Corporate social responsibility has historically been associated with large corporations. SMEs are generally believed to place heavier emphasis upon economic imperatives than social goals mainly because of the concern for survival and relatively limited financial resources. However, CSR participation of SMEs is reflected in their willingness and financial capability to play a significant role in discharging their social responsibility. In this dissertation, the aim was to explore the relationship between CSR and competitiveness, factors affecting SMEs motivations for CSR in Hong Kong, and how to formulate effective CSR strategies for SMEs.