March 2001, UK Department of Trade and Industry
The need to promote socially responsible business practice among small and medium-sized businesses was identified as a priority by Dr. Kim Howells, then Minister for Corporate Social Responsibility, in the Government's "Business and Society" report in March 2001.
Recent research suggests that SMEs in the UK may make a social contribution worth up to £3bn each year - about ten times that of large corporations. As SMEs are important to a range of economic and social initiatives in the UK and Europe, increasing the quality and extent of SME contributions to such initiatives is seen as vital to promoting the overall positive impact of businesses.
From March 2002, the Small Business Service’s Benchmarking Index will include a section on social responsibility. The Department for Trade and Industry is also supporting the development of a social responsibility toolkit with CSR Europe, building on UK as well as European experience.
A range of organisations from the public and not-for-profit sectors, including those who have contributed to this report, have an interest in promoting responsible business practice. It is envisioned that these organisations should work together, where possible, to develop and promote a common agenda to achieve this goal.
‘Engaging SMEs in Community & Social Issues’ is a consortium research study on behalf of the DTI, led by Business in the Community, with British Chambers of Commerce, the Institute of Directors and AccountAbility (the Institute of Social and Ethical Accountability). This research aims to better understand, with a view to increasing, the engagement of SMEs in responsible business practice.
The research was commissioned to help the Department of Trade and Industry better understand SME involvement in the CSR areas and provide recommendations for third parties to promote that involvement. The report examines current practice, the language used by SMEs as well as the motivations, barriers and the business case for social and environmental engagement. An action agenda is then proposed for third-party organisations and government. A list of case studies and other examples of best practice was also compiled to further illustrate and inspire SME commitment.
