Corporate Citizenship: Real world challenges for small business

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Corporate CitizenshipReal world challenges for
small business

• Trevor Goddard, Research Associate
• Centre for Research into Disability and Society
• Helen Grzyb, Director
• Helen Grzyb and Associates

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• like to see more businesses contribute to the
  welfare of their community and that
• the spirit of corporate citizenship suggests a
  company that derives profit from the community
  has an obligation to contribute to its
  development
• (Australian Bureau of Statistics, 2002)

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Small business

• What is a small business/SME ?
• employ less than 20 people, independently owned
  and operated, owner/manager contributes a
  significant proportion of operating capital and
  controls decision making processes

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• Australian Bureau of Statistics (ABS) report that
  the small business sector comprised about 1.3
  million non-agricultural businesses in Australia
  in June 2004 a figure which represents
  approximately 96 of all private sector
  businesses

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Corporate Social Responsibility

• embraces such a wide range of issues
• (human rights, employee rights, environmental
  protection, community involvement, supplier
  relations) and therefore is the totality of the
  impact that a company has on society.
• Culbert (2000 p. 1)

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• There is one and one only social responsibility
  of business to use its resources and engage in
  activities designed to increase its profits as
  long as it stays within the rules of the game,
  which is to say, engages in open and free
  competition without deception or fraud
• (Friedman 1970, cited in Spencer Mills 2000 p.
  51)

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Social capital

• After the September 11 World Trade Centre
  tragedy, the balance between politics, business
  and civil life profoundly changed
• The concept of community, whether in a small
  village, a city block or a large metropolis, is
  indicative of people held together by multiple,
  cross-cutting bonds
• Strong positive linkages between social capital
  and successful, progressive communities

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Giving Australia Research on Philanthropy in
Australia (Oct 2005)

• Covered donations, community projects,
  sponsorship
• Businesses with fewer than 11 employees account
  for 89 of all Australian businesses
• 66 participated in some form of giving or 1.5
  billion - 47 of all business giving

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Forms of giving by small business

• volunteerism (including through service clubs)
• donations/sponsorships
• in-kind support (particularly from service type
  businesses)
• discounts
• skills development
• industry development
• local governance
• From Grzyb research

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Small businesses were contributors to

• Fremantle
• arts
• community activism,
• disability,
• environmental management,
• emergency services,
• heritage,
• housing,
• industry development,
• international relief
• multi-cultural groups
• From Grzyb research

• Narrogin
• sporting and recreational activities
• education
• local economic development
• health/aged care

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Small business social or economic impact?

• synergies from combined social/economic effect
• inherent tension for small businesses,
  particularly in rural/regional Australia

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Options for involvement by small business
involvement

• Philosophical
• Market driven
• Choice
• Requests from the community
• Perceptions of the customer base

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Recognition and reward and small and medium
enterprises (SME's)

• the reality of SME community involvement
• a need for recognition - the elves and the
  shoemaker

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Recognition and reward and SME's

• other mechanisms - peer pressure, market pressure
  and network pressure
• influence of supply chains, government and
  community expectations

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Connecting with small business

• the use of language
• the elephant and the flea
• motivated positive and dedicated individuals
• power of connection with staff, family members
• a relationship that is two way

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Amalgamation of NGO's

• An organic community
• Local small business activity is likely to be
  close geographically
• Disengagement
• Exit strategies

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Conclusions

• A business that makes nothing but money is a
  poor kind of business (Henry Ford inventor and
  philanthropist)