Small business and business generally does not operate in isolation from the society in which it exists.  In fact, most businesses have an impact on the local community or the wider society where it conducts business activities.  This ‘impact’ may vary depending on how the business engages in business behaviour and practices.

Either way, individually and collectively, businesses have a social impact on the community through a number of ways:-

• environmental issues
• public safety and health
• exploitation of workers at home and abroad
• human rights issues
• business behaviours and practices

These ’social responsibilities’ contribute towards the improvement and welfare of the local community and the wider society.  Whether a business is online or face-to-face, you do need to consider how you are being socially responsible.

In the Academy of Management Review, volume 4, number 1, it defines social responsibility as covering three different areas:-

1. Social Obligation - minimum compliance; only enough to comply with the law.
2. Social Responsiveness - a business which will engage in socially beneficial activities because there is a pragmatic benefit for doing so.
3. Social Responsibility - a business that is willing to pursue long-term objectives that benefit society, even though there may be no individual gain for doing so.

As a person who has a couple of different sites and businesses, and is classified as a micro business; being socially responsible as described in point 3 is difficult, particularly when I need to consider the four key areas of my operations - the workplace, the marketplace, the community and the environment.

The resources available to businesses are more relevant to larger businesses, and there is not a great deal of government support or incentive for small businesses to adopt social responsible activities.

In a consumer driven, over crowded marketplace, many companies strive for a unique selling point and being social responsible is definitely one option. However, aside from the cost of producing a product or service, the majority of small businesses do not have the funds to market themselves as strategically as larger businesses.

Consumers are becoming more aware of the environment and social implications of their day-to-day purchases, however many consumers are also price conscious and unless they see the value in purchasing a socially responsible, higher priced product, they are likely to purchase the cheaper version.

In writing all this, I must say that I have been doing a lot of research on how I can be more socially responsible through my online store, Modern Goddess Gifts.  My product range is slowly growing and according to Michelle from My New Shiny Shoes, online shopping is on the increase.

In her article about online shopping she talks about the advantages and disadvantages to online shopping.  One thing that she didn’t mention was that shoppers can shop from all around the world, whether it is by visiting many online stores or through one store.  While reading her article a light bulb went off… I can be socially responsible by including a Fair Trade range of products from all around the world.  I travel a fair bit and I can create opportunities whereby I can connect with Fair Trade businesses that also support women in business.

This has gotten me excited!  As I prepare to head off to South America, I am exploring such opportunities.  I hope in the near future that I will not only be providing unique gifts just for ‘you’ but unique, socially responsible gifts just for ‘you’.

If you are in business, why don’t you start looking at ways of being socially responsible.  Explore your options before dismissing it entirely.

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