The purpose of this paper is to investigate the characteristics of corporate social responsibility (CSR) practice in Swedish small and medium-sized enterprises (SMEs). A case study approach is used to investigate the CSR perception, motivation, and activities of two Swedish SMEs. This paper indicates that two Swedish SMEs studied adopt a profitseeking rather than a profit-sacrificing CSR approach. Furthermore, the paper argues that the perception, the motivation, and part of the CSR activities are well incorporated in the decision to engage in CSR. However, the Swedish SMEs in our case studies are often limited in communicating their CSR activities due to a lack of resources and management skills. This communication gap between intended and actual communication drives the overall CSR impact on business performance from marginal to non-existent. As a result, looking at the overall business impact, a meant-to-be profit-seeking strategy is actually turned into a profit-sacrificing activity.According to the Organisation for Economic Co-operation and Development (OECD) (2005), SMEs account for over 95% of in manufacturing and service industries in OECD countries. SMEs are considered to be a main job creator,
90K.-H. Lee et al.The owner-managers in SMEs focus on 'sticking to business' (Dem collective) rather than undertaking CSR activities. SMEs are pursuing CSR activities only when they include a business benefit and value for the company. In other 94 K.-H. Lee et al.