Community involvement – maintain the focus!

Over the past several decades there has been a revolution in the way that the relationship between business and society is understood. To misquote well known economist and Nobel laureate Milton Friedman – the business of business is no longer just business. Or, to paraphrase Harvard Business School professor Theodore Levitt – although profits are required for business just like eating is required for living, profit is not the purpose of business any more than eating is the purpose of life.

More is expected of you

Companies are now expected to look beyond self-interest and recognize that they belong to a larger group, or society, that expects responsible participation. Activities such as supporting the performing arts, youth welfare, assistance to the poor, and community betterment have now been “outsourced” from government to the private sector in a climate where companies are increasingly regarded by society as a source of solutions for social problems.

While this responsibility in the past may have been confined to large companies, the increasingly significant role played by SMEs in our economy dictates that SMEs step up to the plate. The communities you operate in will invariably have expectations as to what constitutes “good corporate citizenship” for SMEs that trade within their community.

You may live within the community and share a relationship with community members and customers that is distinctly closer than that of the large corporates inhabiting our township malls. Maintaining this relationship means maintaining your “license to operate” and support within the community.

Stay committed

However, in an environment of business where survival is the order of the day one may well ask what capacity does the SME family-owned business have for making a contribution in this space?

Like marketing expenditure, spending in the corporate social responsibility (CSR) space is the first to be cut when times are hard. Yet if CSR is seen as part of the core of your business, cutting the budget completely or reducing the time allocated to CSR activities may not be an option.

So what do you do in times such as these? Keep it simple and focus on the basics:

Promote a socially responsible culture that embraces and upholds the need to be a socially responsible business.
Prioritise internal CSR practices such as the working conditions of your employees, work-family balance, informal training, and flexible work schedules. Remember the law stipulates the minimum required. It is within your control to exceed the minimum. Externally, do you employ people from within the community?
Audit your work environment. Do you recycle? Are your production processes environmentally friendly? How do you dispose of harmful chemicals and waste materials? Are you compliant with safety, health and environment regulations?
Audit your business practices. Do you pay your suppliers on time? Do you comply with by-laws that regulate business activities in your community?
Consider collaborating with other businesses in the community by combining the limited financial resources you may have available in joint initiatives, such as sponsoring a charitable event, or local soccer club.

Resources may be scarce and times are definitely hard, but do not stop engaging with the community you are part of. In all likelihood, their journey is harder than yours.

Photo credit Unathi Obose