WHY SOCIAL AND ENVIRONMENTAL IMPACT

Corporate social responsibility is a term that has been around for a long time. Just by virtue of its name, it has seemingly excluded those businesses who do not see themselves as “corporate”: micro or small businesses. Yet, these businesses number approximately 9 million in Australia and, as such, are an important part of social and environmental responsibility efforts. 

Until now, micro and small businesses have done “what they can” and “what feels right” in a spontaneous and ad hoc manner, often in response to a request from outside. By accepting assistance with social and environmental impact planning, however, businesses can take making a positive social and environmental impact into their own hands. Given their prevalence in Australian society, this will have significant positive outcomes for society. When businesses distribute a percentage of their profits to a local charity or develop an improved waste management system or provide direct assistance to marginalised groups or increase energy efficiency, positive impact results.

In addition to the positive effects for society, research indicates numerous benefits accrue to businesses who strategically implement social and environmental responsibility and communicate what they are doing. In particular, having a social and environmental responsibility plan can increase a business’ competitive advantage and financial performance. For example, undertaking social and/or environmental activities in its local community can increase awareness of a micro or small business among its customer base and potential workforce (i.e. the local community). This saves costs with advertising, staff turnover and recruitment, thus contributing to competitive advantage and enhancing business  growth.