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Corporate Responsibility by
SMEs can have a “big” impact
By Nizla Naizer
With the objective of providing in-depth literature and
information aimed at promoting corporate responsibility within
the small and medium enterprises sector, ‘International Alert’,
a UK based NGO launched a Resource Pack last week.
“This booklet is unique across the world, as it targets the SMEs
in the private sector in particular,” ‘International Alert’,
South Asia Programme Manager, Markus Meyer said at the launch.
“International Alert’ has been collaborating as an active
partner with the private sector for the last ten years, and we
hope this resource pack will serve as a model for other
countries as well.” International Alert, Business and Peace
building Head of Unit, Radhika Hettiarachchi, who also
co-authored the book, explained that the resource pack draws on
the experience of ‘International Alert’ in Sri Lanka and other
countries. “Business entities are not just an engine of economic
growth, but are key players in taking the country forward. The
objective is to make Corporate Responsibility (CR) an entry
point to looking beyond philanthropy and turn it into strategic
CR.”
She informed that most literature on Corporate Responsibility
has been aimed solely towards the larger corporations which are
Colombo based. “SMEs face different problems, and have different
needs. We are trying to cater to their needs by providing
literature on CR that can be adapted to their sector and their
capacity. SMEs contribute to 80% of all business in the country,
and grow and suffer with the people.”
‘Context Sensitive CR’
“A small contribution towards Corporate Responsibility by these
SMEs can make a large difference,” shse continued, “And instead
of focussing on the bigger objectives, we talk of a ‘Context
sensitive CR’ where depending on the context of their activity,
the business entities can frame their CR approach.” The resource
pack can be used as a tool to do business better, energise and
further mobilise business activity in the community. It
comprises of five sections which include; an introduction to
strategic CR and context sensitive CR, Analysing and identifying
the SMEs work with, effectively planning the CR strategy, how to
measure successes and failures and the lessons learnt, and
providing additional resources.
Private Sector akin to benevolent king -Chandra Jayaratne
The private sector is expected by society to be like a
benevolent king, and act with justice, equality and
inclusiveness, said former Ceylon Chamber of Commerce Chairman,
Chandra Jayaratne. “Surveys conducted within the country have
told us that the people want the private sector to play a more
active role in helping the country develop,” he added. A survey
conducted in 6 districts with 600 respondents had revealed that
while the youth in the South want education, good jobs, good
values and stability, the North want unity and the people to
work together. He said that all respondents did not want the
country to go back to the divisive state it was.
“For the country to be on the path to progress we need three
important elements. There should be a vision followed by all.
From the nation, to the sector, to the individual business to
the individual, there must be a common vision you can work
towards.”
He continued that there should be core values where profits and
CSR is balanced in a way that stakeholders and citizens can be
kept happy. “Finally, a proper culture is vital so good
governance and collectivism will lead to more active SMEs.”
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SMEs need help to integrate
triple bottom line approach – Franklyn Amarasinghe
“The SME sector is set to grow in this country
and we need to help them to integrate Corporate Responsibility into
their activities,” Emsoble Consultants Managing Director Franklyn
Amarasinghe said. “Big companies know that the public eye is always
on them, but smaller firms get away from public scrutiny. We need to
make them also feel a sense of responsibility.”
He stated that internal responsibility as highlighted by the
resource pack is important. “Disgruntled employees are harmful to
the firm. SMEs should cater to their own community, through their
own rural strategies. A new code for SMEs on practical issues faced
by them as they implement their CR, is necessary. This resource pack
leads the way.”
Doing well by doing good to SMEs – Ravi Fernando
In the last few years, the concept of CSR has been prostituted,
SLINTEC CEO and UN Global Compact focal point for Sri Lanka, Ravi
Fernando stated. “In the recent years, companies either do good to
look good, or they do good and get away fast. So understanding the
sphere of influence is the starting point of good CR.”
He added that it was also important to understand the global agenda
of CR which is clearly mapped out by the UN Millennium Development
Goals, and the UN Global Compact which sets out how to do it. The
key point is that there are opportunities to do good and do well.
That should be portrayed to the business entities in the country.
“In the future, there will be two types of businesses: those that
understand corporate responsibility as a commitment to sustainable
business: and those that do not. However, they must start from
economic sustainability, and then move on to environmental
sustainability.”
Move from conflict economy to peace economy –
Rohantha Athukorala
SME sector in the North and East will contribute close to 95% of the
business , SCOPP Economic Affairs Director Roshan Athukorala said,
adding that it was vital for enterprises to understand that they
need to move from a conflict or war economy to a peace economy.
Some of the biggest challenges faced include access to finance,
access to channels of distribution, access to land, access to
movement, proper legislation which allows for decision making and
access to technology. Athukorala said that the overall GDP of the
country can increase by 4.4%, if the farmers in the East switched
from manual irrigation to drip irrigation. “It’s also vital to look
at the inward and outward approach of CSR. The SMEs in the North and
East can contribute to their own community development through these
initiatives.”
Opportunity for the entire country – Neela Marikkar
The country’s in a unique situation and the opportunity to develop
as a whole is now available to us, Sri Lanka First and Grant McCann
Erickson Chairperson Neela Marikkar stated. “The business entities
of this country have not been proactively involved for too long. We
need to step up to the play, and take a more proactive role where
small or big, we partner each other and move forward.”
She added that along with the North and East, even areas in the Deep
South which had not developed or benefitted due to more pressing
needs of the government, can now be exposed to more opportunity and
more development. “The whole country stands to benefit from the end
of the conflict we see on the horizon.”
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