Prioritizing CSR Initiatives for the Sustainable Management of SMEs: An Application of Delphi and Analytical Hierarchical Process Methodology

Corporate Social Responsibility (CSR) is a necessary and sufficient condition for the sustainable management of businesses, extending beyond economic, ethical, and legal dimensions. The creation of a product or service involves numerous companies and various transactions, all of which are intertwined with interactions among local communities and diverse stakeholders. As a result, CSR can have a broad impact on both local communities and the global landscape. Moreover, emerging trade issues such as the climate crisis, labor rights, supply chain transparency, and the rise of digital trade are closely related to ESG management and CSR, making them critical keywords for corporate survival and competitive advantage, regardless of company size. Thus, it is imperative to consider how SMEs, which often face constraints in costs, resources, and expertise, should effectively implement CSR. To address this issue, this study developed CSR evaluation indicators for the sustainable management of SMEs. By integrating existing CSR indicators from prior research, including the UN Global Compact and the Global Reporting Initiative (GRI), the study reconstructed the evaluation framework. The validity of the indicators was assessed using the Delphi method, and their weight (importance) was determined through an Analytic Hierarchy Process (AHP) analysis. The results highlight the growing significance of the ‘environment’ in CSR for SMEs. This can be attributed to the changing business landscape caused by the climate crisis, which has led to a rapid shift in consumer awareness regarding environmental issues, ultimately influencing purchasing behavior. Additionally, the study identified high importance in ‘safety management,’ ‘transparent provision of safety information to consumers,’ ‘ensuring fairness in investment and procurement,’ and ‘enhancing labor relations.’ In the rapidly evolving global trade environment, CSR is no longer a matter of choice for businesses; it is a necessity for not only survival but also achieving a competitive advantage. Therefore, this study is expected to provide an opportunity to explore the key factors for the sustainable management of SMEs. Furthermore, it may serve as a foundation for SME practitioners to assess their supply chain dynamics and develop effective CSR strategies within their business operations.