Friday, February 19, 2010

Corporate Social Responsibility and Small Business

"Corporate Social Responsibility (CSR) should underpin the actions of organizations and the MBA should adopt a stakeholder focus concerning all those affected by the actions of an organization, rather than just shareholder focus."  -"MBA's Adapting to Changing Focus", Jeanette Purcell, Chief Executive, Association of MBA's

"The issues we are addressing - from clean water, to safe food, to sustainable and vibrant cities, to smarter work, to empowered communities - are not a choice between business strategy and citizenship strategy.  They are both."  -IBM Corporate Social Responsibility Plan 2008

"What does being a good corporate citizen mean?  It means that we work hard to deliver attractive returns and exceptional value to our shareholders.  At the same time, it means that every day, in every one of our operations around the world, we strive to do our part to make the world a better place."  -TimeWarner Corporate Social Responsibility Plan

So, what does all this mean to the small or mid-size business?  You're not TimeWarner.  You're not IBM.  You're business plan doesn't include global domination.  You're happy to make a difference and do your part in your little corner of the community.

It means that, of all the organizations on the planet, YOU are in the greatest position to make a significant and meaningful impact on your community, on the people who work for you, and for your clients and customers.

Having a written Corporate Social Responsibility Plan is simply the way to keep track of it all and know if you're meeting your goals.

The problem is that many companies do tremendous good every day through great HR programs, or through philanthropic efforts, or through environmental stewardship, but they don't write any of it down nor do they share it with their clients and customers.  This, in my opinion, is the saddest part.  Don't you think your clients want to know the wonderful things you're doing?  It should make them proud that a portion of the money they paid you for goods/services went to help a local shelter, or assisted one of your employees during their time of need. 

People want to do business with people they like and trust.  You do business with your suppliers because you like and trust them.  What if you found out that the company that handled your pest control gave 10% of their profit last year to the American Lung Association?  What if your child has asthma?  Wouldn't you feel better about doing business with that vendor?  Good corporate social responsibility strengthens relationships and builds integrity and value.  And, at the same time, it benefits the community, the people, and the planet.

More and more companies are taking the time to put good deeds to paper and drafting their Corporate Social Responsibility Plans.  Included in those plans are goals, benchmarks for success, policies, and action items to meet the goals.  If you have 2 or 200 employees, you should have a plan.

As they say, A goal without a plan is just a wish. 

It's time more small and mid-size businesses step beyond wishing for good results.  It's time to make your wishes a reality with a good, well-thought out plan.

Here are a few things to consider when drafting your Corporate Social Responsibility Plan:
  • The Plan is all about your company.  If it doesn't mesh with your company's mission and vision, then don't do it.
  • Your Plan should include People - Profit - Planet solutions.  Include your HR plans, environmental stewardship, and community/philanthropic activity.
  • If your people aren't passionate about it, it probably won't work.  Find out what drives your employees and forge your CSR Plan around that.  If your employees love the holiday food drive, make it a formal part of your CSR Plan.  If your employees are nature lovers, get involved with conservation programs.
  • It's not a "from the top down" program.  Nor is it a "from the bottom up" program.  EVERYONE needs to be included.  Not just the boss and not just "Bill the Green Guy in Accounting". 
  • Write it down.  This is WRITTEN documentation of a firm's commitment to their employees, their community, the environment, and their financial sustainability with measureable goals and targets. As with all things worth doing, if it's not written down, it's probably not going to happen.
  • Someone needs to be in charge.  If everyone is responsible, then no one is responsible.  One person needs to take ownership and authority for the program.  And that person must have the authority to make decision and drive change.  It's great for the receptionist to be a part of the program, but if she's not authorized to tell the CFO that a policy needs changing, it won't happen.
  • Make the Plan known.  Your company deserves recognition for all of your good deeds.  Put it on the website, include it in proposals and in the company's annual report.  Post goals throughout the office.   Put out Press Releases when you surpass a goal. 
  • Reassess your progress.  Your CSR Plan is a living document.  Set a date on the calendar to review your progress and be ready to make changes and up the ante.  Be ready to re-set higher goals.
  • Celebrate your successes.  Include in company newsletters.  Do shout-outs at staff meetings.  Tell your clients. 
Start today.  Don't wait until you get an RFQ asking for your CSR Plan.  It'll be too late.  Ask for help.  Make it a priority.

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