IMPLICATIONS OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES: CASE STUDY OF KADUNA MUNICIPAL

Abstract

Corporate Social Responsibility (CSR) has explored from the standpoint of large corporations and developed economies, smaller businesses and developing economies have received attention. Small and Medium Enterprises (SMEs) continue to be the backbone of economy, significantly accounting for a major share in economic value creation. This implies that, the contribution of SMEs in achieving sustainable development is therefore critical. However, because it is voluntary and there are no binding laws, it is easy for companies, particularly SMEs, to ignore CSR. The study seeks to add to the limited literature by investigating the implication of socially responsible behavior on the performance of SMEs in Nigeria. A well-structured questionnaire was administered to 63 Nigerian SMEs in Kaduna. The study adopted a structural equation model using PLS-SEM to analyze data. Findings show a significant relationship between corporate social responsibility and the three determinants of firm performance (management efficiency, profit maximization and corporate reputation).