Family corporate business needs to incorporate corporate social responsibility objectives to their strategic plan. In recent years, corporate social responsibility (CSR) has attracted much interest in both the academic world and the professional. However, most studies of CSR focus on larger organizations, with few studies focusing on small and medium enterprises (SMEs). Family businesses will realize the importance of corporate social responsibility through large existing corporations successful in CSR implementation. The results, on a sample of 123 SMEs, indicate that family SMEs are socially responsible. Besides, non-familiar businesses are less culturally competent. Corporate social responsibility in family businesses will ensure the achievement of higher stakeholder results.
FAMILY CORPORATE BUSINESSES AND THE IMPORTANCE OF IMPLEMENTING CSR STRATEGIES
Family corporate businesses are in a better position to exploit CSR. CSR is a powerful approach to enhance its strategy creating value for the company and its stakeholders. The research on family firms and CSR shows mixed results. The importance of corporate social responsibility is hard to ignore for family businesses. The 3-circle model captures the complex dynamics of family — firm interactions. It also helps to track its evolution over time. Thus, we can easily understand why Family firms develop a level of SEW usually higher than non-family firms. Therefore, Corporate social responsibility is essential for any business as it leads to sustainability.
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IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY IN SUSTAINABLE COMPANIES
For companies to become sustainable, they need to understand the importance of corporate social responsibility. Corporate social responsibility (CSR) has become one of the standard business practices of our time. The establishment of a corporate social responsibility strategy is a crucial component of a company’s competitiveness. It is something that should be led by the firm itself. For companies, the overall aim is to achieve a positive impact on society as a whole. At the same time, they should maximize the creation of shared value for the shareholders and stakeholders. Lastly, a family corporate businesses can incorporate corporate social responsibility to become sustainable.
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