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Corporate Social Responsibility and Human Resource Management

Corporate Social Responsibility and Human Resource Management

A Diversity Perspective

Edited by Mine Karataş-Ozkan, Katerina Nicolopoulou and Mustafa F Özbilgin

This innovative book analyses the intersection between the fields of Corporate Social Responsibility (CSR) and Human Resource Management (HRM), with a focus on diversity management. The book presents the scope of institutional engagements with CSR and diversity policies in a range of organisations and organisational networks.

Chapter 9: Creating social capital for SMEs: a CSR approach to HRM practices

Shahnaz Ibrahim

Subjects: business and management, corporate social responsibility, human resource management, organisation studies


Corporate social responsibility (CSR) refers to companies’ efforts to alleviate the negative effects of their operations on the community in order to produce substantial improvement to that community through integrating economic, social, ethical and environmental considerations (Davies and Crane, 2010). While a large body of literature on CSR in large companies exists, the orientation of the concept in small-and medium-sized (SMEs) firms is still embryonic (Castka et al., 2004; Davies and Crane, 2010; Hammann et al., 2009; Jenkins, 2009; Lynch Wood et al., 2009; Morsing and Perrini, 2009). That is mainly because research has assumed that using the CSR tools developed for large companies would be as effective and achieve the same objectives in SMEs. However, SMEs have a number of distinctive characteristics that in turn influence their CSR practices; CSR activities in SMEs are less formal and are more fragmented than those in their larger counterparts, and the same applies to their CSR strategies (Graafland et al., 2003; Perrini et al., 2007; L.J. Spence and Lozano, 2000). In addition, the nature of the stakeholder relationship in SMEs differs from that in large corporations; SMEs are considered very close to the community within which they operate.

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