Introduction
The UK government appointed a minister for corporate social responsibility（CSR）in 2000, France required companies to include information of CSR in their annual report in 2001, and the Danish government established the Copenhagen Centre in 2008. It seems that CSR has transformed from theory to reality and has become an international trend over the past few years. While CSR has been widespread in large companies, it received less attention on small and medium-size enterprises（SMEs）. Considering the significant impact of SEMs on the world economy and the important position of SMEs in the modern market, whether should these companies undertake their corporate social responsibility or not has become a considerable debate.

Different from large companies, SMEs may not have the power or ability to handle social activities, so it may make itself less competitive by pursuing CSR (Carroll and Shabana, 2010). Other studies indicate that voluntary initiatives will be less effective than regulation (Williamson et al., 2006). Moreover, profit-maximization is the ultimate goal of SMEs. However, the CSR agenda could provide SMEs with significant scope for competitive advantage (Tilley et al., 2003). At the same time, SMEs account for 99.8% of European enterprises (European Commission, 2003), and have a greater environmental impact per unit than large firms and are the largest contributors to pollution (Environment Agency, 2003). In light of this, it is necessary for SMEs to undertake CSR (ibid.).

Nevertheless, the benefits or drawbacks of CSR are not the reasons whether SMEs should undertake it or not. CSR is the indispensable responsibility that SMEs should undertake. Supports from governments, attempts made by SMEs and lessons from large companies all contribute to the fulfillment of CSR in SMEs. This essay will first define corporate social responsibility and