Effectiveness of Renewable Energy to Reduce Emission

 

The purpose of the European Union is to get 20% of its energy from renewables by 2020 either by Biomass, geothermal energy, tidal power, solar,hydro-electric or wind. Increase of renewables  energy will make the European Union reduce their dependency on imported oil and also cut down on green house emissions which in doing so will help boost the renewables industry, create jobs for members states and also promote innovation.

Many scientists now agree that climate change is caused by an increase of greenhouse gas (GHG) emissions in the atmosphere. The emergence of climate change as a critical energy and environmental policy issue has also serious awareness that ignition of green house gas emitting fuels necessitate risk for the planet.

Recent incidents and events around the world have once again put energy security and most especially oil import dependence countries on top of alert on what option they should look out for. Renewable can be a solution to either displacing oil use in transportation or reducing greenhouse gas (GHG) emission per litre of fuel consumed.

Recent improvement in technology and policy will allow renewable energy and energy efficiency to play a key role in helping world energy demand while assisting in reducing the carbon dioxide emissions. Renewable energy have rapidly scale new height not only that but they can achieve far greater emissions reductions.

Efficiency and renewable goes hand in hand and it a key ingredient which we can use to address pressing challenges that the world faces today. Being it political will or effective policies can get the world back on track to help mitigate climate change in the near term while meeting rising world demand for energy for either developed or undeveloped countries in terms of price, reducing energy security concern, human health and improving the natural environment.

Moving towards sustainable energy system will require strong political will and sustained policies but can such retirement be accomplished on time looking at the danger of the climate change?

For the world to shun from any catastrophic climate change and an insecure economic future, the transition already under way must pick up the pace. Success stories must be scaled up, and approaches or better strategies must be shared across national boundaries.

Since rules and policies are meant to ensure the smooth operation of every sector research has also shown that policies are more successful if they well implemented. Consistency of every policy is critical for guarantying permanent market growth and also helping in reducing the risk in investing new technology and it also make it easy for obtaining capital for financing the project. In doing so I believe that consistence in policies which include a package of policy mechanism on the side of the government will help in achieving this goal since other government around the world have achieved it. If elimination of fossil fuel subsidies can not solve the issue can we look at the below option

Put a price on carbon that increases over time, the best way to do this is to increase the price of fossil fuel more frequently which will help in the smooth operation of the process or another way is to set a cap trade strategy. A good example is what the Demark did in the early 1990s, which up to date has really helped them achieve their target in this sector.

 

References:

http://srren.ipcc-wg3.de/report/IPCC_SRREN_Ch02.pdf

http://ec.europa.eu/clima/policies/package/

http://www.energyfuturecoalition.org/biofuels/benefits_env_public_health.htm

 

Comments Off on Effectiveness of Renewable Energy to Reduce Emission / 22 Apr 2014 por mavisasare
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In what sense are the 2030 policy framework on climate and energy aligned with the 2050 goals?

Comments Off on In what sense are the 2030 policy framework on climate and energy aligned with the 2050 goals? / 21 Apr 2014 por alvarohernandez
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From the EU ETS to a global carbon market?

Since the introduction of the Kyoto Protocol, some local, national and regional carbon trading mechanisms have been launched in Europe, North America, Asia and the Pacific. Other emissions trading systems, for example in Latin America, North America, Russia and Asia are planned or under consideration.

The EU emissions trading system (EU ETS) can be seen as the world’s biggest, regional carbon market, aiming to reduce greenhouse gas emissions through a cap and trade system. According to Horstink and Bode, in 2012 the EU ETS took “up between 84% and 98% of the value of all carbon markets (…) [and covered] about 50% the EU’s total CO2.” Even though the EU ETS has changed business as usual and led sectors to cut their emissions, the issue and the effects of greenhouse gas emissions are not limited to Europe or specific countries. Therefore, the European Commission and the International Carbon Action Partnership are striving for a mechanism that links the different cap and trade systems beyond the European border, in order to create an international level playing field, share knowledge and support a worldwide cooperation on climate change. This international collaboration should also lead to reduced costs, a more stable carbon price and an increase of the market liquidity.

How could the implementation of a global carbon market look like, taking into account that some national and regional mechanisms already exists? On the one hand, there is the top down approach, which is based on multilateral decision making processes and where allowances would be traded among governments, on a country level. This system, however, requires a strong political will and cooperation from all countries and is therefore unlikely to happen in the near future. On the other hand, the so called bottom up approach is discussed and planned to be established. This method links the already existing emission trading systems and emissions could freely be traded on a company level. Despite the technical challenges that the bottom up approach generates, it brings a high need for regulatory supervision and coordination along. Furthermore, this approach needs to take the different market rules into consideration, which makes the implementation rather challenging.

Both approaches involve inherent risks and a high political willingness to compromise. Despite a likely dispute about the overall cap, some other key points that would need to be negotiated are how allowances are allocated, what kind of offsets could be used or which sectors should be involved. Once a global carbon market is established, it is likely that the different local players are becoming less responsible regarding their own targets, which might result in less ambitious caps.

To give you an example of how difficult it is to converge two mechanism, we are taking a closer look at the planned link between the EU ETS and the Australian Carbon Pricing Mechanism (CPM): The European Commission states on their website, that a first step towards an international carbon market lays in a cooperation with Australia. From 2018 on, businesses from both systems shall be able to trade emissions among each other. However, it might be quite a challenge for the EU ETS to link with a non-existent system. Despite the fact that Australia had set up the CPM as an emission trading scheme, which became law in 2011, this mechanism has been annulled last year. When a new government was elected in 2013, they announced the repeal of the CPM in order to lower costs for businesses and households. Instead of the CPM, the Australian government now aims to establish a Direct Action Plan, including an Emissions Reduction Fund. In the Emissions Reduction Fund Green Paper, which was released in December 2013, the government stated that “the Emissions Reduction Fund will provide a pool of capital to purchase the lowest cost abatement through a reverse auction, and this will be a far more effective means of reducing Australia’s emissions than the carbon tax”. Yet it can be questioned if Australia will meet its 2020 goal in emissions reduction with a mechanism, which “is designed to allow businesses to continue ordinary operations without penalty”.

One can only imagine how challenging it is to not only to establish a national systems which satisfies all stakeholders, but to take it one step further and trying to consider all the different multilateral interests. A good example is the planned linkage between the EU ETS and the Swiss emission trading system. Even though both systems are quite similar and both parties already have a strong political connection, the negotiations are ongoing since 2010.

At first glance, an international carbon market seems to offer many benefits to all participants. A closer look, however, reveals many issues and raises the question whether an international carbon market is more efficient than national or regional markets and, considering the political reality, whether it is feasible and desirable after all. In my opinion, a global carbon market is unlikely to emerge in the near future, since there are too many disparities in the different mechanisms, as well as on a political level. Keeping in mind how the EU ETS has changed since it was first launched in 2005, one can imagine how difficult it must be to coordinate a global carbon market. In my opinion, it is more likely that different approaches will coexist. Despite my doubts about a global carbon market, I do believe that every country needs to take actions against greenhouse gas emissions and that countries should share knowledge and best practices about emission trading systems.

 

Main sources

Behr, T. and Witte, J. (2009). Towards a global carbon market?  Potential and limits of carbon market integration. Global Public Policy Institute.

Horstink, M. and Bode, J. (2012). The future of global carbon markets. IESE Business School. Publisher: Ernst & Young.

IEAT. The world’s carbon market.

International Carbon Action Partnership (ICAP).

Parliament of Australia.

Schweizerische Eidgenossenschaft.

Comments Off on From the EU ETS to a global carbon market? / 21 Apr 2014 por claravalentinakupper
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Large Corporations & SMEs Walking Hand in Hand

Increasingly, we have seen a growth in small and medium-sized entities (SMEs) throughout the globe, to the point that they now constitute 95% of all businesses[1]. With this, it is evident that these enterprises cannot be considered small-time players and that they should be at the forefront of sustainable development. The problem is that many companies are convinced – or try to argue that – with limited resources they cannot make a big impact, so it is needless to try. This is where large corporations come into play. With their financial resources and human capital, these companies should be the ones spurring on SMEs whilst simultaneously widening their CSR portfolio.

Such a model has been adopted by Walmart, a large corporation heavily dependent on SMEs. Given the growing responsibility companies face over issues in any section of their supply chain, companies like Walmart have come to realise that they can be held liable for their suppliers’ behaviour. They can also be the driving force behind their suppliers’ shift towards sustainability. Walmart’s approach involves an evaluation of each of their business partners, graded according to a standardised scorecard, followed by specific recommendations for improvement. This last point is essential, for often companies are told that they are not acting in a sustainable manner, but are not given the means with which to change. Additionally, it is important for such measures to remain optional, rather than something that is imposed upon a company.

Unfortunately, though the relationship between large corporations and their suppliers ought to be a symmetrical one, bigger companies tend to hold more power as their business does not depend on one sole partner. Hence, there is a danger of large corporations, incited by their stakeholders, to force SMEs to change their business models. Such pressure, without adequate support can induce SMEs to place a heavy burden on their employees’ shoulders and negatively impact on their output. Forbes warns of the danger of ‘presenteeism’, where unlike absenteeism, employees are physically present in the office, but do not have the motivation to contribute fully[2]. In order to avoid this, large corporations ought to facilitate the implementation of sustainability measures and ensure that SMEs take steps to involve all their staff members without putting too much strain on them.

For this, large corporations ought to carry out capacity building and training programs so that SMEs are not overwhelmed by the task ahead of them. These companies in turn can improve their corporate image and ensure that the life-cycle impacts of their products are minimised. In this scenario, the likely success of a project is increased, as each type of enterprise can contribute its own advantages. Often in SMEs, there is less hierarchy and employees have a closer connection both to the local community and to the top management. This makes it simpler to involve everyone and pool together ideas. Once a valid idea is put forward it can be implemented using the resources of the larger corporation. Hence, by creating a partnership and stimulating an active – versus passive – response, through incentives rather than regulation or contracts, large corporations can work alongside SMEs to create the changes society demands.

Comments Off on Large Corporations & SMEs Walking Hand in Hand / 20 Apr 2014 por anabeatriceacuna
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Large Corporations & SMEs Walking Hand in Hand

Increasingly, we have seen a growth in small and medium-sized entities (SMEs) throughout the globe, to the point that they now constitute 95% of all businesses[1]. With this, it is evident that these enterprises cannot be considered small-time players and that they should be at the forefront of sustainable development. The problem is that many companies are convinced – or try to argue that – with limited resources they cannot make a big impact, so it is needless to try. This is where large corporations come into play. With their financial resources and human capital, these companies should be the ones spurring on SMEs whilst simultaneously widening their CSR portfolio.

Such a model has been adopted by Walmart, a large corporation heavily dependent on SMEs. Given the growing responsibility companies face over issues in any section of their supply chain, companies like Walmart have come to realise that they can be held liable for their suppliers’ behaviour. They can also be the driving force behind their suppliers’ shift towards sustainability. Walmart’s approach involves an evaluation of each of their business partners, graded according to a standardised scorecard, followed by specific recommendations for improvement. This last point is essential, for often companies are told that they are not acting in a sustainable manner, but are not given the means with which to change. Additionally, it is important for such measures to remain optional, rather than something that is imposed upon a company.

Unfortunately, though the relationship between large corporations and their suppliers ought to be a symmetrical one, bigger companies tend to hold more power as their business does not depend on one sole partner. Hence, there is a danger of large corporations, incited by their stakeholders, to force SMEs to change their business models. Such pressure, without adequate support can induce SMEs to place a heavy burden on their employees’ shoulders and negatively impact on their output. Forbes warns of the danger of ‘presenteeism’, where unlike absenteeism, employees are physically present in the office, but do not have the motivation to contribute fully[2]. In order to avoid this, large corporations ought to facilitate the implementation of sustainability measures and ensure that SMEs take steps to involve all their staff members without putting too much strain on them.

For this, large corporations ought to carry out capacity building and training programs so that SMEs are not overwhelmed by the task ahead of them. These companies in turn can improve their corporate image and ensure that the life-cycle impacts of their products are minimised. In this scenario, the likely success of a project is increased, as each type of enterprise can contribute its own advantages. Often in SMEs, there is less hierarchy and employees have a closer connection both to the local community and to the top management. This makes it simpler to involve everyone and pool together ideas. Once a valid idea is put forward it can be implemented using the resources of the larger corporation. Hence, by creating a partnership and stimulating an active – versus passive – response, through incentives rather than regulation or contracts, large corporations can work alongside SMEs to create the changes society demands.

Comments Off on Large Corporations & SMEs Walking Hand in Hand / 20 Apr 2014 por anabeatriceacuna
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CSR in SMEs: Implaser, a Spanish Successful Case

Implaser is a small enterprise which sells safety signs and industrial adhesives.  Implaser’s factory is located in Alfajarín (Zaragoza); however, its market covers the entire national territory. Moreover, since 2010, they commercialize their products in more than 20 countries in Latin America, Europe and Asia. Implaser was established in 1999 as a Limited Liability Partnership by four founder members, who are the Board of Directors of the enterprise. Currently, 67% of the employees are worker partners and own company stocks. Since its creation, Implaser has experienced a rapid growth; changing from a 280 m2 rent warehouse and 5 employees, to a 2000 m2 owned factory and 38 workers.

Despite its size, Implaser is one of the few Spanish small enterprises which annually publishes a CSR Report. Implaser believes that there is no possible economic growth without an environmental and social concern. Thus, they try to find a balance between their economic, social and environmental impact. Additionally, transparency and horizontal communication with their stakeholders are ones of their main values. Some of the reasons behind their CSR strategy are personal believes, responsibility with the environment and innovation. The latter is considered a key aspect in their strategy, as a way to achieve a competitive advantage and differentiation from the competitors.

This way, Implaser focuses their efforts on satisfying their stakeholders’ specific needs; who are: customers, suppliers, shareholders, employees, partners, communities and the environment. To do this, satisfaction surveys with customers and workers are annually developed, as Implaser considers them the most important stakeholders. In order to measure their impacts, these can be divided into the following categories:

Economic:

The most important aspect of Implaser economic strategy is that all the benefits are reinvested in the company, in order to achieve the growth and sustainability of the company. Despite the economic crisis which Spain is facing those years, Implaser has maintained its turnover and workers. According to their employees and suppliers, Implaser prefers to hire people of the community and maintain close relations with local suppliers; with whom they encourage personal and direct communication.

Social

Current development in this field includes programs such as Teaming, Implícate or Conflictman.  On one hand, Teaming is a project in which each worker can participate making a donation of 1€. The implementation of this project in 2011 was a complete success, obtaining donations of 86% of the employees and 274 euros. These funds were reinvested in Pies Descalzos Foundation, Cruz Roja España and Medicus Mundi Aragón. On the other hand, they have developed Implícate, which main aim is to involve their workers in terms of respecting the environment, CSR and occupational risk prevention. To do this, Implaser organizes meetings the first Friday of every month. Finally, Conflictman is a European project which consists of creating methods and channels to prevent harassment in the work place.

Environmental

According to its environmental impacts, Implaser has made important progress in the recent years. In 2004, they eliminated Volatile Organic Compounds (VOCs) in their production process. Furthermore, Implaser calculated its carbon footprint in 2012 (317 Tm of CO₂) to try to reduce it in the upcoming years. Additionally, they have fixed some objectives to promote responsible energy and resources consumption patterns.

Besides, Implaser has received national and international recognition for its action. In 2013, it   was awarded as the best Spanish SMEs in terms of Corporate Social Responsibility by Expansión. Moreover, they were selected as finalists in the European CSR Awards for their project Conflictman. Additionally, Implaser was a founder member of “Asociación Aragonesa para el Desarrollo de la RSE”, an association which attempts to promote CSR initiatives in SMEs by sharing their best practices.

To know more:

http://www.implaser.com/

http://www.implaser.com/senalizacion_de_seguridad_pdf/memoria_actual.html

Comments Off on CSR in SMEs: Implaser, a Spanish Successful Case / 19 Apr 2014 por martagomezmanchon
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Innovation and CSR: Two Drivers for SMEs Success

Innovation in a business context can be understood as the process which transforms new ideas into new values for customers. In the past, innovation was not considered a key aspect in companies’ strategy; as they focus all their efforts on providing products and services assuring its quality in order to maintain their position in the market. Nevertheless, enterprises’ activity will not be this way anymore. In the current context of globalisation and internationalisation, organisations need more than good quality products to differentiate from their competitors. Thus, innovation plays a key role to improve efficiency and effectiveness through new processes and management practices.  On the other hand, consumers have also changed their consumption patterns, as they are more informed than before and have a wide range of products to choose. Additionally, innovation allows society to enhance their standards of living by offering new opportunities to improve their lives.

Despite what people might think about innovation, it does not all depend on financial resources. SMEs are pioneers on driving innovation for many reasons. First, they have a better knowledge of local resources and supply chain. Then, they are well aware of the needs and problems of the communities. Moreover, as they are smaller than big corporations, they can easily adapt to changes. Therefore, SMEs should leverage on all their advantages over big companies; in order to achieve a competitive advantage and contribute to a better society by driving innovation along the entire value chain [1].

In the World Bank Report (2009) [2], innovation has been viewed as a key factor of economic growth and development. Furthermore, innovation in SMEs has also been supported by the European Commission; through some programs such a Horizon 2020 [3], they help SMEs by direct financial support and indirect support to increase their innovation capacity.  Another European program is Project Young SMEs, which promotes entrepreneurship and brand-new companies (see video below)

Comments Off on Innovation and CSR: Two Drivers for SMEs Success / 19 Apr 2014 por martagomezmanchon
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Towards a Low Carbon Transition: Review of European Renewable Energy Targets

Background

In November 2010, the European Commission adopted its actual Energy Strategy, which, together with the EU Climate and Energy Package of 2009, defined the energy priorities for 2020 and set long-term actions to be taken. The main objectives of the strategy were set in 2009 and consist of reducing GHG emissions by 20% compared to 1990 levels, increasing the share of renewable energy to 20% and improving 20% energy efficiency (European Commission, 2011). These decisions have been taken in a context in which energy prices are continuously increasing and a high dependence on energy imports exists. At the same time, energy related emissions account for almost 80% of the EU’s total GHG emissions (European Commission, 2011). For these reasons, renewable energy sources play a key role in both decreasing GHG emissions and reducing dependency on fossil fuels.

Renewable energy production has considerably grown during the past years, especially in those Member States which have developed supportive policies. Some EU level initiatives which has promoted this improvement were the “Green electricity Directive” and the “Biofuels Directive”. On one hand, the first one fixed an overall EU target of 21% and individual national indicative targets for the RES shares in the final electricity consumption to be achieved by 2010. On the other, the “Biofuels Directive” established that all Member States should have ensured at least 5.75% of their total transport fuel consumption came from biofuels and other renewable fuels (European Commission, 2010).

In December 2008, the new legal framework promoted by the Renewable Energy Directive established for the first time binding targets; which aim to achieve the overall 20% renewable energy target for the European Union by 2020. At the same time, the Directive also set individual targets for the share of RES in final energy consumption for each Member State.

Hence, there has been an increase in the renewable energy share in the final energy consumption of the European Union; rising from 8,5% in 2005 to 13% in 2011 (European Commission, 2012). This progress has been due to the significant investments that the majority of Member States have made during the past years in renewable sources of energy. Nevertheless, the economic crisis has had a great negative impact on those policies that promote RES. This way, the outlook for 2020 seems highly pessimistic for some Member States; especially for Malta, the Netherlands or the UK (see figure 1 below).

Comments Off on Towards a Low Carbon Transition: Review of European Renewable Energy Targets / 18 Apr 2014 por martagomezmanchon
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Implications and Criticisms of ‘Greening’ Measures seen in CAP 2014-2020

Part of the EU Strategy looking to 2020 is intent on combatting climate and resource challenges that the EU will face, among otherthings. EU 2020 puts forward three mutually reinforcing priorities:

• Smart growth: developing an economy based on knowledge and innovation.
• Sustainable growth: promoting a more resource efficient, greener and more competitive economy.
• Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion.[i]

Among many of the reforms that have been introduced in the Common Agricultural Policy (CAP), a new emphasis will be placed in ‘greening’ the mechanisms within CAP beginning in 2014. The policy makers are trying to strengthen the environmental sustainability of agriculture and enhance the efforts of farmers in achieving said goal. In order to do so, one of the main reforms to the CAP looking to 2020 is the ‘greening’ of direct payments to farmers, among other instruments such as enhanced cross-compliance for climate change, a redesigned rural development policy, and an increase in the scope of the Farm Advisory System.[ii]

Under the new agreement, the EU’s 28 governments must make 30% of the direct payments contingent upon meeting certain environmental criteria, although member states have leeway to decide when to apply sanctions, a change from the Commission’s proposal that called for EU-wide performance standards.[iii] The environmental criteria include:

• maintaining permanent grassland; and
• crop diversification (a farmer must cultivate at least 2 crops when his arable land exceeds 10 hectares and at least 3 crops when his arable land exceeds 30 hectares. The main crop may cover at most 75% of arable land, and the two main crops at most 95% of the arable area);
• maintaining an “ecological focus area” (EFA) of at least 5% of the arable area of the holding for farms with an area larger than 15 hectares (excluding permanent grassland) – i.e. field margins, hedges, trees, fallow land, landscape features, biotopes, buffer strips, afforested area. This figure will rise to 7% after a Commission report in 2017 and a legislative proposal.[iv]

The proposal aims to bring a basic level of environmental management to large swaths of farmland across Europe. Recently the EU Comissioner for Agriculture, Dacian Ciolos, said that he was happy with the adjustment of payments, in that, “The payments are now more closely linked with good agricultural practice and I expect that these measures will be improved upon even further in the future… Greening is not just about keeping consumers happy but also improving the competitiveness of farmers. For example, biodiversity helps reduce pest burdens on crops, which in turn will benefit farmers.”[v]

But one must question the true effectiveness of such policy implementation. Policy agreements differ from initial proposals, and many critics say that broad exemptions were made along the way in policy literature that discount he effectiveness of the greening measures initially proposed by the commission.[vi] The softening of policy measures includes an exemption for farms under 15 hectares from new requirements to create EFAs, land that is to be set aside to promote biodiversity and help absorb farm runoff. Opponents say this rule would exempt one-third of all farmland and 89% of farmers from the rules. There is also an exemption for farms under 10 hectares from new crop diversification rules that are aimed at improving soil quality, which is roughly one-third of EU farms. At last, another exemption was put in place that exempts farmers from complying with some EU environmental and water pollution laws, which really was a blow to opponents as they failed to bring agriculture up to par with other industries.[vii] In the end, Trees Robijns, agricultural policy officer at BirdLife Europe, said, “This is a major blow to those who championed a more sustainable, forward-thinking policy – one which would deliver for people and the environment as well as protecting the long-term interests of farming.”[viii]

What’s interesting here is the battle between two committees within EU Parliament, the environmental and agricultural committees. In debating issues that were dear to both, the agriculture ministers seemed to get away with more policy reform in their favor, or rather lack of policy reform. Environmentalists feel that the policies have been ‘watered down’ extensively and do not effectively meet the standards necessary in combatting environmental degradation by the agricultural sector. Nonetheless, one must look at the aims of individual committees within Parliament and their interpretation of EU 2020 goals, on one hand making European agriculture as competitive as possible in a global market, and on the other the will to protect the environment and contest the potential harmful effects of climate change on agriculture. Only time will tell if the measures taken in the reform will make a significant difference in sustainable growth of Europe toward 2020.

Photo Credits: [top] http://www.flickr.com/photos/friendsofeurope/6341532775/in/photostream/

[body] http://www.fotopedia.com/items/villars1682-A0GrtqQH0O8

Comments Off on Implications and Criticisms of ‘Greening’ Measures seen in CAP 2014-2020 / 12 Apr 2014 por Jacob Jon Pallone
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The power of being SMALL

“In OECD countries, SMEs play a major role in economic growth, and provide most new jobs. According to OECD’s Small and Medium Enterprise Outlook, over 95% of enterprises in OECD countries are SMEs, which account for 60-70% of employment in most of these countries.”[1]

That Small and Medium Enterprises (SMEs) stand for these huge figures is for me a great opportunity. Just imagine the huge and positive effect would have if all these SMEs founded their business in a social and environmental approach where their actions and decisions are based in a strong and inspired Corporate Social Responsibility (CSR) strategy.

On another blog post I referred to Malcolm Gladwell and his book The Tipping Point. I have to bring it again because I believe that if all SMEs acts as an responsible business in social, environmental and economic aspects very soon we can reach Gladwell’s Tipping Point, “(…) that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire”[2]

Moreover, knowing that SMEs and Microenterprises also create 80% of pollution socked me and shows me the importance of working with SMEs in building awareness of the value of creating CSR strategies in the core of the business to create a meaningful social impact.

When companies implement strategic CSR they can find that the benefits are enormous. CSR braced corporate and brand reputations and enhanced trust with key stakeholders (customers, employees, suppliers, investors, etc.) By including CSR in the core of the company, they can improve risk management, revenues and reduce costs from efficiency improvements.

What makes easier to SMEs to create CSR initiatives is that usually SMEs are managed by their owners, who are also often their founders. Probably entrepreneurs, that have other more motivations than making money, started a good number of SMEs. This close connection between managers and owners means that commitment to purpose is more effective and is probably the best way of making CSR the core strategy of a business.

Another advantage for CSR implementation is that personal relationships in SMEs are easier to built and more often to happen. Internally, employees are likely to all know each other and because they all represent sort of a family, the relation with management people is closer and more flexible than in a large company.

SMEs are for me a great opportunity to prove that when businesses are fostered under responsible guidelines and with a CSR strategy that pursues a meaningful social impact, different and more positive results will bring for both company and society. If 95% of enterprises in OECD countries are SMEs, working with them and all of their employees, investors, suppliers and customers mean influencing a good number of people that will act better, responsible and aware of the impact their daily actions mean to the environment and to the society.

Comments Off on The power of being SMALL / 06 Apr 2014 por anamariarocha
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