Formal vs. Informal CSR Strategies: An In-Depth Analysis of Italian Micro, Small, Medium-Sized, and Large Enterprises

Proceedings of the International Association for Business and Society 18:245-250 (2007)
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Abstract

Recent research on corporate social responsibility is suggesting the need for filling the knowledge gap in the relationship between small and mediumsized enterprises and CSR. SMEs rarely use the language of CSR to describe what they are doing, but informal CSR strategies deeply characterize their businesses. The goal of this paper is to investigate whether a distinction exists between formal and informal CSR strategies, whereas formal CSR strategies should be a prerogative by large firms and informal CSR strategies should be a condition of micro, small, and medium-sized enterprises. A sample of 3,626 Italian firms is used to investigate the research questions. Based on a multi-stakeholder framework, the analysis provides evidence that small businesses reveal their aptitude towards CSR through strategies with an important impact on the bottom line as an attempt to strengthen their license to operate in the communities; large firms are far away from integrating their CSR strategies with explicit management systems

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