Implementing CSR in SMEs: Key Factors and Challenges

Ibtissame Lakhlili, Rachid Ouskou

This study examines the adoption of corporate social responsibility (CSR) practices in small and medium-sized enterprises (SMEs), particularly in emerging economies such as Morocco, where CSR remains less structured despite SMEs’ major economic role. Unlike large firms, CSR in SMEs is often informal and strongly influenced by the owner-manager’s values and strategic vision. The concentration of decision-making power around the leader makes managerial interpretation a key factor in understanding CSR implementation. The study aims to explain how SME leaders perceive institutional and organizational pressures when adopting CSR practices. To address this issue, it relies on a critical review of the literature on CSR in SMEs. Several theoretical perspectives are mobilized, including stakeholder theory, neo-institutional theory, legitimacy theory, and the sensemaking approach. These frameworks help explain how external pressures, stakeholder expectations, and managerial interpretations shape responsible practices. The analysis shows that CSR adoption in SMEs results from the interaction between institutional pressures, organizational characteristics, and the leader’s interpretive role. While factors such as company size, resources, and innovation capacity influence CSR engagement, they do not fully explain the differences observed among SMEs operating in similar contexts. The findings highlight the central role of the leader, whose values, strategic orientation, and managerial stance directly influence CSR practices. This study contributes to the literature by proposing a conceptual framework that integrates institutional determinants, organizational characteristics, and managerial interpretation to better understand CSR adoption in SMEs, while opening perspectives for future empirical research.