The Place of Social Responsibility in the Business Model of A SME

Abstract

Corporate Social Responsibility (CSR) is a concept that is mostly connected to large companies and their sustainability. However, small and medium enterprises (SMEs) also play an important part in a society that is more and more concerned with sustainable development. In this respect, several studies show that the rationale for socially responsible acts, dynamics of the budget allocated, and impacts of these actions differ significantly for SMEs compared to large companies. The question that this article explores is what is the place of CSR concepts in the business model of a SME? Whenever the concepts of social responsibility become part of the day-to-day business of a SME, how do they fit in the business model and what benefits do they bring? Generally, at the SME level the perception of CSR or socially responsible entrepreneurship is not immediately connected with the business model. This article explores the rationale of the socially responsible actions of a Romanian SME and tries to connect these actions with the business model framework of Osterwalder & Pigneur (2010).  In a detailed case study we estimate through qualitative and quantitative approaches the impact of the actions undertaken by a SME over a period of five years. The main result is the development of a CSR strategy and the integration of this strategy in the overall strategy of the company via the business model framework.  Finally, we sketch further research areas.