Community engagement unboxed: 8 best practices for sustainable growth

SMEs can contribute to sustainable development by investing in skilling programmes and supporting education initiatives.

In a previous column, we discussed the importance of community engagement for sustainable development and growth. Indeed, it is a powerful approach that SMEs in India can adopt to create a positive impact on society while also growing their business.

Here are some best practices that SMEs can follow, along with real case studies and examples from various industries:

1 Identify local needs and prioritise impact

SMEs should thoroughly assess the challenges and needs of the communities they aim to engage with. By prioritising the projects that address critical issues, they can maximise sustainable development.

For example, SELCO India, an innovative solar energy SME, identified the need for clean and affordable energy solutions in rural India, and focussed on providing solar lighting solutions to off-grid communities. By prioritising impact, SELCO India was able to improve the quality of life for thousands of people while also building a sustainable business model.

2 Collaborate with local stakeholders

Collaborate with local NGOs, community leaders, and government agencies to co-create and implement community development initiatives. Engaging with stakeholders ensures that initiatives are aligned with local priorities and have broader support.

Godrej Agrovet, a part of the diversified Godrej group, collaborated with NGOs and farmers' co-operatives to promote sustainable agricultural practices.

Through farmer training programmes and partnerships with local organisations, they improved agricultural productivity, enhanced livelihoods, and encouraged sustainable farming practices across many parts of India.

3 Encourage employee volunteerism

Encourage and support employees to actively participate in community engagement initiatives through volunteerism. Employee involvement brings forth a sense of purpose and strengthens the bond between the SME and the community.

Mindtree, an IT services company (now part of L&T Infotech), encourages its employees to volunteer in various social and environmental projects. Their "iCare" programme enables employees to contribute time, skills, and resources to initiatives focussed on education, health, and environmental sustainability.

Mindtree's commitment to employee volunteerism has made a significant impact on the communities they serve.

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4 Promote local sourcing and inclusivity

Support local economies by sourcing materials and services from nearby suppliers and engaging with micro and small businesses in the community. Promoting inclusivity helps create sustainable livelihoods and triggers economic growth.

ITC, a diversified conglomerate, follows a "Triple Bottom Line" approach that focusses on social, environmental, and economic aspects. Through its "e-Choupal" initiative, ITC sources agricultural produce directly from farmers, cutting out middlemen and ensuring fair prices. This inclusive approach has positively impacted rural communities and improved farmer incomes sustainably.

5 Invest in skill development and education

Businesses can contribute to long-term sustainable development by investing in skilling programmes and supporting education initiatives. This empowers community members with new opportunities and helps build a skilled workforce for the future. It is a win-win for all stakeholders.

6 Transparent and inclusive communication

Transparency is vital in community engagement. Businesses should communicate openly about their plans, impact assessments, and mitigation strategies. Inclusivity involves involving all relevant stakeholders and considering their perspectives in decision-making.

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7 Mitigate risk

Community engagement helps businesses understand potential risks associated with their operations better. By proactively addressing community concerns and grievances, businesses can avoid conflict and reputational damage that may impede their long-term growth. Many small retailers worked closely with stakeholders in several communities in Bangalore during Covid to supply food to local residents.

8 Measure and communicate impact

Regularly measure the impact of your community engagement initiatives and transparently communicate the outcomes to all stakeholders. Demonstrating the positive change created builds trust and encourages continued support from employees, customers, and investors.

Titan, a leading watch and jewellery brand owned by the Tata Group, actively measures the social and environmental impact of its initiatives.

Through its "Jewels for a Cause" programme, Titan supports artisan communities and women's self-help groups. In fact, Tanishq got silver artisans to design the Medici Innovation Hall of Fame trophy, an award for innovation. By transparently sharing impact data, Titan builds credibility and reinforces its commitment to sustainable community development.

SMEs in India have a unique opportunity to drive community engagement for sustainable development. By embracing the above best practices, they can make a significant difference in the communities they operate in, driving social progress and economic growth for a better future.