Opportunity and Responsibility – How to help more small businesses to integrate social and environmental issues into what they do

European Commission, Directorate General for Enterprise and Industry

(report produced by: European Expert Group on Corporate Social Responsibility and Small and Medium-sized Enterprises)

2007

Free

Free

English

(3 page summary of key messages also in: Belgian, Czech, German, Greek, Spanish, English, French, Italian, Latvian, Lithuanian, Hungarian, Maltese, Dutch, Polish, Portuguese, Slovenian, Finnish, Swedish, Estonian)

Experts of the Enterprise and Industry DG:  entr-sustainable-industrial-policy@ec.europa.eu

Corporate Social Responsibility:  entr-csr@ec.europa.eu

 http://ec.europa.eu/enterprise/policies/sustainable-business/files/csr/documents/ree_report_en.pdf

General Guidance

Support for SMEs

The aim of the report is to increase the quality and quantity of initiatives taken to support the uptake of CSR amongst SMEs. It captures the latest thinking on the issue in Europe and should provide ideas and inspiration for new and better initiatives. It is a contribution to the debate on CSR in Europe, and it should help advance understanding and recognition of the particular role of SMEs in the development of CSR.

The Opportunity and Responsibility report is the work of the European Expert Group on CSR and SMEs, established by the European Commission in September 2005. The group comprised experts appointed by EU Member States, from a variety of backgrounds (SME and employers' organisations, non-governmental organisations, CSR networks, academics and civil servants). It was assisted by a number of observers and others with expertise in particular areas (a full list of involved persons can be found at the end of the report). The report builds on a number of previous European initiatives on the topic, which are documented on the website of the Enterprise and Industry DG.

The report starts with a summary of 16 key findings of the Expert Group, e.g. that CSR is not a new concept for SMEs, that language and terminology must be appropriate, and  that there is a lack of academic research on CSR and SMEs.

6 chapters then address the following questions:

1. Awareness-raising and communicating with SMEs about CSR: what techniques work best when communicating with SMEs about CSR, and what should be avoided?
2. Capacity-building for SME intermediaries and business support organisations: what competences do business support organisations need to advise SMEs on CSR, and how can they be acquired?
3. CSR tools for SMEs: what kinds of toolkits, guides, certification systems, and reporting/communication techniques are most appropriate for SMEs?
4. CSR in the supply chain: what is the influence of the CSR requirements that larger companies impose on suppliers, and how should the ideal buyer behave?
5. The business case of CSR for SMEs: what advantages can CSR bring for SMEs, and how important are such advantages as a motivation for SMES to engage in CSR?
6. CSR, SMEs and regional competitiveness: can CSR be part of a regional development strategy and contribute to socio-economic development at a regional level?

Each section begins with a summary of the questions at stake, followed by concrete recommendations. Additional information and links are subsequently provided.

No

Business support organisations, trade unions, networks, non-governmental organisations/civil society, policy makers, intermediaries

Additional (according to LARRGE evaluation): Companies, consultants, employers' organisations, trainers, governmental and public organisations, CSR experts

Primary, secondary and tertiary

All regions

Small and medium-sized enterprises

Yes. The European Expert Group on CSR and SMEs has also produced a series of one-page good practice descriptions, explaining how some organisations have successfully helped small businesses to engage in responsible entrepreneurship. However, these are not included in the report itself but provided separately on the DG Enterprise and Industry website.

No

No

No

None.

Opportunity and Responsibility emphasises that it is not realistic to expect a significant number of SMEs to read and study major international instruments and reference texts on CSR, such as the UN Declaration of Human Rights or the UN Global Compact. CSR tools produced specifically for SMEs can help bridge this gap by incorporating relevant aspects of such instruments, even if they are not mentioned by name. Care must in any case be taken not to undermine the basic standards established in international law.

None.

Opportunity and Responsibility emphasises  that it is not realistic to expect a significant number of SMEs to read and study major international instruments and reference texts on CSR, such as the ILO declarations and conventions. CSR tools produced specifically for SMEs can help bridge this gap by incorporating relevant aspects of such instruments, even if they are not mentioned by name. Care must in any case be taken not to undermine the basic standards established in international law.

The report explains that CSR is culturally specific and varies according to political traditions, the nature of social dialogue, and the degree to which certain social (and environmental) issues are regulated by law. It is useful to have a common understanding at EU level of the definition and importance of CSR, but ultimately the practice of CSR has to be adapted to the particular circumstances of different nations and regions.

Productive and freely chosen work

Right to work

Prohibition of forced or compulsory labour

Prohibition of child labour

Rights at work including the core labour standards

Right to equal treatment and non-discrimination between women and men, gender issues

Right to equal treatment and non-discrimination concerning all other groups

Diversity Management

Right to education

Right to safe and healthy working conditions

Right to fair wages

Right to equal pay for equal work

Right to decent living

Right to rest, leisure and annual leave

Right to reasonable limitation of working hours

Right to permanent employment relationship

Right to privacy

Right to strike

Right to form and join trade unions

Grievance procedures and remediation

Social protection

Right to social security including social insurance, pensions

Mitigation of adverse employment effects

Social dialogue

Freedom of association and right to collective bargaining

Tripartite consultation

External impact

Right to an adequate standard of living

Security issues, private property protection

Right to the highest attainable standard of physical and mental health

• Capacity / capability building
• Customers / consumers
• Diversity / equal opportunities
• Environment
• Health and wellbeing
• Local communities
• Natural resources
• Recruitment and employment practices
• Safety
• Social investment
• Stakeholder engagement
• Supply chain management
• Training, skills and talent
• Working conditions

No

Yes.

Chapter 4 of the report is dedicated to this particular issue. It addresses the promotion of CSR through the supply-chain by asking which influence the CSR requirements made by larger companies on their suppliers have and how the ideal buyer should behave.

No

No

Raising awareness of CSR for small and medium-sized enterprises is a challenge, mostly because their owners are very busy and focused on ensuring the short-term survival of the company. Also, many SMEs may not consider social (and environmental) issues as immediately relevant to their business. Only a small minority will seek to use CSR tools - even fewer the more sophisticated the tool becomes.

Against this background, a multi-stakeholder group of experts has developed the Opportunity and Responsibility report with the aim of supporting SMEs in their approaches to CSR. It does not say anything about human rights or decent work, since it tackles the topic from a purely technical perspective, addressing the most promising methods for CSR awareness-raising, consulting, and reporting, etc. in respect of SMEs. Regarding the content of SMEs' CSR strategies, the report states that aspects of CSR most relevant to the areas of business in which the SME operates should be identified; otherwise it may appear overwhelming or excessively complicated.

Use the report as a valuable reference book when advising or otherwise working closely with SMEs, in particular when helping them to improve their social, environmental and financial performance. Draw on its findings in order to elaborate good CSR initiatives/policies tailored to the needs of this "hard-to-reach" group. Though it is not primarily addressed to companies, it may help smaller businesses gain a deeper understanding of the business case for CSR, including what is expected from them and how far they can benefit from engagement with the concept. The Toolkit CSR for SMEs (DG Enterprise) is also highly recommended in this respect

ree_report_en.pdf
Evaluation_francaise_-_Opportunity_and_Responsibility.pdf