As business owners, leaders, and professionals, we often think of the work we do as simply part of the job. However, as I reflect on my experiences and studies on the evolution of Corporate Social Responsibility (CSR) in small and medium-sized enterprises (SMEs), particularly through the lens of the third phase of strategic CSR development, I believe that CSR is as much about citizenship as it is about business. A process of building business citizenship.
In the third phase of CSR development, which I call the "Professional Agent-Driven Phase," businesses reach a level of maturity in which their actions are no longer reactive but intentionally strategic. At this stage, businesses actively engage in creating reciprocal value—not just for their bottom line, but for the communities they serve. They evolve into professional agents of change, and their actions speak volumes about the leaders and organizations they aspire to be.
The Transition: From Reactive to Proactive Citizenship
In this third phase, businesses are driven by more than just the need to check boxes or meet regulatory requirements. They are engaging in long-term thinking, and their CSR efforts are thoughtfully designed with the intention to create meaningful impact. Furthermore, the decision-makers are now more likely to be professional agents - experts in CSR who bring in-depth knowledge and strategic foresight into the process.
Considering some of my recent reflections, I believe this is where leadership intersects directly with citizenship. Businesses in this phase begin thinking about long-term results and how their actions will create lasting value for both their stakeholders and society.
Phase 3: The Power of Professional Agents
In interviews conducted with SMEs across Africa and North America, it was evident that as businesses mature, they are faced with external triggers that prompt them to re-evaluate their CSR approach. These triggers could be anything from a competitive pressure to a community crisis. However, it is the professional agents in these organizations—those with expertise in CSR—that take charge, often redesigning how the business engages with the community and the world.Key triggers lead to additional reciprocal value for businesses and their communities
This phase is characterized by the refinement of stakeholder engagement. It is no longer about the business doing what is required; it is about forming meaningful, strategic partnerships that create reciprocal value. This is where the true potential of CSR is realized, as businesses begin to make decisions that align with both their values and the needs of their communities.
Creating Reciprocal Value
At the heart of this phase is the idea of creating value not just for the business, but also for the community. The benefits of CSR are now felt across multiple levels: from improved company culture and employee loyalty to stronger community ties and increased customer trust. This reciprocal value strengthens the business and the broader ecosystem, transforming businesses into active agents of change.
What stood out to me in the interviews with SMEs was the recognition of how deeply CSR can influence business culture. Leaders and employees alike began to take pride in the work they were doing. This sense of ownership not only improved business performance but also encouraged employees to engage more fully with their communities. CSR initiatives, such as employee volunteer programs and local partnerships, created a feedback loop that benefited both the business and the community, thereby reinforcing the business’s position as a trusted agent of change.Phase 3 of SME CSR development: An important time for business and society
Conclusion: Leading as Citizens in Business
In the Professional Agent-Driven phase, the shift that businesses make is about understanding CSR as a responsibility to society and to the business and leading with a vision for the future. This third phase is critically important because it is about making a real, lasting difference.
To me, the Professional Agent-Driven phase of CSR development is a natural culmination of leadership principles: It brings to light that business leaders, like citizens, have the power to shape the communities they serve. This phase pushes us to ask ourselves: How are we leading in our communities? Are we building reciprocal value in our businesses and organizations? Are we truly being citizens of the world, committed to long-term positive change?
As I continue my work with SMEs, I am motivated by the understanding that responsible leadership and strategic CSR can indeed help change the world. The goal is not just to run a successful business, but to leave a legacy that benefits both people and the planet.
Dr. Memuna Williams has a BA and MA in Translation, an MBA, and DBA. Her doctoral thesis illuminates how SMEs develop social responsibility programs across four phases and 13 categories. Dr. Williams and her husband Victor have three sons. Connect with her at: www.linkedin.com/in/dr-memuna-williams-dba-8193b01
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