AN ANALYSIS OF DETERMINANT FACTORS INFLUENCING THE ADOPTION AND IMPLEMENTATION OF STRATEGIC CSR IN SMALL AND MEDIUM ENTERPRISES WITHIN AN EMERGING ECONOMY

Corporate Social Responsibility (CSR) has emerged as a critical component of sustainable development strategies, particularly in transitional economies like Vietnam. While large enterprises actively engage in CSR due to resource capacity and international pressures, small and medium-sized enterprises (SMEs) face significant barriers, including financial constraints, limited human resources, and low awareness. SMEs, which constitute over 97% of enterprises in Vietnam, are pivotal to the nation’s socio-economic development but often prioritize short-term survival over systemic CSR practices. This study explores the determinant factors influencing the adoption and implementation of strategic CSR in Vietnamese SMEs, focusing on internal drivers such as corporate culture, leadership, and financial capacity, alongside external factors like legal frameworks, government support, customer pressure, and engagement from social organizations. Using a mixed-methods approach, qualitative interviews and quantitative surveys were conducted with SMEs in Hanoi, revealing that corporate culture is the most influential factor in shaping CSR awareness and practices. Leadership plays a direct role in executing CSR activities but has limited impact on strategic integration. Financial capacity significantly affects the feasibility of environmental CSR initiatives, which remain underdeveloped due to high costs and weak enforcement mechanisms. External factors, including legal regulations and stakeholder engagement, positively influence CSR integration but fail to address gaps in environmental participation. The findings underscore the need for targeted policies to foster CSR-oriented corporate culture, enhance leadership capabilities, provide financial incentives, and strengthen institutional support. This research contributes to the theoretical understanding of CSR in emerging economies and offers practical insights for policymakers aiming to promote sustainable development through SME engagement in CSR.