DISCUSSION PAPER: SMEs: Using CSR to Achieve Sustainability

SUMMARY

The discussion paper presents how Corporate Social Responsibility has emerged from the fringes of business and civil society engagement, and is now viewed as a framework for simultaneously promoting business competitiveness and environmental and social sustainability (the “triple bottom line”). This paper will argue that Small and Medium Size Enterprises are the key to the success of any effort to improve global sustainability through Corporate Social Responsibility. SMEs produce 65% of global GDP and also comprise an important part of transnational corporations’ CSR efforts. Furthermore, many SMEs have strengths –flexibility, the ability to innovate, strong ties to their communities – which allow them to embed CSR deeply in their businesses.

Transnational corporations must understand that practicing CSR also means working closely with the SMEs in their supply chains. When promoting CSR in their supply chains, such corporations should ensure that the SMEs are supported in their efforts to meet higher standards of performance in quality and in CSR. This includes adequate and fair compensation for the costs they incur in complying with global standards and pursuing their own CSR. This will allow SMEs to be dependable business partners, and contribute to CSR practices of the entire industry.

HOW YOU CAN CONTRIBUTE

The full paper is available here. We are very interested in receiving input and comments on our papers to help guide and inform the Dialogue process. We are interested to know:

  • How can corporate sustainability reporting strengthen private sector responsibility and accountability?
  • What can governments do to advance this agenda and develop the role of the corporations in sustainable development?
  • Do you have any suggestions to strengthen this particular proposal?
  • What do you consider a successful corporate social responsibility and accountability outcome at Rio+20?

Please go to our Forum to voice your opinions on these topics, and any other aspects you consider relevant to the Dialogue. We hope to encourage discussion to successfully integrate this knowledge into the Dialogue.