CSR: good for business and the community

Maeve Hunt outlines how small businesses can harness CSR to boost reputation, build trust, attract talent and make a genuine impact in their local community

In today’s world, people care more than ever about how businesses behave.

Corporate social responsibility (CSR) isn’t just something for big global companies; it’s something small businesses can benefit from, too.

At its heart, CSR is about running your business in a way that’s ethical, supports the local economy and makes life better for your staff and community.

When done well, it can transform a business’s reputation, strengthen relationships and create a genuine connection with the people it serves.

SMEs can make a difference

For small businesses, CSR often takes a different form than that of big companies.

While larger firms might focus on global supply chains or carbon offsetting, smaller businesses are more likely to get involved with their own neighbourhood.

They might support a local charity, for example, sponsor a sports team, make their operations greener, ensure fair pay and safe working conditions, encourage diversity and inclusion or work with local schools and youth groups.

These activities may seem small, but they can make an enormous difference at a community level.

Building trust and reputation

There are plenty of good reasons to get involved in CSR, beyond simply doing the right thing.

Supporting community initiatives can enhance a company’s brand reputation and foster trust among stakeholders.

Whether through donations to local charities or facilitating staff volunteer programmes, these actions send a message about your corporate values and social responsibility.

Clients are increasingly drawn to organisations whose values align with their own. This kind of goodwill often turns clients into loyal supporters.

It also does wonders for a business’s reputation. In today’s era of social media and online reviews, demonstrating care for your staff and community can set you apart.

Success is not just about the services offered—it’s about the values behind them. That difference can position you the go-to choice in a crowded market.

Attracting and retaining staff

It also helps with hiring and retaining great people because staff today want more than a pay cheque; they want to feel proud of where they work.

By demonstrating a commitment to making a positive difference, an organisation can attract motivated and engaged people who will stay, creating a better workplace culture and reducing turnover.

There’s even a practical advantage: CSR can enhance business efficiency. This may involve reducing waste, switching to renewable energy sources or identifying opportunities for new products and services that better meet local needs.

Sometimes, the changes that help the community also help the bottom line.

Practical steps to get started

Some small business owners worry that CSR initiatives will be too costly or time-consuming. However, many impactful actions don’t require a big budget, just a willingness to get involved.

For example, buying from other local businesses, supporting a community fundraiser, or implementing policy to reduce food waste can all have a positive impact without breaking the bank.

It’s important to monitor what’s working so you can direct your efforts effectively. This could involve asking for feedback from customers and staff, tracking staff turnover or measuring energy use and waste reduction. This way, you can share your successes and continue to build on them.

If you’re unsure of where to start, consider what matters most to you and your business, then look for ways to connect those values to what’s happening in your local area.

Speak to staff, clients and local community groups to find out what matters to them. You should start small—pick one or two areas you can focus on and stick with them. Over time, these efforts will build, and the more you share your progress, the more people will support you.

More than an extra

CSR isn’t just a nice extra; it’s a way of running your business that puts your values front and centre.

For small businesses, it offers an opportunity to give back, build stronger relationships and create a reputation you can be proud of.

In a world where people are looking for more from the companies they support, showing you care about more than just profit is one of the best investments you can make in your future.

Maeve Hunt is Director of Audit and Assurance at Grant Thornton