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Corporate Social Responsibility depending on the Size of Business Entity

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  • Tatjana Horvat

    (University of Primorska, Slovenia)

Abstract

We investigated the reasons for and against corporate social responsibility (CSR) and how those reasons and planning of CSR activities are related to the size of business entity. In our study, we focused on companies in the Southeast Slovenia, which is the biggest and medium-developed region in Slovenia. The population in this region consists of 191 companies, the survey questionnaire was fully replied by 74 companies. We found that the three main reasons against CSR are lack of financial resources, lack of adequate staff and lack of time. Among the main reasons for CSR are company's reputation, customer loyality and observance of the law. For testing the main reasons we used contingency table and Chi-square test. We found that, the main reasons against CSR and planning of CSR are dependent on the size of the company. On the other hand, the main reasons for CSR are not dependent on the size of the company. Small entities are under increasing influence of reasons against the introduction of CSR, while larger companies the reasons against generally do not indicate or indicate to a lesser extent. Companies irrespective of their size indicate approximately the same reasons for CSR. Smaller companies mostly does not prepared plans of CSR practices.

Suggested Citation

  • Tatjana Horvat, 2015. "Corporate Social Responsibility depending on the Size of Business Entity," MIC 2015: Managing Sustainable Growth; Proceedings of the Joint International Conference, Portorož, Slovenia, 28–30 May 2015,, University of Primorska, Faculty of Management Koper.
    • Handle: RePEc:mgt:micp15:339-353
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    References listed on IDEAS

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    1. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
    2. Cene Bavec, 2012. "Social Responsibility and Professional Ethics in Management: Some Empirical Evidences at Country Levels," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(4 (Winter), pages 361-377.
    3. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
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