Tobin Murphy-Coles, CEO at Amba, explores the opportunities that investing in CSR provides for smaller businesses, and offers his advice on how businesses can bring about real change, regardless of size and budget.
Post-COVID, there’s a growing desire for the companies we work for to become forces for good.
It’s little wonder what’s driving this urgency; whether it be pension schemes that don’t invest ethically or simply the carbon impact of travelling to meetings, business is a major contributor to the climate crisis, and the reliance on consumers to undo this damage is nothing short of morally corrupt. To that end, it’s becoming essential that employers – of all sizes – make commitments to social and environmental causes.
For those businesses that fail to address this issue, there is a very real risk that they may jeopardise their ability to attract and retain talent. At Amba, our own research shows that three-in-five (62%) prospective workers now look for employers who share their values. Of the two-in-five (42%) who work for an employer they feel doesn’t share their values, 58% are thinking about leaving in the next 12 months. It seems staff won’t tolerate half-measures when it comes to CSR. People will go elsewhere if the appropriate effort isn’t being put it.
Coupled with this, more businesses and consumers are beginning to investigate the social and environmental impact of the brands they buy from, meaning CSR is increasingly important for winning and retaining customers.
With pressure mounting, and the introduction of formal legislation that mandates CSR commitments looking likely at some point in the future, investing in CSR is no longer something to be delegated or put on hold. Nor is it something with which only the largest corporations need concern themselves with. This is becoming a key issue, with very real commercial stakes for businesses across the board.
What difference can a smaller business make?
While smaller businesses might lack the same funding and resources as their larger competitors, employees and customers will still expect some kind of commitment to CSR.
To some SMEs, this will likely sound daunting, although it doesn’t have to be. Having less bureaucracy to deal with means smaller organisations stand a better chance than their larger competitors of quickly making lasting change. After all, it’s far less complicated for a small team to become net zero than it is for a sizeable corporation with countless departments to organise.
If they can approach this in the right way, there might even be benefits for SMEs to enjoy. Four-in-five (78%) of the 18–24-year-olds we surveyed told us that an ethical benefits package would actually make working for an SME more attractive. With that in mind, it seems making meaningful commitments to social and environmental causes could grant these businesses an edge in the war for talent, making them highly appealing to the youngest and brightest minds in the workforce.
To put it simply, being small is no longer an excuse for inaction. As a result, we’re seeing more and more start-ups are addressing these issues off the bat, setting themselves up with strong commitments to CSR from day one in order to achieve an edge against larger firms. It’s a wise strategy, and one that any young business should consider.
How do you get started?
However intimidating a CSR initiative might seem, you mustn’t sit back and do nothing. The only way to progress is to hit the ground running and try to learn as you go.
For businesses that are new to the world of CSR, following an established framework, such as net zero, B-Corp or an industry-specific organisation like Tech Zero, is a good way to find your feet. They’ll provide what you need to get started and help identify the key areas you should focus on. B-Corp assessment is a particularly good way of measuring your progress, as well as the work you still need to do. Once you’ve met the minimum requirements and achieved B-Corp status, you can aim higher, improving your score and expanding into new areas.
Following a framework also means you aren’t doing it alone. CSR activity is an emotive subject, and many organisations which provide a framework for this also offer an incredibly supportive community, where you can ask questions and share ideas. For a smaller company, with fewer people in-house to draw on for expertise, having that sounding board can be incredibly helpful.
How long does a CSR strategy take?
While it can be simpler for smaller organisations to quickly implement CSR strategies, they mustn’t fall into the trap of trying to take shortcuts. Getting CSR right takes time, often demanding months of work. But when the consequences of not doing it include missing out on both talent and customers, and with legislation likely to be imposed on businesses in the near future, the investment is clearly worthwhile. Take action now, at a pace you can manage, rather than finding yourself wrestling with an uncomfortable deadline later down the line.
This commitment should also be shared amongst the team. Your CSR strategy may require financial or even legal expertise, meaning the heavy lifting shouldn’t simply be dropped onto the shoulders of whoever usually deals with HR. Getting everyone involved and invested isn’t just a sure-fire way of ensuring your people are on board with your strategy, as well as providing vital extra pairs of hands.
What strategy is best?
There are CSR strategies to suit organisations of all sizes and with any budget. For instance, at Amba, one of our key CSR goals was to offset our carbon emissions. To achieve this, we launched The Lumina Forest Project, a reforestation programme in Madagascar, designed to repair damaged habitats by planting upwards of 100,000 trees per year. Launched in partnership with Furthr, we’re inviting our clients and partners to participate as well, to maximise our potential impact.
We also support social causes, choosing a charity partner to sponsor each year and organising fundraising activities that the whole team can get involved in. While this might not be as sizeable an initiative as The Lumina Forest Project, it’s just as worthy a cause, and would be ideal for a smaller business looking to do some genuine good.
There is no one-size-fits-all. Whether it be environmental or social, choose a cause that has some relevance to your business, determine what budget you can feasibly put towards it, and identify a strategy that really means something to you. We, as businesses, have the power to bring about change. If we invest our time in causes that we care whole-heartedly about, even the smallest organisations can make a difference.
The question, then, is why wouldn’t we?
For more information about Amba’s mission, visit www.amba-uk.com/our-mission/
