Responsibility can pull in the punters

Jan 20 2009 by Sue Scott, Evening Gazette

SUZANNE McCREEDY from the Awards’ main sponsor Business Link, gives an insight on why CSR and environment matters

BUILDING a reputation as a responsible business sets you apart.

Many consumers prefer to buy from ethical businesses and companies often favour suppliers who demonstrate responsible policies as this helps them to minimise the risk of any damage to their own reputations.

Some customers don’t just prefer to deal with responsible companies - they insist on it. Sales of environmentally friendly products continue to grow - and these products often sell at a premium price.

Many businesses could cut energy costs by over 10%, according to Carbon Trust estimates, with the total average annual saving for a small business maximising its reductions around £250, up to £5,000 for larger employers.

Examples of simple ways you can help the environment and your business by cutting costs, include getting staff to turn off equipment when not in use, switching to energy-efficient bulbs - a measure that can reduce lighting bills by up to 75%, and discussing options with your energy supplier about the products they have available to boost energy efficiency. If you work from home, insulating your property is one of the most effective ways to cut costs and could pay for itself in less than two years.

Working with your local community brings a wide range of business benefits. For many businesses, local customers are an important source of sales. By improving your reputation, you may find it easier to recruit employees. A good relationship with local authorities can also make your business life much easier as local authorities may prefer to award contracts to businesses with a record of community involvement.

There are many ways to get involved in your community. Some businesses choose to support a local charity, school or sports team, or sponsor a local event.

It makes commercial sense to pursue activity related to your product and can be a productive way to generate publicity. This lets you use your expertise as well as showing the human face of your business. For example, some restaurants provide food to local homeless groups, while builders may give free labour and materials to community projects.

Making provision for staff welfare and training is good for productivity and morale. A good reputation also makes it easier to recruit employees, who are then more likely to stay longer, reducing the costs and disruption of recruitment and retraining.

A formal development review process is the best way to keep track of the skills and training possessed by staff at all levels in your business and putting procedures in place to help employees deal with stress is an important means of responding to problems such as smoking and increased alcohol consumption during busy periods.

Good management can reduce work-related stress. Setting realistic targets and providing employees with training and opportunities for promotion can help to boost employee morale. You can’t eliminate stress altogether so it’s important that you learn to spot the symptoms and encourage employees to raise issues that are bothering them.

Choosing your suppliers carefully can be an important part of your approach to corporate social responsibility. For example, you might try to use local suppliers. This helps you support your community and also reduces the energy wasted in deliveries.

Treat your suppliers fairly, particularly smaller businesses that rely on you. For example, being paid on time can make a big difference to them.

Similarly, you should not abuse your position by taking advantage of a business that is relying on you to deal with them in an honest and fair way. While you might make a short-term gain at your supplier’s expense, your relationship will suffer. Squeezing too hard might even put your supplier out of business, leaving you both worse off.

All these measures cut across every aspect of commercial activity and can benefit business as much as the people they help.