SMBs and Their Social Responsibilities
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SMBs and Their Social Responsibilities

By SiliconIndia   |    1 Comments
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Social Responsibilit


Bangalore: The role of corporates in widening the gap between the rich and the poor is the prolonging debate in economy sector of the western world, demonstrated by Occupy Wall Street movement, has made an impact on  India and now the country is focusing on the ‘Corporate Social Responsibility’ of enterprises . Large enterprises and corporate organizations have often demonstrated the culture of ‘Corporate Social Responsibility’ (CSR) by adopting the local society on whom they depend for labour, land and other required resources. However, the CSR culture is yet to be adopted by many large corporates and be a part of the mainstream business strategy because as of now only few large corporate have been practicing CSR which still remains indefinable.  In such a scenario the Indian SMEs have an important part to play in narrowing the social gap and help India grow prosperously.



Inculcating Ethics in Business



Adopting ethics in business is one key point that all corporates need to focus on.  SMEs can work towards achieving a goal of practicing ethics in business which would be their first step in CSR, as per N Muthuraman’s article in Business Line, paying all taxes and duties, providing a healthy working environment, adhering to basic social security regulations such as minimum wages, ESI, PF, etc, shunning cash-based transactions, and avoiding corrupt practices to solicit business — each of these will contribute to a much more equitable society than what we have currently inherited. SMEs account for a total of 45 percent of the industrial output and 40 percent of Indian export market that makes them a strong foundation of the country’s economy. These SMEs can eventually



Welfare of Local Communities



Enterprises can undoubtedly benefit from the local communities in the long run by involving them in some or the other form though it may not be very cost-effective for an SME to depend totally on the local environs for their resources such as basic raw materials, labour, commodities etc. However Enterprises and the entrepreneurs need to realize that they are depending and utilizing the local community’s resources in one way or the other like water, power, land etc and hence these companies and owners need to take an initiative to return the favours to the local community. Large enterprises can take a responsibility of adopting hospitals and schools of the community while the SMBs can help the locals by proving them employment opportunities, utilizing their agricultural produce or farm wastes, involve the locals in day-to-day business like having them as vendors for commodity supplies etc.



Most of the entrepreneurs are business minded and naturally they look down upon the CSR initiative as deed of charity, the fact that CSr culture in some way would affect the profitability of business cannot be denied, But the point here is that entrepreneurs and enterprises need to inculcate CSR practices, make it a part of their business goals and take up the responsibility to build a Better India.



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Reader's comments(1)
1: - The
The blog gives a new definition to CSR in SMBs. In order to have a sustainable growth in due timeline, the above strategy will work diamonds.
- But Don't want to generalize my statement and extremely cynical view of CSR for all the corporate biggies but it is overrated in corporate India. Social Initiatives in majority of the corporate firms are analogous to "Vampires doing sweet talk with their victims". The results of their efforts are meager yet widely inflated and published on all forums. A sincere and substantive effort is need of the hour.
Posted by:Jaspinder - 07 Mar, 2013
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