SMEs and social responsibility

Over the last decade, scholars and policymakers have put businesses under pressure to engage firms in activities related to corporate social responsibility (CSR). In such a transformation, small and medium-sized enterprises (SMEs) cannot be left aside. Nowadays, across the OECD area, SMEs represent around 99% of all firms, approximately two-thirds of all employment, and contribute to over half of the value-added. According to the World Bank, SMEs represent about 90% of all businesses and more than 50% of employment worldwide, with formal SMEs contributing up to 40% of national income (GDP) in emerging economies. Given the weight of small businesses in the global economy, it is important to remember that their aggregate achievements have a major effect across the globe. Therefore, how SMEs act and react to the needs for a more sustainable future is crucial for economic, environmental, and social well-being.