The Importance of Corporate Social Responsibility for SMEs

Small to medium-sized business (fewer than 250 employees) account for about 90% of businesses worldwide and are responsible for 50-60% of employment. As such, they play a fundamental role in society and can potentially have a huge impact on social welfare.

I find it surprising, therefore, that corporate social responsibility (CSR) initiatives, so far, have tended to focus on large companies and multinationals. As SMEs have stakeholders and an impact on society, the concept of CSR is just as valid for small companies, as for large companies.

Many SMEs may be doing CSR in some way or form, but don’t call it “CSR” as such. For example, they may provide excellent goods and services; they may be great employers, engaging with their employees and other stakeholders; they may be alert to health and safety issues in the workplace and for customers, or they may be attempting to operate sustainably and minimise their use of natural resources. All of these things are examples of socially responsible behaviour but are not labelled as such by many small and medium sized businesses.

Staffing is often a critical element in the success of a small business. It is true in any business but employees in a small business are often a critical resource for the business’s success and prosperity. As such, many small and medium-sized businesses place emphasis on increasing employee skills and work on motivating and building staff morale. Much of SMEs’ social, community and environmental initiatives are therefore driven by, or focused on employee engagement and development.

Some of the barriers for SMEs in becoming involved in corporate social responsibility include; 

• the cost of implementing CSR activities when survival is often the greatest economic imperative;
• time and resource constraints which may mean a lack of affordable external support and resources; 
• a lack of awareness of the business benefits with no/little understanding of the business case for small and medium-sized enterprises; 
• the fact that existing CSR tools and guidelines are mainly geared towards large business;

On the other hand, there are a number of things which could encourage CSR in small business. Most importantly there is the ability to attract and retain valued employees. A characteristic of small businesses is that their success is largely dependent on a handful of key employees. Other things include the ability to develop unique selling propositions and competitive benefits through their products and services; cost and efficiency savings and enhanced reputation. 

One of the problems that SMEs face when seeking to address CSR issues is that many of the tools are designed for big business. Initiatives aimed at encouraging SME involvement in CSR need to be easily accessible and relevant. The advice needs to be tailored to them with easy-to-use tools and case studies that make it real and provide encouragement to SMEs. If small businesses can see examples of specific initiatives that have increased profitability and improved the business they will be more likely themselves to adopt CSR strategies. I think charities could work with channels known and trusted by SMEs such as industry associations to ensure that information, guidance and partnerships are available.

Charities working in partnership with business

The following is the text from an article in the Southampton Echo:

In this time of economic pressure both charities and the companies who support them are looking for ways to work smarter and to ensure that the money is well spent.

Peter Robertson of Condor Office Solutions is keen to help charities to work together to maximise their fundraising events. Peter, who is also Vice President of the Chamber of Commerce, said “I’m delighted to see local charities taking the opportunity to work closer to the business community”.
D’Arcy Myers, CEO of Wessex Heartbeat, is a prominent member of the not-for-profit community and is out spoken about the need for charities to be the best possible stewards of the monies gifted to them. As a board member he explained about the Small Charities Coalition and called for local charities to form a consortium to better promote their work and the benefits of support. He said “Where charities can work together they should, supporters want to see real impact for the money they give”. Peter Robertson along with James Hiley-Jones of Careys Manor and the Montague Arms provided a congenial setting and superb lunch to a dozen of the most proactive charities in Southampton and seventeen local businesses, enabling them to discuss ideas and ensure that the maximum benefit is derived from people’s generous support.

There was much interest in the Small Charites Coalition which exists to help small charities access the skills, experience and resources they need to achive their aims. The Coalition is like a voluntary sector matchmaking service, matching charities with other organisations that have the skills that that the charity lacks.

St Patrick's Day Blessing

On this St Patrick's day I have this blessing by an unknown author for you all. I hope you will find time to raise a glass of the black stuff ( you have dispensation from your Lent abstinence ).

I wish you not a path devoid of clouds,

Nor a life on a bed or roses.

Nor, that you might never need regret,

Nor that you should never feel pain.

No, this is not my wish for you. My wish for you is:

That you might be brave in times of trial

When other's lay crosses upon your shoulders.

When mountains must be climbed and chasms crossed,

When hope scarce shines through.

When every gift God gave you might grow along with you,

And let you give the gift of joy to all who care for you.

That you might always have a friend who is worth that name.

Whom you can trust.

And hope will be, in times of sadness,

Who will defy the storms of life by your side.

One more wish for you:

That in every hour of joy and pain, you may be close to God.

This is my wish for you and those who are close to you.

This is my hope for you, now and forever.

Charities working together to strengthen trustee boards

Developing a coherent and effective Trustee board is an ever evolving challenge. It goes hand in glove with the need for leaders to constantly challenge their standards. After all a Trustee board is only as strong as its component parts. Effective boards have a mature understanding of the skills and experience of their members and seek to fill gaps as soon as they are identified. However, in my experience some charities have difficulty in recruiting from outside their personal pool of contacts and therefore often end up with an ever narrower view of themselves and the outside world. If the charity is located outside the capital this problem is even greater.


A strategy to minimise trustee clones would be for charities in the same geographical area to work together in establishing a “Trustee Recruitment and Retention Committee”, I’m sure that there is a snappier title! The committee could;

• Create a pool of available trustees to fill vacancies promptly as they arise;
• Develop links with local business, professional bodies, community groups and other partners to promote charity trusteeship;
• Present awareness sessions for local people or companies who are interested in serving as trustees;
• Develop and share best practise templates;
• Provide briefings to potential trustees candidates whilst their application is being processed;
• Provide a local induction programme for new trustees;
• Facilitate a forum for trustees to meet and collectively discuss issues that are relevant to all trustees.

As this would be done as a collective of charities, approaches to potential trustees would be seen to be none charity specific and focused on the benefits offered to both the individual and company. For example; local accountancy firms could be approached outlining the professional personal development opportunities for staff and the corporate social responsibility achievements for the company. This would also have the benefit of cutting down repeat requests from multiple charities.

Once a firm, group or individual decides to become a charity trustee they would be able to select the charities that most interest them and be matched to the charities needs. An example of this could be an accountant who is interested in working for a health charity being able to choose between a number of health charities that need a Treasurer.

Recently I was reminded of a maxim that "as a leader your lowest standard is the highest others will aspire to".