Barriers for SMEs to approach sustainability: myth or reality?
It is becoming less rare to find Small and Medium Enterprises (SMEs) that integrate social and environmental concerns to their business strategy. They try to achieve their economic goals while creating shared value for society (employees, community, suppliers are included) and preserving the environment.
When talking about businesses that follow the sustainability path, including in their strategy and procedures social and environmental concerns, we are talking about responsible business. The term Corporate Social Responsibility (CSR) in this blog doesn´t refer to having a CSR department in the enterprise, but to include sustainability in the business strategy or at least start implementing practices towards it.
In spite of this growing interest of SMEs to this approach, still, there are many managers leading small companies that aren´t convinced about adopting this model. There are different arguments set by the sustainability “skeptics”, most of them are more a myth than a reality; I will try to explain why in each case.
1) “IT IS TOO EXPENSIVE!” Myth.
Being responsible while making business and thinking about the consequences of the decisions that are being taken doesn´t cost money. But not only in the strategy phase is this argument a myth. When it comes to implementing actions in there are many options that don´t necessarily need to cost money, for example:
– Think about the packaging being used. Could you get rid of it? This last option would even save money!
– Separate the waste and ensure it is recycled.
– Reduce the use of paper in the office, or use paper that comes from certified sustainable sources.
– Promote work & life balance for employees offering benefits such as flexi-time, home office, make agreements with local restaurants for discounts, training, integration days, volunteer hours, amongst others.
– Offer local communities production scraps that could be useful for them, to create new things or to recycle.
– Employ local people and train them.
– Offer local organizations in-kind support such as: spaces for events, communication channels, being a donation point, training their volunteers, etc.
Be creative! These are only some options, but there are many adding value activities with no monetary cost.
2) “IT IS TIME CONSUMING, WE HAVE OTHER URGENCIES.” Truth, but….
Being responsible is a mindset. There is almost no enterprise where managers don´t take the time to plan a business strategy. Is it really that much extra time to include social and environmental aspects in the planning?
If everyone that is part of the company starts including in their day-to-day decisions social and environmental concerns, a responsible business culture will be built. Decision making is a process that can be more or less formally established, but if “responsibility” is included as a binding value no extra time will be needed to “think about sustainability”.
It is true that not always small enterprises take that much time to plan or analyze decisions and in many cases this planning is very informal. Also, not all SMEs have defined internal decision making procedures. If this is the case, then including CSR to the picture could be time consuming. But it is also truth in these cases that without proper planning or procedures, the economic sustainability is at risk.
3) “MY COMPANY IS TO SMALL THAT IT WON´T MAKE A DIFFERENCE.” Myth.
According to the IFC, SMEs “account for about 90 percent of businesses and more than 50 percent of employment worldwide”. So if every SME includes CSR as a way of doing business, the impact it could have is huge. One would think a small action can´t change the world, but it definitely can make a difference and inspire others.
There are many organizations that offer support to SMEs to include CSR and start being more sustainable without cost. Learning more about this business approach and talking with your team about it can be a first step!
Some interesting links for SMEs who want to go for CSR:
- http://www.csr-in-smes.eu/
- http://www.reportingcsr.org/smes-p-167.html
- http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/sme/index_en.htm
- http://www.fccsingapore.com/sites/default/files/public/publications/CSR_Guidebook_2012.pdf
Comments Off on Barriers for SMEs to approach sustainability: myth or reality? /
24 Apr 2014
por
celinalesta
IMSD /
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