[FULL ACCESS] Measuring Corporate Social Responsibility (CSR)

This assignment is designed to measure corporate social responsibility (CSR) in Small and Medium-sized Enterprises (SMEs). It consists of two parts: a customer questionnaire and an interview section. The questionnaire assesses the importance of CSR information, willingness to pay more for ethical products, and awareness of SMEs' CSR activities. The interview section explores the significance of listed CSR initiatives, concerns about operating CSR activities, and perceptions about the impact of CSR on financial performance.

Developing CSR strategy for SMEs in
Thailand

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.1. Research Background.......................................................................................................1
1.2. Research Problem.............................................................................................................2
1.3. Research Aims and Objectives.........................................................................................3
1.4. Dissertation Structure........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2...................................................................................................................................................5
2.1. Corporate Social Responsibility........................................................................................5
2.2. Definition of SME in Thailand and its characteristic.......................................................7
2.3................................................................................................................................................8
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9
3.1 Introduction............................................................................................................................9
3.2 Research philosophy..............................................................................................................9
3.3 Research approach...............................................................................................................10
3.4 Research design...................................................................................................................10
3.5 Data collection:....................................................................................................................11
3.6. Sampling.............................................................................................................................12
3.7 Data analysis........................................................................................................................12
3.8 Ethical consideration...........................................................................................................13
3.9 Research limitation..............................................................................................................13
CHAPTER 4: DATA ANALYSIS AND DISCUSSION..............................................................14
4.1 Introduction..........................................................................................................................14
4.2 Thematic analysis................................................................................................................14
4.2.1 Analysis of employee’s survey results.............................................................................15
4.2.2 Analysis of customers’ survey results..............................................................................23
4.3 Interview analysis................................................................................................................31
4.4 Discussion of the findings in relation to literature review...................................................34
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................36
5.1 Conclusion...........................................................................................................................36
5.2 Recommendations................................................................................................................38
References......................................................................................................................................40
Appendix........................................................................................................................................42
Questionnaire for employees.....................................................................................................42
Questionnaire for customers......................................................................................................44
Interview........................................................................................................................................47

INTRODUCTION
1.1. Research Background
In general, many firms participated in corporate social responsibility (CSR), initiatives
that drive economics as well as social or environmental agendas, as a key strategy for creating
value that benefit themselves while also rewarding society and environment in return. As a
consequence of this, the number of companies that operate their business in CSR increase
significantly. Many firms try to engage with the activity that can assist business and environment
to be better. Thus, CSR has become an essential concept in many organisations include both
large or small, domestic or international, to take it into account by improving their social and
environmental practice. Clearly, evidences of its applications have been expanding across the
world (Carroll, 2016). Especially multinational enterprises (MNEs) operating in emerging
countries, the key players to widen the concept, aim to distribute their business in resource-rich
developing countries and being good corporate citizens (Jamali and Mirshak, 2007; Perrini,
2006). However, small and medium-sized enterprises (SMEs) also play a significant role to
motivate business in each country, both developed and developing. Hence, many organisations
are expected to operate their business in the right way displaying moral behaviour and
management to be virtuous as good citizens in society. Additionally, CSR is a crucial part of
many organisations, it attempts to be beneficial for all group of stakeholders and can support
companies to achieve in their business by increasing sales, attracting talent staff and improving
the company’s recognition. In present, the stakeholders such as customers, investors and
community concern about firm’s activities in form of charity, the ethics of advertising and
environmentally friendly products. In other words, there are different expectations from different
stakeholder based on what they are interesting from the company. Most organisations understand
that the stakeholders demand the action relate the field of CSR and to satisfy stakeholders they
have to follow or even lead the ever-growing field of CSR.
The concept of CSR means that organizations have four basic elements include
economic, legal, ethical, and philanthropic responsibilities assembling to their responsibilities to
add value on their products or services in which a fair return for investors and comply with the
regulations. In other words, organisations required to adopt a broader perspective of its
responsibilities in order to an effective response to the stakeholders that involve not only
shareholders, but also many other stakeholders, including customers, employees, suppliers,
community, governments and other related groups. Nevertheless, CSR in the dimension of SMEs
aims to pursue responsible business practices without the need for budgets or money. The
consideration of CSR in this dimension involves a cultivation on everyone in every department,
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sector and part of the organisation to have knowledge, understanding and participation in CSR
activities in terms of work environment, strengthening morality, ethics, generosity, regards and
work in their full capacity as well as the environmental protection and maintenance (Thaipat,
2012). In 2008, the Securities and Exchange Commission Thailand (SEC) published “Corporate
Social Responsibility Guidelines” for using as a guideline to the implementation of CSR by
which CSR can be classified into 8 categories including organizational governance, fair
operating practices, human rights and labour practices, consumer issues, community involvement
and development, the environment, innovation and its disclosure on CSR, and sustainability
reporting. Subsequently,
Although CSR has traditionally become an integrated part of the corporate sector, an
increase in the number of initiatives intended to engage SMEs in the CSR agenda has
demonstrated the recognition of the growing importance in CSR that led to a focus on the social
and environmental impact of SMEs. The CSR that addresses large companies has been well
researched, but in SMEs context has a limited number of research on the relationship among
SMEs and CSR. In order to develop a new concept of CSR, it should be more relevant to SMEs
context that based on SMEs aspect rather than large companies (Jenkins, 2004). According to
Thaipat (2018), CSR in perspective from Thai’s SME entrepreneurship is the concept that might
have impact on their business, it can provide benefits to the firm but not prioritise CSR as the
main strategy.
1.2. Research Problem
In spite of the fact that corporate social responsibility (CSR) is not a new concept, many
research are still far away from determining a generally accepted and reliable theoretical
framework in order to interpret issues related to a wide range of firms’ activity. While most of
the research in this area has focused attention on large organisations (Carroll, 1979; Bowen,
1953; Kreps, 1940; Clark, 1939), there is a limited number of research examining on the CSR
practices of SMEs in general and Thai SMEs in particular. In addition, many research discuss
about the concept of CSR in developed countries might be inappropriate for the emerging
economies due to the complexity of the business environment, the challenges for SMEs, and
transitional nature of the economy. Moreover, most of SMEs still misunderstanding in the
concept of CSR from the owner or the management down to employees. They do not realise the
importance of activities related to CSR or what are the benefits of CSR. Most of them perceive
CSR is an activity that enterprises create to reward community, society and environment in form
of charity or donation in return to society so when the business is not profitable, there is no
intention to do CSR and believe that CSR activities are a responsibility of large enterprises
which have high profit (Thaipat, 2012).
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1.3. Research Aims and Objectives
This paper aims to discuss on how importance of adapting the concept of CSR to an SME
context and understand the stakeholders’ perspective towards CSR strategy for SMEs in
Thailand.
The objectives are:
 To evaluate the concepts of CSR in the context of an emerging economy
 To examine to what extent CSR is related to SMEs performance
 To identify what are the key factors for SMEs in Thailand
1.4. Dissertation Structure
While undertaking a research topic, the researcher is required to follow a sequential
pattern by adhering to a well defined and appropriate structure. This structure can be
demonstrated by following a series of chapters that can be undertaken as a part of the research
study. The following are the various chapters:
 Chapter 1: Introduction – It is the first chapter that lead to provide a clear framework of
the selected topic of investigation. It will consist of an overview in which topic of the
study is well-defined. Following this aims and objectives will be framed with research
problem. In the end of the introduction chapter potential significance of the selected topic
will be provided.
 Chapter 2: Literature Review – In second chapter a detailed outline of the concepts of
CSR in the context of an emerging economy will be provided. further to what extent CSR
is related to SMEs performance will be examined. Therefore this, section will lay
emphasis on covering aims and objective of the investigation. Further it will be done
through undertaking an assessment of the various area of research. All the published
articles and journal of authors will be considered.
 Chapter 3: Research Methodology – In this section a description of the different methods
will be provided which can be used by the scholar to carry out dissertation in a right
direction. Along with this validation of selecting a particular technique will be provided.
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At the last of this chapter limitation and ethical consideration of the research will be
described.
 Chapter 4: Data Analysis and Findings – All the information which is collected from
primary and secondary sources will be analysed.
 Chapter 5: Conclusion and Recommendations – It is the last chapter that will be provide
conclusion based on secondary research. After that recommendation will be provided
based on findings for improvement.
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CHAPTER 2: LITERATURE REVIEW
2.1. Corporate Social Responsibility
To begin with, enterprises conduct business to gain profit and return it to the shareholders
but the concept of CSR contradict that the firms have responsibilities for providing services to
others, particularly social and environment. There are several implications of CSR, depending on
the nature of the company used to define CSR. It can be a behaviour of an organisation that
influence on society, economic and environmental (The European Commission, 2017). In
addition, McWiliams and Siegel (2001) said that CSR is activities in which the company provide
some benefit to a society above the business interests of the company and need to comply with or
exceed the requirement of the legislation. These in line with Balabanis, Phillips and Lyall (1998)
that CSR consists of various activities in different dimensions such as environmental protection,
charities and participation in social causes.
The concept of CSR developed from two aspects which include CSR as business ethics
and CSR as part of sustainable development programs contributed by the United Nation but
merged as a business norm (United Nations, 1992). The idea of CSR that the goal of the
company should be in a broader perspective than focus on growing shareholder value was argued
through discussions on business ethics since the 1950s (Carroll, 1999). This argument based on
an assumption that emphasises appropriate methods profitability so that the enterprise gains
legitimacy for existence in society (Wood, 1991). Collier and Esteban (2007) claimed that Adam
Smith explains morality in the Wealth of Nations but when the introduction of mathematical
tools was applied to examine economic theories, most economists were convinced into a world
of measuring. Therefore, ethics became less prioritised due to it cannot be measured certainly.
An enterprise required to adopt a broader perspective of its responsibilities rather than achieving
economic goals in order to gain effective response to the stakeholders that involve not only
shareholders, but also many other stakeholders, including customers, employees, suppliers,
community, governments and other related groups (Thaipat, 2012; Hogan, 2009).
The most well-known theory of CSR is Carroll’s pyramid of CSR. Carroll (1991; 1979)
demonstrated the set of four basic responsibilities which are economic, legal, ethical and
philanthropic can shape the basis framework for CSR as a pyramid. Firstly, the foundation of the
pyramid is the economic responsibility, he mentioned that the basic requirement of business from
society is the organisation should be strong to sustain the business, maintain profitability to
induce the investment from shareholders. In social perspective, “the business organisations are
institutions that will produce and sell the goods and services to meet their needs”. Organisations
can make profits by adding value on their products or services to provide benefit to the
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stakeholders. Secondly, legal responsibility, the companies should obey the laws and comply
with the regulations. Thirdly, ethic responsibility, the expectation from society that companies
must do to minimise risk. The concept of legal and ethical seem to be related, however, ethical
comprises “activities, standards, policies and practices” that do not present in legal codification.
Finally, philanthropic responsibility, society desires the business organisation to provide
something back to the society and “to be good corporate citizens just as individuals are” (Carroll,
2016, p.1). On the other hand, there are several rationales for companies to participate in CSR
such as “moral obligation, sustainability, license to operate and reputation” (Porter and Kramer,
2006, p.78). For moral obligation, companies must operate their business in the right way
performing like good citizens in society and sustainability focuses on environmental problems
and regards society. License to operate is a condition that companies need to follow and also an
approval from communities, stakeholders and governments to conduct their business. Indeed, the
significant reason for companies to engage in CSR is to improve the brand image and reputation
as well as increase stock value (Porter and Kramer, 2006).
Figure 1: Carroll’s pyramid of CSR (1979)
Consequently, the key factor that can be used to investigate the profitability of the
company from CSR activities is the effect of CSR on a variety of stakeholders which are primary
stakeholders include customers, employees, suppliers, investors and community (Lech, 2013).
The research from Fiedler and Kirchgeorg (2007) is similar to Hillenbrand and Money (2007),
they argued that different stakeholders expected the CSR of the company from different
perspectives depend on what they are interesting from the company. To begin with, CSR towards
customers by which the firm should emphasise on the ethics of advertisement, customer health
and safety and transparency policies. These seem to enlarge the brand image, firm reputation and
customer loyalty so the firm can earn more sales and profits. (Waddock and Graves, 1997).
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Generally, the managers worried about operating CSR activities might have an effect on
increasing product cost to customers and the sales may be decreased. However, customers do not
decide to buy product from the lowest price only but they empathise with many aspects of the
product (Mohr and Webb, 2005). On similar lines Auger, et al. (2003) claimed that customers
willing to pay more for products which are made by ethical company. Schuler and Cording
(2006) pointed out that consumers play an important role as “the dominating stakeholders” to
connect the relationship between CSR and financial performance of the company because their
buyer power significantly influenced the financial performance of the company. In addition,
Lech (2013) focused on CSR towards employees that allow employees to have participated in a
decision making within the company and also provide an appropriate compensation to
employees. The potential delivery of CSR initiatives can be driven by employee responsiveness
which are inspiration and intention. Scholars investigated that the company should impulse to
employees with ambition and expertise for implement CSR initiatives (Singh, 2014). Berman, et
al. (1999) is consistent with Lech (2013) that the financial performance of the company might
improve when employees were satisfied with what they need in reasonable level, so they can
operate works in good condition and full potential. The organisational commitment in CSR has
more opportunity to attract job applicants and can have good effect on employees’ attitude that
prevent the firm from the staff turnover (Greening and Turban, 2000; Turban and Greening,
1997). According to Lech (2013), the financial performance of companies might be improved if
the suppliers stress with the CSR standards, so companies can expand their reputation more
widely into global market. In line with Lech (2013), Mishra and Suar (2010) demonstrated that
issues related to suppliers include “health and safety of suppliers' products, environmental impact
of suppliers and ethical procurement of raw materials by suppliers”. Furthermore, Lech (2013,
p.49) stated that “companies adopting CSR principles toward investors are more transparent and
have less risk of bribery and corruption”. The company protects and supplements for the
shareholders’ right and also provides disclosure in both financial and non-financial as transparent
as possible. Therefore, financial performance of the company can be increasing by the
development of corporate governance (Mishra and Suar, 2010). In particular, CSR towards the
community examines companies’ actions with respect to issues, for example, charitable
donations, the partnerships between public and private sector, and relationships with community.
Many companies can use these actions for increasing their reputation and improving their brand
image that have an influence on financial performance (Wang and Qian, 2011).
2.2. Definition of SME in Thailand and its characteristic
The Ministry of Industry of Thailand defines SME as below issued by Ministerial
regulation in 2002.
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Industry Small Enterprise Medium Enterprise
Manufacturing
Industry
Enterprise which corresponds to any
of the following
- With the number of employees of up
to 50
- With the amount of assets of up to 50
million bahts.
Enterprise which corresponds to any
of the following
- with 51 to 200 employees
- with assets of no less than 50 million
bahts and up to 200 million bahts.
Wholesale
Industry
Enterprise which corresponds to any
of the following
- with the number of employees of up to
25
- with the amount of assets of up to 50
million bahts.
Enterprise which corresponds to any
of the following
- with 26 to 200 employees
- with assets of no less than 50 million
bahts and up to 100 million bahts.
Retailing
Industry
Enterprise which corresponds to any
of the following
- with the number of employees of up to
15
- with the amount of assets of up to 30
million bahts.
Enterprise which corresponds to any
of the following
- with 16－150 employees
- with assets of no less than 30 million
bahts and up to 60 million bahts.
Service
Industry
Enterprise which corresponds to any
of the following
- with the number of employees of up to
50
- with the amount of assets of up to 50
million bahts.
Enterprise which corresponds to any
of the following
- with 51 - 200 employees
- with assets of no less than 50 million
bahts and up to 200 million bahts.
2.3
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
It is one of the important chapters in the research which provides an appropriate method
or technique that is effective enough to carry out research in an efficient manner. This chapter
play important role to develop understanding related to corporate social responsibility. This
chapter consist of data analysis, research strategy, data collection etc. In addition to this, chapter
enables on focusing on the research aims and objectives which is formed by the research in an
effective manner. Step by step the investigation will be able to present the information which is
collected and evaluated from different sources to conduct research and gain valid outcome. In
this context below are provided research methods:
3.2 Research philosophy
It is known as belief of the scholar in relation to which information can collected,
analyzed, evaluating and gathering of data and information (Bailly and Comino, 2017). Along
with this, it makes easier to analysis the sources that enable to develop the nature of the study. At
the time when scholar make proper use of research philosophy then it can easily gain proper
conclusion of the selected topic (Toye, Williamson and Lamb, 2016). Therefore, these
considered the actual phenomenon which aims to focus on aims and objectives of the research. It
is basically of two types that are interpretivism and positivism
Positivism lead to focus on objectives part of the study. Along with this it also eliminates
all the false facts which are involved within the study. It is carried out in a structural way which
enable to combine a logical aspect of the study (Wright, Wahoush and Jack, 2016). On the other
side, interpretivism emphasized on subjective part of the study. It leads to make uses of theories
and models which are related with the selected topic. The present research is based on
importance of adapting the concept of CSR to an SME context and understand the stakeholders’
perspective towards CSR strategy for SMEs in Thailand, therefore interpretivism philosophy is
used by the scholar. It is effective enough in order to develop deep understanding related to the
selected topic. Along with this scholar can easily gain valid outcome.
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3.3 Research approach
This is another essential element in research methodologies. Research approach refers to
the hypothesis of research. It helps in using theory that is used in designing the research. On this
basis, the overall research is conducted along with aim and objectives are developed. It is
selected on the basis of nature and topic of research (Tight, 2016). Usually, inductive and
deductive are two types of research approach that is applied by researcher.
Inductive approach is used to generate theories and new ideas from research that can be
applied in other areas. It is beneficial as it helps researcher to gain knowledge of his or her area
or field. On the other hand, deductive is used to generate valid outcomes from research. This
helps in finding the outcomes or results and achieving aims and objectives. For present research,
inductive approach is used by researcher for the importance of adapting the concept of CSR to an
SME context and understand the stakeholders’ perspective towards CSR strategy for SMEs in
Thailand. It will help him or her to find relevant outcomes by analysing data. It will help in
collecting and analysing the data in an effective manner. Also, it will help in following every
step so that research can be conducted in smooth way.
3.4 Research design
Research design is known as the technique that support scholar to involve various
elements of the study in a logical manner. Along with this, it enable scholar to address the
research issues in an effective manner (Kerr, Eckert and Wandwabwa, 2016). It is also
considered as blueprint for gathering and measuring the data. It assists in generating important
and factual information on the selected topic. There are three different type of research design
which can be used by scholar that are experimental, exploratory, and explanatory. All these
designs can be used for describing complex research issues in an effective manner. Descriptive
research designs effective as it helps in describing the population which is covered in the study.
For the present research scholar has adopted descriptive design. Descriptive research design
aimed to cast lights on current issues and problem through help of data collection process which
enable to describe characteristics of sample population. Reason for considering this method is
that it consumes less time and provide appropriate results.
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3.5 Data collection:
Data collection is known as the process of gathering information from all the different
sources in order to find the answer of research problem. It can be categorized into two methods
that are primary as well as secondary (Edson, Henning and Sankaran, 2016). Primary
information is known as new information which can be collected through survey, interview etc.
This information is generally considered as highly reliable and valid information.
On the other side secondary information is that which already has been published by
scholar in their books and journals. It is also stated as second-hand information which is used to
support the findings of the research and come up with valid conclusion. In order to collect
secondary information researcher can consider books, websites, articles, journals etc. The present
research is based on importance of adapting the concept of CSR to an SME context and
understand the stakeholders’ perspective towards CSR strategy for SMEs in Thailand. Here
researcher, has collected information from both primary as well as secondary sources.
In primary both interview and survey method will be adopted by the researcher in order
to gain specific information. In interview questions are asked from owner of the company.
Further. in survey both customers and employees are undertaken. Further, secondary information
is collected from books, journals and internet. The data collection is separated into two parts.
Firstly, the data is collected by using the questionnaire. This questionnaire designs to use
several types of questions including open questions, multiple choice questions and scaled
questions. This online survey will use the Qualtrics which is a convenient and popular tool for
delivering the questionnaire, gathering and analyzing data. To get an accurate result, the
questionnaire should be organized in well and clear structure, and it need to be checked that no
information or requirement is missing out (Peter, Werner and Alavi, 2017).
In part of interview, it will use semi-structured interviews that is useful for the researcher
to dedicate the area by investigating with the question and finding more information of answer.
The semi-structure interview is vital to make participants feel relax when they are speaking and
still engage with the topic of this research (Chadwick, et al. 2008).
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3.6. Sampling
It is not easy for researcher to conduct survey from large number of populations.
Therefore, it is important to apply sampling method in which scholar needs to select appropriate
sample size. There are two different types of sampling method that are probabilistic and non-
probabilistic.
Non-probabilistic is selected in which researcher have proper understanding of the
chosen population (Creswell and Poth, 2017. The researcher can easily decide total number of
the respondents which are to be selected. However, it is effective in selection of the respondents
as per researcher preference. With the interview, it will conduct with at least 5 participants while
in part of the questionnaire, it will be formed for at least 200 respondents via an online survey. In
order to accomplish a better survey of participants, it need to conceal any customer’s personal
details and keep them anonymous.
For surveying, Random Sampling Method is used by scholar. It leads to provide equal
opportunities of being selected. Along with this, chances of biasness can also reduce with the
help of randomly selection method. Here, 100 employees and 100 customers from SMES of
Thailand are selected.
.
3.7 Data analysis
After gathering information from the primary sources, it is important to properly analyses
in order to gain valid outcome. There are two main types of data analysis techniques that are
qualitative and quantitative that can be used by scholar.
In qualitative technique, information is analyzed in numerical form. There are different
types of themes prepared based on the survey results and interpretation is done (Winit‐Watjana,
2016). On the other side, in quantitative non numeric method in which different statistical tools
and techniques are used by the researcher for analyzing the information. The approach of this
research is both qualitative and quantitative method, the data collection will be collected by
interview and survey.
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For analyzing the information, qualitative technique is used by scholar in which several
themes are prepared based on the results and interpretation is done. Along with this to present the
results in an effective manner researcher has prepared different charts and tables.
3.8 Ethical consideration
There are different types of ethical consideration which can be undertaken by scholar
while carrying out new research. For, researcher it is important to undertake research in effective
and systematic manner. There are ethical considerations which scholar should followed
While conducting primary research all the information provided by scholar need to be kept
confidential. Further, investigator need to ensure that no respondents is forced to taking
participate in the research. All the personal information of participants should be destroyed when
no longer in use which help in avoiding the chances of misuse in future (Mebius, Kennedy and
Howick, 2016). All the secondary information which is gathered should be written in own words.
It leads to avoid the chances of plagiarism. It can be said that data cannot be used as it is but it
can only be used for supporting the findings. All the secondary information needs to be collected
from recent years and its should be properly cited with authentic sources. It leads to make
research highly reliable and valid. respondents ought to take an interest based on educated assent.
The rule of educated assent includes specialists giving adequate data and affirmations about
partaking to enable people to comprehend the ramifications of investment and to come to a
completely educated, considered and uninhibitedly given choice about regardless of whether to
do as such, without the activity of any weight or compulsion.
3.9 Research limitation
There are certain limitations which can be faced by scholar while carrying out research in
an effective manner. It is essential for the scholar to take proper considerations which help in
reducing the chances of limitation.
Here below are provided few limitations that can be faced by scholar and are as follows:
 Aim and objectives: It is known as an essential part of the research that is based on the
entire research to be conducted. It is important that proper aim and objectives are
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prepared by scholar. If scholar fails then it becomes tough to gain main focus of the
research.
Selection of methodologies: At the time of selecting methodologies, it is important to select
methods or sources through which information can be gathered. If selection of methodology is
not done properly then it can impact the information and its reliability (Mebius, Kennedy and
Howick, 2016).
 Limitation of time and cost: There are different types of activities which are required to
be completed on time as because delay in one activity can impact all other activities and
also increase the cost of project. Therefore, easy activities need to be completed in the
provided time in order to avoid the negative impact on research.
 Getting information: There are 200 participants in which 100 are employees and 100 are
customers of SMEs. For researcher, it is important to collect the data from respondents in
an appropriate manner. Along with this, enough time should be provided to respondents
in which they can easily fill the questionnaire. If appropriate time is not provided to them,
then it can become limitations for the scholar to collect specific information ((Médici and
Allen, 2016).
CHAPTER 4: DATA ANALYSIS AND DISCUSSION
4.1 Introduction
After gathering information through survey, it is important to ensure that appropriate
system is used in order to understand the requirements in an effective manner. In addition to this,
it also assists in determining appropriate outcomes for findings from the participants which are
provided by employees and customers of SMEs.
As discussed in research methodology chapter, there are two different types of methods
that are used for analysis such as qualitative and quantitative. To be more specific, thematic
analysis is applied and all the information is presented in the form of tables and graphs.
4.2 Thematic analysis
Thematic analysis is one of the best methods which is adopted by scholar for analysing
the qualitative and subjective information that is related to the topic. In thematic analysis,
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different types of themes are included which assist in attaining all the objectives of the research
in an effective manner.
Here below is provided thematic analysis of the present research.
4.2.1 Analysis of employee’s survey results
Theme 1: Employees are not aware about the corporate social responsibility adopted by
SMEs
Q1. Do you aware about the
corporate social responsibility
adopted by your company? No. of respondents Percentage
Yes 30 30
No 60 60
Do not know 10 10
Total 100 100
Interpretation and analysis
According to the collected information, it has been found that out of 100 respondents, 60
said respondents stated that they are not aware about Corporate Social Responsibility adopted by
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SMEs. They are working in SMEs but manager of company does not keep them informed about
CSR activities which are adopted by their companies. On the other side, 30 replied yes, they
know about CSR adopted by their firm, however remaining 10 do not know about it. Hence it is
analyzed that there are many SMEs in Thailand who does not focus on adopting CSR and
activities and keep informed their employees about it.
Theme 2: SMEs does not have CSR structure
Q2. Does the organization have
a CSR structure? No. of respondents Percentage
Yes 20 20
No 50 50
Do not know 30 30
Total 100 100
Interpretation and analysis
From the data collected, it has been found that out of 100 respondents, 50 said that their
company do not have a CSR structure while 20 said that their company has it. Remaining 30 did
not know about it. Hence, it is analyzed that there are most of the SMEs who do not have CSR
structure. As it clearly indicates that they do not know about significance of CSR due to which
they have not adopted it.
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Theme 3: Agree that implementing CSR should be responsibility of SMEs
Q3. Do you agree implementing
CSR should be the
responsibility of your
company? No. of respondents Percentage
Highly agree 40 40
Agree 30 30
Neutral 10 10
Disagree 5 5
Highly disagree 15 15
Total 100 100
Interpretation and analysis
The findings of primary data collected highlight the fact that agree implementation of
CSR should be the responsibility of SMEs. Out of 100 respondents, 40 are highly agreed, 30
only agreed that companies should take responsibility of implementing CSR. They know the
significance of adopting corporate social responsibility and different types of benefits which can
be gain from its implementation such as creating brand image etc.
On the other side, 5 disagreed and 15 highly disagreed with the above question; as per
their view, they do not have much knowledge about CSR due to which they are not in favor of
implementing CSR. However, remaining 10 neither agreed nor disagreed with the given
17

statement. Hence, it is analyzed that implementation of CSR is important for each and every
company as it shows that company cares about environment, community etc.
Theme 4: Brand image is the benefits of adopting CSR by SMEs
Q4 What is the benefits of
adopting CSR by your
company? No. of respondents Percentage
Growth and profit 20 20
Brand image 50 50
Customer loyalty 30 30
Total 100 100
Interpretation and analysis
According to the collected information, it has been found that out of 100 respondents, 50
said that brand image is one of the main benefits for adopting CSR by SMEs. They know that
CSR helps in carrying out the activities in ethical manner which make easier for customers to
purchase their company product. It leads to create good image in market and companies can
easily gain competitive advantages.
While 30 said customer loyalty and 20 think growth and profit is the benefits of adoption
of CSR. Thus, it is analyzed that company can focus on adopting CSR as it will help firm in
18

creating an image in market. People are now become more aware about saving environment and
they want that companies adopt while making products and services so that companies can
operate business without impacting community and environment.
Theme 5: None of the measurements have been implemented by SMEs
Q5. Have any of the following
measures/arrangements been
implemented in your company?
No. of respondents Percentage
Possibility/option of flexible
working hours 25 25
Process to ensure steps are
taken against all forms of
discrimination 20 20
health and safety arrangements
are implemented at the
workplace 15 15
none of the above 40 40
Total 100 100
Interpretation and analysis
19

From the data collected, it has been found that out of 100 respondents, 40 said that their
companies do not implemented any of the CSR activities or measures. While 25 said option of
flexible working hours is provided to employees, 20 said process to ensure steps are taken
against all forms of discrimination and 15 replied health and safety arrangements are
implemented at the workplace.
Hence it is analyzed that few of SMEs implemented some of the activities of CSR while
most of the companies avoid them. They think that CSR adoption is important for companies
who are operating businesses at large scale. SMEs focus on making products and services instead
of caring about any CSR activities.
Theme 6: Very important is for SMEs to be socially responsible and ethical behavior
towards environment and its community
Q6 How important is for SMEs
to be socially responsible and
ethical behavior towards
environment and its
community?
No. of respondents Percentage
Very important 25 25
Important 35 35
Less important 10 10
Unimportant 30 30
Total 100 100
20

Interpretation and analysis
According to the collected information, it has been found that out of 100 respondents, 25
said that it is very important and 35 said only important is for SMEs to be socially responsible
and ethical behavior towards environment and its community. They said that it is a key success
for SMEs because customers mostly buy products from such companies who are carrying out
activities ethically. However, 10 said that it is less important and for 30 it is unimportant. Hence,
it is analyzed that employees know that it is important to be responsible to behave ethically and
become socially responsible. It means careful considerations of human rights, environment,
society and community in which they are operating business.
Theme 7: Pressure from stakeholders is the reason of adoption of CSR practices by SMEs
Q7 Rate your opinion about the
following items for adoption of
CSR practices by Companies?
Strongly
agree agree indifferent disagree Strongly
disagree total
Promote corporate
image/loyalty 10 20 5 25 30 100
Competitive market advantage 30 25 15 10 20 100
Pressure from stakeholders 30 25 10 15 20 100
21

Interpretation and analysis
From the information collected, it has been observed that there are various reasons for
which companies are adopting CSR practices. Out of 100 respondents, most of them are strongly
agreed that company adopted CSR to gain competitive advantages because of pressure from
stakeholders. However, most of the employee’s state that CSR do not help in promoting the
image of company. It clearly shows that different employees have different views regarding
CSR. It is clearly identified that stakeholders are important for any company and they can put
pressure on firms in order to adopt CSR strategies.
Theme 8: Organization communicate the CSR 'Policy' to the investors
Q8. Does your
Co./Organization communicate
the CSR 'Policy' to the
stakeholders? Never sometimes always total
Customers 10 65 25 100
Suppliers 20 50 30 100
Employees 25 50 25 100
Investors 15 25 60 100
Community 40 35 25 100
22

Interpretation and analysis
From the data collection, it has been found that out of 100 respondents, most of the
respondent’s state that company use to communicate policy of CSR with only investors and in
rare case with customers and employees.
It clearly shows that SMEs do not focus on including different stakeholders while
adopting any type of CSR policy. Thus, it is analyzed that SMEs are not much responsible
towards CSR due to which they are facing issues in accomplishing growth and profit.
Stakeholders keep some expectation from companies and it is important for them to fulfill it on
time.
4.2.2 Analysis of customers’ survey results
Theme 1: Customers know about corporate social responsibility
Q1. Do you know about
corporate social responsibility? No. of respondents Percentage
Yes 70 70
No 30 30
100 100
23

Interpretation and analysis
According to the collected information, it has been found that out of 100 respondents, 70
said yes, they know about corporate social responsibility adopted by SMEs. According to them it
is a board term which is used to shows efforts of the firm toward community and society. Thus, it
is important for company while making products to be careful about society, community and
environment. However, remaining 30 said that no they do not know about CSR.
Hence it is analyzed that people are aware about CSR and they know how many benefits
they can gain from it.
Theme 2: Customers make purchase of product from those companies who are socially
responsible
Q2. Do you make purchase of
product from those companies
who are socially responsible? No. of respondents Percentage
Highly agree 20 20
Agree 35 35
Neutral 10 10
Disagree 15 15
Highly disagree 20 20
100 100
24

Interpretation and analysis
From the information collected, it has been observed that customers mostly purchase
products from those companies which are socially responsible. Out of 100 respondents, 20 are
highly agreed, 35 only agreed that Customers make purchase of product from those companies
who are socially responsible. There are many global consumers who expect that business should
be operate with full responsibility and without impacting environment. Mostly, they prefer to
buy those products which are ethical.
On the other side, 15 disagreed and 20 highly disagreed with the above question. They do
not know much about CSR due to which they do not think about ethics and social behavior
before making purchase.
However, remaining 10 neither agreed nor disagreed with the give statement. Hence, it is
analyses that customers are highly aware about significance of CSR and they used to make
purchase of those companies’ products which operate ethically their business and shows all their
CSR activities to customers.
25

Theme 3: Customers are willing to pay more for products which are made by ethical
company
Q3 Do you willing to pay more
for products which are made by
ethical company? No. of respondents Percentage
Highly agree 30 30
Agree 30 30
Neutral 10 10
Disagree 20 20
Highly disagree 10 10
100 100
Interpretation and analysis
According to the collected information, it has been found that out of 100 respondents, 30
are highly agreed, 30 only agreed who are willing to pay more for products which are made by
ethical company. Mostly ethical products are effective for both customers and society due to
which they are willing to pay more for it.
On the other side, 20 disagreed and 10 highly disagreed with the above question.
However, remaining 10 neither agreed nor disagreed with the given statement. Hence, it is
clearly analyses that that if companies adopting all the ethical behavior for carrying out business
activities they can easily increase their sales and profits.
1

Theme 4: Pay close attention to the producers of CSR while buying products of particular
company.
Q4. Do you pay close attention
to the producers of CSR while
buying products of particular
company.? No. of respondents Percentage
Highly agree 20 20
Agree 40 40
Neutral 5 5
Disagree 20 20
Highly disagree 15 15
100 100
Interpretation and analysis: From the data collected, it has been found that out of 100
respondents, 20 are highly agreed, 40 only agreed that they pay close attention to the producers
of CSR while buying products of particular company. They said products which do not harm
themselves or society are preferred by them mostly.
On the other side, 15 disagreed and 20 highly disagreed with the above question.
However, remaining 10 neither agreed nor disagreed with the give statement. Hence, it is
analyses that customers mostly searched those company’s product and services who are carrying
2

out their business ethically. It is important for company to understand that customers are mostly
like products of those companies who carried out their business ethically.
Theme 5: CSR information about SMEs companies is poor
Q5 Do you think CSR
information about SMEs
companies is? No. of respondents Percentage
Very poor 30 30
Poor 35 35
Average 10 10
Good 15 15
Excellent 10 10
Total 100 100
Interpretation and analysis: According to the collected information, it has been found that out
of 100 respondents, 30 said that CSR information about SMEs companies is very poor. Due to
lack of information provided by SMEs, it becomes tough for customers to understand any CSR
initiatives or not. While 35 replied only poor existed and 10 said average, this information is
provided by companies. However, remaining 25 think it was good and excellent. It clearly shows
that SMEs are not taking any initiatives in implementation of CSR due to which people avoid
purchasing their companies’ products and services. Furthermore, it analysis that few companies
3

who are carrying out CSR activities do not show in front of customers due to which people do
not purchase from them.
Theme 6: Very likely buy from a company who are involve in CSR activities of their
concern
Q6. How likely will you buy
from a company who are
involve in CSR activities of
your concern? No. of respondents Percentage
Very unlikely 10 10
Unlikely 20 20
Undecided 5 5
Likely 30 30
Very likely 35 35
Total 100 100
Interpretation and analysis: The findings of primary data collection highlight the fact that
customers buy from a company who are involved in CSR activities to their concern. Out of 100
respondents, 35 said that very unlikely, 30 replied that they were likely to buy from companies
4

who are involved in CSR activities. On the other side, 10 did not buy and 20 also did not prefer
to purchase due to CSR issues. However, remaining 5 do not able to decide that they wish to buy
from because of CSR activities or not. Thus, it is analyzed that people became more educated of
CSR activities and its benefits due to which they prefer to buy products from those companies
who are keeping informed stakeholders about their CSR initiatives.
Theme 7: CSR information of different company get mostly from internet
Q7. Do you get CSR
information of different
company mostly from which
channel? No. of respondents Percentage
Internet 40 40
Newspaper and magazine 30 30
Television 20 20
Other (Product packaging and
label) 10 10
Total 100 100
Interpretation and analysis: According to the collected information, it has been found that out
of 100 respondents, 40 said that they get information about company’s CSR activities on internet
which has become one of the most popular ways of getting corporate social responsibility
information’s. However, at the same time, traditional printed media, i.e. newspapers and
5

magazines are important channels which are considered by 30 respondents. Besides this,
participants got information about companies from television and other sources. However,
remaining 10 said that other products packaging and labels had CSR information. Hence, it is
analyzed that there were many customers who were active on internet and gained this
information and waited to be informed by companies about CSR initiatives. Further, it showed
that way of communicating corporate social responsibility was still relatively inefficient within
SMEs.
Theme 8: Delivering safe products the importance of listed CSR initiatives in the SMEs
Q8 What do you think about the
importance of listed CSR
initiatives in the SMEs Unimportant
less
important
Moderately
important important
very
important Total
Ecological production process 5 20 10 30 35 100
Reduce packaging and use
ecological packaging 20 0 10 25 45 100
Delivering safe products 10 5 15 40 30 100
Contribute to local communities 10 20 10 30 30 100
Interpretation and analysis: From the data collected, it has been found that out of 100
respondents, most of them stated that delivering safe products, contributing to local
communities, reducing packaging are few initiatives by SMEs. Thus, it shows that all CSR
6

initiatives are important in SMEs for delivering safe products, contribution to local communities
and reducing packaging are considered as important and very essential for companies as well as
customers. If companies focused on all these CSR aspects, then they can easily carry out their
business activities in an effective manner and gain competitive advantages. Hence, it is analyzed
that above listed CSR initiatives should be focused by companies and implement them in order
to increase profit and make good position in market.
4.3 Interview analysis
Interview analysis
1. SME’s owner do not know about corporate social responsibility and its benefit.
Interpretation and analysis: At the time when question is asked from respondents about
awareness with respect to corporate social responsibility. Different participants provided various
views in context of this awareness. Out of 5, 2 of them knows about it while, other three said that
they do not know. It is indicated that SMEs know about corporate social responsibilities and their
benefits. They said that adoption of CSR assists them in carrying out business in an effective
manner. It will help in getting positive firm reputation, increase customer loyalty etc. They know
that company can easily make good image in market if their consumers will come to know they
are working ethically and make all products and services in ethical manner. However, few of
them do not know about it; as per their view, they are operating business at small scale so CSR
activities will not help in gaining competitive advantages. Thus, it is analyzed that SMEs do not
know about effectiveness of CSR due to which they are avoiding in adopting CSR strategies. It is
important for SMEs to develop their understanding related to corporate social responsibilities so
that they can implement it within the firm in an effective manner.
2. Adoption of corporate social responsibility is responsibility of only large companies
Interpretation and analysis: At the time when question is related to “is adoption of CSR
responsibility of only large companies”. There are 4 out of 5 who said that yes; acceptance of
corporate social responsibility is the duty of big firms. CSR is an activity that enterprises create
to reward community, society and environment in the form of charity or donation in return to
7

society so when the business is not profitable, then companies do not keep intention of carrying
out CSR and believe that activities are a responsibility of large companies which have high
profit. It is critically analyzed that SMEs do not think that they should adopt CSR because they
do not operate at large scale. However, among them 1 stated that both large companies and
SMEs should adopt corporate social responsibility activities. Hence, it is identified that firms
who are operating their businesses at large scale are reputed companies and customers must
know about them. If they do not initiate corporate social accountability, then may be customers
do not make purchase from their firm. Therefore, they think that it is responsibility of large
companies but it is not true. Any company who sales products and services should know that
they are responsible towards the community, society and environment.
3. CSR activities increase the cost of the company
Interpretation and analysis: At the time when question was asked that does CSR activities
increase the cost of the firm. There are 5 respondents, out of which 3 owners of SMEs think that
CSR costs high. There are various such activities which lead to charge extraordinary cost. As
they are operating business at a small scale, so they do not earn much profit due to which it
become difficult to carry out corporate social responsibility activities. Due to this reason, they
avoid adopting CSR initiatives. Further, few of them know about its benefits and due to this
reason, they initiate in corporate social responsibility without thinking of its cost. Thus, it is can
be said that most of the SMEs do not know that CSR is cost effective. If they develop proper
understanding related to the effectiveness of corporate social responsibility, it can be adopted
easily and can also save cost. For instance, companies can minimise the cost by hiring highly
skilled employees, managing potential risks and liabilities in an effective manner.
4. Financial performance of the company can be improved with the help of CSR activities
Interpretation and analysis: When question was asked to owners related to the financial
performance of the company that can be upgraded with the help of corporate social
responsibility. Out of 5, 3 said that no, it did not help in gaining much profit of the company.
However, rest of them stated that it assisted in refining the entire commercial presentation. Thus,
8

it is analysed that monetary performance of the firm can be recovered with the help of adoption
of CSR strategies. Thus, findings of literature review indicate that the monetary performance of
firms might be recovered if the suppliers stress with the CSR standards, so business can expand
their reputation more widely into global market. Further, there are many companies can use
these actions for increasing their reputation and improving their brand image that have an
influence on financial performance. Hence, findings of literature review also linked with the
primary findings.
5. Increasing product cost and decrease of sales is the reason make you worried about
operating CSR activities.
Interpretation and analysis: In interview, when question was asked from owners of
SMEs related to the reason that made them worried about operating CSR activities. There are 3
out 5 who said that main reason due to which they are worried is related to increase in cost of
product and reduction in the sales which is directly impacting their profits. They stated that
customers do not decide to buy goods from the lowest price but they empathize with many
aspects of the product. On the other side, few owners stated that customers are willing to pay
more for products which are made by ethical company. Therefore, corporate social responsibility
activities do not impact the cost of products and services. From the findings of literature review,
it is identified that consumers play an important role as “the dominating stakeholders” to connect
the relationship between CSR and financial capability of a company because their buying power
is significantly influence overall performance. It shows that views of respondents are different as
compared to findings of literature review. It is analyzed that owner of company do not know
about the significance of CSR activities and due to this reason, they are avoiding adoption of
corporate social responsibility in their firm
4.4 Discussion of the findings in relation to literature review
According the data analysis chapter, it was found that Corporate Social Responsibility is
one of the effective activities which should be adopted by SMEs in order to show that they are
ethically and socially responsible for society and environment. There are many employees and
customers who think that adoption of corporate social responsibility is an accountability of only
9

large companies. On the other side, findings of literature review show that corporate social
responsibility has become an essential concept in many organizations including both large or
small, domestic or international, to take it into account by improving their social and
environmental practice (Madueño, Jorge and Martínez-Martínez, 2016).
This finding is consistent with literature review. However, respondents know that through
adoption of CSR, they can easily improve the brand image and gain customer loyalty.
Furthermore, the findings from literature review shed light on the stakeholders such as
customers, investors and community which are concerned about firm’s activities in form of
charity, ethics in advertising and producing environmentally friendly products. Therefore, they
put pressure on SMEs so that they adopt corporate social responsibility strategies.
On the other hand, research findings show that pressure from stakeholder is one of the
reasons due to which companies adopt CSR practices by SME’s. Customers are important
stakeholders of a company and they buy products and services of such companies who are
ethically and socially responsible. Pressure on companies to accept responsibility for its business
is importantly increasing in present years (Martinez-Conesa, Soto-Acosta and Palacios-Manzano,
2017).
There are various drivers of Corporate Social Responsibility that are organizational
drivers, customers, natural environment etc. It is important for companies to provide flexibility in
working hours to employees which is also considered under CSR activities. There are different
reasons of adoption of CSR such as it helps in differentiating products from customers
(Turyakira, Venter and Smith, 2014). On the other side, it can be said that there are many
companies who are building Corporate Social Responsibility in their corporate strategies. Apart
from this, by reviewing previous studies, it is analyzed that there are various types of CSR
activities which can be adopted by companies. However, it depends on the size and scope of the
firm.
The findings of primary research show that SMEs should adopt CSR strategies because it
will help in grabbing attention of customers. Further, company can keep transparency in their
business which can help in making customers’ loyal and employees’ may be committed towards
their job (Boulouta and Pitelis, 2014). There are many companies who can pollute the
10

environment while making products and services. It is important for them to take some actions
which can keep environment polluted free. It shows that consistency between collected primary
and secondary data.
For example, majority of respondent’s state that they are used to buy products and
services from companies which are involved in CSR activities. It clearly indicates that with
customers who are highly concerned about community, society, and environment. People
become more educated so they prefer products which do not harm the society (Epstein, 2018).
Furthermore, adoption of CSR clearly shows that companies are delivering safe products to
customers (Mousiolis, Zaridis and Rontogianni, 2015). At the time when company started
focusing on the corporate social responsibility aspect, then they can gain trust of all stakeholders
and it also assists in the growth and development. In addition to this, the data collected from
secondary research also reveal that adoption of corporate social responsibility is become
important for companies
Interview analysis in relation to literature review
Based on the gathered information in the interview, it has been found that corporate
social responsibility helps organization in refining financial performance of business. While
corporation engages with CSR activities and programs then it helps in improving brand image in
the business world. It is the best strategy to attract customers and provide information about
business in the market. On the basis of collected information in the literature, it has been found
that corporation might be improved if suppliers stress with the CSR standards so that
organization can expand their reputation more widely into the global market. From gathered
information in the interview, it has been also analyzed that corporate social responsibility
enhances the cost of organization (Reverte, Gómez-Melero and Cegarra-Navarro, 2016).
There are several CSR programs and activities that lead to charge high cost. If an
organization operates its business at small level, then it is quite difficult to invest large amount of
capital for organizing corporate social responsibility activities. Thus, it can be said that most of
the small business enterprises avoid engaging with CSR activities because they do not know that
this program which is cost effective. If an firm develops proper understanding related to the
11

effectiveness of CSR, then it can easily improve business performance and profitability. With
implementing CSR activities and programs, an organization can easily enhance business
promotion and advertisement in the market.
Company can easily develop strong brand image in the market because people can be
aware about product and services of particular venture (Tai, and Chuang, 2014). On the basis of
gathered information in the survey, it has been interpreted that with help of CSR, effectiveness of
a business can improve and customer loyalty can also have enhanced. Any organization can
create competitive advantages by engaging CSR activities. Corporation often favor suppliers
who have responsible policies, since this can reflect on how their customers see them.
From collected information in the interview, it has been also analyzed that corporate
social responsibility is cost effective and price saving because by reducing resources utilization,
wastage and emissions, a firm can aid the environment and save money too. It has been also
found that the main reason due to which they are worried is related to increase in cost of product
and reduced sales which is directly impacting their profits (Veersalu, 2011).
Majority of owners said that corporate social responsibility is an activity that enterprise
creates to reward community, society and environment in the form of charity or donation. Both
large and small business enterprises should adopt CSR activities for improving performance and
brand image in the competitive business environment (Amaeshi, Adegbite and Anakwue, 2016).
On the basis of gathered information in the interview, it has been assessed that in order to
sustain in the competitive business environment for longer time, CSR activity is the best strategy
and practice that can help to firm in large manner. Organization can easily develop strong
position in the market and attract large numbers of customers with help of this program. Thus, it
can be said that CSR activity is beneficial for business progress and performance.
12

CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusion
From the first objective of the research that is to evaluate the concepts of CSR in the
context of an emerging economy, it has been concluded that corporate social responsibility plays
significant role for both companies as well as customers. Corporate Social Responsibility shows
that firm has some responsibility towards the community, society and environment.
The most well-known theory of CSR is Carroll’s Pyramid of corporate social
responsibility. Carroll showed the set of four basic responsibilities such as economic, legal,
ethical and philanthropic that can shape the basis for the framework of CSR as a pyramid.
Customers mostly purchase products from those companies who carried out CSR activities in an
effective manner. firm can easily improve their financial performance at the time when suppliers
stressed with CSR standards. Through this, reputation can be improved in the global market also.
Along with this, there are various reasons due to which companies should adopt CSR such as
satisfying employees, customers and other stakeholders.
From the research, it is clearly reflected that CSR helps in improving customers’ attitude
towards the firm. There are many managers of companies who believe that corporate social
responsibility activities help in gaining competitive advantages. Furthermore, CSR program
does not need money. However, through carrying out business correctly, it can easily reduce
costs through CSR. Adoption of CSR also assist in avoiding legal obligations and improved
quality of work. Customers mostly do not choose those business products which have a
reputation in market related to social responsibility.
Contrary to this, business which indicate commitment to the environment and community
then they can easily attract customers who shares value. CSR concept needed to be sustained as
it combines all businesses through industries regardless of size and types. From the findings of
primary research, it is concluded that corporate social responsibility is known as an admirable
concept which should be followed by modern business.
At the time when CSR is not left without the criticism there can be more cases related to
the abusing of CSR through communicating about it.
13

From the second objective about examining to what extent CSR is related to SMEs
performance, it is concluded that corporate social responsibility is related with the performance
of SMEs. At the time when company started adopting CSR strategy then it can easily improve
performance of workers and retain highly skilled employees for longer period of time.
One of the main benefits of corporate social responsibility for SMEs is that it led to put
positive impact on workers and put benefits to both professional image and boost the trust and
commitment from stakeholders. It is also recognizing that CSR can offer an aggressive
advantage to SMEs through offering more profile and market positioning. For SMEs it is
important to appear more ethically and to adopt few of the best practices for making a positive
impact.
There are various motivating factors which are responsible for SMEs engagement in
corporate social responsibility. It can easily conceptualize as internal and external pressures
which can promote firm. Some of the internal motivation for SMEs engagement in CSR
activities are known as level of morality, ethical orientation etc. It plays significant role in
determining the manager’s level of commitment for implementation of corporate social
responsibility activities within the companies. Financial benefits can be gained through working
for good of society.
Furthermore, through adopting CSR, it becomes easy to improve standard of living of
people. Based on the findings, it is concluded that CSR perception is analyzed in the context of
three domain model. Mostly customer wish to purchase product from those companies who are
socially responsible. When companies reflected that they carried out business activities in ethical
manner then customers get highly attracted.
From the third objective that is to identify key factors for SMEs in Thailand, it can be
concluded that CSR is considered as effective for both business as well as society. The firm can
easily gain financial benefits with the help of working with good people and at the same time, it
created a positive reputation and respect. It assisted in securing their position within the market.
At the time when customers get information related to companies, CSR activities are
performed by them. Then it led to help in reflecting on how much SMEs are concerned about
society, community and environment. For an organization, it is important to carry out suitable
14

corporate social responsibility programs that might help in recruiting and retaining skills
employees.
Further it is concluded that, each company are operating differently and can adopt CSR
activities according to their work preference. It is not essential for each company to adopt all the
CSR activities then can make selection based on the type and nature of business. Further, it is
concluded that, at the time when employees decide where to perform job they mostly consider
companies who are committed with CSR.
At last it is concluded that companies who are operating business at small or large scale
should carry out all business activities in an ethical manner. Along with this, they also need to
ensure that any of their professional activities do not harm society, community or environment.
Therefore, they can take part in charity or support campaigns related to polluted free
environment. It shows good image of company in front of customers and other important
stakeholders. From interview findings, it is concluded that corporate social responsibility is cost
effective and price saving as by reducing resources utilization, wastage and emissions, a firm can
aid the environment and save money too. Further, it has been assessed that in order to sustain in
the competitive business environment for longer time, CSR activity is the best strategy and
practice that can help to firm in large manner
5.2 Recommendations
Based on the above findings, there are many strategies for SMEs which can engage in
CSR activities. At this time, corporate social responsibility operates within the local communities
and are more aware of environmental issues as compared to their larger counterparts. Therefore,
they can design a right CSR strategy in order to address such type of issues. They can easily take
advantages of the opportunities which are presented by corporate social responsibility and
increase their business profits. Furthermore, local character of SME can make it possible for
employees and employers to be well known in the society. The SMEs mostly have strong
identification within the community. Therefore, they can easily engage in the community related
15

activities such as health and education, sports etc. In addition to this, it is important to note that
employees are important key stakeholders within SMEs engagement in corporate social
responsibility.
SMEs should engage employees related initiatives, such as health and safety of
employees, promotion, paying adequate salary etc. lead to improve physical and emotional
working environment. Customers lead to play significant role as drivers of corporate social
responsibility. For an SME, it is important to provide high quality of products and services to
customers at fair prices.
Along with this, they should keep transparency so that customers do not hesitate while
purchasing their products. In addition to this, responding customer complaints on time and
ethical advertising can grab attention of consumers. SMEs can also participate in specific and
inexpensive environmental oriented CSR activities such as running environmental awareness
initiative for workers on efficient energy and resources use, waste reduction and pollution
management.
Further, it is recommended that company can encourage its suppliers to participate in
different projects which involve social and environmental development. These all can
incorporate sponsorship of local events and hiring employees from local communities. SME’s at
present are engaged into strategic alliance for accomplishing market growth and gain access for
new markets. Through engaging in CSR activities can be expensive for SMEs but it can provide
extensive inputs.
For managers and owners of SMEs are required to undertake training program so that
they can understand the concept of training and benefits of their engagement in CSR and process
of integrating corporate social responsibility. Hence, owners who run SMEs and they only
focused to make quality products for customers. However, there is a requirement of the
government intervention even at the time when SR is voluntary. It is effective in providing legal
playing field and can be accomplished through lawful framework to motivate CSR through tax
policy incentives. However, the government can also develop incentives for SMEs to adopt CSR
practices and further build their capacity for implementing corporate social responsibility system
in an effective manner.
16

For an organization, it is important to practice transparency. The present age is
information age so when an individual is disseminating data about the firm and its practices on
the internet. There is no chance of hiding the way a firm operates their business for longer time.
Therefore, firm should consider social responsibility and take the opposite route. Hence, by
being aggressive or openly transparent, a company can easily earn trust which can be only done
through carrying out businesses honestly. Furthermore, business can make sustainability
purchasing decision.
Sustainability is known as a common area in which customers and other stakeholders
evaluates the way a company is responsible. To choose the most responsible products, it can lead
to put huge impact on role of the company. SMEs can play active role within the firm. It can be
said that improving corporate social responsibility means adoption of dual mindset along with
decisions which lead to put global impact. It is important to look over opportunities for taking
participation in community events and to ensure that community sees company name at
important local activities.
At the time when company-built CSR strategy is important to communicate about their
corporate social responsibility initiatives with stakeholders. When customers came to know
about company’s CSR strategy then more likely they take interest in particular company’s
products and services. Further, it not only uses social media such as blog, twitter and others, but
also inbound channels, can hold more values such as employees’ meeting, press briefs etc. for
sharing information related to the CSR activities.
A partnership between all stakeholders including employees, society, government can
affect corporate social responsibility activities. It can create barriers while implementing CSR
initiatives for socio-economic development. Therefore, appropriate step is required to be taken to
address issues in order to build effective bridge in between all essential stakeholders in order to
successful implementation of CSR initiatives.
It is important to understand that CSR comes from the top level and important for every
firm. An organization that works with veritable corporate social duty doesn't sit tight for its
representatives to give the spurring vitality to mindful practices and exercises. It is not easy to
17

anticipate that new contracts will think of an excellent new arrangement for taking part in social
duty, and no one will be advanced outside the bounds of their activity part without support.
18

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Online
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Appendix
Questionnaire for employees
Q1. Do you aware about the corporate social responsibility adopted by your company?
 Yes
 No
Q2. Does the organization have a CSR structure?
 Yes
 No
 Do not know
Q3. Do you agree implementing CSR should be the responsibility of your company?
 Highly agree
 Agree
 Neutral
 disagree
 Highly disagree
Q4 What are the benefits of adopting CSR by your company?
 Growth and profit
 brand image
 customer loyalty
Q5. Have any of the following measures/arrangements been implemented in your company?
 Employee motivation and education system
 Process to ensure steps are taken against all forms of discrimination
 health and safety arrangements are implemented at the workplace
 Possibility/option of flexible working hours
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Q6 How important is for your company socially responsible and ethical behavior towards
environment and its community?
 Very important
 Important
 Less important
 Unimportant
Q7 Rate your opinion about the following items for adoption of CSR practices by
Companies/Organisations?
Items Strongly
agree
agree indifferent disagree Strongly
disagree
Promote
Corporate
Image/Loyalty
Competitive
Market
Advantage
Pressure from
Stakeholders
Q8. Does your Co./Organization communicate the 'Policy' to the stakeholders?
STAKEHOLDERS Never Sometimes Always
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Customers
Suppliers
Employees
Investors
Community
Questionnaire for customers
Name
Age
Gender
Q1. Do you know about corporate social responsibility?
 Yes
 No
Q2. Do you make purchase of products from those companies who are socially responsible?
 Highly agree
 Agree
 Neutral
 disagree
 Highly disagree
Q3 Do you willing to pay more for products which are made by ethical company?
 Highly agree
 Agree
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 Neutral
 disagree
 Highly disagree
Q4. Do you pay close attention to the producers of CSR while buying products of particular
company.?
 Highly agree
 Agree
 Neutral
 disagree
 Highly disagree
Q5 Do you think CRS information about SMEs companies is?
 Very poor
 Poor
 Average
 Good
 Excellent
Q6. How likely will you buy from a company who are involve in CST activities of your concern?
 Very unlikely
 unlikely
 undecided
 likely
 Very likely
Q7. Do you get CSR information of different company mostly from which channel?
 Internet
 Newspaper and magazine
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 Television
 Other (Product packaging and label)
Q8 What do you think about the importance of listed CSR initiatives in the SMEs
Unimportant Less
important
Moderately
important
important Very
important
Ecological
production
process
Reduce
packaging
and use
ecological
packaging
Delivering
safe
products
Contribute
to local
communities
Health
awareness
campaigns
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Interview
1. Do you know about corporate social responsibilities and benefits?
2. What is the reason make you worried about operating CSR activities?
3. Do you think that adoption of CSR is responsibility of only large companies?
4. Does CSR activities increase the cost of the company?
5. Do you think that financial performance of the company can be improved with the help of
CSR activities?
6.
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