An increasing number of Small and Medium enterprises (SMEs) in New Zealand are realising the importance of sustainable business practices, according Massey University students involved in shortlisting entries for the ‘Sustainable 60 Awards.’
The top ten companies will be declared at a ceremony to be held in Auckland on November 28, 2012.
School of Management Senior Lecturer Dr Gabriel Eweje is among the judges.
He said that companies of all sizes were focusing on responsibility and engaging more closely with their stakeholders, communities, and customers.
“Companies are looking for ways of improving their social responsibility and having a presence in their local communities. Organisations that give staff time off to do volunteer work for charities are a good example,” he said.
With the increasing public awareness of corporate behaviour and responsibility, difficult economic times can put pressure on companies to dilute their sustainability strategies, Dr Eweje said.
“My research shows that there are two types of companies, namely leaders and followers. The leaders are companies that will continue to invest in sustainability during the recession because they see it as part of their strategy and something that will make them more competitive.
“However, the followers are just following the leaders, with no direction. These companies may not invest during recession or, if they do invest, it will be minimal,” he said.
Changing times
Smita Paul, who is preparing for her doctorate in Knowledge Management and Sustainable Development, has been a preliminary judge since the competition was launched in 2009.
She said the process had given her invaluable insights.
“It is great to see what is happening in the area of business sustainability. Being in academia, you have to take these abstract ideas and apply them in the real world,” she said.
She said that large firms with parent companies overseas could easily implement strategies already in place.
“In the past two years, we have had SMEs employing such practices. They are very innovative and their core business driver is based on sustainability.”
According to Ms Paul, smaller companies interacted better with their communities and that they were not copying anyone.
“They see a gap in the market, understand their community well and want to be part of that community,” she said.