The SME (small to medium-sized) business and corporate social responsibility -- an Expert View from Article 13

The small and medium sized business (SME) has an impact on all aspects of daily life, from the newsagent delivering your morning paper, to the laundrette on the high street, to the company supplying your office stationary. New research by Article 13 www.article13.com reveals important information about these sometimes ignored players in the economy.

(PRWEB) July 27, 2003 -- Within Europe, small and medium-sized enterprises (SMEs) are defined as any business with fewer than 250 employees. (Observatory of European SMEs 2002)

They have a significant impact on the economy. Taking the UK as a case in point, at the beginning of 2000, SMEs (including those without employees) accounted for over 99% of the UKs 3.7 million businesses. They also accounted for a combined annual turnover of around 1 trillion, 50% of UKs total turnover. SMEs employ 12 million people in the UK, around 55% of the private sector and three times as many as the FTSE 500 (Small Business Service, 2002, cited in Article 13 2003).

Key issues?
Article 13s research showed that the downturn in the economy and its impact on the development and implementation of business plans, was one of the top issues facing the smaller business. In addition, competition, either in an over-crowded or mature market was another factor that many SMEs quoted as a key challenge they faced (Article 13, 2003). CBI commentators support this, saying SMEs are always expected to do more for less. Customers are ever more demanding in terms of quality and innvoation, yet are constantly looking to drive down costs through the supply chain" (Matthew Fell, CBI).

CSR - what's that?" SMEs confused, but engaged; most of the SMEs contacted as part of the research were initially confused as to what terms such as CSR" and sustainable development" meant and did not often understand the connection between these concepts and their business. However, it emerged that, smaller companies were nevertheless engaged in social and environmental activities and the broader aspects of governance that we would classify under the umbrella of CSR activities. These included environmental policies, waste reduction through recycling and support for or management of conservation areas.

Opportunity to face key business challenges?
SMEs participating in the research recognised business responsibility" as a way of gaining an edge over their competition. Definitions they gave of business responsibiltiy" included: responsibility to the community in which the business operates", and social and environmental responsibility". A key argument given by SMEs was that involvement in these issues promoted improved services, reputation and integrity; these were seen as key for retaining and attracting customers and staff.

Conclusions?
SMEs play a key role in the UK and global economy in terms of turnover and employment figures. It is therefore crucial that SMEs are able to deliver to UK business commitments to local, national and global targets on social, environmental and economic issues.
While SMEs are not familiar with some of the concepts such as sustainable development, they do understand the broad principles underlying business responsibility, and also understand how it can deliver to their business.

The government needs to address the fact that SMEs engaged in such initiatives do not always recognise that they are doing so, and in its research paper Article 13 sets out some key recommendations to government on how it can tackle this. And finally, there is something to learn from the SMEs take on business responsibility -- making the link to innovation and core business strategy.

This is only a brief outline of the contents of the article. To read the full Expert View, visit www.article13.com .

Ends

Article 13 unlocks the innovation opportunities of corporate social responsibility to deliver competitive edge and a new way of doing business". We implement these opportunities in business and government, both within the UK and internationally.

We are innovators -- identifying the key issues and emerging trends for CSR through our work, through our original research and through our strong networks. www.article13.com distils the best of the information for you in our opinion forming articles, briefing papers and best practice case studies. Be sure to visit the site regularly as we analyse a new trend and topic area every 6 weeks.

Article 13's co-directors, Neela Bettridge, Jane Fiona Cumming and Dr Paul Toyne, have extensive experience in a number of critical fields: business strategy, participative planning and processes, the social and environmental arenas and communications. Article 13 also draws on the wisdom of distinguished advisors: Professor Dave Owen, Chris Hoare, Professor Colin Gilligan, Neill Irwin, Andrew Acland and Professor Mike Jones. This panel, in turn, is complemented by a network of specialists drawn from the social, environmental, economic, ethical and business worlds.

For further information please contact Rupali Patni
Article 13, Bradley House, 26 St Albans Lane, London, NW11 7QE
Tel: 0208 731 7700
Fax: 020 8731 8800
rupalip@article13.com
www.article13.com