With the increasing disclosure of Corporate Social Responsibility (CSR)-related information, more and more Small and Medium-sized Enterprises (SMEs) are expected to establish internal mechanisms within their businesses that lead towards more sustainable behaviour, such as integrating CSR-related aspects into existing management control systems. A study was conducted in 2021 to examine the drivers of the existence of such CSR-related management control components and the corresponding effects on performance of SMEs in a country.
1. Are stakeholder expectations towards sustainable and responsible behaviour related to the existence of CSR-related formal and informal controls?
2. Is Managers’ perceived importance of CSR related to the existence of CSR- related formal and informal controls?
3. Is proactiveness related to corporate performance?
4. Is the existence of CSR-related formal and informal controls related to corporate performance?
The study aims to provide an overview of the influencing factors that would drive the existence of CSR-related formal and informal controls at a given moment in time. This was based on legitimacy theory which argues that top-level managers’ perceived importance of CSR, stakeholder expectations and proactiveness influence the existence of CSR-related formal and informal controls.
1. Less than 50
2. Between 50 to 100
3. Between 150 to 200
4. Between 200 to 250
5. Between 250 to 300
6. More than 300
3. Mechanical engineering
6. Services and consulting
3. Local politics
4. National policy
5. Environmental organizations