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Small Enterprises and CSR Strategy Building and implementing a sustainable CSR strategy for small enterprises with a limited budget. Kenan dasilva
This document discusses how small enterprises can implement corporate social responsibility strategies with limited budgets. It provides examples of how small hotels in Thailand were able to incorporate CSR practices that improved profits and benefited communities. Through workshops on sustainability and the Envirotel program, over 200 small hotels implemented projects to reduce costs, waste, and pollution. Examples included installing efficient lighting, reducing laundry and water use. The initiatives engaged employees and customers, saving hotels over $500,000 annually while creating jobs and supporting local causes. The key is aligning CSR with business goals, pursuing cost savings, engaging stakeholders, and utilizing training opportunities.
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Small Enterprises and CSR Strategy Building and implementing a sustainable CSR strategy for small enterprises with a limited budget. Kenan dasilva
- 1. Small Enterprises and CSR Strategy Building and implementing a sustainable CSR strategy for small enterprises with a limited budget. John DaSilva Director of Corporate Practices Kenan Institute Asia © 2014 Kenan Institute Asia
- 2. Questions to beaddressed How can running a sustainable enterprise be more profitable? How can a small enterprise have an impact with limited resources? How can a small enterprise implement a sustainable business strategy like a large enterprise? How can small investments and the right behavior lead to better outcomes for business and society? What are the common pitfalls and the rules for success? © 2014 Kenan Institute Asia
- 3. What do wethink of when we hear CSR? Its for large companies – not small businesses Initiatives need to be large scale Private sector – NGO partnerships and community projects High costs It’s all greenwashing © 2014 Kenan Institute Asia
- 4. Let’s get onthe same page © 2014 Kenan Institute Asia CSR is a company’s commitment to and implementation of strategies that create sustainable economic, social, and environmental value for shareholders and other stakeholders. Kenan Institute Asia
- 5. Corporate Governance andEthics – – adherence to principles of fair trade or fair competition – anti-bribery and anti-corruption measures Human Resources – health and safety, human rights, employee retention – job creation and skills development Environmental Stewardship – use of water / land / pollution / climate change Corporate philanthropy and employee volunteering Supply Chain Management Investors/Owners © 2014 Kenan Institute Asia 5 CSR Cuts Across all Activities
- 6. What is the“Triple Bottom Line” strategy? People, Planet and Profit succinctly describes the triple bottom line and the © 2014 Kenan Institute Asia goal of sustainability. People Planet Profit
- 7. How can asmall enterprise use the 3BL strategy? Case Study Illustration: Citi Triple Bottom Line Small Hotel Project UNEP was a resource partner and provided use of the Envirotel program, program copies and external consulting expertise. © 2014 Kenan Institute Asia
- 8. Citi - TripleBottom Line Small Hotels Project (TBL) Location: Bangkok and Nearby Provinces Donor: Citi Foundation Resource Partner: United Nations Environment Programme (UNEP) Implementer: Kenan Institute Asia Period: 1 October 2010 – 30 September 2013 Amount US $116,000 © 2014 Kenan Institute Asia 8
- 9. © 2014 KenanInstitute Asia Objectives To build capacities of small hotel owners concerning sustainability To investigate the current state of problems and challenges in sustainable business practices in the hospitality sector To demonstrate to small hotels the importance of running a sustainable business, especially on eco-efficiency and CSR practices 9 Citi-Triple Bottom Line Small Hotels Project
- 10. Small Hotel Challengesto CSR © 2014 Kenan Institute Asia Small hotels lack reliable, understandable information and awareness on CSR standards, rules and regulations. Small hotels believe that investments in sustainability are not cost effective. Small hotels have very limited capacities to implement CSR activities.
- 11. Key Activities Capacity building workshops – Employee and community engagement (CSR basics) – 3BL Strategy – Use of the Envirotel program One on one consulting for sustainability plan creation Follow-up site visits to assist with project implementation © 2014 Kenan Institute Asia
- 12. Envirotel Program Communi-cation Envirotel Energy Water Waste Purchasing Policy Air and Noise Self Assessment Knowledge Case Studies Discussion © 2014 Kenan Institute Asia 12
- 13. Project Results (uponproject completion) 210 small hotels trained in the Envirotel program and 3BL strategy 22 participating hotels hired 118 new employees in newly created positions such as health food chef and CSR manager 83 hotels implemented 154 employee-based environmental or community based projects 255 documented, cost saving, environmental improvements were made to the hotels – Water and solid waste reduction – Energy efficient light bulbs © 2014 Kenan Institute Asia
- 14. Key Electricity andWater Implementation © 2014 Kenan Institute Asia 14
- 15. Paree Hut Resort(Seechang Island) •Environmentally-friendly construction •Biodegradable plastic bag and cloth bag © 2014 Kenan Institute Asia
- 16. All Seasons SathornHotel (Bangkok) • Applying a creative communication idea from the Envirotel Program to reduce laundry costs and wastewater © 2014 Kenan Institute Asia
- 17. Hotel Issues Laundry is a significant expense for any hotel (whether it is handled internally of externally) Laundry also damages the environment – waster water and chemicals Washing bed linens and towels that are not dirty is a waste of money and natural resources Challenges: – Guests expect a clean room – including fresh towels and bed linens – How can a project stand out, when people are already familiar with programs to reduce towel and bed linen use – existing reduction project in place and of limited effectiveness? – How can employees become a part of the solution? © 2014 Kenan Institute Asia
- 18. How the greenfrog project works Staff Trained About Project and Asked to © 2014 Kenan Institute Asia Help Front Desk Explains Green Frog Project to Guests Guests May Buy the Green Grogs for 49 THB (helps local school)
- 19. 108 Room HotelComforters © 2014 Kenan Institute Asia (single) Sheets (single) Towels (single) Total Costs 1 2 3 Cost (per unit) 22 THB 15 THB 15 THB Costs (per day) 2,376 THB 3,240 THB 4,860 THB 10,467 THB Total Costs (year at 70% occupancy) 607,068 THB 827,820 THB 1,241,730 THB 2,676,618 THB 20% savings per year (before frogs and training expenses) 121,413 THB 165,564 THB 248,346 THB 535,323 THB Cost Savings Analysis
- 20. Key Success Factors 1. Have a business alignment 2. Pursue costs savings – 3BL strategy 3. Fully engage employees – make them a part of the solution 4. Engage the community – products, labor pool, related causes 5. Pursue training and other opportunities (government, NGOs, etc) © 2014 Kenan Institute Asia
- 21. Thank you… QueenSirikit National Convention Center 2nd Fl., Zone D, Room 201/2, 60 New Ratchadapisek Road Klongtoei, Bangkok 10110 Thailand Tel +662-229-3131 or 3132 Fax +662-229-3130 www.kiasia.org © 2014 Kenan Institute Asia