Corporate social responsibility (CSR), hardly a new term in the Indian business sector, refers to a commitment by companies to enhance some aspects of the society by contributing funds or labour. However, despite the fact that several SMEs engage in CSR activities, their efforts seldom get noticed as those efforts are rarely institutionalised. It must be noted that there is also a section in the SME sector that either does not believe in engaging in CSR activities or are unaware of how to undertake the same with their limited resources.

“As a corporate, we all engage in corporate transactions, which help our businesses. But it is equally essential to undertake CSR initiatives, especially for SMEs, which use plenty of natural as well as labour resources. SMEs should realise the need for sustainable development. For instance, agro-based SMEs could contribute by ensuring a pollution-free environment by finding ways to use waste products. Besides generating goodwill, CSR activities also help SMEs gain visibility if they can project it well,” said Sunil Goel, director of GlobalHunt India, an executive search firm in New Delhi.

SMEs working with restricted amount of funds can undertake CSR initiatives by simply trying to enhance the living conditions of its workforce. Conservation of non-renewable resources such as electricity and water by effectively using these resources during production processes also amounts to CSR.

However, it is a reality that most small players are not very keen to undertake CSR activities. In this context, Nitin Singla, owner of Image Décor, a small-sized unit in Chandigarh, which manufactures and supplies window blinds, said, “CSR does not benefit us directly. We might put in extra efforts to contribute to the society, but it might not help us to raise money for our businesses. It is more apt for large businesses because not only do they have the required funds, but also ensure large-scale media coverage for their activities.”

Interesting how doing small things can help forge a better society, but with lack of awareness plaguing Indian SMEs, several small units are losing out on what could be their biggest efforts to touch lives of consumers.

Sreemita Bhattacharya