SEO Meta: Corporate Social Responsibility (CSR) for SMEs has many benefits that will grow sales and profits, brand awareness, lower operating costs and increase employee productivity.
Since the beginning of industries, the primary role of a company in society has been a source of heated debate. While profit maximisation for investors and shareholders is the fundamental goal of businesses, society as a whole wants much more via the production of value in goods and services.
Corporate social responsibility (CSR) began as a way for businesses to react to a variety of societal demands, obligations, and duties related to their activities’ impact on communities. CSR as a business strategy and a reference point for advocating policies within a firm reached a pinnacle in the 2000s.
How is Corporate Social Responsibility defined in Nigeria?
CSR entails firms incorporating social and environmental considerations into their operations and engaging with their stakeholders.
Today, a number of successful organisations employ social responsibility to thank customers for their loyalty to them while also giving back to society. This might take the shape of initiatives, movements, or individual empowerment. For example, by clicking on their site and shopping from Ackermans catalogues online, the retailer says thank you to the community by promoting young fashion designers through competitions like Style Squad. The winners walk away with educational policies, school donations, clothes hampers etc. Dangote Cement and MTN are also prominent donors in our society, allocating billions of Naira to various causes.
These business projects, in whatever shape they take, are unquestionably beneficial to both the corporation and society. Some businesses are taking the initiative and launching humanitarian programs ranging from road development to poverty reduction.
It’s fantastic to engage in corporate social responsibility when it’s intended to make a positive difference in people’s lives and contribute significantly to society. A responsible corporate organisation should not only be perceived to be involved in CSR but such actions need also be clearly communicated in order to generate the required goodwill for the company.
Is CSR important for Nigerian SMEs?
Headlines on CSR always highlight multi-national companies’ donations or government efforts to environmental and societal improvement, thus rendering the topic a concern for big organisations rather than a business strategy for growth.
As a small to medium enterprise, therefore, you may be wondering if the philanthropic practice will do any good for your business or if it will harm your profits. Let us look at some of the benefits your organisation may gain when doing CSR initiatives.
SME benefits of Corporate Social Responsibility
Small to Medium Enterprises may benefit from CSR in the following ways:
What CSR initiatives can SMEs participate in?
Corporate Social Responsibility should be every organisation’s concern in order to improve brand awareness, grow customer loyalty, increase business profits, and make the society and environment a better place in general. SMEs stand to benefit from CSR initiatives as much as larger companies. By participating in initiatives or activities that are inexpensive but impactful, business growth is almost guaranteed. Uniqueness will also foster a competitive advantage