The impact of corporate social responsibility on advancing the enterprise risk management performance relationship in small and medium-sized enterprises

The purpose of this paper is to examine the impact of enterprise risk management on the financial performance of small-to-medium enterprises and to empirically validate the intervening role of corporate social responsibility. Based on a cross-country survey among 536 SMEs, we apply an SEM model. Our results show that ERM is an important driver of corporate social responsibility. The proposed Enterprise Risk Management and CSR framework can also be used by consultants and supporting agencies to evaluate the risk management activities in SMEs and to help them better to tailor their training to the needs of SMEs. For other researchers, this research model might be a good starting point for developing more comprehensive frameworks for the evaluation of ERM and CSR systems in SMEs.