Promoting the idea of socially responsible business is an undeniably important topic that resonates in both theory and practice. Its influence on business performance has been theoretically substantiated and has been confirmed in many empirical studies, though this has been based on research conducted in large companies. It is only recently that studies connecting the principles of CSR and the business activities of SMEs or family businesses that make up a decisive proportion of SMEs have appeared. This article is devoted to research into the implementation of the principles of CSR in family businesses and their economic performance. The research was conducted on the basis of data obtained both from a questionnaire survey among owners of family businesses and from accounting data. The attitudes of owners of family businesses towards activities typical of CSR were proven to be reflected in the economic results of the companies in a sample of Czech family MSMEs. Our research proved that family businesses that support work-life balance and good relations with employees achieve better performance, namely higher profitability and lower indebtedness. These results confirm the positive impact of CSR principles on longterm sustainability of family businesses and their importance to the country’s overall economy.

business performance; corporate social responsibility; Czech Republic; family business; micro-, small- and medium-sized enterprises

Aguilera-Caracuel J and Guerrero-Villegas J (2018). “How corporate social responsibility helps MNEs to improve their reputation. The moderating effects of geographical diversification and operating in developing regions”. Corporate Social Responsibility and Environmental Management, 25(4): 355–372. https://doi.org/10.1002/csr.1465 Bahta D, Yun J, Islam MR, et al. (2021). “How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation”. Economic Research-Ekonomska Istraživanja, 34(1): 1428–1451. https://doi.org/10.1080/1331677X.2020.1828130 Berrone P, Cruz C and Gomez-Mejia LR (2012). “Socioemotional wealth in family firms”. Family Business Review, 25(3): 258–279. https://doi.org/10.1177/0894486511435355 Botero IC, Barroso-Martínez A, Sanguino G, et al. (2021). “The family’s effect on knowledge sharing in family firms”. Journal of Knowledge Management, 26(2): 459–481. https://doi.org/10.1108/JKM-08-2020-0653 Botero IC, Cruz C, Massis AD, et al. (2015). “Family business research in the European context”. European Journal of International Management, 9(2): 139–159. https://doi.org/10.1504/EJIM.2015.067858 Burke L and Logsdon JM (1996). “How corporate social responsibility pays off”. Long Range Planning, 29(4): 495–502. https://doi.org/10.1016/0024-6301(96)00041-6 Calabrò A, Campopiano G and Basco R (2017). “Principal-principal conflicts and family firm growth: The moderating role of business family identity”. Journal of Family Business Management, 7(3): 291–308. https://doi.org/10.1108/JFBM-02-2017-0005 Cannella AA, Jones CD and Withers MC (2015). “Family-versus lone-founder-controlled public corporations: Social identity theory and boards of directors”. Academy of Management Journal, 58(2): 436–459. https://doi.org/10.5465/amj.2012.0045 Castillo J and Wakefield MW (2006). “An exploration of firm performance factors in family businesses: Do families value only the ‘bottom line’?”. Journal of Small Business Strategy, 17(2): 37–52. Cennamo C, Berrone P, Cruz C, et al. (2012). “Socioemotional Wealth and proactive stakeholder engagement: Why family-controlled firms care more about their stakeholders”. Entrepreneurship Theory and Practice, 36(6): 1153–1173. https://doi.org/10.1111/j.1540-6520.2012.00543.x Çera G, Khan KA, Bláhová A, et al. (2022). “Do owner-manager demographics in SMEs matter for corporate social responsibility?”. Equilibrium. Quarterly Journal of Economics and Economic Policy, 17(2): 511–531. https://doi.org/10.24136/eq.2022.018 Civelek M, Ključnikov A, Fialova V, et al. (2021). “How innovativeness of family-owned SMEs differ depending on their characteristics?”. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(2): 413–428. https://doi.org/10.24136/eq.2021.015 Cullinane S, Bosak J, Flood PC, et al. (2014). “Job design under lean manufacturing and the quality of working life: A job demands and resources perspective”. The International Journal of Human Resource Management, 25(21): 2996–3015. https://doi.org/10.1080/09585192.2014.948899 Dawson A and Mussolino D (2014). “Exploring what makes family firms different: Discrete or overlapping constructs in the literature?”. Journal of Family Business Strategy, 5(2): 169–183. https://doi.org/10.1016/j.jfbs.2013.11.004 Diaz-Moriana V, Hogan T, Clinton E, et al. (2019). “Defining family business: A closer look at definitional heterogeneity”. In: Memili E and Dibrell C (Eds.), The Palgrave Handbook of Heterogeneity among Family Firms, pp. 333–374. Palgrave Macmillan. https://doi.org/10.1007/978-3-319-77676-7_13 Dick M, Wagner E and Pernsteiner H (2021). “Founder-controlled family firms, overconfidence, and corporate social responsibility engagement: Evidence from survey data”. Family Business Review, 34(1): 71–92. https://doi.org/10.1177/0894486520918724 Diéguez-Soto J, López-Delgado P and Rojo-Ramírez A (2015). “Identifying and classifying family businesses”. Review of Managerial Science, 9(3): 603–634. https://doi.org/10.1007/s11846-014-0128-6 Domańska A and Zajkowski R (2022). “Barriers to gaining support: A prospect of entrepreneurial activity of family and non-family firms in Poland”. Equilibrium. Quarterly Journal of Economics and Economic Policy, 17(1): 191–224. https://doi.org/10.24136/eq.2022.008 Dyer WG and Whetten DA (2006). “Family firms and social responsibility”. Entrepreneurship Theory and Practice, 30(6): 785–802. https://doi.org/10.1111/j.1540-6520.2006.00151.x Erbetta F, Menozzi A, Corbetta G, et al. (2013). “Assessing family firm performance using frontier analysis techniques: Evidence from Italian manufacturing industries”. Journal of Family Business Strategy, 4(2): 106–117. https://doi.org/10.1016/j.jfbs.2013.04.001 Freeman RE (1984). Strategic Management: A Stakeholder Approach. Cambridge University Press. Friedman M (1970). “The social responsibility of business is to increase its profits”. The New York Times Magazine. https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html Fung LK, Hui RT and Yau WC (2021). “Work-life balance of Chinese knowledge workers under flextime arrangement: The relationship of work-life balance supportive culture and work-life spillover”. Asian Journal of Business Ethics, 10(1): 1–17. http://dx.doi.org/10.1007/s13520-020-00114-7 Galant A and Cadez S (2017). “Corporate social responsibility and financial performance relationship: A review of measurement approaches”. Economic Research-Ekonomska Istraživanja, 30(1): 676–693. https://doi.org/10.1080/1331677X.2017.1313122 Habbershon TG and Williams ML (1999). “A resource-based framework for assessing the strategic advantages of family firms”. Family Business Review, 12(1): 1–25. https://doi.org/10.1111/j.1741-6248.1999.00001.x Helmle JR, Botero IC and Seibold DR (2014). “Factors that influence perceptions of work-life balance in owners of copreneurial firms”. Journal of Family Business Management, 4(2): 110–132. https://doi.org/10.1108/JFBM-06-2014-0013 Humphrey RH, Massis AD, Picone PM, et al. (2021). “The psychological foundations of management in family firms: Emotions, memories, and experiences”. Family Business Review, 34(2): 122–131. https://doi.org/10.1177/08944865211012139 Chaudhary S, Dhir A, Ferraris A, et al. (2021). “Trust and reputation in family businesses: A systematic literature review of past achievements and future promises”. Journal of Business Research, 137: 143–161. https://doi.org/10.1016/j.jbusres.2021.07.052 Christensen-Salem A, Mesquita LF, Hashimoto M, et al. (2021). “Family firms are indeed better places to work than non-family firms! Socioemotional wealth and employees’ perceived organizational caring”. Journal of Family Business Strategy, 12(1). https://doi.org/10.1016/j.jfbs.2020.100412 Isa M and Indrayati N (2023). “The role of work–life balance as mediation of the effect of work–family conflict on employee performance”. SA Journal of Human Resource Management, 21. https://doi.org/10.4102/sajhrm.v21i0.1910 Kammerlander N, Sieger P, Voordeckers W, et al. (2015). “Value creation in family firms: A model of fit”. Journal of Family Business Strategy, 6(2): 63–72. https://doi.org/10.1016/j.jfbs.2015.04.001 Kar B and Ahmed YA (2021). “Quit or continue? The influence of demography, challenges and performance”. Journal of Global Entrepreneurship Research, 11(1): 83–95. https://doi.org/10.1007/s40497-021-00264-3 Ključnikov A, Civelek M, Fialova V, et al. (2021). “Organizational, local, and global innovativeness of family-owned SMEs depending on firm-individual level characteristics: Evidence from the Czech Republic”. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(1): 169–184. https://doi.org/10.24136/eq.2021.006 Latapí Agudelo MA, Jóhannsdóttir L and Davídsdóttir B (2019). “A literature review of the history and evolution of corporate social responsibility”. International Journal of Corporate Social Responsibility, 4(1). https://doi.org/10.1186/s40991-018-0039-y León-Gómez A, Santos-Jaén JM, Ruiz-Palomo D, et al. (2022). “Disentangling the impact of ICT adoption on SMEs performance: The mediating roles of corporate social responsibility and innovation”. Oeconomia Copernicana, 13(3): 831–866. https://doi.org/10.24136/oc.2022.024 Radu-Lefebvre M and Randerson K (2020). “Successfully navigating the paradox of control and autonomy in succession: The role of managing ambivalent emotions”. International Small Business Journal, 38(3): 184–210. https://doi.org/10.1177/0266242619879078 López-González E, Martínez-Ferrero J and García-Meca E (2019). “Corporate social responsibility in family firms: A contingency approach”. Journal of Cleaner Production, 211: 1044–1064. https://doi.org/10.1016/j.jclepro.2018.11.251 Mahmood F, Qadeer F, Saleem M, et al. (2021). “Corporate social responsibility and firms’ financial performance: A multi-level serial analysis underpinning social identity theory”. Economic Research-Ekonomska Istraživanja, 34(1): 2447–2468. https://doi.org/10.1080/1331677X.2020.1865181 MacGregor Pelikánová R, MacGregor RK and Černek M (2021). “New trends in codes of ethics: Czech business ethics preferences by the dawn of COVID-19”. Oeconomia Copernicana, 12(4): 973–1009. https://doi.org/10.24136/oc.2021.032 Machek O and Hnilica J (2014). Do Family Firms Use Less Debt than Other Firms? Empirical Evidence from the Czech Medium and Large Companies [Conference proceedings]. 5th International Conference on Development, Energy, Environment and Economics, Florence, Italy. https://doi.org/10.13140/2.1.2054.8161 Maury B (2022). “Strategic CSR and firm performance: The role of prospector and growth strategies”. Journal of Economics and Business, 118. https://doi.org/10.1016/j.jeconbus.2021.106031 Memili E, Fang HC and Welsh DHB (2015). “Value creation and value appropriation in innovation process in publicly-traded family firms”. Management Decision, 53(9): 1921–1952. https://doi.org/10.1108/MD-06-2014-0391 Ministry of Industry and Trade (2022). Change in the Definition of a Family Business in the Czech Republic. https://www.mpo.cz/cz/podnikani/rodinne-podnikani/zmena-definice-rodinneho-podniku-v-ceske-republice---265670/ Motoc A (2019). “Family business image and reputation. A model of the influencing factors, actions, and effects”. Management Dynamics in the Knowledge Economy, 7(4): 503–519. https://doi.org/10.25019/MDKE/7.4.04 Ongaki J (2019). “An examination of the relationship between flexible work arrangements, work-family conflict, organizational commitment, and job performance”. Management, 23(2): 169–187. https://doi.org/10.2478/manment-2019-0025 Pollák F, Dorčák P and Markovič P (2021). “Corporate reputation of family-owned businesses: Parent companies vs. their brands”. Information, 12(2): 89. https://doi.org/10.3390/info12020089 Porter M and Kramer M (2011). “The big idea: Creating shared value. How to reinvent capitalism—And unleash a wave of innovation and growth”. Harvard Business Review, 89(1–2): 62–77. Preston LE and O’Bannon DP (1997). “The corporate social-financial performance relationship”. Business & Society, 36(4): 419–429. https://doi.org/10.1177/000765039703600406 Randerson K and Radu-Lefebvre M (2021). “Managing ambivalent emotions in family businesses: Governance mechanisms for the family, business, and ownership systems”. Entrepreneurship Research Journal, 11(3): 159–176. http://dx.doi.org/10.1515/erj-2020-0274 Rabušic L, Soukup P and Mareš P (2019). Statistická Analýza Sociálněvědních Dat (prostřednictvím SPSS) (2., přepracované vydání) [Statistical Analysis of Social Science Data (via SPSS) (2nd, revised edition)]. Masarykova Univerzita. Reck FS, Fischer D and Brettel M (2022). “Ethical decision-making in family firms: The role of employee identification: JBE”. Journal of Business Ethics, 180(2): 651–673. https://doi.org/10.1007/s10551-021-04774-8 Rocereto JF, Gupta SF and Mosca JB (2011). “The role of flextime appeal on family and work outcomes among active and non-active flextime users: A between groups and within groups analysis”. Journal of Business & Economics Research, 9(3): 57–65. https://doi.org/10.19030/jber.v9i3.4130 Salvato C and Melin L (2008). “Creating value across generations in family-controlled businesses: The role of family”. Family Business Review, 21(3): 259–276. https://doi.org/10.1111/j.1741-6248.2008.00127.x Schulze WS, Lubatkin MH and Dino RN (2002). “Altruism, agency, and the competitiveness of family firms”. Managerial and Decision Economics, 23(4–5): 247–259. https://doi.org/10.1002/mde.1064 Streimikiene D and Ahmed RR (2021). “The integration of corporate social responsibility and marketing concepts as a business strategy: Evidence from SEM-based multivariate and Toda-Yamamoto causality models”. Oeconomia Copernicana, 12(1): 125–157. https://doi.org/10.24136/oc.2021.006 Suddaby R and Jaskiewicz P (2020). “Managing traditions: A critical capability for family business success”. Family Business Review, 33(3): 234–243. https://doi.org/10.1177/0894486520942611 Surroca J, Tribó JA and Waddock S (2010). “Corporate responsibility and financial performance: The role of intangible resources”. Strategic Management Journal, 31(5): 463–490. https://doi.org/10.1002/smj.820 Suryasaputra R, Gallato CG, Abdullah HH, et al. (2011). Corporate Social Responsibility: Key Driver of Sustainability Performance [Conference proceedings]. 17th International Business Information Management Association Conference, Milan, Italy, pp. 1499–1505. Tajpour M, Salamzaded A, Salamzadeh Y, et al. (2022). “Investigating social capital, trust and commitment in family business: Case of media firms”. Journal of Family Business Management, 12(4): 938–958. https://doi.org/10.1108/JFBM-02-2021-0013 Tajpour M, Yadollahi JF and Mohsen B (2023). “A review of corporate social responsibility literature and future directions. exploring business”. In: Joshi M, Brahmi M, Aldieri L, et al. (Eds.), Ecosystems and Innovation Capacity Building in Global Economics, pp. 48–65. IGI Global. https://doi.org/10.4018/978-1-6684-6766-4.ch003 Toska A, Ramadani V, Dana LP, et al. (2022). “Family business successors’ motivation and innovation capabilities: The case of Kosovo”. Journal of Family Business Management, 12(4): 1152–1166. https://doi.org/10.1108/JFBM-11-2021-0136 Vandekerkhof P, Steijvers T, Hendriks W, et al. (2015). “The effect of organizational characteristics on the appointment of nonfamily managers in private family firms”. Family Business Review, 28(2): 104–122. https://doi.org/10.1177/0894486513514274 Werther WB and Chandler D (2005). “Strategic corporate social responsibility as global brand insurance”. Business Horizons, 48(4): 317–324. https://doi.org/10.1016/j.bushor.2004.11.009 Yáñez-Araque B, Sánchez-Infante Hernández JP, Gutiérrez-Broncano S, et al. (2021). “Corporate social responsibility in micro-, small- and medium-sized enterprises: Multigroup analysis of family vs. nonfamily firms”. Journal of Business Research, 124: 581–592. https://doi.org/10.1016/j.jbusres.2020.10.023 Yezza H, Chabaud D and Calabrò A (2021). “Dynamics of conflicts in family firms: Towards a non-linear approach to the succession process”. Journal of Enterprising Culture, 29(02): 79–107. https://doi.org/10.1142/S0218495821500059 Ubrežiová I, Kozáková J and Malejčíková A (2015). “Corporate Social responsibility and perception of environmental pillar in the selected set of the Slovak enterprises”. Procedia Economics and Finance, 34: 542–549. https://doi.org/10.1016/S2212-5671(15)01666-4 Valls Martínez M del C, Soriano Román R and Martín-Cervantes PA (2022). “Should risk-averse investors target the portfolios of socially responsible companies?”. Oeconomia Copernicana, 13(2): 439–474. https://doi.org/10.24136/oc.2022.014 Venturelli A, Principale S, Ligorio L, et al. (2021). “Walking the talk in family firms. an empirical investigation of CSR communication and practices”. Corporate Social Responsibility and Environmental Management, 28(1): 497–510. http://dx.doi.org/10.1002/csr.2064 Ward JL (1987). Keeping the Family Business Healthy: How to Plan for Continuous Growth, Profitability, and Family Leadership. Jossey-Bass. Wayne JH and Casper WJ (2016). “Why having a family-supportive culture, not just policies, matters to male and female job seekers: An examination of work-family conflict, values, and self-interest”. Sex Roles, 75(9–10): 459–475. http://dx.doi.org/10.1007/s11199-016-0645-7 Zaim H, Ramadani V, Dinibutun SR, et al. (2021). “Knowledge management and human resources performance: Evidence from Turkish family businesses”. Journal of Family Business Management, 12(2): 185–199. https://doi.org/10.1108/JFBM-11-2020-0108