
Why it is important for SME?
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“Free enterprise cannot be justified as being good for business; it can be justified only as being good for society” (Peter Drucker)
Long term success relies on sustainability. What does that mean? Every company (be it small, middle or large sized) has to leave the people, the environment, the nature and the universe in the condition not worse than it was before, and in the ideal case – of better condition. Do not contaminate, do not harm, protect, save, treasure. That is the main principle of social responsibility..
Social responsibility does not require from business to share the profit with the society or to solve the problems of the society. It reflects mostly the company’s responsibility in its daily activities. Often an enlightened pursuit of self-interest will also solve some problems of the larger society. Therefore the appeal to social responsibility is not a merely moral one. It is the appeal to find common ground between differing and sometimes contradicting interests of different parties, while seeking for self - interest.
SME are in the focus of the problem. Why? SME are the backbone of the European economy. They provide the biggest share of workplaces. They are often closely connected with their regions and communities. While big corporations operate world wide and can and will change their place of production only considering the highest profitability, SME are much more dependent on the acceptance of their behaviour in their immediate community. Only if they are able to build a reputation of being a good neighbour they will be able to attest the talent they need, sell their products locally, maintain good relations with suppliers and avoid conflicts with government.
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Research shows: the socially responsible business is the well managed business that ensures its success also in the long-term perspective. But there are also a range of quite short - term effects: |
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A frequent objection to initiatives to increase the level of SR in companies is potential costs involved. It cannot be ignored that some efforts and resources will be involved in fostering the level of SR management. The calculation of these costs however should not ignore the costs of not becoming more SR. In fact, many of these costs are already there and are an impediment to the business success of SME. |
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2009 © This project has been funded with support from the European Commission.This communication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.