1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 1 A Guide to Corporate Social Responsibility for One-Person Enterprises © Ioannis Kounadeas, Fotolia.com 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 2 A Guide to Corporate Social Responsibility for One-Person Enterprises Vienna, 2010 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 3 Contents Foreword . 4 What is Corporate Social Responsibility (CSR)? . 5 How Will I Benefit from CSR? . 6 Why Focus on One-Person Enterprises? . 7 5 Steps to Long-Term Success . 8 Putting the Steps into Practice . 13 Where Can I Get Additional Information? . 23 © Ioannis Kounadeas, Fotolia.com 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 4 4 Foreword Foreword You are about to read what is in all likelihood the world’s first published guide to corporate social responsibility (CSR) for one-person enterprises (OPEs). 1 You can use it to explore a range of suggestions for strengthening your business, be it by building a competitive advantage, optimising conflict and crisis management, or saving costs. We provide step-by-step instructions and guiding questions designed to help you get the most out of this guide. Please go at your own pace and decide for yourself which of the issues discussed are relevant to your OPE. Bear in mind that it’ s about the journey, not the destination. You’ll make good headway on integrating CSR into your business just by examining the various aspects covered in the guide and setting your own priorities. After you’ve read through the guide you may be curious to see what other companies are doing about CSR. For examples of good practice undertaken by different-sized companies, check out “Praxisbeispiele” on the respACT website [www.respact.at]. Who knows, in a year or two you may become one of the first OPEs to be listed in this database. W e’d certainly be delighted to include you. Best wishes, The Editors 1 Market-oriented companies with a long-term focus and no co-owners, i.e. sole proprietorships and limited liability companies. 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 5 5 A Guide to CSR for One-Person Enterprises What is Corporate Social Responsibility? Corporate social responsibility (CSR)1 involves balancing the needs of business, society and the environment. Responsible companies integrate social and environmental considerations into their business practices. The aim is to achieve long-term business success while at the same time generating social benefits. CSR enables the strategic implementation, undertaken voluntarily, of the principles of sustainable development.2 Profit Planet People © Antonis Papantoniou, Fotolia.com 1 The European Commission defined CSR as “`a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis’, as they are increasingly aware that responsible behaviour leads to sustainable business success” (Communication from the Commission Concerning Corporate Social Responsibility, July 2002). 2 Sustainable development means “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (World Commission on Environment and Development, Our Common Future, also known as The Brundtland Report, 1987). 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 6 6 A Guide to CSR for One-Person Enterprises How Will I Benefit from CSR? CSR is just as good for a one-person enterprise (OPE) as it is for a multinational corporation. Here are some of the benefits: l Success through better business relationships and environmentally friendly work practices l A knowledge advantage thanks to a strong customer focus l Greater ability to withstand conflict and crisis based on earned trust l Innovative products and/or services as a result of networking with key contacts to understand their needs and expectations l A competitive advantage by positioning yourself as a socially responsible entrepreneur l Short-term cost savings in the form of immediate savings and thus profits from reduced energy and resource use l Long-term cost savings because you have the best tools for managing the challenges of the future: dialogue, trust and innovation You can choose to live your personal values in your business. When you act in accordance with your values, treat your customers and suppliers fairly, and respect the environment, you are helping to build your company’s reputation. © ioannis kounadeas, Fotolia.com 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 7 A Guide to CSR for One-Person Enterprises 7 Why Focus on One-Person Enterprises? In Austria, 51.4% of all commercial companies are one-person enterprises (OPEs)1. In other words, 225,592 female and male entrepreneurs are contributing to national value creation. By deciding to act in a socially responsible, values-based way, they can generate significant social and environmental benefits. Today, many successful OPEs engage in activities that reflect CSR ideas and objectives: l Networking helps. An OPE needs to depend on a strong network in order to be effective. Maintaining good business relationships and treating stakeholders fairly will be critical to your success. l Staying up to date. Successful OPEs show high innovation potential. CSR as a forward- looking approach is especially relevant for you in light of the key role of sustainability issues and the wide-ranging business opportunities they provide. l Fast and flexible. As an OPE you are uniquely positioned to more readily adapt your business model to changing conditions and undertake necessary improvements. l Do it yourself. You’re an all-rounder who deals with office tasks as well as running the business. That requires proper human resource management. Corporations look after their employees; you need to look after yourself! l Values-based entrepreneurship. Integrating personal values into products and/or services is easier for an OPE than for larger companies. 1 Not included in this figure are persons who fall into the “New Self-Employed” category, which covers entrepreneurs whose business activity does not require a trade licence and who therefore are not members of the Austrian Federal Economic Chamber or are members of the chambers for the agricultural sector, doctors, lawyers, tax consultants, chartered accountants, pharmacists and other professions. © ioannis kounadeas, Fotolia.com 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 8 8 A Guide to CSR for One-Person Enterprises 5 Steps to Long-Term Success © Ioannis Kounadeas, Fotolia.com 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 9 A Guide to CSR for One-Person Enterprises 9 Are you drawn to the idea of running your company as a socially responsible business – and reaping the benefits? Instead of proceeding on an ad hoc basis, you want to strategically plan how you’re going to achieve that goal. The following 5 steps to long-term success are intended to help you integrate CSR into your activities. It’s up to you to decide which of the individual steps to emphasise and how thoroughly to implement those steps. The 5 steps are covered on the following pages, along with guidance on carrying them out. It’s worth taking a break from your daily routine to devote some careful thought to planning your company’s future. This HELP symbol links you to the practical suggestions on pp. 13-16 for the implementation of the first three steps, which involve preparation and planning. © Maria.P., Fotolia.com © Maria.P., The 5 Steps to Long-Term Success Step 1: Decide what your company stands for Step 2: Collect information Step 3: Set your goals Step 4: Take action Step 5: Review the results and broadcast your achievements 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 10 10 A Guide to CSR for One-Person Enterprises Step 1: Decide what your company stands for It sounds obvious but often isn’t. You have to make a conscious decision to act in a socially responsible way. Think about how you can input your personal values. Also think about how you know when your values are not being fulfilled or are actually being violated. HELP 1: What does my company stand for? OUR TIP: Show the world what your company stands for. You can do that by defining your values on your website. You can also communicate them to your clients, partners and suppliers formally, in a published brochure or letter, or informally by setting an example through your actions. Step 2: Collect information Consult your business environment to gain a better understanding of the business, social or environmental factors that affect your current and future business activities. To ensure that you have the full picture, you should be able to answer the following questions: HELP 2: Who are my stakeholders? HELP 3: What kind of information do I get from my market? HELP 4: How do business, environmental and social factors affect my company? OUR TIP: The self-employed tend to have solid networks in place because their business depends on it. So make full use of your network! 1819_EPU_Innenseiten_ENGL_Layout 1 26.08.10 11:52 Seite 11 A Guide to CSR for One-Person Enterprises 11 Step 3: Set your goals Now that you’ve gone through the first two steps, let’s move on to defining concrete goals. There’s no such thing as a standard CSR approach. Your CSR activities will reflect your particular situation. You can take small steps and make big strides. Start by overcoming your weaknesses and focusing on your strengths. Here you can use the table in Help 5. HELP 5: What are the goals I wish to achieve? OUR TIP: Set goals that are SMART (specific, measurable, attractive, realistic and timely). OUR TIP: Don’t forget that CSR not only means exciting projects but is also about promoting transparency.