SME CSR and Performance: The Moderating Role of Stakeholder Salience

This paper focuses on the relationship between Corporate Social Responsibility (CSR) actions and firm performance investigating the moderation effect of the salience each stakeholder who benefits from CSR has for the firm. The study focuses on Small and Medium Enterprises (SMEs) due to their collective importance for the economy and their unique CSR characteristics. Based on the data collected from 140 SMEs, the study identifies a positive effect between social and financial performance which becomes more intense as the salience of each stakeholder increases. Implications provide a useful instrument for practitioners seeking to successfully manage their CSR strategy.