Corporate Social Responsibility in SMEs and MNEs.

The Different Strategic

Decision Making

By Dimosthenis T. Mousiolisa,, Apostolos D. Zaridisb, Kostas Karamanisc , Athina

Rontogiannid

Published on September 1-4, 2014

Summary

The objective of this study is to talk about how CSR factors impact key choices
and how shifted the strategies are. SMEs are bound to utilize them than MNEs. SMEs
represent a huge part of monetary worth age. Universally, and vary fundamentally from
MNEs in hierarchical qualities, social core values, and monetary reasonability as well as
HR. The literature mostly focuses on how enormous worldwide ventures (MNEs) could
address natural issues.  The literature mostly focuses on how huge worldwide
organizations (MNEs) may address worldwide natural and social difficulties. How
enormous global companies (MNCs) utilize Small and Medium-Sized Enterprises
(SMEs) in their (all-encompassing) business strategy, whether as suppliers, distributors,
clients, or innovators or as a goal of their CSR programs might be found. We note that
SMEs have certain organizational traits that are unique to them.

Methodology

The research design adopted in this particular article was a descriptive study.
The researcher used the descriptive research method because it is a systematic,
unbiased and objective way to discover facts about the phenomenon of interest. The
study was conducted with qualitative and quantitative methods. The majority of the
research was conducted through interviews.
 The researcher used qualitative research method because it is more appropriate
for this study because the topic of interest is complex and has many dimensions that
cannot be fully explored with quantitative methods.

This research adopts qualitative methods for data collection which include case
studies and interviews with managers from both types of enterprises. The case studies
are used to explore the impact of CSR on strategic decisions in SMEs and MNEs.
Interviews are used to examine the relationship between CSR practices and
performance outcomes in both types of enterprises. The findings from this study
indicate that CSR does not have any significant impact on strategic decisions in SMEs
compared with those in MNEs.

Results

The findings of this study show that SMEs and MNEs are not in the same
position when it comes to CSR strategies. The results also revealed that there are
differences between SMEs and MNEs' approaches towards CSR. While SMEs are more
likely to adopt all three approaches – government regulation, market regulation and self-
regulation – MNEs tend to adopt only two approaches – government regulation and self-
regulation. This may be attributed to the fact that SME firms are smaller in size and less
mature than MNEs, hence they must rely on other sources of funding such as banks or
venture capital companies.

Conclusion

The conclusion is about the MNCs and the SMEs are operating in different ways.
The MNCs have more resources but they have to confront their internal bureaucracy
and also lack of proximity in external environment. On the other side SMEs are very
flexible to implement their decisions but they lack in resources and usually, their
decisions are being based on personal feelings, company finances, friends, and family.
I think that this conclusion is true because we can see it from our daily life. It is true that
many MNCs have more resources than SMEs but we can also see that most of them
don’t take into account what happens after they make a decision since they usually
think only about how much profit they will make with their business.