“Small is sustainable (and beautiful!) – encouraging European smaller enterprises to be sustainable” - New Occasional Paper from the Cranfield School of Management
A new occassional paper “Small is sustainable (and beautiful!) – encouraging European smaller enterprises to be sustainable” from the Doughty Centre for Corporate Responsibility at the Cranfield School of Management by David Grayson, Director & co-author Tom Dodd, DG Enterprise and Industry, European Commission was launched yesterday during the World Entrepreneurship Summit at the Queen Elizabeth Conference Centre, Westminster, UK.
Policy-makers and business development agencies are encouraged to re-think their approach to Corporate Social Responsibility (CSR) for smaller firms, in this new Occasional Paper. Doughty Centre director David Grayson and co-author Tom Dodd argue that many of the factors making CSR more important for big business, are affecting smaller firms just as much. They particularly emphasise the competition for skilled workers; the importance of trust, reputation and relationships in the networked economy; and the rise of ethical and green consumers and employees.
Grayson and Dodd also highlight the growing number of initiatives across Europe from chambers of commerce, local authorities and trade associations, to help small firms to make sense of CSR. They review what is now known from academic studies and pilot projects across the EU about small firms and corporate responsibility; and suggest a number of critical issues for further efforts to promote CSR amongst small firms. They suggest a change of language from “CSR” to “sustainability” or “sustainable enterprise.”
As well as changing the message, Grayson and Dodd argue for care in selecting the messengers. “It matters who delivers the message,” they argue. “Credibility in the eyes of the SME owner-manager is crucial. Governments and politicians are generally not the most credible messengers for SMEs.” They go on to suggest that the most credible messengers are other SMEs – “businesses like us” – and call for some innovative thinking about how to facilitate peer-to-peer learning and influence between small businesses.
They also suggest that better targeting of messages is needed, and a more sophisticated understanding of the “journey” and the behaviours that owner-managers and small firms might typically take in embedding ideas of responsible business practice and sustainability in the way that they run their businesses.
Finally, they predict that supply-chain pressures for more sustainable business practice will intensify but that this needs more sharing of “know-how” and “know-who” and more facilitated learning within supply-chains. The paper is now publicly available to download as a pdf file here.