This study assesses the role of corporate social responsibility (CSR) in small and medium-size enterprises (SMEs) by reviewing 39 recent significant studies. The theoretical foundation of the reviewed studies serves as the basis for the research instrument designed to assess CSR practices and their impact on the competitive advantage of SMEs. A pilot study involving 102 Latvian SME respondents was conducted to validate the research instrument’s reliability across four scales: competitive advantage, reputation and financial performance, CSR domains and impact, and CSR challenges. The results indicate very good or excellent internal consistency, with Cronbach’s alpha values between 0.846 and 0.923. The findings demonstrate that SMEs continue to adopt CSR practices, recognising their strategic benefits which include innovation, operational efficiency and improved reputation. However, challenges such as resource limitations and stakeholder pressures remain important. This validated instrument establishes a foundation for further large-scale studies to explore CSR’s influence on the sustainability and competitiveness of SMEs, emphasising the need for tailored strategies, government support, and effective tools for evaluating CSR impact.
The relevance and importance of corporate social responsibility (CSR) have long been recognised in the business sector. Previous research has shown that CSR has a positive impact on a company’s financial performance, value, reputation, brand image, customer loyalty, and a variety of other factors. CSR has been studied from a variety of viewpoints, with the bulk of studies focusing on the meso-level dimensions of CSR. The number of studies on micro-level CSR processes has so far been limited, but has recently increased. For CSR to be effective, it is necessary to understand the correlation of the processes on both levels. The purpose of the research is to investigate CSR micro-level processes and their impact on meso-level performance, with additional attention to the hospitality industry. Research methods: analysis of scientific publications, analysis of previously conducted research and results, and other scholarly literature. The results of this study indicate that the micro-level processes of the stakeholder groups involved, mostly customers and employees, have a direct impact on internal and external CSR initiatives and their meso-level outcomes, which might be both positive and negative. The results also indicate a possible research gap, as the number of studies on micro-level CSR processes in hospitality has so far been limited, and the findings cannot be considered exhaustive or conclusive.