Abstract
This study investigates the nature and characteristics of corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) through the exploratory case of Japanese firms in Takasaki area. The results show that Japanese SME CSR activities are neither organized nor formalized unlike large corporations and most of these activities are done by managers’ discretion or altruism. This study also finds the SME managers who are engaged in CSR activities tend to believe their actions contribute to the company profit indirectly through community development and local SME alliances those create new business opportunities. However, the problems and challenges SME CSR facing are also revealed. In order to promote CSR in SMEs, the managers are strongly expected to understand the nature of CSR itself and incorporate it to the daily practices.
