Corporate Social Responsibility (CSR) Priorities in the Small and Medium Enterprises (SMEs) of the Industrial Sector of

The purpose of this research is to explore and understand corporate social responsibility (CSR) priorities in the small and medium enterprises (SMEs) of the industrial sector of Sialkot in Pakistan. The industrial sector of Sialkot is mainly involved in t

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Abstract The purpose of this research is to explore and understand corporate social responsibility (CSR) priorities in the small and medium enterprises (SMEs) of the industrial sector of Sialkot in Pakistan. The industrial sector of Sialkot is mainly involved in the production and supplying of sports, leather and surgical products for global companies. We used a qualitative approach to explore CSR priorities among SMEs. Informants were identified using purposive sampling. In-depth interviews were conducted with the senior managers, owners and executives of SMEs in the Sialkot industrial sector of Pakistan in three main industries namely; sports, surgical and leather. The findings of the study suggest philanthropy as a key ethical and social priority and CSR dimension supported by SMEs. Main dimensions of CSR in the context of Sialkot industrial sector SMEs were social (philanthropy), economic, legal and environment. In terms of CSR dimensions priorities, differences exist due to the nature of the specific industry and its protocols as data were collected from three different sub industrial sectors within the Sialkot industrial sector.

U. Awan School of Business and Management, Lappeenranta University of Technology, Lappeenranta, Finland e-mail: [email protected] U. Awan Management Science Department, COMSATS Institute of Information Technology, Vehari, Pakistan A. Khattak (B) College of Business Administration, Prince Sultan University, Riyadh, Saudi Arabia e-mail: [email protected] A. Kraslawski Industrial Engineering and Management, Lappeenranta University of Technology, Lappeenranta, Finland e-mail: [email protected] A. Kraslawski Department of Process and Environmental Engineering, Lodz University of Technology, Lodz, Poland © Springer-Verlag GmbH Germany, part of Springer Nature 2019 P. Golinska-Dawson and M. Spychała (eds.), Corporate Social Responsibility in the Manufacturing and Services Sectors, EcoProduction, https://doi.org/10.1007/978-3-642-33851-9_15

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1 Introduction Corporate Social Responsibility (CSR) has gained prominence in the academic research in recent years. According to Business for Social Responsibility (2003), CSR is defined as “achieving commercial success in ways that honour ethical values and respect people, communities, and the natural environment”. No doubt CSR is not only becoming a popular trend among large and multinational corporations but also among Small and Medium Enterprises (SMEs) as well. SMEs are critical component and resource for modern days economic activities. SMEs are vital for creating resources for the community including employment opportunities for the community. Similarly, SMEs in the Sialkot industrial sector of Pakistan are contributing to exports, foreign exchange earnings and employment (Khattak and Stringer 2017). SME is defined in the study as a business which varies in flexibility and volatility (Deakins and Freel 1998; Duan et al. 2001); having between 20 to 250 employees and an annual turnover of between Rs.1 75 and 400