Why CSR Should be “Business as Usual” for SME’s?

The purpose of our blog & newsletter is not just to give our readers news about Green Den but also to educate and inform. One of the often neglected aspect of CSR is the impact it can have on small or medium sized enterprises (SMEs). The four pillars of CSR are responsibilities in the workplace, marketplace, community and environment; SMEs play a pivotal role in all four avenues. 90% of the world’s business comes from SMEs and they employ about 50% of the world’s population. The kind of change they are capable of is community-based, continued investment to uplift their key stakeholders. This is something that CSR models based on big companies can never hope to achieve. Change at the grass-root level is what every ethical business dreams of and this is where small enterprises stand to gain enormously.


Diverting away from the kitschy big-business idea of CSR, small business have the advantage of direct interaction with the community from out of which they operate. What they need to be convinced about is whether or not it makes business sense for them to be ‘socially responsible’. The answer is a resounding yes!


First of all it must be stressed that CSR is not just policy, it is a principle of doing business. It is not something that is done as an add-on, it is something that is incorporated into your way of doing business. In this scenario, it offers businesses many benefits in terms of better shareholder relationships and also acts as a powerful tool for word-of-mouth advertising.It offers SMEs added benefits in terms of strengthening their relationship within the community and acting as an example to make people’s lives better. The most important reason why small companies should engage in CSR activities is to improve their export markets. Acting as a part of the supply chain means that export products to a big company needs to meet certain standards all along the chain. This is the single more important competitive benefit that SMEs have by incorporating CSR into their business. It is especially important for small businesses in emerging economies supplying to companies with multiple supply chains.Secondly, mainstreaming CSR into any business is a challenge. By incorporating the principles of CSR in the early stages of growth, SMEs have another advantage over companies that have already reached a certain size. Forming principles, processes and structures becomes easier along with reporting and policy writing. Developing a culture of sustainability within the organization becomes more streamlined and employees know what it means to be sustainable.

Finally, it makes business sense. This is something that the larger companies are beginning to understand. When the small companies jump on this idea, the limits to green business has no bounds. In fact, the term might just become obsolete along with the term ‘business as usual’ because every business will be ethical, sustainable and profitable. This is a dream worth working towards…