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Giants have much to learn from the minnows when it comes to corporate social responsibility, new statistics suggest.
An analysis of 200 independent assessments of 90 organizations against the GoodCorporation standard over its first five years has revealed that those with fewer than 50 employees - half the sample - outperformed the larger ones on most of the 62 responsible business measures studied.
This applied particularly to community and environmental performance and supplier management. A third of the organizations were listed companies, about half private and the rest non-profit. Three-quarters were based in the UK, and most of the others were from outside Europe and the US.
GoodCorporation director Leo Martin said smaller firms were also better at dealing responsibly with customers and employees. 'The relative strength of small companies derives from their commitment and ability to respond quickly to stakeholder needs,' he said. Martin suggested large companies delegate the management of stakeholder relationships to local teams within a subsidiary rather than keeping the function at head office. 'They should be wary of inflexible policy, which we found to be a source of discontent among staff and customers in particular,' he said.
The UK-based GoodCorporation, set up in 2001, grades companies on a five-point scale against its own standard, awarding marks ranging from fail to commendation. Any organization that has no fail grades receives a good-performance certificate. During the first five years there was an 18 per cent fail rate - with large listed companies the most likely to be found wanting.
An analysis of 200 independent assessments of 90 organizations against the GoodCorporation standard over its first five years has revealed that those with fewer than 50 employees - half the sample - outperformed the larger ones on most of the 62 responsible business measures studied.
This applied particularly to community and environmental performance and supplier management. A third of the organizations were listed companies, about half private and the rest non-profit. Three-quarters were based in the UK, and most of the others were from outside Europe and the US.
GoodCorporation director Leo Martin said smaller firms were also better at dealing responsibly with customers and employees. 'The relative strength of small companies derives from their commitment and ability to respond quickly to stakeholder needs,' he said. Martin suggested large companies delegate the management of stakeholder relationships to local teams within a subsidiary rather than keeping the function at head office. 'They should be wary of inflexible policy, which we found to be a source of discontent among staff and customers in particular,' he said.
The UK-based GoodCorporation, set up in 2001, grades companies on a five-point scale against its own standard, awarding marks ranging from fail to commendation. Any organization that has no fail grades receives a good-performance certificate. During the first five years there was an 18 per cent fail rate - with large listed companies the most likely to be found wanting.
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