Planting a Seed towards Sustainable Buisnesses -SME’s CSR-
Small and medium enterprises play an enriching and important role in the market. Daring to face powerful competitors with lower resources, these businesses have to figure out new strategies and hopefully turn their cons into pros.
For example, independent eco-agriculture in the United States has won great popularity due to health concerns and low trust on big multinationals that operate chains of discount department stores and warehouses. Why are SME’s and independent farmers more trusted by consumers?
Just paying attention to the size ‘small and medium’ enterprises may at first sight seem less reliable and solid than a ‘big’ enterprise. But if we go beyond this perception of vulnerability of the small, we can find out there are also positive features: A small / medium company will most probably be easier to approach at all scales, it is more likely to provide a personalized and closer service seeking to build long-term relationships with its customers, showing transparency on its processes.
Now-a-days market is dealing with a major turnaround due to more educated and demanding consumers. The concept of quality is scrutinized among the overwhelming range of products. There has been an evolution in the past 50 years where more customers don’t only seek to meet a demand, but to choose the product they want.
Systems in SMEs are much more simple and easier to track and control from suppliers to production, management, and customer service. This is a big advantage in trust building towards the customer because in case of there being inconvenience it is easier to target the problem and the person in charge as the process y less complex. Whereas in big enterprises a customer can get lost within departments and supply chains, and when placing a complaint clients often receive a passing the buck attitude from employees to supervisor1, supervisor 2, etc.
All this sets a more simple path for SMEs to implementing changes into systems, and engaging with CSR commitments. The small scale in this case brings the advantage of being a more solid team, with straightforward communication within and overall picture.
On the other hand big companies attract more media attention, being this a concern to protect and enhance their reputations with the broader public as well as key stakeholders. The reputational pressures are less for an SME. However, pressures on the larger corporates will inevitably translate into pressures on their suppliers, including SMEs.
All in all, though SMEs might not bring up such an efficiency gain as big companies, opportunities may come through innovation of more sustainable products. They have many of the same reasons for engaging in CSR that large companies have, both in avoiding downside risk and in exploiting upside opportunities. And as its logical, if an SME aims to compete and evolve to a big company, first step is working as a big company does.
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04 May 2015
por
ecapellan
IMSD /
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