The Sustainable Development Goals, or SDGs, are the blueprint for a better and more sustainable future for all of us. The goals were established by the United Nations and aim to provide answers to the global challenges we face, such as poverty, inequality, climate, environment, prosperity, peace, and justice.
These are important, world-changing goals that require coordinated collaboration between government leaders and international companies. It may seem like small SMEs have little impact here, but appearances can be deceiving. Everyone, from the largest multinational to the smallest startup, can and must be part of the solution. Boris Manev, Head of CSR and Government Affairs EMEAR at Epson, shows how organizations can get started with this.
That the Sustainable Development Goals contribute to a better living environment and a fairer world is evident. However, the goals are merely guidelines and not obligations. And even if you may have a green heart and the best intentions for the world, if you are an entrepreneur, there are also other interests at stake. Commercial interests.
While large international companies have the financial resources and clout to completely redesign production processes, enforce green logistics, and impose ethical requirements on their partners, smaller entrepreneurs are much more at the mercy of the whims of the day, and their biggest concern is putting food on the table. Nevertheless, it is important that small businesses are also aware of the ethical aspect of entrepreneurship. Not only because they can also make a relevant contribution to a better world, but also because they can no longer do without CSR policies these days.
Why is it important to be 'good'?
So far, it is mainly large companies that actively endorse the goals of the United Nations. However, there is a good chance that you, as an SME, have already encountered them indirectly. Perhaps you work at a small startup with four employees that provides services to somewhat larger clients. One of these clients provides services or products to an even larger client. The European directive on non-financial reporting states that companies with more than 500 employees must not only submit their financial data annually but also demonstrate how they perform in terms of environment, ethics, society, and human rights.
How does this affect smaller entrepreneurs? An example. Because the criteria of the directive 2014/95/EU are determined per country, Epson is not classified as a company that must comply with this regulation. Although we are much larger globally, we have fewer than 500 employees in each country. However, we do have some large clients that fall under the directive and must report their CSR status. These clients ask us to demonstrate that we are a supplier that operates ethically and socially responsibly so that they can include this in their reporting and show it to their clients and auditors.
We, in turn, ask all our suppliers, from large to small, to sign a supplier code of conduct that stipulates that every component of a product or material we purchase and every aspect of a service we use has an ethical and sustainable basis. Even when it comes to small things, such as coffee cups or the carpeting in our offices. This way, the CSR policy of large companies trickles down to the smallest enterprises. If you cannot demonstrate that you operate responsibly, you risk losing a lot of business.
Moreover, the average consumer today is better informed than ever and is highly aware of the ethical and social dimensions of companies. This affects purchasing behavior: no one wants to do business with a company that pollutes its backyard. When price and quality are comparable, a socially responsible policy can even be the added value that persuades customers to do business with you.
Where should you start?
The development goals provide a nice starting point for organizations to determine their own policies. They are universal, easy to understand, widely known, and everyone can endorse them. To begin with, you need to see the goals in the context of your company. Which goals can you actually influence? At Epson, for example, we chose 'Climate Action' as one of the seventeen goals we endorse because CO2 reduction is one of our strategic priorities. Our printers use up to 96 percent less energy and produce up to 94 percent less waste, and our production and logistics processes are as sustainable as possible from start to finish. Choose the goals that naturally fit your organization and then think about how you can shape and promote them.
This is not an easy process and not something you can complete in a week. We took a long time to implement sustainability in every aspect and detail of our organization. It relates to our production processes, our logistics processes, how we set up our offices, which office supplies we use, and which suppliers we work with, to name a few. But the first step is the most important. Define what your starting point is and get to work.
Be aware that even small steps bring you closer to the end result. Think, for example, of all the single-use plastics you use, such as coffee cups, stirrers, bags, straws, and packaging. At Epson, we have set ourselves the goal of completely eliminating all types of single-use plastics in all our EMEA offices by April 2019. To reduce CO2 emissions, we promote the use of meeting technology, such as Epson projectors, instead of booking business flights for international meetings. Employees from Epson's CSR department - including 7 employees from the UK, France, Spain, Germany, and Italy - use Epson's projector technology instead of traveling to attend their monthly meetings in Amsterdam. This saves 31 tons of CO2 per year, which is equivalent to taking 6.6 cars off the road for a year.
These may be small improvements when compared to the returns from our green production processes, but improvements nonetheless.
Tell the world that you are a good company
Hopefully, this is not your main reason for acting responsibly, but a nice side effect is that it can yield you a lot. Both in assignments and for your brand image. So it certainly doesn't hurt to let the world know which sustainability goals you actively endorse. For example, send a newsletter to your customers and partners, or post a (verifiable) sustainability statement on your website. Also, work on raising CSR awareness among your partners and suppliers.
Some time ago, we conducted a survey among the hundred largest Epson resellers in Europe and their end-users. We asked them where their priorities lay when considering the purchase of Epson products. The end-users indicated that sustainability and CSR were among their top three priorities. Sustainability played hardly any role for the resellers. We brought this gap to the attention of our resellers: this is what your customers care about. It is an added value that you are not taking advantage of. This way, you not only contribute to practical solutions but also help spread awareness of the necessity of responsible entrepreneurship.
There will be few people who do not endorse the Sustainable Development Goals. The United Nations wants every goal to be achieved by 2030, and we all need to do our part. As large organizations are now taking action, we will all encounter this sooner or later. If you lead with your CSR activities, it will not only result in a more livable world but likely also significant business benefits. If you lag behind, there is a real risk that clients and customers will overlook you. Therefore, think along about solutions for social problems, understand what your customers, partners, and society expect from you, and offer products and services that exceed those expectations.
