THE IMPACT OF SOCIAL RESPONSIBILITY ON THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES (A REVIEW OF INTERNATIONAL STUDIES)

Abstract

This article provides a comprehensive review of recent international research examining the impact of social responsibility (SR) on the performance of small and medium-sized enterprises (SMEs). While SR has been widely studied in the context of large corporations, the application of socially responsible practices in SMEs remains less explored, despite their crucial role in national economies and employment generation. The analysis highlights that SR initiatives in SMEs contribute to both financial and non-financial outcomes. On the financial side, SR practices are associated with improved access to finance, increased sales, and enhanced long-term competitiveness. On the non-financial side, SR fosters employee job satisfaction, organizational commitment, customer trust, and stronger relationships with local communities. Special attention is paid to the mediating role of intangible assets, such as reputation, innovation capacity, and internal social responsibility, in amplifying the benefits of SR. Moreover, studies show that the effectiveness of SR depends on factors such as enterprise size, sectoral characteristics, national institutional environment, and the personal values of entrepreneurs. In emerging economies, SR is increasingly viewed as a strategic resource that enables SMEs to withstand external shocks, including socio-economic and environmental challenges. The paper emphasizes the need to adapt global SR practices to the Ukrainian context, where SMEs face unprecedented difficulties caused by war and the necessity of post-war reconstruction. Strengthening SR in SMEs can become a key driver of sustainable development, social cohesion, and economic resilience, contributing to the modernization of the business environment and integration into European practices.