Corporate Social Responsibility

Task 1 continued

CSR and Small Business

magnifying glass

"“Wow, this seems like too large a task to undertake. We have very limited time and resources in our small office. How can we find all this CSR information and still focus on our day-to-day operations?"”

The small size of operations may make it easier to find information on actual and potential corporate social responsibility activities and impacts. Assign one person to create a checklist (see below), with input from employees, of all the CSR activities and initiatives that the company might put in place, and check off what it is already doing, noting any gaps.

Consider using one of the many existing self-assessment tools and checklists. Another good resource is industry associations, which quite frequently take leadership roles on issues such as CSR and may offer assistance with self-assessments. Consider working with a non-profit organization to conduct an eco-audit or hiring a student or consultant.

The main objective is to review current business practices to identify activities that fall under the heading of CSR (e.g. recycling), as well as potential activities (e.g. purchasing products from developing countries where workers are paid living wages or that protect core labour rights). A key resource to draw on in this regard is staff. As the front-line personnel carrying out the functions of the business, employees are often aware of a number of ways in which the firm's activities affect stakeholders, and frequently have suggestions for improvement.

Sample CSR small business checklist

  • Recycle more waste.
  • Use more energy-efficient appliances or vehicles.
  • Use more local suppliers.
  • Establish customer service standards.
  • Support local community projects.
  • Purchase fair trade products that support workers in developing countries.
  • Provide a safe working environment and educational assistance to employees.
  • Enhance gender equality in the workplace.
  • Be more accessible to customers of various abilities.

Small firm adopts informal approach to CSR assessment
2Keys Corporation implements secure communications and related business solutions. With only 16 employees, 2Keys has taken an informal approach to CSR activities.

To do a self-assessment as the initial step towards a more comprehensive and integrated CSR approach, 2Keys opted to use Canadian Business for Social Responsibility's Good Company Guidelines. In its assessment, 2Keys looked at both the breadth (the full spectrum of stakeholder groups) and the depth (the continuum of implementation from basic commitment all the way through to measurement, evaluation and full accountability) of its CSR practices.

Despite there being no formal commitments, policies or programs at 2Keys, the self-assessment showed that the firm is currently strong in CSR as it relates to employees, shareholders and customers, and sustainability, but could be doing more in terms of community engagement.

CSR and Small Business

Practical CSR initiatives for small business

Drawing on experiences of small businesses implementing CSR, here is a list of 36 practical CSR activities a small business can do. These initiatives are likely to be of interest to personnel in larger firms as well.

Improving the environment

  • Reduce consumption of energy, water and other natural resources, and emissions of hazardous substances.
  • Use or produce recycled and recyclable materials; increase the durability of products and minimize packaging through effective design (reduce, reuse and recycle).
  • Train staff so that they look for additional ways to reduce the firm's environmental footprint.
  • Offset carbon emissions with equivalent carbon-fixing initiatives, such as tree planting.
  • Join or start a local green business club that can help local firms access conservation grants and expertise for reducing waste, water use and energy.
  • Consider using video-conferencing to meet a potential supplier or customer rather than always physically travelling to meetings.
  • Establish an environmental management system with objectives and procedures for evaluating progress, minimizing negative impacts and transferring good practices.

Improving human resource management practices

  • Establish policies to ensure the health and safety of all employees and make the policies known to employees.
  • Involve employees in business decisions that affect them and will improve the work environment.
  • Consult employees on how to handle a downturn in business (e.g. offer the option of all staff taking pay cuts or reduced hours instead of layoffs).
  • When layoffs or closures are unavoidable, offer outplacement services, retraining and severance benefits.
  • Provide training opportunities and mentoring to maximize promotion from within the organization.
  • Extend training to life management, retirement planning and care of dependents.
  • Be open to job splitting, flextime and other work-life balance policies.
  • Share training and human resources programs with other local small businesses.
  • Consider supporting daycare for children or elderly dependants.
  • Encourage a healthy workplace (e.g. implement a smoking ban or drug and alcohol abuse support program).
  • Provide exercise facilities or offer subsidized membership at a local gym.

Promoting diversity and human rights

  • Make sure that all staff know that there are explicit policies against discrimination in hiring, salary, promotion, training or termination of any employee on the basis of gender, race, age, ethnicity, disability, sexual orientation or religion.
  • Do not tolerate jokes or behaviour in the workplace that insult employees on the basis of gender, race, age, ethnicity, disability, sexual orientation or religion.
  • When hiring, think creatively about where to advertise the job and whether there are any local employability schemes (e.g. run by a local council or employer) to help find work for people who are homeless or disabled.
  • Pay comparable wages for comparable work.
  • Support organizations that promote fair trade and human rights compliance.
  • Check where products are manufactured and look into any associated human rights concerns.

Helping the community

  • Encourage employee volunteering in the community and with financial contributions and help in kind.
  • Make some of the business's product or services available free or at cost to charities and community groups.
  • Look for opportunities to make surplus product and redundant equipment available to local schools, charities and community groups.
  • Buy from local suppliers and strive to hire locally.
  • Offer quality work experience for students (job shadowing).
  • Collaborate with local teachers to make the business the subject of a school project.
  • Use the business's experience to help a local school, charity or community group become more efficient and entrepreneurial.
  • Use some of the marketing budget to associate the business or brand with a social cause.

In general

  • Develop new environmental and social products and services; innovation brings competitive advantage.
  • Share CSR lessons learned with business customers, business neighbours and fellow members of a trade association or business organization.
  • Explain the environmental, social and economic performance of the business to stakeholders and consider their ideas and views as the business develops.
  • Commit to an external code or standard or a set of business principles that provides a framework to measure progress on environmental, and social and community issues.