The Impact of Financial Management on the CSR Perception in the SME segment

Research background: In recent years, CSR has become a vital concept not only for large corporations but increasingly also for SMEs, particularly in the context of sustainability and long-term competitiveness. However, in Central and Eastern European countries, including the Visegrad Group, CSR remains a relatively underexplored area, especially in relation to financial management. Existing literature predominantly focuses on large enterprises, leaving a gap in understanding how SMEs perceive and implement CSR under limited financial and strategic capacities. Financial performance and risk management are crucial for the survival and growth of SMEs, suggesting a strong potential link between financial management factors and CSR engagement. Purpose of the article: The main objective of this article is to define and quantify the influence of selected financial management attributes on SMEs’ attitudes toward CSR. The research aims to examine whether financial perceptions, such as company performance, business continuity, risk acceptance, and knowledge of risk management tools, affect CSR awareness, usage in managerial practice, and perceived benefits in terms of competitiveness and firm performance. Methods: The study is based on empirical data collected in June 2022 through a structured questionnaire distributed across SMEs in the V4 countries using the Computer Assisted Web Interviewing (CAWI) method. The sample included business owners and top managers of SMEs. Data analysis involved descriptive statistics, correlation analysis, and linear regression modeling (LRM) to examine the statistical significance and strength of relationships between independent variables (financial management factors) and dependent variables (CSR dimensions) at a significance level of α = 0.05. Findings & Value added: The results show a statistically significant and positive relationship between managers’ perception of financial performance and all four CSR dimensions. The findings confirm that CSR is influenced particularly by financial performance and risk acceptance, with the Slovak sample emphasizing the importance of business continuity. The regression models reveal that CSR contributes to improved competitiveness and firm performance when aligned with strong financial management. The study fills a knowledge gap by highlighting the unique position of SMEs in CSR implementation in the V4 region and suggests that financial strategy and risk awareness are critical to enhancing CSR adoption. The article contributes to both academic discourse and practical policymaking by offering empirical evidence and strategic insights into integrating CSR into SME financial practices.