How to create a sustainability management system for SMEs, part I

By Deyanira Sánchez, Co-director of the Sustainability Leaders Program

In my regular contact with entrepreneurs, I still hear objections to jumping into the sustainability pool: "It's complex; I don't have the people or financial resources to do it; I'm a very small company, we don't have time to think about this," and so on.

However, it turns out that deep down they do want to do it and they just need someone to walk the path with them. 

So you might be wondering: How can an SME get started in a simple and affordable way?

The recipe I promote is a phased approach to implementing a sustainable management system. Actually, it's nothing out of the ordinary. I simply take what already exists and apply it, with awareness and also with a certain rigor because, at the end of the day, we have to do the job well.

Some premises:

1. I speak of management system because we are oriented towards the continuous improvementNot only in the aspects related to social responsibility and sustainability (SR+S), but also in a holistic way across the entire organization.
2. It is a process systematic which involves repetition and teaches us to develop perseverance and discipline to measure the results.
3. Don't be afraid of the findingsWe're certainly already making progress in various areas within our organization, and it's only a matter of time before we achieve new milestones.
4. Act as a teamBy this, I mean that the ideas that emerge don't come solely from the company's management or the person responsible for the sustainability strategy (internal or external). It's essential to involve all functional areas, since sustainability is a cross-cutting and comprehensive issue. And it's been proven that better results are achieved as a team.

First step: Diagnosing the situation

Before the existence of the famous Registry of Socially Responsible Valencian EntitiesYes, I researched methodologies applicable to SMEs and I found various approaches that had in common self-assessment on the implementation of practices related to: the people who work in the company, clients, suppliers, environment, values and transparency, relationships with the community, government and society.

It wasn't easy to combine qualitative concepts to arrive at a model that made sense to me and that I could apply to an SME; in addition, it was difficult to find simple and appropriate management indicators, considering that international standards were designed for large companies that are required to measure their sustainability performance.

With the implementation of the REVSR, this first step is facilitated. Using the requested information, the system provides scores and achievement levels, thus, The company knows from the start its strengths and areas for improvement with respect to the adoption of ESG criteria in its activity, structure and strategy.

Listening to stakeholders

To complete the diagnosis and establish a starting point, we must listen to stakeholders and understand their expectations. This, along with the previous step, will help us define the sustainability strategy.

This is where I see the question marks and some questions arise: What do you mean by stakeholder groups? How do we identify ours? How do we talk to them? 

One of the mistakes we make when we specialize in a topic is assuming that others have the same expertise and knowledge. 

Additionally, wanting to fully apply methodologies when it comes to understanding and adapting to the organization's specific situation, particularly when it comes to SMEs.

As someone once told me: we don't need the typical consulting firm that gives you tasks. We need you to come up with the solution and execute it.

Responding to these requests:

1. Stakeholders are all those groups with which the company relatesa: Employees, shareholders, suppliers, customers, public administration, local communities, financial institutions, third sector and if we get more detailed, the list can be very long because it depends on each company, its sector and the dynamism of its activity.
2. There are methodologies for identifying and prioritizing stakeholder groups (SGs). However, in the context of an SME facing this dilemma for the first time, I recommend applying common sense and practicality, considering the level of influence and dependence that the company exercises over the group and vice versa. Subsequently, through a collegial decision-making mechanism, select the priority subjects of This initial process of dialogue.
3. For understand the needs and expectations Regarding the IGs, we need to talk to them. Large companies conduct environmental and market analyses, panels, surveys, and other initiatives. The ideal tool is one that fits the SME's resources and capabilities. A survey is certainly a good way to start a dialogue.
4. What do we ask? The answer is "it depends." The existing literature offers inspiring ideas; however, the right questions will depend on the organization's objectives, purpose, and vision; its commitment to sustainability values; the information it has historically collected from its GIs; and, why not?, from the same system of indicators mentioned at the beginning. 

The result of this first diagnostic phase has provided me with the necessary input so that in the SME we can define a sustainability policy and the action plans that support the strategy for be responsible and sustainable companies.

To delve deeper into these topics, and the following phases of the method, the first edition of the Sustainability Leaders Program, a Diploma of Specialization in Sustainability and Social Responsibility, available online and with a week of in-person (and networking) training in Valencia.

A comprehensive and flexible program, aimed at professionals like you who need practical training in sustainability. If you'd like more information about this postgraduate degree, click here.