ABSTRACT

Uzbekistan is one of the newly independent states in Central Asia making its way towards a market economy. It has a strong commitment to the Uzbek culture, which has evolved over the centuries. Developing the Small and Medium Enterprise (SME) sector was chosen by the state as one of the preferred tools for improving social welfare. The SMEs account for nearly 80 per cent of companies and over 60 per cent of employment in Uzbekistan. This chapter focuses on the Corporate Social Responsibility (CSR) activities of the Uzbek SMEs. It observes the internal and external motives for their CSR. CSR among the Uzbek SMEs can be considered of a philanthropic nature and does less based on the ‘business case’. The main internal motive for Uzbek SMEs is to comply with the community and religious norms. Externally, the state is actively initiating social and environmental programs, which normally involve a contribution from businesses. These programs are usually implemented through the local communities (mahallas). With current stable economic growth, businesses have an opportunity to devise long term plans and the CSR can be seen by them as a means of sustainability. Also, there is a growing pressure on export oriented SMEs from international markets, which demand the exporting companies to be responsive to the society needs.