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.<\/p>\n\n\n\n
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 \u201coutsourced\u201d from government to the private sector in a climate where companies are increasingly regarded by society as a source of solutions for social problems.<\/p>\n\n\n\n
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 \u201cgood corporate citizenship\u201d for SMEs that trade within their community.<\/p>\n\n\n\n
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 \u201clicense to operate\u201d and support within the community.<\/p>\n\n\n\n
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?<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
So what do you do in times such as these? Keep it simple and focus on the basics:<\/p>\n\n\n