ABSTRACT
Corporate social responsibility (CSR) can encompass a whole range of perspectives and activities. What comes under the banner of CSR for any given company will depend in part on the issues of the day. The new business environment with increased focus on environmental and social factors presents opportunities for entrepreneurial small and medium-sized enterprises (SMEs) to apply their creativity and flexibility to adopt innovative processes and/or products that fulfil the developing CSR agenda. An opportunity perspective focuses on ways in which the firm can achieve a competitive advantage through its social and environmental practices: through improved reputation, employee motivation, customer loyalty, favourable media coverage, and more efficient use of resources for CSR-aware buyers. The chapter presents an overview of some of the distinctive challenges and opportunities open to SMEs as a result of the increasing focus on CSR: for example, when large organisations include CSR-type criteria in their purchasing decisions.
