Meeting in the Middle: Using Stakeholder Theory to Create Shared Value as a Way of Increasing CSR Implementation amongst SMEs – An Icelandic Perspective

Sammanfattning: The purpose of this thesis is to explore SMEs’ relations to stakeholders when implementing corporate social responsibility. Furthermore, it examines what role the size of the SMEs play in implementing CSR and in managing stakeholders. The thesis explores whether the competitive landscape of the market creates tension where SMEs’ decision makers feel pressured to choose between doing well financially and socially. Additionally, the thesis aims to find a solution that will engage SMEs to partake in CSR to a greater extent by utilizing stakeholder theory and the notion of creating shared value. This thesis helps bridge the gap of low CSR implementation rate in SMEs and finds that increasing awareness of impact is a key aspect of increasing implementation along with addressing the most important motivation for CSR implementation, the altruistic motivation. Furthermore, this thesis suggests that CSR implementation in SMEs could be improved by combining stakeholder theory with the notion of creating shared value. Our findings identify four key networking tools that could assist in doing so through the implementation of the framework we have created based on these findings, the SME Network System.