Posts tagged ‘Supply chain’

CSR: A Survival Tool For SMEs

CSR is a survival tool for small and medium enterprises (SME).

With 20% votes, this is the main result from the poll that I published some weeks ago, and also my humble personal opinion. The rest of participants voted for options that could actually be considered as benefits that lead to the main one, namely:

  • 18% think that CSR make smaller businesses more suitable to be part of the supply chain of conscious clients. As Jill Poet states, supply chain issues are becoming more and more important, and it is the way how sustainability can spread top-down, from bigger clients to smaller suppliers. CSR even opens the door to public contracts, especially now that the EU is emphasizing on sustainable criteria for public procurement.
  • 14% voted that a sustainable strategy allows to optimise the use of resources, such as energy, etc. Here I would not only include energy costs but also transportation costs, logistics or office material.
  • Also 14% think that CSR is a way to differentiate from competitors, and in uncertain times like these, where competition is rough and SMEs have to struggle every day, CSR can be the added value that is required to excel.

Intentionally, I didn’t include philanthropy, donations or any kind of sponsoring so maybe the poll was a little biased. Now I am curious about what would have been the result if I had included these options, which personally I do not consider a proper sustainability strategy.

However, I am surprised to see that the option connected with CSR as a self-knowledge tool (CSR to manage risks) was not picked by more participants, only 10% voted for it. Maybe because CSR as introspective analysis is more useful for complex structures, such as bigger corporations?

Last but not least, it was a little discouraging to see that CSR as gate to new products and services only got 6% of the votes. Are we really aware of the fact that sustainability can actually allow a company to reshape its portofolio? All kind of companies, not only SMEs, can develop sustainable goods addressed to certain market niches unexplored before. This is something we need to stress since I think it is an important benefit from CSR for SMEs.

I have to agree that CSR is the best strategy to survive in today’s changing world. and maybe it is so because of all the reasons stated above.

Thanks everyone for participating!

12/02/2012 at 20:09 2 comentarios

Corporate Sustainability: It’s all about the impact

CSR means dealing with social impacts

I am more and more convinced that being a sustainable and socially responsible company revolves around dealing with its own impacts. Recently I read a very interesting article on The Guardian: “Measuring social performance is difficult but essential”.

This article addresses a very important issue: Social impacts are relevant and we need to measure them properly.

An example why it is important: As long as negative social impacts can affect a company’s stock value (among others), they need to be measured, managed and reduced. Not only because of the negative effect on our image or on our reputation, but because it is threatening to the very same sustainability and survival of the company.

I agree with the writer of the article about the fact that measuring social impacts is very challenging. It is difficult to set the boundaries and use a valid method. It is maybe one of the weaknesses of this approach, but different groups and institutions are working out a methodology. If we cannot identify and asess our impacts, then it will be difficult to know where we we stand and where to start.

Product responsibility

The other weaknesses are two very important points that need to be considered carefully. One of them is, as it is pointed point out in the article, product responsibility. This is a crucial issue, maybe the most visible part of the social impact of a company. Is your product harmful? How harmful? Are you doing anything to limit/reduce that damage? If the product is harmful no matter how you use it, do you have a strategy to replace it by something else? This is an introspective exercise that companies have to do. And if they do not do it themselves, they might be forced from the outside sooner or later (authorities, social media, NGOs), but then it will be too late. An honest reflection on what your company does is needed.

Supply Chain Impacts

The other weakness is that, too often, we forget that social impacts (both positive and negative) do not end within the companys borders. It is necessary to audit/inventory all kind of social impacts along the whole supply chain. If we concentrate just on the social impact of the final product or service, we are considering only the top the iceberg. A food company might undertake all kind of steps to reduce trans-fats, promote healthy nutrition and limit sugar content in order to reduce its negative social impacts. All these efforts are in vain if our suppliers use bonded or child labour. Therefore I think that social impact auditing along the supply chain should be a must.

Last but not least, all kind of efforts, activities, charities etc are sometimes not enough to compensate for negative social impacts. This is the case of PR/Marketing campaigns of companies from controversial sectors. But then we are not talking about social responsibility, but about greenwash and smoke curtains.

06/09/2011 at 10:55 3 comentarios

Juan Villamayor

Consultor en Responsabilidad y Sostenibilidad Empresarial (RSE). Economista y MBA radicado en Barcelona, con un perfil eminentemente internacional.

Es posible generar más valor mientras se aplican principios éticos. Al final todos salen beneficiados: las empresas, la sociedad y el medio ambiente. Eso es lo que yo llamo "Negocios Con Sentido Común".

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