Britains bosses - hard-nosed cynics or do-gooders?

Corporate social responsibility (CSR) has been widely criticised as the latest management fad aimed at larger businesses keen to boost their images by jumping on the ethical bandwagon. However, the latest research from Bibby Financial Services reveals that good business ethics are increasingly a concern for the small business sector.

Whilst almost a third (30 per cent) of small business owners and managers do not necessarily have a formal, written-down CSR policy, nearly nine out of 10 businesses have procedures in place to ensure that equal opportunities and human rights are adhered to. Furthermore, more than half (53 per cent) of owners and managers make a conscious effort to help the environment by trying to minimise waste.

Further proof that smaller businesses are boosting their social credentials is their increasing involvement with charities. In fact, over two thirds of owners and managers have donated money to charity in the last 12 months whilst 43 per cent have given voluntary help to charity.

There is little doubt that the issue of CSR is getting higher on the small business agenda with some 17 per cent of owners and managers admitting that they have actively sought information on how to adopt more ethical business practices in the last 12 months. A further 13 per cent have actually developed a formal CSR programme in the past year.

However, the small business sectorís steps towards taking an ethical stand are not as altruistic as they would perhaps first appear. In fact, just 43 per cent of business owners say that the main motivation for them adopting an ethical stand is that they want to improve the world they live in.

Instead, three quarters of owners and managers admit that their main reason for adopting CSR measures is to create a more positive public image whilst 63 per cent want to gain a competitive edge over rivals.

Other reasons small business owners and managers have for taking CSR into account are to respond to increased customer demand (62 per cent), to be more attractive to potential investors (60 per cent), to secure business with larger firms that have strict ethical codes (57 per cent) and to attract a higher calibre of staff (43 per cent).

Commenting on the findings David Robertson, Chief Executive of Bibby Financial Services, said, ìRegardless of ownerís and managerís motivations for adopting a formal ethical policy, there is little doubt that CSR is gaining ground in the small business sector. From our research, it is quite evident that smaller firms are already doing quite a lot in the community, from donating money to charity to supporting and attending local events. The main difference between small businesses and their larger counterparts is that generally speaking, smaller firms are unlikely to have the time to develop a formal written CSR policy and are also less liable to make a song and dance about the contributions they make to their community to gain PR mileage.

ìIt is all very well to wax lyrical about saving the planet or to campaign for human rights, but the busy small business owner or manager, needs a positive commercial advantage for taking an ethical stand. If having an ethical code of conduct can increase small businessesí chances of winning key contracts, give them a competitive edge over rivals or give a much needed boost to ailing profits, then it is certainly worthwhile. If it helps the local community and improves the world at the same time, then it is hugely beneficial and those owners and managers who do not currently consider ethical issues, need to sit up and recognise that CSR is not only good for business, employees, stakeholders and customers, but for society in general.î

In order to help small businesses start developing a CSR stance, Bibby Financial Services has developed the following five basic steps:

(1)Think about your own values and devise a list of business principles for

your firm, such as always insisting on honesty and integrity
(2)Respect your rights and those of your staff and provide good and safe working conditions

(3)Review your current policies/procedures and introduce social and environmental strategies to improve the way you work

(4)Take care of the environment - consider using recycled paper and think about ways to minimise waste

(5)Encourage socially responsible behaviour throughout your organisation and try to do something that will benefit your local environment, such as donating to charity or providing careers advice to school pupils