Unlocking corporate social responsibility in smaller firms: Compliance, conviction, burden, or opportunity?

There is a recognition that corporate social responsibility (CSR) by smaller firms could have greater social and environmental impacts if these engagements are meaningful. Small firms are players in the global eco-system as they supply to larger global firms as subcontractors or suppliers. However, do they practice CSR with a conviction or as a compliance measure? Using stakeholder theory, in-depth interviews were carried out with 31 firms in Singapore. We found that these firms in highly normative sectors practice CSR due to compliance in the interests of stakeholders. But in less-normative sectors, where regulations and norms are minimal, a majority of firms practice CSR out of conviction. All firms acknowledged that their businesses have a responsibility toward society and our results further revealed the importance of careful stakeholder involvement in these firms.