DRIVERS, OBSTACLES, CRITICAL SUCCESS FACTORS

1
DRIVERS, OBSTACLES, CRITICAL SUCCESS FACTORS

• At level of individual sme AND at level of
  society
• Recognise that these are drivers/obstacles/CSF
  for some smes not necessarily for all
• Some may not organisationally / personally
  believe these should be drivers etc but accept
  that are real for at least some smes
• Equally what are drivers for some smes may be
  results / impacts for other smes
• Same things may be both obstacles AND CSF!

2
Drivers for SME CR Involvement
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DRIVERS continued

• Economic stagnation means need to find new
  markets / revenue streams
• Speed of market and technology change means need
  flexible and engaged staff
• Anticipating future legislation / getting
  practical experience of compliance in ways that
  help business
• Core purpose of a business may be social goal
• Responsible entrepreneurship makes business more
  attractive
• Need for more sources of creativity and
  innovation in business

4
DRIVERS FOR SOCIETY AS A WHOLE TO PUSH CSR TO SME

• Cumulative impact of smes eg smes 60 UK
  commercial waste
• Smaller firms often are THE business community
  of an area
• SMEs may be easier to change behaviours than the
  super-tanker multinationals

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Barriers to CR Involvement
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OBSTACLES continued

• Exclusive language is off-putting
• Obsolete / over-complex legislation
• talk-shop syndrome
• Smes just not aware of their environmental and
  social impacts
• Costs of verification to satisfy Corporate Codes
  of Conduct

7
Motivations Barriers for SME Environmental
Responsibility

• Motivated more by regulation, market or public
  pressure than by personal ethical interests
• Often gap between individuals attitudes to
  environment company behaviour
• Some scepticism towards benefits rewards

• Lack of recognition of challenges
• Assume negligible impact
• Embarrassed to ask for help
• Negative company culture
• Lack of integration

Potential SME vulnerability to environmental
issues
Source European Commission, European SMEs and
Social Environmental Responsibility, 2002
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Challenges (1)
Source DTI/BITC/IOD/BCC/Accountability, Engaging
SMEs in Community Society Issues, 2002
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CRITICAL SUCCESS FACTORS

• Easily accessible, relevant and quality advice
• Tailored to smes
• Available through channels know and trust
• Not bureaucratic
• Incentives encourage honest endeavour
• Unpacked to component parts?

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CSF 2

• Integration into management/operational practice
• Has to be sold to intermediaries
• Leadership and individual champions
• Easy early wins to build confidence
• Employees and other stakeholders engaged
• Hunger for results
• Long-term education in schools etc about
  responsible business
• Keep it fun!