Corporate Social Responsibility and Firm Size

9 Pages Posted: 3 Sep 2008

See all articles by Krishna Udayasankar

Krishna Udayasankar

Nanyang Business School, Nanyang Technological University

Date Written: 2007

Abstract

Small and medium-sized firms form 90% of the worldwide population of businesses. However, it has been argued that given their smaller scale of operations, resource access constraints and lower visibility, smaller firms are less likely to participate in Corporate Social Responsibility (CSR) initiatives. This article examines the different economic motivations of firms with varying combinations of visibility, resource access and scale of operations. Arguments are presented to propose that in terms of visibility, resource access and operating scale, very small and very large firms are equally motivated to participate in CSR. However, the motivational bases for CSR participation are likely to be different. Medium-sized firms are the least motivated. This suggests a U-shaped relationship between firm size and CSR participation. This study contributes towards resolution of the long-standing debate on the effects of firm size on CSR participation, and highlights the importance of considering configurations of firm characteristics in the study of CSR outcomes. In conclusion, cautions are raised against the broad categorization of firms, without adequate attention to the underlying dimensions of such categorizations.

Keywords: Corporate social responsibility, Resources,Size, Visibility, Scale of operations

Suggested Citation

Udayasankar, Krishna, Corporate Social Responsibility and Firm Size (2007). Journal of Business Ethics, 2007, Available at SSRN: https://ssrn.com/abstract=1262535

Krishna Udayasankar (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

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