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SMEs and Corporate Social Responsibility

SMEs and Corporate Social Responsibility

Maassen, G.F (2004). Corporate Governance and Small and Medium-Sized Enterprises: How SMEs Can Benefit from Corporate Governance Principles and Corporate Social Responsibility. Macedonian Business Lawyers Association.

Corporate governance is normally associated with joint stock companies that are listed on a stock exchange and/or that have a widely dispersed shareholder base. It is not often that a relationship is made between corporate governance principles and small and medium sized enterprises (SMEs).

This article argues that certain corporate governance principles are as relevant for SMEs as they are for larger companies to facilitate growth and competitiveness. Transparency, openness and corporate social responsibility are also important aspects of an SME’s operations in order to attract financing from banks and other lenders. Macedonian SME’s that understand the competitive advantages of corporate governance and corporate social responsibility tailored to their specific needs will be better positioned to face the competition both domestically and internationally.

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