better business

PEOPLE BETTER BUSINESS JOURNEY Helping small and medium sized businesses to increase their profitability and responsibility PREMISES PURCHASING PROMOTION CONTENTS Introduction What does it mean? Ten actions to do today! Why do it? How to do it The People Journey The Premises Journey The Promotion Journey The Purchasing Journey CommunityMark Who else can help? www.smallbusinessjourney.com 01 02 03 04 06 08 10 12 14 16 18 21 WHO IS IT FOR? All small and medium sized businesses, whatever size, age, sector or location that are interested in increasing their profitability and responsibility at the same time. • Information on how to do it by taking: A.C.T.I.O.N (Assess, Commit, Tell, Integrate, Organise, Nurture). • Examples of businesses like yours that are already on the journey. • Signposting to lots of further help – most of which is free and targeted specifically at smaller businesses. SOUND FAMILIAR? • ‘I am increasingly being asked for information on environmental and community issues as part of tendering for contracts and from larger clients and I don’t know where to start.’ • ‘My business is struggling to recruit, motivate and retain good staff.’ • ‘How can I ensure that I run an environmentally friendly business without costing me a lot of time and money?’ • ‘I have a business to run with limited resources, so how can my business benefit?’ IT’S A JOURNEY You will probably find that your business is already on this journey, even if you don’t know it yet. Many businesses are already doing many positive things without necessarily knowing everything that they are doing – or calling it responsible business. Some businesses think about these issues when they are starting up, others start to give the issues more attention later – typically when they are moving premises or preparing a new business plan or strategy to grow. All businesses should start from where they are already at. The issues we are talking about are basic common sense. So just do what’s right for your business and enjoy the journey. ANSWER = BETTER BUSINESS JOURNEY • Introducing you to tips and actions that any business can do. • Information on how your business can benefit in a tangible way. This publication has been produced by the UK Small Business Consortium which consists of AccountAbility, Arts and Business, The British Chambers of Commerce, Business in the Community, CSR Europe, the Forum of Private Business, the Federation of Small Businesses, the Institute of Directors, Lloyds TSB, Sustainability Northwest and Scottish Business in the Community. • Focusing on four key business areas of: People, Premises, Purchasing and Promotion (Sales and Marketing). • Lists of actions divided into those suitable for Starting Off, Getting Into Your Stride and Leading the Way depending where your business is at on the Better Business Journey. What is easy and straight-forward for one business may be quite a tough action for another. We recognise that many businesses may find that they are already doing some actions listed as Leading the Way but not yet doing all those listed for Starting Off. The idea is to start with those actions that make most sense to you. These lists are based on feedback from owner-managers. HOW TO DO IT The trick is to do some practical actions and gradually build up from there. Remember it doesn’t have to be complicated or timeconsuming, or a case of doing everything or nothing. You should start where your business is at and focus on its most pressing business issues. Once you know where you are starting from it is important to set realistic targets, so you can measure your success as you go along. Then you will know how your actions are benefiting the business, as well as society and will give you a convincing story to tell to staff, clients, suppliers, customers etc. Detailed information and examples can be found at www.betterbusinessjourney.com. DID YOU KNOW? You know, it doesn’t matter what size company or how limited your time or resources are, you can still do something towards being responsible. If every small company did even one thing, imagine what the impact would be. Start somewhere and you’ll probably be surprised about the benefits you get for your business and realise like we did, that it’s just good business sense. In a way you have already started on the journey by reading this practical guide. In our own small way, innocent is getting the reputation for being one of the most ethical companies in the UK. That’s a good image to have, but boy does it scare me. Hopefully, anyone that does look closely would find in innocent a company that does take its responsibilities seriously. Firstly, we make things that actually are good for people. Secondly, we try to source responsibly. All our suppliers have to comply with International Labour Organisation standards before they even get to the table. Thirdly, we’re moving towards ecofriendly packaging material. Fourthly, we’re looking at the emissions from our entire business system. I get scared when I think about how many there are (the trucks delivering the juice, the boat bringing the fruit etc.). But our commitment is to take responsibility for these emissions, reduce them where possible and off-set them where not. And we’re asking our suppliers to do the same, to make it a term of doing business with innocent. Finally, we think companies should share some of the wealth they create. That’s why 10% of our profits each year get paid into the innocent foundation, a separate registered charity that supports NGOs in the countries where our fruit comes from. So that’s what we mean by being responsible. Will we ever get there and fully realise this vision? I’ve no idea, but for as long as we’re called innocent we’re going to keep trying. Richard Reed, CEO, Innocent 99% 13m of all businesses in the UK are small and medium sized (4.3 million of them) “ Responsible business practice should be a part of the culture of your business, however small, culture being ‘the way we do things around here’.” RICHARD REED, CEO, INNOCENT people are employed by smaller businesses 59% of all employees work for smaller businesses 60% of commercial waste is generated by smaller businesses It all adds up – the social impact that smaller businesses have is ENORMOUS Better Business Journey 01 A RESPONSIBLE BUSINESS WHAT DOES IT MEAN? Responsible business is achieving commercial success in ways that honour ethical values and respect people, communities and the natural environment. These businesses minimise any negative environmental and social impacts and maximise the positive ones. Positive impacts • A better place to work; excellent accident / health and safety record; environmentally friendly, well-designed premises; friendly, learning organisation; ethical and fair in all its dealings; helps suppliers and other stakeholders improve their impacts; responsible sourcing criteria; paying on time; energy efficient; seeking to have zero emissions and no net environmental impact through ’reduce, recycle, reuse‘ policies; and effective community involvement. Negative impacts will be the opposite • Poor place to work; poor health and safety; bullying and discrimination; few learning or training opportunities; being a persistent late-payer; cheating customers; negligent about product safety; hazardous processes near residential areas; indifferent to conditions from where raw materials or products are sourced; excess energy and water consumption; pollution; excess packaging and waste; premises / services inaccessible to disabled customers or employees; secretive, hierarchical; hire and fire at will; and poor community relations. One business has the test: ‘Would I be willing to see what I’m doing or about to do described in detail on the front page of a national newspaper to be read by family, friends, customers and clients?’. What does a better business look like? • It is run for and can be seen to be run for the benefit of profit, people and planet. • It integrates responsible business practice so that it is built in to business purpose and strategy rather than being a bolt-on to business operations. • Employees value it as a great place to work. • Customers and suppliers value it as a good business to do business with. • The community values it as a great neighbour. • Investors and financiers value it as worth investing in. • It has a good health and safety record. • It has environmentally friendly premises. “ Historically, we had an ad hoc approach to community activity, but by formally pulling it all together we were able to realise just how much of a contribution we actually make.” JOHN HAYES, CEO, AXIS EUROPE etter es a b hat do W like? s look busines as value it ployees e to work. • Em plac a great nd mers a • Custo rs value it as supplie siness to do bu a good with. siness bu s y value . mmunit The co eat neighbour • gr it as a 02 Better Business Journey TEN ACTIONS TO DO TODAY! Even if you do nothing else, here are ten simple actions that if every business did them today, would have a big impact. Axis Europe LOCATION London/West Midlands EMPLOYEES 235 Business in the Community’s Small Business of the Year 2005/06 01 02 03 04 05 06 07 08 09 10 Recycle printer and toner cartridges. www.actionaidrecycling.org.uk AGE 20 years SECTOR Construction Buy and use fairly traded products e.g. tea/coffee. www.fairtrade.org.uk Look at how your staff get to/from work. Promote walking, car sharing, cycling and public transport. www.liftshare.com Set up a payroll giving scheme for your staff. www.payrollgivinggrants.org.uk Make sure lights, computers and other equipment are switched off at the mains every night. www.green-office.org.uk Pay staff, suppliers and creditors on time. www.payontime.co.uk Turn the office heating system down a few degrees and have it checked regularly. www.energyhelpline.com Replace all lighting with low energy lightbulbs. www.netregs.gov.uk Printing and photocopying: print double sided where possible and only print the first page of emails. www.envirowise.gov.uk Set up and promote flexible working for your staff. www.flexibility.co.uk WHAT IT DOES Axis works with three community partners: Charlton Athletic, Demelza House and The Lord’s Taverners, focusing on promoting diversity and social inclusion. It also focuses on the environmental impact of its materials and transport needs. Axis promotes the positive aspects of its business behaviour to staff, clients and others who come into contact with it. WHY IT DOES IT It makes good business sense. As John Hayes, CEO, says “we may not be one of the biggest businesses, but we can be one of the best”. Community and environmental involvement is appearing in tender requirements and, in an industry with a poor reputation, Axis perceives responsible business as its unique selling point. RESULTS • In the last quarter of 2004 Axis filled a quarter of its vacancies through local community partners. • Getting staff involved in projects such as sports coaching in local schools and youth projects has improved morale and cut vandalism on construction projects. • Axis contributes 8% of total pre-tax profits to local community groups/charities. • In 2005 it donated £96,000 to Charlton Athletic’s community programme, staff volunteered 129 hours of company time and 192 hours of their own time. Each of the action lists in this guide are simply illustrative of the kinds of practical steps that other small businesses are already doing. For fuller lists and more information, visit www.betterbusinessjourney.com. Better Business Journey 03 WHY DO IT? Some businesses will choose to be responsible because they believe it is the right thing to do; others because it is the way that they want to run their business. Many will need a business case in order to act. Some will look for a combination of ‘right thing to do’ and ‘it makes good business sense’. SOUND FAMILIAR? ‘We haven’t got the time or resources as a small business.’ ‘It’s too bureaucratic and paper-driven, surely something for larger businesses?’ ‘We are too small to make any difference, so what’s the point?’ Smaller businesses already engaged in responsible business practices, however minimal, challenge these perceived barriers of time, cost and bureaucracy as fears, not the reality. • Attracting, retaining and developing motivated and committed employees. • Winning and retaining consumers and business customers. • Improving business reputation and positive publicity. • Maintaining and improving their licence to operate from the local community. • Cost and efficiency savings. • Networking and speaking opportunities. • Anticipating future legislation. WHAT MIGHT TRIGGER YOU TO GET STARTED? • The personal values of the owner manager/CEO. • Questions being asked by large business customers. • Writing a business plan. • Newspaper/trade magazine article. • Talk at a local business club. • Employee’s suggestion. • High utility bills/costs. THIS COULD BE YOUR BUSINESS • A bakery in Barnsley reduced its waste charges by 20%. • An architect’s practice in Norfolk estimated the publicity it has received as a result of its community involvement was worth £23,000. • A marketing agency in Brighton received numerous new business contacts by attending local meetings and through the positive media coverage generated by its community work. • A computer company in London judged that retention of staff had improved as a result of its community activity and that, as a result they saved £40,000 on recruitment costs in a year. • A restaurant in London reduced glass wastage by 90% by using reusable glass bottles. BENEFITS FOR YOUR BUSINESS The business benefits will vary depending on the business, the specific actions proposed and the effectiveness with which they are implemented. Often, the kinds of business benefits which other smaller companies have reported, include: 04 Better Business Journey DID YOU KNOW? Kingdom Shopping Centre A CommunityMark Company 92% 23 in of growing businesses have suffered rising fuel costs in the last year 88% 51% of consumers said they would be more likely to buy from a company that supports and engages in activities to improve society “ Rather than simply donating money to charitable causes, we have a responsibility to play a more tangible role by being involved in our communities.” PAUL SUTTON, JOHN COLLINS AND PARTNERS LOCATION Glenrothes, Fife, Scotland EMPLOYEES 4 AGE 42 years SECTOR Retail smaller businesses believe that social and environmental responsibilities contribute to a more successful business 86% 78% of growing businesses are not aware of the benefits available to them in becoming energy efficient Research by the Institute of Business Ethics has proved that socially responsible businesses outperform their competitors WHAT IT DOES It works with three partners: Fife Police, NHS Fife and Fife Shopmobility, focusing on community safety, health and social inclusion. Initiatives include sponsoring an additional Town Centre Police Officer, establishing a weekly NHS ‘Well Person Shop’ in the malls, and developing a ‘Support Zone’ to assist visitors with learning disabilities. WHY IT DOES IT As the town centre of Glenrothes, Kingdom Shopping Centre feels a high level of responsibility towards assisting the local community, and recognises the business benefits of increased customer loyalty, higher footfall and positive publicity gained from involvement. It makes good business sense to tackle important local issues, particularly community safety, helping to provide a safe and welcoming shopping environment and minimise retail crime. RESULTS • Total charges down from 175 in 2004 to 125 in 2005 with breach of the peace down 21% and shoplifting down 23%; achieved Park Mark Safer Parking and Safe Town Centre Awards. • 7,340 uses of Shopmobility service over last 12 month period. • 323 people have used and evaluated the weekly NHS service in the Centre during the first 15 weeks. 100% were satisfied and 98% felt that there was a local need for the service. • Positive publicity and enhanced reputation. • 1st company in Scotland to achieve CommunityMark. of smaller businesses believe that they should pay significant attention to their social and environmental responsibilities CAN YOU AFFORD TO IGNORE IT? of employees would rather work for an ethical and reputable company than receive a higher salary Better Business Journey 05 HOW TO DO IT A SIMPLE ACTION PLAN A Assess Whatever you do should be relevant for your business as well as society. Think about the issues that affect you, your staff and your business and what you can do to help support these. Assess where you currently are so you have a benchmark to measure future progress against. Find out what issues affect your local area through simple research. Read case study examples of what other businesses like yours are doing in your area/sector on www.betterbusinessjourney.com. C Commit To a statement of what being a responsible business means to your business and to clear ethical values from the top down. Appoint a champion/s to ensure the commitment is followed through. You need a champion who walks the talk. The champion, like any boss, has to model the behaviour they want to see in their coworkers if they are going to be credible. They also need to be given the authority to make any necessary changes. T Tell Set out your ethical and business cases, communicate them and promote them at every opportunity. Make responsible business an agenda item on all team meetings. Communicate to staff, clients, customers, suppliers and others what you are doing. It is not boasting to tell people what you are doing. Establish effective, two-way dialogue with your key stakeholders (those who can affect or are affected by your business). There are real business benefits to informing people through local/trade press, notice boards, newsletters, websites and achieving awards. I Integrate Responsible business behaviour across different functions and activities within the business. Identify issues that are affecting your bottom line and how responsible business practices can help address these. Prioritise things which you can do as: (a) early wins; (b) things that will need to take some time to prepare; and (c) long-term goals. List the risks that your company faces or might face and the actions you need to take to address these. O Organise The project management, the details, relevant business resources and set targets. Look at one off, individual and team building activities. Look at building a long term relationship with community organisation/s. Communicate the aims and boundaries to all staff and stakeholders. Collate the results and thank any staff for their involvement. Make sure all staff know about and are able to get involved in your responsible business practices/opportunities. N Nurture Involve your clients and supply chain. Once your programmes are established you can have greater impact and raise your profile by widening your resources. Clients and suppliers will be surprisingly grateful you asked and usually very willing to get involved. Measure and report what you are doing and feedback the learning into your business planning. Measuring the benefits you have made to the business and the wider community helps motivate staff, customers and investors. Reporting can be done informally through word of mouth, staff team briefings, presentations to business networks or more formally through management systems and achieving relevant standards. Find out about the interests of your staff, customers and suppliers through word of mouth, questionnaire/survey, email or discussion forum. 06 Better Business Journey HOW YOU CAN INCREASE THE POSITIVE IMPACT OF YOUR COMMITMENT • If you are a member of a business body, trade association or professional body – tell them about your commitment. If you are an officer of one of these groups, encourage them to incorporate responsible business into the core offer of activities and services they provide for members. If you are going to become Chair or President of such a group, make responsible business the theme of your personal term of office. • Write up your story as a practical case-study for other small firms to learn from for www.betterbusinessjourney.com. • Talk to your local newspaper or trade press about your experiences. • If you are based on an industrial estate or in a retail centre with other tenants, see if you can persuade the other businesses to join in some collective actions: to link with the local community or schools; to improve the environment; or to organise training opportunities for staff of all the tenants. • Talk at a local business club. • Provide information on your internal management information system or intranet giving practical tips for what all staff can do at home and in their personal lives to conserve water and energy; generally improve the environment; and contribute to the community. Encourage staff to apply what they have learnt at work about such topics in their private lives. “ Payroll Giving is a very easy and effective way for our staff to give money to charitable causes. It requires minimum effort and enables staff to give regularly to charities of their choice in a tax efficient way.” IAN HARRIS, Z/YEN Futures Supplies & Support Services LOCATION Croydon, London EMPLOYEES 12 AGE 10 years SECTOR Support Services WHAT IT DOES Futures works to minimize its environmental impact; support the local community through employment; and support local charities. Two years ago the company implemented a comprehensive environmental policy and last year provided four careleavers with 12 week work placements. Two are now employed by Futures. It tends to employ young people who are trained and given opportunities to move up the organization, such as the current Operations Manager, who joined from school. Futures uses its customer and supplier networks to raise awareness of issues and provides incentives for customers and suppliers to recycle packaging. WHY IT DOES IT Mandie Kemp, founder of Futures, set up the company as a result of her desire to create a better start for her children and other young people. She feels strongly that it is not all about the bottom line but about putting something back into the local community. Futures also benefits from significant cost savings achieved as a result of its environmental policy. RESULTS • Public and peer recognition for the company resulting in a number of awards. • Four careleavers successfully completing work placements with two employed. • Environmental management system led to cost savings of £2,000 in one year. • Local charities benefit from fundraising activities – £1,000 in the last six months. • Good morale and low staff turnover. Better Business Journey 07 THE PEOPLE JOURNEY People are the most important resource businesses have, so their satisfaction is recognised as a key component of business success. Do you know what percentage of your staff think ‘this is a great place to work?’ Or what percentage say ‘I would strongly recommend this business to my family and friends?’ DID YOU KNOW? 35 in people want to work for a company whose values are consistent with their own “ We were ranked in the FT’s ‘50 Top Business To Work For’ and first for work-life balance. As a result, we have 2,000 people wanting to work for us, so have zero recruitment costs and low staff turnover.” HENRY STEWART, CHIEF EXECUTIVE, HAPPY COMPUTERS You can increase your company’s competitiveness and strengthen its bottom line by developing the competence of all your staff by investing in training and staff development. Think about the skills you need in your business and talk to staff about the skills they would like to develop. Enabling staff to play an active role in the community will benefit both the business and society. Staff involvement in community activity not only provides tangible evidence of your commitment to the community but offers staff development opportunities and can help build morale and team-working skills. Employing a diverse workforce will not only ensure you reflect the community around you but also open up your business to new ideas and potentially new markets. Equality and diversity in the workplace can be promoted through recruitment, staff development and flexible working practices. This means including people from all communities, regardless of gender, race, disability, age, sexual orientation or belief. Think about where you advertise vacancies and how you could reach a wider pool of recruits. It is also important to promote the health and well-being of employees and contractors. This not only means providing staff with the correct equipment in order to do their job but encouraging them to take regular breaks and achieve a healthy work-life balance. working days are lost to ill health and injuries each year and staff absence costs business £11billion per annum 40m 3.5m adults working in England have literacy levels below that expected of an 11 year old 79% of smaller businesses believe that they should be involved in encouraging a healthy worklife balance among their staff 08 Better Business Journey Flexible working/ Work-life balance Responsible recruitment/ Equal opportunities Staff training, career development, motivation and retention Healthy workplace Teamwork Community involvement ACTIONS STARTING OFF • Survey your staff, even informally, to find out their community interests. • Promote a healthy workplace – provide correct equipment and encourage breaks. • Praise people at work and give part time staff the same rights as full time staff. • Choose (with staff input) a charity of the year and/or allow staff an hour a week to help children with reading, numeracy or other forms of mentoring in local schools. • Set up a payroll giving programme and encourage staff to participate. • Ensure your website is accessible to all – offer a text only version. LSI Architects A CommunityMark Company GETTING INTO YOUR STRIDE • Offer quality work experience for local schools/colleges. • Allow staff to volunteer in the community in work time – link it to training needs. • ‘Adopt’ a local school or community group as a long term partner – give time, expertise, sponsorship, equipment, become mentors or host visits to your workplace. • Reward staff for getting involved e.g. a special award. • Provide skills training (CV writing, mock interview) to unemployed people and students. • Use voice/video-conferencing instead of face to face meetings where possible. LEADING THE WAY • Introduce flexible working e.g. core hours, job sharing, sabbaticals, home working, reduced time. • Measure the difference you are making – survey employees and community partners. • Create an employee handbook that includes responsible business practice, make it part of the induction process for new staff and include in annual appraisal process. • Recruit locally and employ people from diverse backgrounds, including disadvantaged communities – advertise jobs in non traditional places. • Offer places on in-house training to staff from community groups and let them use your meeting rooms. • Encourage staff to become school governors. LOCATION Norwich EMPLOYEES 50 AGE 100 years SECTOR Architecture WHAT IT DOES LSI’s community programme is an integral part of its business plan and it commits 3% of the company’s overall turnover to it. Its community programme involves using its skills and expertise to provide professional support for free to community groups through the ProHelp network of companies; training students and providing work placements; engagement in its professional body; membership of the CRed (carbon-reduction) project; and endorsement of individuals’ community roles. It is also engaged with schools and provides studio open days. WHY IT DOES IT LSI believes in developing their staff, supporting the community and contributing to the well-being of the city. Staff are encouraged to participate in community activities, with 80% of LSI staff having been involved in development training projects linked to community programmes. RESULTS • 80% of staff believed involvement with community projects had developed their skills. • LSI contributes an average of 8% of pre-tax profits and over 500 hours a year of professional time committed to community activities. • New commissions have arisen as a consequence of community projects and contacts. • The community programme has helped develop LSI’s reputation and its ‘licence to operate’. BENEFITS • Increase employee commitment/loyalty to the company. • Improve employee skills: communication; project management; budgeting; planning; organisational; problem solving; teamwork; leadership; and presentation skills. • A positive employer reputation will improve the numbers and calibre of job applicants. • Increased employee motivation. • Lower staff turnover and absenteeism. • Reduced recruitment costs. • Keep training costs for employees down. • Businesses with a diverse workforce are likely to attract a wider customer base. • Responsible business behaviour is increasingly the key factor in attracting and retaining a talented and diverse workforce. Better Business Journey 09 THE PREMISES JOURNEY It doesn’t matter if you are a smaller business based at home, in an office or thinking of moving premises, the impact you have on the environment is important to consider. DID YOU KNOW? 80% 10% 1 “ At least a third of the fuel currently used for buildings is wasted. Improving energy efficiency is not a burden for companies, this is an opportunity to make savings.” ANDREW WARREN, ASSOCIATION FOR THE CONSERVATION OF ENERGY It makes sound business sense to try and reduce the negative environmental impacts of your business. This involves reducing greenhouse gas emissions from energy use, transport and industrial processes; using energy and raw material efficiently; and recycling products and waste where possible. It also means setting achievable targets to manage your environmental impact. Reducing resource use can bring immediate cost savings and increase profitability as well as minimising the long-term impact on the environment. By thinking green you can anticipate the requirements of future legislation, as well as boost your commercial reputation and become more attractive not only to customers but to potential staff and investors. You can also meet the needs of a wider range of customers, as an increasing number of large businesses and public sector bodies insist on environmental management by their suppliers. of small businesses believe that they should be involved in waste reduction and recycling reduction on energy bills can be achieved without any capital investment printer cartridge takes up to 1,000 years to decompose if placed in landfills 86% 10 Better Business Journey of UK adults believe the environment is the most important issue for companies to focus on Internal environmental impacts External and neighbourhood environmental impacts Employee and business transport policies Recycling Disability access Energy usage/costs Becoming carbon neutral ACTIONS STARTING OFF • Reduce, reuse, recycle – print/ photocopy both sides, recycle paper, create central notices not individual memos, ban post-it notes (not recyclable) and donate surplus furniture/equipment. • Use recycled products e.g. paper, files, paper towels, toilet paper, toner cartridges, refilled ink-jet cartridges, reconditioned copiers. • If you share a building with other businesses, can you share equipment? • Reduce energy consumption: use energy efficient bulbs; turn your thermostat down 1°; turn off radiators; set your hot water supply at 60°C to avoid Legionella; don’t overfill kettles. • Encourage staff to turn off lights, computers, copiers at the mains when not in use. • Use virus protection and keep it up to date. Kent Art Printers Ltd GETTING INTO YOUR STRIDE • Do a green audit including solid waste, energy and raw materials, e.g. counting rubbish bags and checking utility bills. Set up a green team to involve staff and monitor progress. • Reduce toxic chemicals – specify recycled paper bleached without chlorine, vegetable inks and water based press cleaners for printing; seek alternatives to copier toner, paints, cleaning products, glues. • Provide incentives for staff for alternative transport like carpools, cycling, walking, public transport e.g. offer interest free season ticket loans, provide cycle racks/ shower facilities and sign up to the Inland Revenue bicycle scheme. • Ensure premises are accessible for people with disabilities. • Use furniture from sustainable resources, avoid tropical hardwoods. • Fit passive infrared detectors to urinals – cuts water bills by £375 pa per cistern. LEADING THE WAY • Implement an environmental management system like ISO 14001, BS8555 or EMAS. • Become carbon neutral – measure your emissions, including business travel, and reduce or off-set them by investing in forests. • Set targets – aim for 5-10% reduction – in key areas like reams of paper, energy, car, cab, air mileage and water usage and update staff on progress. • Check buildings and equipment are insulated to prevent heat loss; if you move premises, look at accessibility and environmental design. • Keep on top of legislation and use free support available e.g. energy use/waste minimisation reviews. • Encourage employees to use trains rather than cars or plane, or use videoconferencing; consider offsetting the CO2 emissions of plane journeys by making a donation to www.rainforest.org. LOCATION Chatham, Kent EMPLOYEES 35 AGE 70 years SECTOR Design, print and fulfilment services WHAT IT DOES In 1990 the company moved to an environmentally sensitive site near an aquifer and decided to look at greener production options. It now operates 100% alcohol free dampening in its litho production facility and has a new true ‘no process’ plate production system. This eliminates hazardous wastes, needs no water, chemistry or processor cleaning. Using sustainable vegetable inks, internet-based proofing and digital ‘print on demand’ have also reduced environmental impact. The site uses renewable energy and the company has introduced waste reduction and recycling processes and set targets for waste to landfill. WHY IT DOES IT Kent Art Printers’ environmental work gives it a niche in the market as a ‘green’ and ‘socially responsible’ printer. RESULTS • Responsible business/the environment is a key reason why the company is used for 8% of current accounts. Approximately 43% of new account enquiries in the last 6 months have been ‘green’ or corporate responsibility related. • No process plates and a general waste reduction programme saved 31% of total company water usage and over the last 3 years an average of 50% reduction per annum on waste to landfill. • Reduced emissions of airborne solvents by 2 tonnes a year creating healthier local and working environment. BENEFITS • Customers want to buy from companies with a positive environmental image. • Your business will become more attractive to customers who also ‘think green’. • Boost your commercial reputation. • Corporate customers will increasingly insist on environmental management by their suppliers. • Be ready for any legislative challenges of the future. • Employees expect their concerns about the future of the environment to be shared by their employers. • Reduced annual landfill tax payments. • Recycling reduces disposal costs. • Through environmental policies at least 10% savings can be achieved at zero cost. • A systematic waste minimisation programme could save 1% of turnover. Better Business Journey 11 THE PROMOTION JOURNEY Many owner-managers say they are uneasy talking about what they do in the community or on environmental issues. Many think it would be boasting because they are only doing what they think is the right thing to do. DID YOU KNOW? 51% of UK websites are inaccessible for disabled users “The most impressive corporate leaders have always been those whose vision of a successful business stretches beyond the product and the profits to their positive impact on the world around them.” MARK GOYDER, CENTRE FOR TOMORROW’S COMPANY However, if you integrate responsible business practices into the way you run your business and proactively communicate what you are doing, you not only increase your business success but the benefit to society as well. By communicating what you do to a wider audience and by giving your business a voice, you will find that you inspire many others to do the same and your example could lead to much bigger impacts. By keeping quiet about what you do, you might be missing out, so shout about it and you might be surprised at the results. INNOVATION You can create new revenue streams for EFFECTIVE PROMOTION your business if you ask yourself: Internally • Make sure your staff know about what ‘What can we do that is commercially viable and socially responsible?’ you do and can talk about it. They are your best sales force. Smaller businesses are responsible for the • Use the intranet, website, newsletters, majority of innovative products coming meetings, staff award schemes and onto the market and these can be generated community corridors to showcase your through a desire to create responsible activities and events. products at the same time. The opportunities are endless and you might find a whole new customer base or market out there for your business. Externally • Generate positive publicity through local, regional or even national media. • Get your story into relevant trade magazines. • Tell your customers, suppliers, investors and other stakeholders what you are doing. • Enter relevant award schemes. • Commit to achieving relevant standards that you can then tell people about. • Benefit from speaking opportunities that arise from your story and attend networking events. of the British public say they have chosen a product or service because of its responsible reputation 81% 23 in consumers have made changes to what they eat in the last year. Supermarkets are getting competitive about health of small businesses don’t use the internet to market their goods and services 62% 12 Better Business Journey Responsible advertising Positive PR/publicity Awards Standards Product and service innovation Accessing new markets ACTIONS STARTING OFF • Include a responsible business message at the end of each email message. • Involve employees/customers/suppliers in the ‘innovation/ideas’ process. • Promote the responsible and safe use of your products. • Give cash not cards – instead of sending business Christmas cards make a donation to charity. • Work with other companies in your area on community issues. • Create a system that allows customers to return packaging or other materials for recycling. Care Circle GETTING INTO YOUR STRIDE • Create a mission/vision/values statement that includes responsible business values and publicise it. • Design new products/packaging with reuse and recyclability in mind and reduce the need for packaging where possible. • Sponsor and support local events. • Enter awards, go to networking events and take up speaking opportunities – get the recognition you deserve. • Ensure your website and marketing materials are accessible to all e.g. large print, text-only, and train staff to respond positively to disabled customers. • If you can’t provide parking, can you make a staff space available or do you know where the nearest disabled parking space is, for customers who need it? LEADING THE WAY • Seek out marketing opportunities involving good causes/charities. • Go for relevant standards that will help you in your contract tendering and improve your reputation. • Keep a record of the access needs of regular disabled customers. • Think about how to avoid the misuse of your product service by under-age or vulnerable customers: e.g. alcohol or cigarettes to children; or problem gamblers. • Communicate your responsible business activities to customers and suppliers e.g. newsletter, flyers, notice boards, meetings, email, press releases, annual reports, website, intranet, events, presentations, case studies, awards, a corridor of stories and pictures. AGE LOCATION Belfast and Ballymena, 5 years Northern Ireland EMPLOYEES 130 SECTOR Nursing Home and Domiciliary Care WHAT IT DOES Care Circle worked with community representatives in the Colin area of West Belfast to establish ‘Colin Care’, a social enterprise which would provide domiciliary care services and create employment in an area of significant disadvantage. Care Circle supported the set up and establishment of the business. This included developing operating systems and processes, recruiting a manager and managing the recruitment of the initial team of five staff. Most importantly, Care Circle took the business through the challenging accreditation process to enable the new company to become an approved domiciliary care provider. The business is now on the preferred suppliers list for four hospital trusts and employs ten staff, with plans to recruit a further thirty. This would make Colin Care one of the largest employers in the area. WHY IT DOES IT Care Circle recognised the opportunity to support the development of a new model of business within the care sector delivering sustainable local employment as well as high quality care. The profits generated will support care services across the area. RESULTS • Employment for ten local people (mostly female returners), and creation of future employment due to growth. • A supportive mechanism for employees to re-enter the workplace. • High quality care for local residents. • Skills, experience and reputation of Care Circle enabled the establishment of a social enterprise that meets purchasing requirements of local health trusts, not normally used to procuring services from similar projects. • Innovative model that can be transferred to other areas. 13 BENEFITS • Meet the growing demand for products that make a difference to the lives of others. • Improve your company’s reputation and increase your brand recognition through positive publicity. • Attract employees who share your belief in your products and services. • Build closer relationships with your suppliers and customers. • Joining local business networks can lead to new business contacts. • Companies that take responsible business seriously are more likely to be seen as a good investment by investors, employees, customers, suppliers. • Improve your company’s licence to operate within the community. • Build sales, as customers increasingly choose to base their purchasing decisions on more than strict financial factors. • Opening up your business to new ideas can lead to new products and opportunities to boost revenue. • Gain competitive advantage in contract tendering through achieving relevant standards. • Get positive publicity through entering relevant award/standard schemes. • Create new business network opportunities. Better Business Journey THE PURCHASING JOURNEY Responsible purchasing means operating to the highest standard of business integrity. This includes supporting and encouraging existing suppliers to be responsible, choosing responsible new suppliers, treating them fairly and with respect, paying them on time and locally sourcing your products or services where relevant. DID YOU KNOW? 14 in business failures are a direct result of interruptions to cash flow “ The impact of sound purchasing strategies can transform the competitiveness and profitability of the company.” ROY AYLIFFE, CHARTERED INSTITUTE OF PURCHASING AND SUPPLY The impact of purchasing should be positive to all involved in the supply chain. It should result in commercial success all the way through the chain. A major part of a company’s social and environmental impacts are generated by their supply chain activities. Purchasing responsibly involves the following key elements: • Building good long term, stable and trusting relationships with suppliers. • Clear, timely communications with suppliers about the terms of trade which govern the relationship and your expectations e.g. suppliers are clearly aware of lead-times, delivery expectations and payment terms. • Suppliers are able to feedback their own needs in a two-way relationship. • Sustainable pricing allowing both you and the supplier to benefit from the relationship. • Respect for human rights in your supply chain. • Support for local suppliers where possible. • Establishing an ethical code of practice with suppliers. • Ensuring that you always pay your suppliers on time. of businesses view late payment of suppliers as ‘unethical’ 85% 43% 4.5m of small businesses have been asked by larger customers about environmental practices producers and families benefit from people drinking Fairtrade tea and coffee 14 Better Business Journey Local sourcing Supplier criteria Responsible procurement Paying on time Buying fairly traded products ACTIONS STARTING OFF • Create simple purchasing criteria for office supplies e.g. paper with minimum 50% recycled material, ‘Fairtrade’ tea/coffee. • Ensure your procurement processes are open to local firms and social enterprises; buy where relevant from local suppliers; agree payment terms and stick to them. • Make at least one purchase for the company on the basis of green criteria and use environmentally friendly cleaning products. • Check and monitor all utility bills, using readings rather than estimates, this is the key way to start recognising where savings can be made. • Use cycle couriers wherever possible. • Find out where your products are manufactured. Weeton’s GETTING INTO YOUR STRIDE • Adopt a supplier code of conduct. • Talk to suppliers to see if they are willing to work with your criteria, support them to fulfil them. • Have a company wide policy on prompt payment of bills and ensure all staff are aware of it. • Tell your suppliers about your community activities and your responsible business practices e.g. produce a supplier newsletter. • Know where products are manufactured and any human rights issues involved. • Ask your utility suppliers to make energy saving upgrades (usually free) to your systems. LEADING THE WAY • Ask pertinent questions about your overseas suppliers’ labour practices – a written questionnaire can be a useful way of getting information about workplace conditions. • Create a supplier framework with a set of standards on responsible business practices and give support to your suppliers to help them achieve them. • Expand your supply chain to include sourcing goods/services from community enterprises/not for profit organisations. • Organise events with your supply chain businesses to share learning on responsible business practices and get them involved in your community activities. • Purchase or lease cars with highest fuel economy ratings and consider electric or natural gas cars. LOCATION Harrogate EMPLOYEES 27 AGE 10 months SECTOR Food retailer WHAT IT DOES Weeton’s food hall works with 45 local food producers. 60% of sales are from local companies and its sourcing policy enables it to provide innovative ‘food mile’ labelling. Weetons works closely with each of its suppliers: discussing new product development; supporting supplier relationships in the store through product launches; and measuring customer satisfaction through surveys and newsletters. Weeton’s has invested heavily in staff training and developed an NVQ course with a local college. All staff learn not just about food preparation, hygiene and customer service but also about the provenance of the products they sell. It donates around £2,000 a year to a nominated charity based on each purchase of specific products. WHY IT DOES IT Weeton’s aim is to promote local produce and support the farming community. It plans to roll out own label produce to other retailers who share its local sourcing ethos. BENEFITS • Avoid costly late payment charges. • Win new environmentally aware customers. • Paying promptly keeps existing suppliers healthy. • Improve your relationships with suppliers by getting them involved in community activities. • Attract ethically motivated investors. • Mutually beneficial supplier relationships are not only essential to product delivery but can also bring continuous improvement, efficiency, and new product innovation. • Frequent supplier turnover costs time and money. • Gain advantage in contract tendering through demonstrating your responsible supply chain. • Avoid harmful publicity linking you to your suppliers’ practices. RESULTS • Winner of the Best Rural Retailer Award, after being nominated by several suppliers. • Significant national and local publicity for Weeton’s and its suppliers after just ten months. • Potential suppliers and employees approach them because of their reputation. • It has become the biggest customer for some of its suppliers, enabling them to expand. Better Business Journey 15 ENDORSEMENT – COMMUNITYMARK Some businesses find it useful to look at developing their responsible business activities using a simple but defined framework or standard that officially endorses their activities. Are you involved in your local community and would you like to be recognised for it? If yes, then the answer is Business in the Community’s CommunityMark. CommunityMark is one standard that has been designed for small and medium sized businesses, to recognise and demonstrate their involvement in the local community. WHAT IS IT? A standard that recognises the involvement of small and medium sized businesses in their local community. A simple jargon free model to help businesses maximise their impact in the community and their business benefit at the same time. Use CommunityMark’s step by step model, achieve the CommunityMark Standard and get the recognition your business deserves for your contribution to the local community. Then become part of the CommunityMark network. WHO CAN DO IT? Any business, strategic business unit or not for profit organisation. It doesn’t matter if you are at the start or end of the journey, as it is relevant at whatever stage your business is currently at. WHY DO IT? THE BUSINESS BENEFITS • Improve your reputation with customers and businesses. • Become part of the CommunityMark network of like minded businesses. • Potential shortcut to tender contract proposals. • Get recognised within the supply chain. • Get positive local and regional media coverage. • Increased staff motivation, training and retention. “ The award of the CommunityMark will help to demonstrate our community involvement and will set us apart from our competitors.” INTEGRA, COMMUNITYMARK COMPANY 16 Better Business Journey Stamco Timber A CommunityMark Company SUCCESS SO FAR CommunityMark was launched in 2002 and has been supported by the Home Office and DTI Small Business Service. In December 2006, a revised CommunityMark will be launched – the new model is based on the learning of the first four years. The current CommunityMark companies have demonstrated that they have integrated community involvement into their business and have tangible benefits to show for it. They have created community programmes that really are examples of excellence. HOW DO YOU DO IT? It’s a simple process designed to allow you to complete it at your own pace. The emphasis is on action, not paperwork, so there is a series of useful jargon free templates to help you along the way. All the relevant information and templates can be found at www.communitymark.org.uk. The whole process is overseen by independent assurers, to ensure that it is robust, fair and transparent. AGE LOCATION Hastings, Hove 49 years and Eastbourne EMPLOYEES 100 SECTOR Independent Timber and Builders Merchant WHO HAS DONE IT? Companies from all sectors, locations and sizes, from sole traders, 2 employees up to 249 employees. Further examples and information can be found at www.communitymark.org.uk. “ One of the most successful aspects has been in retaining staff and recruiting new employees who are impressed with Family’s commitment to the local community.” FAMILY ASSURANCE FRIENDLY SOCIETY, COMMUNITYMARK COMPANY WHAT IT DOES Stamco involves and informs all staff of its community programme through briefings and newsletters. It has seven key community partners and also supports smaller local projects by providing products, work placements, school governors, photocopying services, professional skills for free, sponsoring staff fundraising and supporting local suppliers. WHY IT DOES IT Nicholas Wilde, Company Secretary, says “the ethos within the company is that the community is an important and inseparable part of what we do. It is our belief that the company’s and our employees’ support for the community has enabled us to retain and motivate staff and grow and develop the business to become a major local employer.” It partners with a local scout group and has won sales via a building firm associated with the group. Work with the local college has built staff communication and presentation skills thus improving customer service. In addition a number of work placement students have become full-time employees. RESULTS • 150 different community groups supported in one year with further support and match funding generated via suppliers. • Local schools benefit from donated materials, governors, meaningful work experience and staff time/skills. • Increased profile for community partners. • Increased sales. Better Business Journey 17 Gripple Limited A CommunityMark Company Broomfield & Alexander Limited Committed to becoming a CommunityMark Company AGE LOCATION Cardiff, Newport, 94 years Newbridge EMPLOYEES 75 SECTOR Chartered Accountants and Professional Advisors “ The reason our programme has been so successful is that we have empowered our staff to get involved with a wide range of projects in the community and they get a lot of satisfaction out of it. The business equally benefits from the skills they develop.” MACPHIE OF GLENBERVIE, COMMUNITYMARK COMPANY LOCATION Sheffield EMPLOYEES 167 AGE 18 years SECTOR Manufacturing WHAT IT DOES Gripple has developed a culture of involving employees in charitable work and forging strong partnerships with these local bodies. Activities range from successful student placements to factory visits to team challenges for charitable causes to giving employees free time for ‘the right to read’ with school children and working with local employment agencies to ensure they recruit from a wide and diverse employment pool. WHY IT DOES IT Les Cooper, Gripple’s Production Director, says “The company’s goal is to develop every employee to his or her maximum potential, and we believe an active community involvement is an essential part of that development process”. All employees have a duty and responsibility to ensure that this culture continues and it is integrated into the induction process. RESULTS • Positive media coverage leading to increased interest from job seekers. • Improved employee skills, confidence and staff morale. • Over 2,000 schoolchildren and students gaining exposure to the opportunities that exist in industry and to innovative product development. WHAT IT DOES Broomfield & Alexander are members of Business in the Community’s Cardiff ProHelp network providing charities with access to free professional advice. Staff are involved in projects tailored to training needs. It has supported around 15 organisations over the past four years through ProHelp as well as individual fundraising and charity activities. One recent project involved a staff member working with the VANGuard Centre’s Treasurer to develop a business plan, financial model and accounting systems. This enabled the centre to register as a charity and bid for funding to re-develop its building into a multi-purpose community space. WHY IT DOES IT By providing its core resource of professional skills the firm demonstrates its commitment to responsible business practice; offers tangible skills development for staff; and feeds directly back into the business by enabling staff to better understand the needs of its charity and community sector clients. The ProHelp group enables networking with similar firms and raises its profile. RESULTS • Development of skills by staff including client management, business planning, research, problem-solving and increased confidence. • 15 community organisations benefiting from free advice over four years. • Provided publicity and raised the profile of the firm locally. 18 Better Business Journey WHO ELSE CAN HELP? ORGANISATION Information on all aspects of responsible business for small businesses www.smallbusinessjourney.com Business in the Community www.bitc.org.uk Scottish Business in the Community www.sbcscot.com British Chambers of Commerce www.chamberonline.co.uk Institute of Directors www.iod.com Federation of Small Businesses www.fsb.org.uk Forum of Private Business www.fpb.org Lloyds TSB Group plc www.lloydstsb.com Arts and Business www.aandb.org.uk CSR Europe www.csreurope.org AccountAbility www.accountability.org.uk Sustainability Northwest www.snw.org.uk Office of the Third Sector www.cabinetoffice.gov.uk/thirdsector Reading to schoolchildren www.dfes.gov.uk/read Department of Trade & Industry (DTI) www.csr.gov.uk First aid courses www.redcross.org.uk Payroll giving information www.payrollgivinggrants.org.uk Employers Forum On Disability Information on disability, law and best practice www.employers-forum.co.uk Employers Forum On Age www.efa.org.uk Business Links www.businesslinks.gov.uk Institute of Business Ethics www.ibe.org.uk Foundation for Values Based Business www.valuesbasedbusiness.org CommunityMark standard www.communitymark.org.uk Investors in People www.investorsinpeople.co.uk www.yourpeoplemanager.com Better Business Journey 19 Commission for Racial Equality www.cre.gov.uk/index.html Health and Safety Executive www.hse.gov.uk Equal Opportunities Commission www.eoc.org.uk Workplace Health Connect – free health advice www.workplacehealthconnect.co.uk Advice line: 0845 609 6006 Cares Employer supported volunteering programme www.bitc.org.uk/cares Liftshare www.liftshare.com Envirowise Government’s free environmental advice service to businesses www.envirowise.gov.uk 0800 585794 Global Action Plan www.globalactionplan.org.uk 020 7405 5633 The Carbon Trust www.carbontrust.org.uk 0800 085 2005 Greening the office www.green-office.org.uk Computer Aid International www.computer-aid.org Fairtrade Products www.fairtrade.org.uk NetRegs Advice on environmental legislation www.netregs.gov.uk Groundwork www.groundwork.org.uk Reduce The Use www.reducetheuse.co.uk Responsible Entrepreneurs Achievement Programme www.unido.org Ethical Trading Initiative www.ethicaltrade.org Energy Saving Trust www.est.org.uk Better Together Free, regional charters for businesses committing to responsible practice www.bettertogether.org.uk www.bettertogetherdorset.org.uk www.londonbettertogether.org.uk 20 Better Business Journey WWW.SMALLBUSINESSJOURNEY.COM A TOOLKIT FOR SMALL BUSINESSES AND THEIR ADVISERS The Small Business Journey was the first initiative developed by The Small Business Consortium. Launched in 2004, it is an online guide to help businesses improve profits through responsible business practice. It highlights specific ways in which small businesses can add value to their business. That may mean adding to their reputation, adding to their public recognition, adding customers, skills or simply adding to the bottom line. In addition to the latest information and news it contains How To Guides, more examples of businesses that have profited from responsible practices as well as key research studies. There are three routes on The Journey. Each route looks at a series of issues which are called +points because they can be used to add value to any business. 1 2 3 The first route is Policy. What’s the theory and how can it be put into practice in your business? The second route is Practice. Here you’ll find information on practical measures like managing waste and implementing better payment procedures. The third route is Stakeholder. Here you’ll focus on how to communicate effectively with your employees, customers and suppliers. All the fact sheets are available to download for free from www.smallbusinessjourney.com. The UK Small Business Consortium aims to raise the competitiveness of small businesses through improving their social, environmental and community impact. The Consortium members work together to generate case studies, business case arguments and how-to guides for small businesses and their advisers. A pdf version of this publication can be downloaded from www.betterbusinessjourney.com. Better Business Journey 21 “ Would anyone working in your business say ‘I would strongly recommend working here to friends and family?’ How well a business scores on that question is going to be one of the best predictors of long-term business success. A business which is run responsibly is undoubtedly going to score higher. This booklet will help you do so.” DAVID GRAYSON, CHAIR, SMALL BUSINESS CONSORTIUM This publication is supported by: The Small Business Consortium, The Cabinet Office and DTI. If you run your own business, or work in a small or medium sized business, maybe a family-owned business – this booklet is for you. It describes practical things that you can do, that won’t cost you (or the rest of us) the earth. The 100+ different tips in these pages are all designed to improve your business profitability as well as to maximize the positive and minimise the negative environmental and social impacts. Some people call this Corporate Social Responsibility (CSR) or ‘business and sustainability,’ but really it is just better business and common sense. If you have got more tips or experiences that you would like to share with other businesses, then please e-mail: sbc@bitc.org.uk and we will include in future editions and on www.betterbusinessjourney.com. Designed and produced by Alan Bates Design – www.alan-bates.com. Printed by Kent Art Printers. Printed on Revive Silk containing 75% de-inked post consumer waste. Product code 01B1C000290. August 2006.