Question

How can SMEs demonstrate awareness of social responsibility, cultural diversity and function both effectively and constructively in different global environments.

Answer 1

Answer :

CSR is just normal everyday work, nothing exotic, nothing difficult, nothing costly, and nothing sexy. Today´s society and stakeholders just require more transparency, more information from the companies, so also you SMEs have to start doing something you may not have done before, start using some new tools, some new performance indicators. This is everyday work in today´s and tomorrow´s world. This can be managed, this saves you money, this can be a true business case.

Every business is used to running things their own way. As one practitioner pointed out, You have to find that out first and only then you provide the methods or tools. It is important, however, that we do not have a multitude of methods, but that we know how to touch the SME at the heart of the business and from there work out the CSR strategy.CSR strategies can come in as many different forms as there are businesses. Think of the steps outlined below as a springboard for action, ready to be adapted and expanded upon to fit the specific circumstances of a given SME.

1. Raise awareness of ways in which the company is already meeting its social responsibility

2. Identify small actions in areas such as human resources, supply chain, community, or environment that can lead to “quick wins” and foster employee motivation and engagement

3. Align CSR measures with the core objectives and competencies of the enterprise – mainstream it across all areas of business operations, embed it into day-to-day business culture and use the CSR strategy to increase competitiveness

4. Set more ambitious targets, such as taking a life cycle approach

Implementing a CSR roadmap:

1. Creating an internal, cross-functional CSR team helps anchor CSR in the long term. Be sure to keep in mind the diversity of the workforce by balancing across gender, age and other possible factors.

2. Most SMEs are already taking some measures to meet their social responsibility, often without consciously having a CSR strategy. The process of CSR self-assessment tools for SMEs raises the internal awareness of an SME’s accomplishments and provides valuable input for developing the appropriate approach for broadened CSR engagement.

3. Comparing the level of CSR activity with competitors can be helpful. Examining current and future rules and regulations, sector expectations and developments as well as international CSR guidelines can help put CSR performance into perspective. These strategies also facilitate the identification of distinctive selling points and priority areas.

4. Building the business case involves formulating and documenting the arguments or rationale behind an enterprise’s engagement in CSR. For SMEs it can be useful to create a holistic business case that does not only look at business benefits but takes into account the various motivational dimensions.

5. Asking about personal values and the founding story or mission of an SME is a good way to develop a vision of the enterprise that highlights the ideals most important to the owners, managers and employees. In turn, the vision helps to identify priorities and long-term goals.

6. Identifying and understanding the stakeholders most important to an SME is valuable, as they can offer important information on priority issues, expectations, future developments, etc., while also serving as a sounding board for already developed CSR approaches.

7. Identify priority areas, set targets and make action plans to align core objectives and competencies and to help manage resources. When laying out goals, focus both on short and long-term targets. Sometimes benefits only become clear over time, so it is always a good idea to offer an anticipated timeline.

8. SME advisors can support SMEs in implementing CSR by providing tools such as formats, lists of relevant suppliers or dos and don’ts that answer critical questions.

9. Communicating CSR activities can both show SMEs’ willingness to be held accountable and help them reap the benefits of engaging in CSR

10. Measuring and assessing progress includes setting up a planning and control system. SME accountants have an intimate knowledge about their clients and often serve as an in-house advisor. They can bring in their expertise on designing registration and information systems and developing the structure and operation of a planning and control cycle.

It is important to identify the priority issues that need to be creasing trust and predictability. addressed according to the circumstances of each SME. International guidelines such as the ISO 26000, the Global Reporting Initiative (GRI) or the UN Guiding Principles on Business and Human Rights offer concepts that serve as guidelines to align an SME’s understanding of its social responsibility with societal expectations.

In today’s world, social and environmental issues are becoming more important in global and local value chains. As a consequence, more and more European SMEs face expectations from their buyers to show that they respect social and environmental issues on the one hand and on the other hand to ensure that social and environmental standards are being met within their own supply chain.At the same time, it is increasingly important for European SMEs to engage in international activities in order to become more competitive and increase their innovation levels.

1. As suppliers, SMEs are faced with the choice of being proactive or simply implementing the minimum requirements to comply with buyer demand. Taking the initiative to increase CSR activity can help businesses meet the requirements of multiple buyers, thereby avoiding additional compliance costs for each new buyer.

2. By engaging in open and constructive dialogue with suppliers, SMEs can ensure that risks in areas such as labour or environmental standards are clearly and cooperatively addressed.

3. In creating a sustainable value chain, collaboration between actors can be extremely helpful. The ISO 26000 encourages large companies to support small and medium-sized organisations in meeting socially responsible objectives.

4. SMEs need to be able to communicate their CSR engagement to buyers in order to create competitive advantage.

5. Sustainable supply chain management offers ideas on how to resolve reliability issues, increase resource efficiency along the supply chain, develop sustainable products and process innovations.