Williston CPA firm uses triple bottom line with small businesses to effect large-scale environmental change
Davis & Hodgdon Associates, CPAs, PLC,Vermont Business Magazine What was once regarded as the obligation and domain of the big boys (think Starbucks, Ben & Jerry’s, Microsoft), now sees small to mid-sized organizations joining the charge through the adoption and practice of the triple bottom line (TBL). TBL can be defined as a business framework of three pillars of sustainability: people, planet and profit. Why the latest inclusion? Almost 30 million small businesses in America can be a powerful body in effectively helping to address today’s formidable societal and environmental concerns according to one TBL practitioner. A CPA firm in Vermont is showing small business how to get it done. It embraces corporate social responsibility in which the TBL practice is embedded. The act of corporate social responsibility (CSL) can be defined as “voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.” John Davis, managing partner of Davis & Hodgdon Associates CPAs knows from where he speaks. His 24-person firm developed a CSR policy, over a two- year period, which it practices with employees and clients alike. According to Davis, “Gone are the days when having a recycling bin on premises meant your company was environmentally fit. Locally and globally, we’re in need, now, of organizations of all sizes to integrate CSR practices into their business operations on a voluntary basis.” While a smaller outfit may not share the fiscal resources of a multi-national behemoth that can facilitate philanthropic activity (environmentally and otherwise), the practice of CSR is still possible – and advantageous. Adopting a CSR policy delivers benefits that outweigh perceived inconveniences. Specifically, a CSR policy will: • Provide community support and strengthen local economies through the charitable giving, pro bono and volunteer elements of the policy• Enhance relationships with stakeholders: clients, staff, suppliers, etc. as a result• Increase customer retention• Attract more investors• Reduce costs from efficiency improvements• Assist in attracting and retaining a happy workforce• Differentiate a business from its competition• Improve a business’ reputation and generate positive publicity Davis believes that when companies, particularly small to mid-sized ones who may not always have a platform to communicate their business values, adopt a CSR policy, rewards follow. “When smaller organizations operate in an economically, socially and environmentally responsible manner,” offers Davis, “they do so transparently (because of their size) and it helps them succeed – in particular, by encouraging shared values and social license.”He continues, “We crafted the policy because we needed to organize and measure our community efforts including charitable donations, volunteer group outings and pro bono work, amongst others, so that we could show what we are doing and create a better vehicle to do more of it. In addition, the value to companies that are practicing CSR can be significant in terms of their bottom lines.” The three main components of Davis & Hodgdon Associates CPAs’ 19-page CSR policy are Community Works, Environmental Standards and Staff Wellness. These components are applicable to organizations of all sizes and the policy details the steps involved. Since its implementation, the policy has been extremely well received by clients and employees alike with great interest being generated in the community. According to Inc.com contributor, Jared Hecht, CEO and co-founder of Fundera, 99.7 of U.S. employer firms are small businesses. In his December 2014 article, he cites the 2010 Census showing 27.9 million businesses were registered in the U.S. compared to just 18,500 companies of 500 employees or more. “It was always apparent that small businesses are indeed the backbone of the American economy. Acting as a collective body and incorporating CSR policies, they are now integral to shaping its future. The power of these small businesses combined can effect large-scale environmental change when it comes to sustainability intelligence. It’s truly a win for all – one’s business, staff, clients and the general public. All are made better,” observes Davis. To read the firm’s 5-part blog series on CSR, click on: www.dh-cpa.com/blog.html(link is external)Williston, VT November 9, 2015 – Davis & Hodgdon Associates CPAs