Does your small business really need CSR?

Oct 20, 2011   //   by Bradley Short   //   Blog, Investors & Stakeholders, Leadership, Social Entrepreneurship  //  1 Comment

Lots of people may ask, “Why should a company implement a corporate social responsibility program?”  But what they really mean is, “Why should my company buy into CSR?”  And it’s a valid question, especially for a small enterprise.  Why should a small company devote the time and resources it takes to become more socially responsible?

Small companies have MORE incentive to be responsible

Small and medium-sized businesses, arguably, have more reasons to act responsibly than others.  Good companies have better access to capital.  Especially in today’s volatile financial climate, being able to get cheap capital is vital to small enterprises if they hope to survive.

 

Responsible companies are more innovative

Responsible companies are more adaptive and innovative.  Social responsibility requires a firm-wide focus that helps innovators recognize opportunities throughout the organization.  Since small companies are better poised to make big changes quickly, they are better positioned to take advantage of these opportunities.

 

Recruit and engage your workforce

The best and brightest workers flock to responsible companies.  Especially when you look at younger employees, corporate responsibility is just the kind of differentiator small businesses need to stand out to top performers.  And current employees who feel like their jobs are doing good in the world around them are significantly more engaged at work.   Small companies don’t have room for disengaged employees, so a responsible focus will help them accomplish more with their current workforce.

 

CSR works for large and small companies alike

Corporate responsibility has already caught on with big businesses.  But it’s time for smaller one to receive CSR’s benefits, too.  If your small company already practices CSR, please tell us about it.  And if it doesn’t, now is the best time to start!

 

Imaged used under Creative Commons from lumaxart.

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  • http://www.facebook.com/gvirah Nicole Baines

    Gvirah works to assist organisations to leverage their CSR activities.  We operate in Australia.  We have found that SME’s most definitely undertake CSR activities, but that they do not LABEL them as such. Sponsorships, volunteering and providing “in kind” services to community groups are the most common forms that we find.  Our encouragement to community groups is to be looking for ways to “pay back” the kind gestures of their SME donors by looking for commercial advantages that they can offer to them in the form of PR, brand build, introductions to key local stakeholders, training opportunities etc.  When these types of mutually beneficial activities can be found, CSR turns from a one off activity into sustainable partnerships.  Makes our hearts sing at Gvirah.  You can follow us on Facebook.