SAI Introduces Model for Governments to Drive CSR

SAI invites companies and governments to participate in piloting this model for more inclusive participation to drive CSR and social performance.

In November 2011, SAI developed an implementation model to respond to a request for ideas on what a national government could do to accelerate the adoption of better social performance standards in all tiers of its economy. It uses business incentives to encourage improvement - from government to large national companies and then to SME suppliers. By widening the scope of participation, this model seeks to eliminate some of the major barriers to entry that SMEs face in trying to improve; lack of internal resources and cost. The diagram and explanation provide a clear picture of the players and their roles.   Throughout this 5-step model, SAI can provide various supporting roles, including: assisting governments with procurement policies; providing social performance ratings; implementing training and technical assistance programs; and linking SMEs that have a high social performance to interested multi-national buyers.   Fostering collaboration of local and national government with SMEs is critical, as both offer mutually beneficial opportunities. SMEs represent the largest number of businesses in any economy, and are an important source of local innovation. For government aims, SMEs are a source of employment opportunities and economic growth at the local level. SMEs also contribute to factors such as social stability and generation of tax revenues. For large companies, SMEs are key local partners with extensive knowledge of local resources, and special market 'niches'.   SAI19648