Many believe that Corporate Social Responsibility is for big conglomerates and industrialists, alike. There is also a perception that CSR is just a social initiative that corporations mandatorily do. However, the reality is much different! The truth is that even Startups & SMEs (Small-to-Medium Enterprises) have CSR obligations and moral responsibilities. CSR is an organization’s way of doing good for its community and society. Unique CSR initiatives for small enterprises can definitely increase brand loyalty, and customer trust, and even create new revenue streams while attracting better talent. This is why we need an impactful CSR strategy that can benefit the startup & small-to-medium business ecosystem as well.

Did You Know That

• 77% of consumers prefer to buy products or services from brands that indulge in social causes.
• There are around 30% fewer employee attritions in companies that have strong CSR Projects.
• Investors have a higher propensity to invest in companies that align with ESG (Environment, Social & Governance) goals.

This simply means that CSR best practices for SMEs are the need of the hour. Even from a business vantage point, CSR can help a company grow. Let’s learn about innovative CSR strategies that can be a game changer for Startups and SMEs. Please note that these are only strategies that CSR initiatives should keep in mind while framing.

Aligning Community Impact Goals with Best Business Practices

It’s important to align social and community impact goals with the best business practices to stay relevant in the market. In simple words, a business can use its expertise to create social impact! For example, a pharma company can tether their CSR projects with the healthcare sector, a green energy company can focus on afforestation, and an education company can provide company skill enhancement services. This approach is rational as industry insights can best be applied and assessed by a party that has domain-specific knowledge.

Skill-Based Training & Volunteering

Skill-based training and volunteering can be a terrific way for startups and SMEs to create social impact. Skill-based volunteering is when a business offers their expertise, time and knowledge instead of money. Small businesses can partner with government programs like Skill India or run their apprenticeship models to effectively impart skill-based training.

• Tech startups can provide free digital marketing or web development workshops.
• Law firms can offer legal aid to underprivileged entrepreneurs.
• Finance startups can educate small businesses on financial literacy.

Localized Community Engagement

The best way for a startup or SME to cement their presence as the next big thing is by building community rapport. There are a plethora of transformative initiatives that can induce social impact such as health check-up camps, school infrastructure development programs, blood donation drives, etc. Small businesses need to build meaningful relationships with their hyperlocal communities as long-term brand positivity starts with the surroundings. Bringing about a positive impact in the close-vicinity areas can be a great start for startups!

CSR Strategies Around Inclusive & Diversity

The world is dealing with quite a few social challenges. In fact, we can even call these challenges as social evils. Racism, misogyny, 3rd gender alienation, and social & economic inequity are just to name a few that are out in the open. However, these social issues should be distanced from the workplace. Workplace culture should refrain from any kind of hetero-normativity. Organizations should strive to promote inclusiveness and diversity.

One such example of inclusivity and diversity in CSR is Social Hiring. Social hiring is a powerful way to give opportunities to people from marginalized communities and even unconventional stereotypes i.e., based on gender and sexual orientation. Hiring should be fair but at the same time should also be accommodating ofsocial indifferences.

Employee-Led CSR Programs in Startups

Employees are irreplaceable tools that help any and every organization operate and function. Therefore, every employee must be encouraged, trained and oriented towards engaging in social impact projects. Startups and SMEs have a dynamic work culture and trying out new approaches to enhance social responsibility can be great for the business. The best part of employee-led CSR projects is that they create a sense of personal investment and involvement towards social progress in the hearts of their employees. This indirectly creates socially aware and responsible employees. Small business can permit their employees to be a part of their CSR projects during working hours or by providing incentives.

Taking Feedback & Engagement to Maximize Stakeholder Value

Socially responsible companies must listen to their employees and stakeholders. The most impactful CSR initiatives are the ones that utilize the feedback from their employees. One such study (according to Glassdoor) shows that 75% of employees and job seekers believe that their Organization should support their local communities. This means that businesses should first cater to their hyperlocal communities. If we speak of feedback, then there should be no metric to eliminate whose feedback we should and should not consider. Businesses (especially startups &SMEs) should also assess the feedback given by their consumers. There have been infinite instances of consumer activism and social media has perpetuated this. Ultimately, valuing the opinions of others can add tremendous value to your efforts.

Conclusion

The reality is that Startups and SMEs may also have CSR obligations or may find it moral to invest in community development and social change. However, startups and SMEs are agile, and dynamic and can bring forth innovation at a faster pace than legacy businesses. By implementing these game-changing CSR strategies, businesses can make a great impact on society while building a strong, purpose-driven brand. To know more corporate social responsibility ideas for startups or SMEs or innovative CSR strategies for small businesses, reach out to Fiinovation (Innovative Project Management Services Pvt Ltd)-contact details.