It’s Never Too Early for SMEs to Get Started

There’s no doubt that the phrase corporate social responsibility has become part of most of our vocabularies over the past two years. But more often than not, it is limited to the context of large corporations. We listen to stories play out surrounding what one Fortune 500 company promised and what another did not. And while the larger corporations attract more media, it’s not that they care more about these important issues. Rather, it’s that they have much larger budgets and more resources at their disposal. It’s also very much in their best interests to protect their reputations, especially in front of key stakeholders.

So, where do small and medium-sized businesses (SMEs) fit into all of this?

At the Crossroads of CSR and SMEs

SMEs are organizations with up to 1,000 employees. These are generally companies with fewer resources and less funds to devote to CSR efforts. It’s not that they don’t care. It’s simply that they are doing their best to run their business day-in and day-out and feel that they will get to CSR when the time is right. And up until recently, they haven’t had to worry too much about the impacts of not having a strategy in place. But now, they are experiencing an enormous shift—namely, if they aren’t concerned with, or doing anything about, CSR (or if they can’t prove that they are), they’re feeling it where it hurts most—lost opportunities, lost contracts, and lost dollars.

The issue is that larger organizations and government agencies are under intense scrutiny to ensure not only that they are engaging in their own CSR efforts, but also working with others who are doing the same (preferably certified woman- and minority-owned businesses). This pressure is manifesting itself in the very way they conduct business. Now, when they put out an RFP or interview smaller suppliers and vendors, some of their most prioritized questions are focused on what CSR procedures and certifications those companies have in place. And the many SMEs that do not have anything are quickly getting rejected, despite their qualifications.

It’s clear that SMEs can no longer wait for “the right time” to embrace CSR. The time is now.

Different Motivations

Each company that engages in CSR has certain motivations and priorities. And while there is some inherent overlap between larger corporations and SMEs, there are other fundamental differences.

SMEs are often managed by their owners/founders. Their “why” is still firmly embedded into the core of all that they do. In fact, most of them didn’t start a business solely to make money. Instead, they wanted to make a difference … to make a change in their community, or even in the world. They were fixing a problem or providing a solution to some societal need. In these ways, they are even more socially responsible than larger corporations. Their intrinsic commitment to CSR is likely already there—they just may not necessarily call it that and they certainly don’t have it documented.

Additionally, many SMEs are heavily focused on personal relationships, both internally with employees and externally with customers and partners. There is more of an authentic family feel, and they are often involved with the causes that are important to these families. They are very involved in the community and have a deeper connection to those around them. Once again, these are natural propensities to CSR due to their size.

Why Aren’t More SMEs Engaging in CSR?

It’s not that SMEs aren’t engaged or that they don’t care. It’s also not that they don’t understand the significant benefits involved—not just from doing the right thing, but from a business strategy perspective, including increased recruitment, employee engagement, and retention, improving customer and employee loyalty, and increasing sales. Rather, it’s that there are some inherent problems for SMEs as it relates to CSR. Most drastically, SMEs tend to be under-resourced. While they are conceptually behind these efforts, they simply don’t have the manpower or resources to devote to the documentation, certification, and training needed to fully implement an in-depth CSR strategy within the organization.

SMEs also have less money to devote to CSR efforts or to invest in initiatives that may not have any return or a much longer rate of return. They often need their funds for current expenses. Additionally, they have a lack of leadership ability (time and know-how) to devote to a CSR strategy. Essentially, they run much leaner.

CSR and SMEs: The Time is Now

For SMEs, finding the resources, including the right people, money, and time is now of critical importance. SMEs are increasingly getting turned down for contracts not because they are unqualified, but because they cannot demonstrate to larger companies or government agencies their CSR initiatives or their own certifications.

It is never too early to begin thinking about CSR and getting certified, and planning out next steps regarding procedures and documentation. And it doesn’t have to be as all-encompassing as some may think. SMEs can start small and grow incrementally. Here are a few tips to get started:

• Survey employees and customers to find out what’s most important to them.
• Assign a leader to oversee CSR efforts.
• Develop a company-wide plan.
• Start small and manageable. For example, getting involved in community events where employees can volunteer as a team.
• Document everything.
• Get certified if applicable (woman or minority-owned business).

CSR is here to stay. All businesses, regardless of size, are held to higher standards and are accountable for their actions. SMEs must adapt now, or risk falling into their competitors’ shadows.

At The Win Woman, we focus on Corporate Social Responsibility for SMEs. We understand the unique needs and limited resources, and work with our clients to come up with the right solution for their specific situation.

For more information about developing your Corporate Social Responsibility plan, please contact us at hello@thewinwoman.com.

Until next time, keep Building Your BADASSERY.