CSR and Competitiveness European SMEs - KMU Forschung Austria

32 CSR and Competitiveness - European SMEs’ Good Practice - Consolidated European Report
Having in mind the comparatively limited resources of small and medium-sized enterprises it is
not surprising that one of the main hindering factors for becoming involved in CSR refers to the
lack of time and financial resources (particularly against the background of perceived
additional costs of CSR activities and the more severe pressure of the “daily struggle to survive”
(European Multistakeholder Forum on CSR, 2004)), mentioned, for example, by 16 % - 19 % of
the European SMEs participating in the ENSR Enterprise survey 2001 (European Communities,
2002). More “impressive” data can be found at national level: So, for example, 35 % of
Romanian (Source: American-Romanian Chamber of Commerce – AmCham) or 68 % of the
Austrian enterprises (Deuerlein et al., 2003) mentioned the lack of financial resources as the
most important reason for not donating. As to this regard, the fact that respective returns on
CSR investment may only manifest in the long-run results in the feeling that CSR is only
affordable for larger enterprises with a good financial standing.
Furthermore, and in relation to the above-mentioned lack of understanding of and familiarity
with the concept of CSR by SMEs, a lack of know-how in terms of different modes of
application, but also with regard to where to find support for implementing CSR measures or
relevant partners (e.g. NGOs conducting CSR related programmes) can be seen as an important
barrier for SMEs’ engagement in socially responsible acting (European Multistakeholder
Forum on CSR, 2004).
Another aspect influencing SMEs’ decision for/against CSR refers to the expected outcome.
The ENSR Enterprise Survey 2001 (European Communities, 2002) shows that only 8 % of the
European SMEs not engaging in CSR argue that the main reason underpinning their inactivity is
because they do not expect any benefits from these activities. Danish data, for example, shows
that 64 % of the enterprises have implemented CSR activities in order to preserve or improve
the enterprise’s reputation, and 56 % expect a positive impact on the enterprise’s financial
result (with a positive correlation between company size and this expectation). (TNS Gallup,
2005). Also Bronchain (2003) mentions the amelioration of the enterprise’s image as one of the
most important motivations for engaging in CSR whereby he distinguishes between a pro-active
(to enhance the image of the company) and a reactive approach (to prevent it from potential
deterioration) and also pinpoints the potential of improving the company’s image as an attractive
employer. Furthermore, he emphasises the possibility of using CSR as a tool to launch new or
improved products or services or to create a market for them, i.e. using CSR strategically as
a marketing tool. As in recent years a generally increasing awareness of consumers in the field
of responsible business behaviour can be observed the application of CSR measures in
combination with a target group oriented communication of these activities may increase
companies’ competitiveness. Nevertheless, due to their higher degree of familiarity with public
reporting it is still larger enterprises that choose to use their CSR activities for PR purposes
while only a comparatively small percentage of SMEs opt for such. Polish research (UOKiK,
2006), for example, shows that for only about 30 % of SMEs marketing reasons are an
important motive to involve in CSR, and also Huju (2005) and Maaß/Clemens (2002) find for
Finnish and German enterprises that CSR activities are mainly reported by larger enterprises.