ORGANIZATIONAL AND LEGAL MECHANISMS FOR THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY IN SMALL BUSINESS

Abstract

Objective. The article examines corporate social responsibility (CSR), focusing on the gap between well-established theoretical frameworks developed for large corporations and the under-researched mechanisms for CSR implementation in small and medium-sized enterprises (SMEs). Materials and Methods. The methodology is based on a systematic literature review, historical analysis of CSR genesis, and a comparative study of global CSR models (American, European, Japanese). The theoretical foundation integrates stakeholder theory, Carroll’s pyramid of CSR, and the resource-based view to analyze CSR specifics in SMEs. Results. The analysis confirms the transformation of CSR from philanthropy into a strategic management component. For SMEs, CSR is characterized by informal, personalized practices driven by internal, value-based motivations of owners, contrasting with the structured, reputation-driven approaches of large firms. A key finding is the identification of significant implementation gaps in SMEs, particularly in integrating CSR into core strategy under resource constraints. The comparative analysis highlights the decisive role of national institutional contexts in shaping CSR models. Modern regulatory trends (e.g., EU’s CSRD), supply chain pressures, and digitalization pose a dual challenge for SMEs, requiring them to develop systematic, measurable CSR practices despite limited resources. The article proposes a multi-level conceptual mechanism for CSR implementation, emphasizing the need for an adaptive institutional environment based on social partnership and supportive state policy rather than rigid regulation. Conclusion. The practical significance lies in providing a framework for developing tailored organizational and legal tools to translate CSR principles into daily management practices for SMEs.