Two things drive product sales, the seller and the product. Successful companies brand themselves in ways to foster trust, confidence, and security to their consumers. Consumers are generally inclined to do business with companies of people that share their social values.
Social responsibility does not mean attending networking forums and shaking hands, but giving back in ways that impact the community and consumers, therefore, reflecting in your company’s overall business.
Organizations that pay the same attention to practices of philanthropy as they do in other areas of business can reap substantial benefits from the ones they help. According to recent research conducted in the UK, a company’s philanthropic actions affects over 82% of consumers.
Philanthropic actions create lasting connections between companies and their consumers. Consumers feel good when they see that the companies that they purchase from share perspectives similar to their own.
Every industry sees the birth of hundreds of thousands of SMEs born every year, and these companies are likely to offer the same products. Doing good gives your organization the chance to stand out from other companies. It creates a loyal customer base that believes they are making a difference by doing business with your company.
Doing good also appeals to your employees. It gives them pride that the work they are doing makes a meaningful impact on the world.
This integration of social and environmental concerns to the operations of an organization is known as Corporate Social Responsibility (CSR).
CSR Applications for Small and Medium Sized Enterprises (SMEs)
CSR was initially mostly associated with big corporations. People perceived that more established companies used CSR to maintain their reputation. Also, they have way deeper pockets, hence their ability to invest in CSR.
Because of finances, most SMEs shy away from philanthropy but involve themselves with several aspects of Corporate Social Responsibility. CSR resonates with but is not necessarily philanthropy. CSR is the integration of societal concerns to an organization’s operations.
With SMEs, their involvement with the society is more personal. They can attend to issues affecting the place they are in, directly. Companies that issue attachments, internships, and mentorship programs to aspiring professionals help the community to solve the problem of employment.
Some SMEs involve themselves in charity walks and other fund-raising programs for problems that affect the community directly.
These CSR activities unite the businesses and their consumers by purpose. They foster brand loyalty and create brand awareness for other potential customers.
How SMEs Can Impact the UN Sustainable Development Goals
The United Nations in 2015 established a set of goals anchored to the target of eradicating poverty. These sustainable development goals require that the government, civil society, and the private sector all do their part.
The UN targeted to improve crucial sectors through the participation of all the three stakeholders mentioned. The following is an outline of how SMEs can impact a few of these goals.
- Small and medium-sized enterprises can offer employment to local community residents. When small businesses provide work, training programs, or entrepreneurship mentorship to locals, they contribute to poverty reduction.
- Small organizations can promote good health and well-being by giving health benefits to employees and their families.
- Small companies can enforce non-discriminatory policies. They can offer salaries without gender bias, nepotism, or any other forms of discrimination. They can also implement policies that support non-discriminatory career growth opportunities.
- SMEs should insist on energy saving and efficiency measures within all operations in the company. Preserving electricity and heat energy creates sustainability.
- Companies can promote economic growth by supporting innovation and industry. Companies can encourage employees and other stakeholders to invent and develop creative solutions for societal challenges.
Every organization should work towards the improvement of society. It is a beneficial practice for both the company and the community of today and tomorrow.
