Why SMEs need business sustainability strategies


South Africa is one of only a few emerging-market economies showing a significant increase in sustainability reporting, and the only one in Africa.

However, a major concern at the moment is that the focus of the sustainability consulting industry in South Africa has been primarily on large corporates, which has created a gap with owner managed and small and medium enterprises (SME).

This is according to William Hughes, Mazars Business Sustainability Consultant, who says while it is mandatory for companies listed on the JSE to produce an Integrated Annual Report which Sustainability Reporting forms part of, SMEs often neglect this important aspect.

“SMEs can no longer afford to ignore sustainability as a best practice strategy, and we can expect to see greater integration of sustainability functions into all facets of business going forward.”

Hughes notes that sustainability has moved from merely being part of corporate social responsibility, to being an opportunity for growth in all facets of business.

“There is increasing pressure on natural resources and the increased costs of certain raw materials, which has already affected many businesses in South Africa. International businesses are also preferring to work with businesses that can demonstrate that they are sustainable,” he says.

“The demand for business sustainability is also growing at a rapid rate. It is no longer business as usual. Political and social instability, climate change and the power of social media has forced businesses to be more transparent, accountable and better engaged with stakeholders,” Hughes adds.

The advantages of implementing a business sustainability strategy however goes far beyond that, he says. “In addition to building trust with stakeholders, more sustainable business practices give a company a competitive edge and assisting to differentiate itself from its competitors. It can also reduce future compliance costs, such as carbon tax, and improves a company’s access to capital and international markets.”

Hughes adds that SMEs have the most to gain from implementing sustainability measures into every aspect of their business.

“Once a sustainable strategy has been devised and implemented into a small business, the company can continue to incorporate it into their operations as the business grows. It is in effect a long-term strategy”

The challenge is that sustainability is an all-encompassing business strategy, and owner managed and SME businesses are often so engrossed with day to day operations that they do not have the time to think outside the box, he says. “These companies need expert assistance to facilitate the process.”

Hughes states that the Mazars Business Sustainability Service offering tailors the service to the clients’ requirements and objectives, making it affordable for any business no matter its size.

“Mazars offers a unique, hands on, Business Sustainability Service delivered by consultants with actual business experience, who are able to demonstrate the business case.”

With the onset of carbon tax, the Mazars team will also be focusing on carbon footprint calculations and its reporting and assurance, he adds.

“As the marketplace changes and sustainability becomes increasingly important in the daily operations of every business, the gap between best practice companies and their competition is very likely to become bigger and bigger. Building a business on the principles of sustainability is imperative for SMEs that want to grow to become industry leaders,” Hughes concludes.


About Author

Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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