CSR for Smaller Businesses
In many developed countries approximately 99% of registered businesses are Small or Medium Enterprises (SMEs), a group where the term Corporate Social Responsibility alone creates barriers. Whilst every non-corporate company regardless of size probably has at least a couple of CSR related initiatives (whether they know it or not) or strong values percolating out of the owner / manager, most SMEs either ignore through poor understanding, or are completely unaware of the concept. So why don't smaller businesses engage more strategically? The first answer given is simple and always the same, 'what's in it for me?' will trip off the tongue of all but the most values driven entrepreneur. The other reasons usually given are that they don't have the time or budget.
Social enterprises are well catered for theses days as their side of the fence is maturing well with rapidly improving specialised support services. The corporate world has created a multi-billion dollar CSR bandwagon around reporting, standards, and marketing covered by growing specialist consultancy industry. The gap is in the middle and unfortunately very well populated but with precious little pro-active advice available in a language that appeals to its audience. The main reason for this gap has been higher level international focus on working with the corporates to deliver higer level impact against environmental and ethical issues. Why target an incredibly diverse mass audience requiring bespoke assistance when you can work more use a template approach with a smaller number of bigger clients?
You can't escape from having to understand the sheer diversity within SMEs before trying to offer a way to encourage, educate and support these organisations to play their part in the bigger picture for all the good reasons, including profit. In practicality you need to be able to adapt between the requirements of an individual entrepreneur and an organisation with approximately 250 employees, depending on your country's definition. No easy task, trust me I know.
I'm not going to light the fuse on what the agenda should be called as the debate still constantly rumbles on at corporate level, but Corporate Social Responsibility doesn't work and I've not been completely convinced by any of the replacements offered so far. What would your suggestion be?
CSR at this level shouldn't be ignored as there are numerous commercial, environmental and socially beneficial opportunities available now, today. Each maybe small in isolation but multiplied by such a large audience, could deliver truly impressive results. Another reason to sow seeds early in any organisation's development is that under the right circumstances, SMEs do grow into bigger corporations. Google, HP and many others started in garage like premises not too long ago. Values deliver better value when nurtured rather than grafted.
For me the future of CSR within the small and medium sized market is about focusing on what drives entrepreneurial spirit such as passion, flexibility, community, innovation and risk taking. Surely there is no better organisational type for inspiring a more sustainable future.
Thursday, October 8, 2009 at 11:40AM 2 Comments
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