CSR is playing an inevitable part and becoming more and more important in practice. It has an enormous potential to deliver better results while adding to business practices and knowledge. Corporate social responsibility plays a vital role in small and medium enterprises as more than 90 percent of enterprises in Asian Productivity Organization are members of SMEs. Gross domestic product consists of 75 percent of these enterprises (Hassan et. al, 2007).
Small and medium enterprises (SMEs) stand for the companies whose turnover lies in certain limits. However, Malaysian SMEs are categorized as per the size, turnover and activity. In broad terms, Malaysian SMEs are defined in two major categories (Saleh et. al, 2006):
The 2000 census conducted by the Department of Statistics in Malaysia shows that there were about 20,455 active firms in the manufacturing segment when talking about the total numbers of SMEs. This figure was out of about 44,185 manufacturing firms registered with the Companies Commission of Malaysia (CCM). Textiles and apparel segment contributes the largest segment of about 17 per cent of the total enterprises. ...