Q. Hi, Corporate Social Responsibility (CSR) is commonly seen as a practice among big corporations. How about a small or medium-sized company adopting CSR? Do you have any examples of this being done? – Odai M.
A. Hi Odai. That is a great question and a very relevant one. Yes, it is true that you are more likely to hear about the CSR practices and initiative espoused by large corporations, who most likely have big budgets, more manpower and better resources at their disposal. However as of recent years, there is a small but growing group of small and medium-sized companies (SMEs) passionately advocating CSR causes. The efforts of these SMEs are no less commendable than those of big multinationals.
Can SMEs limited resources be a hindrance to CSR practices?
CSR at an organizational level is akin to charity at an individual level. Just as an individual would participate in charity based on their personal capacity and resource, so can a company find ways to give back to the society based on its resources. The only thing an organization needs is a cause they are passionate about collectively.
CSR can be of two kinds. The first one is the most commonly understood one, where a company contributes money and resources for a social, economical or environmental cause. The second type of CSR involves more strategic planning and is seen in examples such as investing in green technologies and supporting local economies.
To answer your second question, I would like to give an example that is closer to home – Bayt.com. As a value-driven, 250 employee-strong company, Bayt.com is a good example of an SME doing CSR. During its 10+ years in the region, Bayt.com has supported several causes ranging from providing free CV analysis for unemployed job seekers to volunteering and supporting local charities.
Owing to their size and less complicated hierarchies, SMEs are more likely to have a clear unified vision. This is indeed one of the first things required while designing a CSR strategy, among
other factors listed in a previous blog post. SMEs are also more connected to the local communities in which they operate, thus improving the chances of their CSR initiatives directly having an impact on these communities.
As a case to point, here are some interesting insights revealed on Bayt.com’s latest poll on CSR in the Middle East and North Africa:
- By directly helping the community they
sell to, CSR-compliant companies are favoured:
Nine out of 10 (88%) consumers in the Middle East would favour products and services from a socially responsible company.
- Almost
90% of professionals feel that CSR is a moral responsibility companies have towards the local community.
- According to 64.7% of respondents in the region, companies that engage in CSR do make an impact. In fact, an overwhelming
94% of professionals feel that corporate CSR strategies can directly contribute to business success.
- The
most popular kind of CSR in the Middle East and North Africa falls in the first category discussed above. Indeed, a quarter of professionals say their company participates in feeding, housing or clothing the poor.
- Three
key benefits of adopting a CSR strategy are considered to be enhanced corporate reputation (29%), improved relationships with the community and stakeholders (10%), and strengthened employee commitment (10%).
- The
top three CSR causes that professionals in the region would like their company to be involved in is helping the poor or those with special needs (51.2%), providing free education and scholarships (20.4%), and saving or protecting the environment (11.2%).
Would you like to share the success stories and challenges you faced while implementing CSR in your organization? Add your feedback in the comment section below.
