Enterprises Article: Corporate Social Responsibility for Small and Medium-sized

April 02, 2013, автор tim0

Adilev Yerlan
Amantay Altay
MBA, Suleyman Demirel University, Kazakhstan

CSR analysis economic, legal, moral, social and physical aspects of environment…
Barnard 1938

Bezel2This paper presents the results of an empirical analysis of corporate social responsibility for SMEs. Some SMEs lacked social responsibility consciousness. Thus all kinds of violation of the law and morality are brought, which cause corporate social potential instability and disharmony. An evaluation model of corporate social responsibility of SMEs based on analytic network process has been put forward in the paper. Moreover, an empirical analysis of some representative SMEs is conducted. Research shows that the method can not only be used to assess the comprehensive evaluation grades of the corporate social responsibility performance of SMEs, but can also find the enterprise’s shortages in sustainable development, accordingly provide recommendations for enterprise ecological management. Also we will make conclusion is it important for Kazakhstan or not.

Corporate Social Responsibility (or more recently social responsibility) has increased in importance around the world. Much of the content of the reports focus on large companies and statistical analysis – all very well but for small lean business like mine and yours we need a different approach.
This article aims to explore CSR – Corporate Social Responsibility from the practical position of the Small and Medium-sized Enterprises (SMEs). For CSR to be adopted as a principle, it needs not only to be understood, but practical steps provided to make this valuable concept accessible and sustainable – in other words – you as a manager needs to know what and how you can do this easily today.

 Pursuing responsible business practices can help any business enhance reputation and standing in building trust from stakeholders, generating sales, boosting enthusiasm and product innovation. It can be important to the Small and Medium-sized Enterprises (SMEs).

For so many, social responsibility is just a new way to describe something they do already. In this context, CSR does not aim to reinvent the wheel. It is about building on existing practice, maximizing its impact and making a link between CSR and your core business activities.

In many instances, SMEs are ideally placed to pursue such responsible workplace practices. SMEs often have longstanding contacts in servicing a local area and are well placed to understand and benefit from the community relations. Being more flexible and less formal than large companies, they can direct resources to CSR efforts more effectively. Certain CSR trends are already a part of SME culture. For example, SMEs in certain sectors are more likely to have family-friendly workplace practices in a less bureaucratic setting

Is CSR important to SME’s?
In this part we will try to understand is CSR important to SME or not?

Mostly managers consider that CSR is important, and it can help us be more effective, efficient and most importantly more profitable.
According to survey which was made in 2002 of Small-Medium sized Enterprises (SME) attitudes to CSR (conducted by MORI sponsored by the DTi), it found that:
A large number of SMEs were already engaged in social responsibility where defined as a contribution to the community, relations with employees and protection of the environment

Training, employment and education were the top priorities for SME investment
SMEs were not yet defining social responsibility as an issue that could be integrated into all core business activities.

So why is it relevant?

Managers and owners in Small and Medium-sized Enterprises are often asking…
‘I am increasingly being asked for information on environmental and community issues as part of tendering for contracts and from larger clients and I don’t know where to start.’
‘My business is struggling to recruit, motivate and retain good staff.’
‘How can I ensure that I run an environmentally friendly business without costing me a lot of time and money?’
‘I have a business to run with limited resources, so how can my business benefit?’
The managers also have found several approaches according to CSR :
There are several approaches to Corporate Social Responsibility (CSR). These approaches can be divided into 3 parts, and they are called Three-P approach to CSR.
The Three-P Approach to CSR:
Level 1: Principles of social responsibility
Level 2: Processes of social responsiveness
Level 3: Products (or Outcomes) as they relate to the firm’s societal relationships
What does a sustainable and responsible company look like?
It is run for and can be seen to be run for the benefit of profit, people and planet.
It integrates responsible business practice so that it is built in to business purpose and strategy rather than being a bolt-on to business operations.
Employees value it as a great place to work.
Customers and suppliers value it as a good business to do business with.
The community values it as a great neighbor.
Investors and financiers value it as worth investing in.
It has a good health and safety record.
It has environmentally friendly premises.

Corporate social responsibility is a concept with a growing currency within Kazakhstan and around the globe. CSR is a concept that frequently overlaps with similar approaches such as corporate sustainability, corporate sustainable development, corporate responsibility, and corporate citizenship. While CSR does not have a universal definition, many see it as the private sector’s way of integrating the economic, social, and environmental imperatives of their activities. As such, CSR closely resembles the business pursuit of sustainable development and the triple bottom line. In addition to integration into corporate structures and processes, CSR also frequently involves creating innovative and proactive solutions to societal and environmental challenges, as well as collaborating with both internal and external stakeholders to improve CSR performance

In conclusion
SMEs play a key role in the Kazakhstan and global economy in terms of turnover and employment figures. It is therefore crucial that SMEs are able to deliver to Kazahstan business’ commitments to local, national and global targets on social, environmental and economic issues. While SMEs are not familiar with some of the concepts such as sustainable development, they do understand the broad principles underlying business responsibility, and also understand how it can deliver to their business. The government needs to address the fact that SMEs engaged in such initiatives do not always recognize that they are doing so, and this article will help to understand what is CSR for SME and how it is work.

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