Corporate Social Responsibility and Diversity in Small and Medium Enterprises (SMEs) in the Engineering and Production Sector

Abstract

Corporate social responsibility (CSR) and diversity are becoming more important for companies as employers compete for technology talent in a competitive job market and strive to retain their best performers. For small and medium enterprises (SMEs) in the engineering and production sector, a strong commitment to the principles of CSR and diversity can give them a competitive advantage. Skilled technical workers, a scarce resource, are even more critical to German SMEs going forward because of Germany’s extremely low unemployment rate and reliance on the manufacturing sector of the economy for growth. HR departments are keenly aware that attracting and retaining talent can spell a decisive competitive edge for their firms. Moreover, they have been making significant headway with management in terms of convincing them that CSR and diversity are important to workers now and will be even more so in the future. CSR is important in that it helps companies align the interests and values with those of their employees. Millennials, international employees, women and other diverse groups prioritize CSR and diversity and look to become part of corporations that share their values.