The benefits to investing in CSR

There are many opportunities available to SMEs that invest in CSR – find out how you can drive real change in your business, no matter your budget

CREDIT: This is an edited version of an article that originally appeared on SME Today

It’s becoming essential that employers – of all sizes – make commitments to social and environmental causes.

For those businesses that fail to address this issue, there is a very real risk that they may jeopardise their ability to attract and retain talent. research shows that three-in-five (62%) prospective workers now look for employers who share their values. Of the two-in-five (42%) who work for an employer they feel doesn’t share their values, 58% are thinking about leaving in the next 12 months. It seems staff won’t tolerate half-measures when it comes to CSR. People will go elsewhere if the appropriate effort isn’t being put it.

Coupled with this, more businesses and consumers are beginning to investigate the social and environmental impact of the brands they buy from, meaning CSR is increasingly important for winning and retaining customers.

With pressure mounting, and the introduction of formal legislation that mandates CSR commitments looking likely at some point in the future, investing in CSR is no longer something to be delegated or put on hold for SMEs.  

What difference can SMEs make?

While SMEs might lack the same funding and resources as their larger competitors, employees and customers will still expect some kind of commitment to CSR.

Having less bureaucracy to deal with means smaller organisations stand a better chance than their larger competitors of quickly making lasting change.

If they can approach this in the right way, there might even be benefits for SMEs to enjoy. Making meaningful commitments to social and environmental causes could grant these businesses an edge in the war for talent, making them highly appealing to the youngest and brightest minds in the workforce.

How do you get started?

For businesses that are new to the world of CSR, following an established framework, such as net zero, B-Corp or an industry-specific organisation like Tech Zero, is a good way to find your feet. They’ll provide what you need to get started and help identify the key areas you should focus on. B-Corp assessment is a particularly good way of measuring your progress, as well as the work you still need to do. Once you’ve met the minimum requirements and achieved B-Corp status, you can aim higher, improving your score and expanding into new areas.

Following a framework also means you aren’t doing it alone. CSR activity is an emotive subject, and many organisations which provide a framework for this also offer an incredibly supportive community, where you can ask questions and share ideas. For a smaller company, with fewer people in-house to draw on for expertise, having that sounding board can be incredibly helpful.

How long does a CSR strategy take?

While it can be simpler for SMEs to quickly implement CSR strategies, they mustn’t fall into the trap of trying to take shortcuts. Getting CSR right takes time, often demanding months of work. But when the consequences of not doing it include missing out on both talent and customers, and with legislation likely to be imposed on businesses in the near future, the investment is clearly worthwhile. Take action now, at a pace you can manage, rather than finding yourself wrestling with an uncomfortable deadline later down the line.

This commitment should also be shared amongst the team. Your CSR strategy may require financial or even legal expertise, meaning the heavy lifting shouldn’t simply be dropped onto the shoulders of whoever usually deals with HR.

What strategy is best for my business?

 There are CSR strategies to suit businesses of all sizes and with any budget.

Here are some CSR strategies that smaller businesses can consider:

• Environmental sustainability: Implement environmentally friendly practices such as reducing energy consumption, minimising waste generation, promoting recycling, and using eco-friendly materials.
• Ethical sourcing: Ensure your supply chain adheres to ethical standards by sourcing products or materials from suppliers who uphold fair labour practices, environmental sustainability, and human rights. Conduct supplier audits or use certifications like Fairtrade or Rainforest Alliance to ensure compliance.
• Community involvement: Engage with the local community by supporting local charities, schools, or community projects. Sponsor local events, volunteer your time or resources, or donate a portion of your profits to community initiatives that align with your business values.
• Employee well-being: Prioritise the well-being and development of your employees. Offer fair wages, provide a safe and inclusive work environment, support work-life balance, and invest in employee training and development opportunities. Consider implementing employee wellness programs or flexible work arrangements.
• Ethical marketing and transparency: Practice honest and transparent marketing by providing accurate information about your products or services. Avoid greenwashing or making false claims about your company’s social or environmental impact. Clearly communicate your CSR initiatives to your customers, employees, and stakeholders.
• Supporting local suppliers: Whenever possible, prioritise sourcing from local suppliers and businesses. This helps support the local economy, reduces carbon footprint associated with transportation, and fosters community development.
• Employee volunteering programs: Encourage and facilitate employee volunteering by providing paid time off or organising team volunteering activities. This allows employees to contribute their skills and time to charitable causes they are passionate about.
• Stakeholder engagement: Regularly engage with your stakeholders, such as customers, employees, suppliers, and local communities, to understand their needs, concerns, and expectations regarding CSR. This feedback can help shape your CSR strategies and ensure they align with the interests of your stakeholders.
• Continuous improvement and reporting: Regularly assess and review your CSR initiatives to identify areas for improvement. Set measurable goals and track your progress. Consider publishing an annual CSR report to communicate your achievements, challenges, and future plans to your stakeholders.

Remember, the specific CSR strategies chosen should align with your business values, industry, and available resources. Start small, focus on initiatives that resonate with your company’s mission, and gradually expand your CSR efforts as your business grows.