Having CSR Projects is compulsory for every business irrespective of the company size or age this is my view. I will mention at least 3 reasons in hope to encourage all SMEs to join force. Through my business engagements many think this practice is only good for Big companies and they therefore dismiss the idea or not pay attention to it and I think this is a mistake. It must be the mentality of running small businesses that led to this conclusion 😉
Big companies are taking advantage of the use of CSR projects and link them to their core businesses. Companies such as Pick n Pay, Liberty, etc have their own registered Foundations and you know why? From an Accountant point of view I know the CSR Projects help reduce their Income Tax bracket (this is legal by the way) but this is not the only reason they are involved. CSR is an important building block.
Here are my 3 reasons why your ‘Small Business’ will benefit from CSR Projects.
1. CSR are a good use as a Marketing Tool (though they deny this fact)
- The main purpose for CSR is to uplift and empower communities but while at it you are able to put your Company name out there. Society will be able to identify you and your brand and what you stand for, that is called – BETTER BRAND RECOGNITION.
2. Positive Business Reputation
Building a reputation as a responsible business can lead to Competitive Advantage. Once people recognise you for the work that you do for the communities they don’t just want to buy from you – they insist on it. This will help with Sustainability.
3. Better Financial Performance
The more people know about your business the more they come to you and you will receive referrals too. This will no doubt increase your profit margin which lead to a Business Growth.
As much as Government has guidelines policies and form partnerships with some of these big companies / corporates but my thorough analysis is the big winner in all this is still the companies, they are reaping more rewards because this method works. For example look at how they all jumped to the Learnerships & Internship Programmes which that too is supported by the Government. Your argument will be you lack resources but you can contribute your TIME for starters.
My advice though: If you are going to do it please do it wisely. Make sure that the community will not ONLY recognise you for your social projects but must be able to identify your main business too that is very important, Link the two wisely.
Compiled by Dikeledi Seoloane on behalf of Matsobanemetja Business Consulting (Pty) Ltd – Coaching Division.
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Matsobanemetja Business Consulting Pty Ltd 