Small businesses giving back: why CSR isn’t just for multi-nationals

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Hundreds of small businesses got behind Clean Up Australia Day last week. Image source – www.cleanup.org.au

While many small businesses view both time and money as a barrier to developing a CSR strategy, they’re merely a minor speed bump at the start of what is potentially an ongoing road of strong community engagement and brand recognition.

For years, companies have edged their way closer to customers and now – through new media – they’re closer than they ever expected to be. This means modern day consumers (and stakeholders) now have an expectation of corporate behavior and choose to engage or work with businesses that do some kind or ‘good’ work for society.

Charitable initiatives that boost a business’s profile locally and engage with the community without direct business interest can produce long term commercial gain. After all, it’s a well-known fact that consumers (read: your customers) will often choose to engage or work with a company they know have values closely aligned with their own.

For small business this could be as simple as providing help at a grass-roots level – volunteering at a local homeless shelter or aged care facility, or donating (time or money) to a cause that is close to the community’s heart such as the local school, sports club or helping a family that’s doing it tough.

To ensure a CSR strategy is successful, it should always be executed with the full support of the organisation delivering it – otherwise it will look like an ‘add on’ initiative for commercial gain. Today’s consumers aren’t stupid, and they will easily understand your intentions.

It is therefore important that CSR activity is communicated appropriately and sensitively, so as not to appear like you are ‘tooting your own horn’. Good work should be done because it will make a difference and a business should never seek thanks or expect plaudits for it.

However, that’s not to say it shouldn’t be recognised. Indeed, we work with hundreds of franchisees who get their hands dirty in their local area and we have carefully told this story to their local community without sounding ‘preachy’. We have simply narrated their contribution to the local area which has resulted in a boost of business for many.

It could be as simple as communication through social media. This small Aussie business below participated in Clean Up Australia Day yesterday and simply shared its involvement through Instagram.

So if you haven’t already incorporated CSR into your business strategy, it’s time to take action. Regardless of the size of your business you can make a real difference in your community without having to spend huge amounts of time or money in doing so. Give back this year – and it will undoubtedly give back to you, too.

CSR and reputation in franchising

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CSR

CSR is fundamental in managing reputation

Over the past decade, more and more companies have turned to corporate social responsibility (CSR) strategies to manage their reputation. Ignite PR has helped many Australian franchises leverage CSR initiatives to not only build stronger consumer awareness of their brand but also to attract suitable franchise recruits who share the same values.

However, gone are the days of simply supporting a cause – be it training, employment, or sustainability – and leveraging it for reputation gain. Add-on CSR strategies don’t establish long term credibility and in some cases may even do the opposite. Changing social attitudes also spark new consumer expectations around CSR meaning companies have to address these changes.

So what does this mean for Australian franchising?

The first challenge is how to use CSR as a means to differentiate from competition while still maximising business benefits. Franchises will need to develop their own way of doing CSR that is consistent with both their core values and unique position in the industry. It needs to go beyond a food franchise educating people around healthy eating or coffee franchises supporting ethically and sustainably sourced coffee beans. An effective CSR program will make consumers feel good beyond the product or service they’ve purchased by supporting a company that supports a cause they believe in.

CSR can also be the difference when it comes to franchise recruitment. In a period when finding suitable franchisees is more difficult than ever, the reputation of a franchise is crucial. It’s about giving prospective franchisees another reason to invest in your brand beyond income potential or support offered. The culture that exists within your franchise and your corporate behaviour provide a great indication of the values you hold, helping to attract the people you actually want in your system.

The challenge is how to tackle CSR into the future.

CSR needs to be consistent with your franchise’s core values and supported by the entire network. It also needs to be a long term program – add-on CSR strategies won’t do much for your reputation if elsewhere you’re perceived to be contributing negatively. CSR should start at the boardroom table and be included in your business strategy, setting the tone at the top and incorporating CSR into business objectives and responsibilities of franchisees.

As franchises strive to become closer to their customers – whether through old and new media or digital marketing – CSR will bear greater importance in managing reputation as expectation of your corporate behaviour also increases.