasthan resulting in 132 usable responses. The data was subjected to confirmatory factor analysis by using AMOS 19 to test the model-fit and unidimensionality of scale items. Confirmatory factor analysis identified four underlying dimensions in the CSR motivation of SME managers. Four motivational dimensions emerged reflected themes ranging from "Customer Propositions," "Stakeholder Value," "Founder Characteristics and business values," and "Business Motives" . The study concluded that SMEs are both willing and able to make significant contributions to support predominantly local events and organizations in recognition of their social obligations and economic objectives.

 Small and Medium Enterprises (SMEs) in India and CSR

The World Bank defines CSR as “the commitment of business to contribute to sustainable economic development working with employees, their families, the local community, and society to improve their quality of life, in ways that are both good for business and good for development” (World Bank

Group, 2003).

“Corporate social responsibility must not be defined by tax planning strategies alone. Rather, it should be defined within the framework of a corporate philosophy which factors the needs of the community and the regions in which a corporate entity functions. This is part of our cultural heritage. Mahatma Gandhi called it trusteeship….I invite corporate India to be a partner in making ours a more humane and just society…we

need to have healthy respect for our workers and invest in their welfare…” (Manmohan Singh, Prime Minister-India, 2007).

The term SME is of relatively recent origin in the Indian context. SMEs were referred to as small scale industry. The SMEs were officially created in the 1950s. Since 1954, the Government of India has consciously nurtured, promoted and developed SMEs through specific policies as a part of the overall industrial development strategy. With the advent of planned economy from 1951 and the subsequent industrial policy followed by Government of India, both planners and Government earmarked a special role for small-scale industries and medium scale industries in the Indian economy. Due protection was accorded to both sectors, and particularly for small scale industries from 1951 to 1991; till the nation adopted a policy of liberalization and globalization. The contribution of SMEs to the economic development of India is significant. Their contribution in the total corporate sector is as follows: 40% of the total volume of production, 80% of employment, 60% of the exports and 92% in terms of enterprises. SMEs contribute 7% of India’s GDP. As per the third All India Census of Small Scale Industries conducted in 2004, the SMEs

have increased from about 80,000 units in the 1940s to about 10.52 million units. They constitute 90% of the industrial units in the country and also contribute to about 35% of India’s exports.

Source:SCMS Journal of Indian Management; Jan-Mar2013, Vol. 10 Issue 1, p11-21,

     If you want Dissertations, Thesis, Case Studies on  Corporate Social Responsibility , Research Proposals, Term Papers, MBA Project Report on Small and Medium Enterprises, Research Projects, Assignments, Coursework, Essays, Articles, PowerPoint Presentations SWOT Analysis Reports , and Synopsis, than contact Mahasagar Publications, Mumbai, India by calling +91 9819650213 or +91 8081344446  or visit website www.projectspapers.com