What drives construction SMEs on CSR implementation during economic uncertainty?

Abstract

World uncertainty is currently at an exceptionally high level, leading to difficulties in business operations. This phenomenon raises questions about the necessity of corporate social responsibility (CSR) initiatives for vulnerable organizations such as small and medium-sized enterprises (SMEs) as they may deprioritize CSR to focus on surviving. The review of previous studies highlighted a limited theoretical understanding of CSR that existed during such challenging economic periods. This study aims to bridge this research gap by investigating the driving forces that motivate construction SMEs to implement CSR during economic uncertainty. Through a combination of literature review, semi-structured interviews, and hybrid fuzzy Decision-Making Trial and Evaluation Laboratory-Analytic Network Process methods, 13 drivers for CSR were identified and categorized into four clusters: human resources benefit, market pressure, organizational reputation, and financial benefit. Human resources benefit was recognized as the most influential cluster, and employee commitment and loyalty was the most critical CSR driver. This study contributes to the body of knowledge by theoretically explaining the prioritization of drivers to CSR performance regarding their interrelationships.