Jean Roberts

There is a growing expectation by governments and philanthropic leaders that the business or corporate sector in general – and small and medium enterprises (SMEs) in particular within that sector – will willingly, financially and organisationally embrace the practice of Corporate Social Responsibility (CSR).

The expectation is that SMEs will ‘invest’ their scarce resources in community and social enterprise initiatives: such resources may be financial, human, technological, physical or intellectual. CSR, in turn, is expected by governments and philanthropic leaders to substantially reduce the demand on their own respective – and reducing – financial resources.

These Four Critical Success Factors are presented almost as a checklist for an SME (that is profit-driven) when invited by a nonprofit organisation (that is mission driven) to collaborate in a combined project.

CSF 1:    A clear understanding of and commitment to the need and opportunity to collaborate – the focus here is on the activity units in the ‘supply/demand chain’

1. an initial exploration of the catalyst for the Project, the processes and procedures for collaborative planning, and the identified stakeholders – in particular the viability, integrity and community profile of the nonprofit organisation making the approach
2. an initial exploration of the Project parameters to ensure compatibility with the Project, and acceptance of and commitment to the desired outcomes of the Project
3. match (a) and (b) with the strategic direction and current and known commitments and obligations of the SME as a total operation
4. identify resources, expertise, etc., available or required from each stakeholder, and identify any gaps in the availability or quantity of resources
5. identify likely costs and benefits, and anticipate possible or desirable return on investment of resources that will be required
6. check that the timing is right for the SME as a total organisation
7. agree to proceed with planning, subject to satisfaction from (a) to and including (e)

CSF 2:  Monitoring the constant presence of uncertainty

1. establish formal linkages with reliable and committed partners: explore the concept and the practical application of collaboration, ie formal structure and modus operandi
2. allocate facilitation and coordination tasks and responsibilities: such responsibilities to be written into a position description in each participating organisation with associated time allocation
3. assess the nature and extent of risk
4. decide how costs and benefits will be shared
5. agree on the leadership role
6. allocate tasks and timelines, particularly in relation to financial matters and reporting
7. ensure confidentiality
8. build trust
9. ensure that each party sees the collaborative working arrangement as a high priority for their time and resources

CSF 3:  Ability to manage organisational growth

1. anticipate the impact of the combined Project on the SME’s usual activity, reputation and public profile/market strength
2. examine the manner and extent to which the total SME is managing its current and known commitments and opportunities design internal management of (a) and (b)
3. review CSF 1, 2 and 3 to ensure confidence that the timing of the approach is the ‘right time’ in the life-cycle of the SME
4. ensure careful records of all planning discussions in explicit terms to avoid any misinterpretation or misuse of authority, position or opportunity. A formal protocol or agreement by all parties to the terms and conditions that form the basis of the ongoing working relationship, and the basis for any further negotiation or resolution through implementation of the Project

CSF 4:  Lateral thinking and entrepreneurial energy

1. establish a decision-making procedure that allows and encourages lateral thinking and displays entrepreneurial energy in achieving the Project’s desired outcomes – while allowing for and respecting the ‘mission-driven’ bottom line of the nonprofit organisation and the ‘profit-driven’ bottom line of the SME
2. the decision-making procedure should ensure clear and agreed Project objectives and measurable objectives over a defined timeframe within a defined budget
3. criteria for decision-making to include:
   • value for the target audience of the Project
   • value of the Project as a ‘role model’ to encourage other CSR Projects and to present a ‘good practice model’ for others to adopt or adapt
   • value for major stakeholders
   • value for the SME in terms of return on investment of SME resources, which should be quantified at this project development stage
   • value of celebration of achievement in process and progress

Email  jean@jeanroberts.com.au to discuss the role and potential of corporate social responsibility.