Uptake of corporate social responsibility (CSR) by European SMEs and start-ups : the SME checklist for responsible and sustainable conduct.
Date: 2021-12-02
Institutions: Executive Agency for Small and Medium-sized Enterprises
Subjects: EU environmental policy, consumer behaviour, corporate social responsibility, exchange of information, governance, human rights, labour relations, small and medium-sized enterprises, social role, start-up, sustainable development, working conditions

Uptake of Corporate Social 
Responsibility (CSR) by 
European SMEs and start-ups 

The SME Checklist for Responsible and Sustainable 
Conduct 

Visionary Analytics 
November – 2021 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUROPEAN COMMISSION 

Uptake of Corporate Social 
Responsibility (CSR) by 
European SMEs and start-ups 

The SME Checklist for Responsible and Sustainable 
Conduct 

European Innovation Council and SMEs 
Executive Agency (EISMEA)  
Innovation ecosystems, SMP / Entrepreneurship and Consumers  

2021 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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LEGAL NOTICE 

The information and views set out in this Report are those of the author(s) and do not necessarily reflect the 
official opinion of EISMEA or of the European  Commission. Neither EISMEA, nor the European  Commission can 
guarantee  the accuracy of the data included  in this study.  Neither EISMEA, nor the European  Commission or 
any person acting on their behalf may be held responsible for the  use, which may be made of the information 
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PDF 

ISBN 978-92-9460-988-5 

doi: 10.2826/006004 

EA-01-21-495-EN-N 

Luxembourg: Publications Office of the European  Union, 2021 

© European  Union, 2021 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Introduction 

The  “SME  Checklist  for  Responsible  and Sustainable Conduct”  was  developed 
alongside the study “Uptake of  Corporate Social Responsibility (CSR) by European small 
and medium sized enterprises (SMEs) and start-ups” that had been commissioned by the 
European Innovation Council and SME Executive Agency.  

Bef ore  this  study,  there  was  little  systematic  analysis  or  data  on  the  uptake  of  
CSR/sustainability  practices  by  smaller  companies and  start-ups across Europe.  The 
impact  of   those  practices on  SME  capacity  to  grow  and  innovate  was  also  largely 
unexamined.  However, the  study,  covering 15  EU  Member States  and  3  (potential) 
candidate countries, as well as 8 economic sectors, enabled to map, assess and report 
f indings with respect to CSR/sustainability uptake in SMEs.  

Study  f indings  showcase large  variations  between SME  uptake of   CSR/sustainability, 
depending on their level of  maturity, their size, as well as the sector or country in which 
they operate. As a result, there is no easy and a one-size-fits-all solution to encouraging 
CSR/sustainability uptake amongst SMEs. However, many companies are growing aware 
of  the general discourse on sustainability in relation to business operations. At the same 
time, among other things, SMEs lack the necessary practical knowledge on how to 
approach certain themes and topics, or how to develop more responsible/sustainable 
conduct  without  incurring  signif icant  costs.  The  “SME  Checklist  f or  Responsible  and 
Sustainable Conduct” was developed to provide SMEs with an easily accessible tool that 
should help companies gain more clarity and understanding regarding their own actions. 

The  tool  is  broadly  based  on  the  ISO  26000  Guidance  Standard  on  Social 
Responsibility. An adapted version of this standard was used within the context of this 
study, because it was the most applicable within the context of SMEs.   

5 

 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Table of contents 

Who is this Checklist for? ............................................................................... 7 

What is “CSR”, “RBC” or the “sustainable enterprise”? ........................................... 7 

What are the benef its of making your business more responsible and more sustainable? 8 

So what’s next?........................................................................................... 9 

Start your journey! .................................................................................... 10 

Decent work .................................................................................... 12 

Consumer issues .............................................................................. 13 
Environment.................................................................................... 14 

Community involvement ..................................................................... 15 

Human rights................................................................................... 16 

Responsible business relations ............................................................. 17 

Organisational governance .................................................................. 18 

Information sharing........................................................................... 19 

Tips for developing a CSR/sustainability strategy ............................................... 20 

Available support and resources .................................................................... 22 

6 

 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Who is this Checklist for? 

This  Checklist  is  f or  companies  that  want  to  make  a  prof it  without  harming  the 
environment and by contributing to positive social change. It can be especially usef ul for 
you if :  

•  You are a small or medium-sized enterprise (SME) with less than 250 employees. 
•  You want your business to be more sustainable but you are not entirely sure what 

to do.  

•  You want to improve some aspects of  your business and increase competitiveness 

but need guidance. 

•  You have been wondering about the support available to make your business 

operations more sustainable.   

What is “CSR”, “RBC” or the “sustainable enterprise”?  

Corporate social responsibility (CSR) 

Enterprises should have in place a process 
to integrate social, environmental, ethical, 
human rights and consumer concerns into 
their business operations and core strategy 
in close collaboration with  their 
stakeholders, with  the aim of maximising 
positive impacts and identifying, preventing 
and mitigating  possible adverse impacts. 

Responsible business conduct (RBC) 

Responsible business conduct (RBC) means 
complying with laws, such as those on 
respecting human rights, environmental 
protection, labour relations and financial 
accountability, even where these are poorly 
enforced. 

Sustainable  enterprise 

Sustainable enterprise is an organisation 
that  can anticipate  and meet the needs of 
present and future  generations of customers 
and stakeholders through creating and 
innovating new business strategies and 
activities that accelerate positive social 
change, protect and preserve environmental 
integrity, while  enhancing business 
performance. 

(CSR), 
Corporate  Social  Responsibility 
Responsible business conduct (RBC) and the 
sustainable enterprise all commonly refer to 
enterprise conduct that extends beyond 
legal requirements to ensure that company 
operations remain f ully ethical. Such conduct 
positively af f ects the  communities in  which 
the enterprise finds itself, and should not be 
a  source of  long-term harm to  the  natural 
environment upon which it depends, or within 
which it operates.   

with 

used, 

slightly 

Although each of  the three terms has their 
own  specif ic  def inition  and  tend  to  be 
dif ferent 
associated 
connotations, the European Commission has 
taken a holistic and integrated approach that 
prioritises  practical  action  over  theoretical 
distinctions. This means that whichever term 
is 
enterprises  are  becoming 
increasingly expected to step up their efforts 
when  it  comes to  tackling  climate change, 
environmental 
challenges 
brought on by global trade,  and the need to 
work towards a more inclusive, healthy and 
prosperous  society.  In  other  words,  all 
enterprises,  including  SMEs,  will  need  to 
transf orm their business models so they may 
sustainable 
better 
development.  

degradation, 

contribute 

to 

7 

 
 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

In  that respect, enterprises should take notice of  how their business activities not only 
cause, but also indirectly contribute to various outcomes that could be detrimental 
to  several  groups,  as  illustrated  in  the  f igure  below.  For  example,  a  responsible 
enterprise is not only a good place of  work to its employees, but also a decent client to 
other suppliers that always pays on time. Negative impact that is not directly caused by 
but contributed to by the enterprise should also be avoided – while ordinary B2B relations 
might seem harmless, in f act, a supplier might be engaged in illicit practices such as child 
labour, tax evasion or  excessive pollution. Purchasing goods or services f rom such an 
entity your business is implicitly accepting unethical rules of  conduct.  

Investors and 
shareholders

The 
environment

Employees

SME 
activities

The local 
community

Suppliers

Customers

What are the benefits of making your business more 
responsible and more sustainable?  

Running a responsible business may result in positive social impact, reduced harm to the 
environment, and also economic growth. Ultimately, this translates to economic success 
and  long-term  viability  f or  your  business.  By  taking  action,  you  can  improve  your 
company’s day-to-day operations in  many dif f erent ways, each of  which  could  be  the 
culprit that keeps your business f rom achieving f inancial success.  

Employee 
motivation 

Consumer 
satisf action 

Cost savings 
and ef ficiency 

Good relations 
with suppliers 

Good image and 
reputation 

Company resilience to 
external shocks 

Good relations with other 
businesses/buyers 

However, the  business case f or sustainability is  not  always easy or  straightforward to 
because it depends on each individual business. Hence, you will need to put some effort 
into developing your CSR/sustainability action.   

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

So what’s next?  

This checklist was developed to help your business transform into a more responsible 
and more sustainable enterprise.  

It contains a checklist of activities that you may do within these action areas:  

Decent work 

Consumer 
issues 

 Environment 

Community 
involvement   Human rights 

Business 
relations 

Organisational 
governance 

Activities within each area are beneficial to boosting business competitiveness in their 
own way. You may go through all the areas, or you may choose specific areas of interest, 
depending on what you believe needs to be improved in your day-to-day business, or what 
is relevant f or the industry you operate in. You might already have a CSR/sustainability 
strategy in place, or you might only be starting on your CSR/sustainability journey. The 
checklist is  designed to  help you navigate the variety of possibilities that could be 
relevant to making responsible and sustainable conduct an integral part of  your business.  

 Each action area contains a checklist of essential activities that a responsible 
enterprise  ought  to  f ollow,  and  a  box  with  suggestions  for  more 
advanced activities with examples.  

 Once you have developed a CSR/sustainability strategy or started implementing   
specif ic activities, you might  want to let  your customers or investors 
know  about  your efforts. If   you  are  not  sure  where to  start, some 
suggestions are provided at the end of  the checklist.   

Finally, while the  checklist can help  you identif y which activities could be  benef icial for 
your business it will  not tell you what exactly and how they should be done. But f or that, 
some kind of  help and support will be available most of the time. General inf ormation 
on support relevant for each action area is provided alongside the activity check. However, 
more general kind of support to SMEs is available as well, with links to various resources 
provided here.   

Do you want to explore more options and ideas on how other companies are 
integrating CSR/sustainability? 

•  Take a look at the “Uptake  of Corporate Social Responsibility (CSR) by  European 

small and medium sized enterprises (SMEs) and start-ups: Good Practice 
Document”, which can be found on the  European Commission’s website. The document 
contains 30 case studies of SMEs from across 17 European countries and 8 economic sectors. 
It presents illustrative stories about developing and maintaining  sustainable business models 
and CSR strategies.   

•  The BipiZ platform of Good Practices contains a collection of best practices and success 

stories on company engagements in CSR activities. The platform covers over 1200 concrete 
examples  from 600 companies, 15  countries and 9 sectors. It allows you to search for 
good practices in accordance to keywords, topics, business sectors and even company size. 
You can submit your own company as a good practice too! 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Start your journey! 

The three guiding  questions below will  help  to  direct you  toward specific and practical 
suggestions f or CSR/sustainability action most suitable to your business needs. You can 
then determine which activities are most appropriate given the size of your enterprise, the 
industry you operate in, or aspirations f or expanding your business.  

Question 1:  

Do you have a CSR/sustainability 
strategy? 

Take a look at these sections:  

 Yes, but I am looking f or more        
ideas.  

Choose f rom a list of  action areas suggested 
below. 

 Yes, but I want to improve it. 

 No, but I want to develop one. 

Tips for developing a CSR strategy 

 No. I am only interested in taking 
concrete action. 

Choose f rom a list of  action areas suggested 
below. 

Question 2:  

Do you just want to explore the 
possibilities of action? 

What is this action area about?  

 Decent work 

 Consumer issues 

 Environment 

 Community involvement 

 Human rights 

 Responsible business relations 

 Organisational governance 

Fair treatment of  all workers, decent 
employment conditions and engagement in 
social dialogue. 

Providing customers with accurate and helpful 
inf ormation, minimizing risks when using 
enterprise products, providing support 
services and recall procedures 

Reducing environmental risk, bearing the cost 
of  pollution, not harming the local ecosystems 
and, if  possible, improving air, water and soil 
conditions 

Positive business contribution ranging f rom 
the local community to the wider 
international society. 

Respectful treatment of all individuals at the 
workplace and across supply chains. 

Respecting the rule of  law when dealing with 
other enterprises down or up the value chain. 

Accountable, transparent, ethical business 
management that takes into consideration 
stakeholder interests. 

10 

 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Question 3:  

Which aspects of your business 
would you like to improve?  

Take a look at these action areas: 

 Increase the company’s positive 
social impact  

•  Decent work 
•  Consumer issues 
•  Community involvement 
•  Human rights 

 Reduce the company’s negative 
environmental impact  

•  Environment 
•  Responsible business relations 

 Increase employee motivation and 
retention 

 Improve consumer satisfaction 

 Improve relations with other 
businesses/buyers 

 Ensure good relations with suppliers 

 Increase company resilience to 
external shocks 

 Increase cost savings and ef ficiency  

 Improve image and reputation 
bef ore customers and the local 
community 

 Improve image and reputation 
bef ore investors 

•  Decent work 
•  Community involvement 
•  Human rights 

•  Consumer issues 
•  Community involvement 

•  Responsible business relations 
•  Organisational governance 

•  Environment 
•  Responsible business relations 
Organisational governance 

•  Consumer issues 
•  Community involvement 
•  Human rights 
•  Organisational governance 

•  Organisational governance 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Decent work 

Decent work 

Does your company provide decent working conditions? 

Tick all that apply:  

  All employees have employment contracts. 
  All employees are covered by social insurance. 
  All employees receive f air wages: they receive a living wage in proportion to their 

ef forts and are compensated f or overtime. 

  All employees enjoy a good work-life balance: they can take a day-off when needed, 

combine their f amily duties with work, etc. 

  All employees are fully protected f rom any accidents or health hazards at work.  
  Employees are regularly included in decision-making at the company. 
  All employees receive training opportunities. 

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Provide training 
opportunities 

Employee training plans, in-house training  activities, training 
vouchers, training days, job-rotation schemes.  

Provide employment 
perks 

Employee retirement schemes, gym memberships, vouchers for 
cultural/sports events, free snacks at the workplace, premiums for 
personal occasions, transparent profit-sharing scheme. 

Improve occupational 
health  and safety 

Regular health and safety training, better working 
equipment/clothing.   

Improve work-life 
balance 

Respect for employee boundaries: clear expectations for 
availability (phone/online);  flexible work schedule.  

Involve  employees in 
decision-making 

Clear process for regular employer-employee dialogue. 

Need support?  

•  OiRA  sectoral  tools  enable  SMEs  to  carry  out  risk  assessments  f or  meeting 

occupational health and saf ety conditions within a variety of  industrial sectors. 

•  Fair  Labour  Association provides a  model  of   collaboration,  accountability, and 
transparency and serves as a catalyst for positive change in workplace conditions. The 
FLA Workplace Code of Conduct defines labour standards that aim to achieve decent 
and humane working conditions. 

•  NORMLEX  is  an  inf ormation system on  International  Labour  Standards (such  as 
ratif ication information, reporting requirements, comments of the International Labour 
Organisation's supervisory bodies, etc.) as well as national labour and social security 
laws. 

•  The  SA  8000  Standard  and  Certification  System  provides  a  f ramework  for 
organisations of  all  types to  conduct business in  a  way that  is  f air and  decent for 
workers and to demonstrate their adherence to the highest social standards.  

12 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Consumer  issues 

Does your company place efforts to benefit consumers? 

Consumer 
issues 

Tick all that apply:  

  The company provides goods or services f or a f air price.    
  The company provides complete, accurate and truthful inf ormation about the product 

or service it provides. 
  The company provides a clear and easy recall procedure and/or customer service.  

  The company f ully protects consumer health and saf ety. 
  The company f ully protects consumer privacy and data.  

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Increase consumer 
satisfaction 

Consumer surveys, personalised service (e.g. via social media), 
loyalty programmes  

Provide adapted 
accessibility 

Adapted accessibility to children, elders, persons with  disabilities to 
company products/services or distribution  premises. 

Protect vulnerable 
consumers 

Respect and protection from harm of vulnerable consumers, such as 
elders, children, persons with  disabilities, etc.  

Promote sustainable 
consumption 

Products from recycled materials, repair services, awareness -raising 
activities on consumption, collection of used products to 
restore/reuse them.  

Need support?  

•  Consumer Law Ready is an EU-wide training programme in consumer law f or SMEs. 
Select your country to get started and learn about everything you need to know with 
respect to consumer law. 

•  GDPR – Information material for SMEs is a resource whose aim is to provide you 
with a selection of  available resources and links which could support you to f ind the 
correct inf ormation on the General Data Protection Regulation.   

•  Consumer  Protection  in  E-commerce:  OECD  Recommendation  covers 
commercial practices related to  both  monetary and  nonmonetary transactions for 
goods and services, which include digital content products 

•  SHIFT –  Sustainable consumer behaviour change workbook provides a set of  

tools that companies can use to f oster ecologically sustainable consumer behaviour. 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
The SME Checklist f or Responsible and Sustainable Conduct 

Environment 

Environment 

Does your company respect the environment? 

Tick all that apply:  

  The company recycles a majority of  its waste (incl. industrial waste).  
  The company actively works to minimise all waste in production processes or service 

delivery. 

  The company actively works to prevent water and/or air pollution.  
  The company uses sustainable packaging (e.g. paper, glass) in all instances. 
  The company uses water efficiently. 
  The company uses renewable energy sources.  
  The company uses energy-efficient technologies in production/service delivery.  

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Develop  environmentally-
friendly products or 
services 

Products from sustainable materials, circular design, eco -design, 
services designed to incentivise sustainable action (e.g. green 
finance). 

Protect biodiversity 

Natural capital accounting,  adherence to principles of organic 
production, partnerships or initiatives  to protect wildlife and 
natural habitats. 

Protect animal rights 

Products not tested on animals, prevention of animal cruelty. 

Need support?  

•  The European Resource Efficiency Knowledge Centre helps SMEs f ind solutions 
f or issues related to energy, material, water and waste problems as well as cut costs. 
Contains  a  database f or resource ef ficiency support  programmes and  tools,  good 
practice examples and a self -assessment tool f or SMEs.  

•  The EU Business @ Biodiversity Platform helps business to better understand the 
link  between business activities and  nature. It  encourages businesses to  integrate 
natural capital and biodiversity considerations into their daily operations.  

•  The SME Climate Hub, a library of  tools and resources. Aims to climate action and 
build  business  resilience,  provides  an  extensive  library  of   tools  and  resources 
specif ically designed f or or highly  accessible to  SMEs  (e.  g.  guides,  case  studies, 
webinars). 

•  We  Value  Nature,  a  campaign  supporting  businesses  and  the  natural  capital 
community to  make valuing  nature the  new  normal f or businesses across Europe. 
Provides training resources, digital media library and good practices. 

•  First Steps to Green Competitiveness Guide to a) Manuf acturing companies, and 
b) Service Companies provide tools for SMEs with no in-house expertise or exposure 
to environmental issues. 

14 

 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Community involvement 

Community 
involvement  

Does your company support the development of its local 
or any other community? 

Tick all that apply:  

  The company supports the training and/or employment of  young people or vulnerable 

persons (migrants, refugees, persons with disabilities, etc.).   
  The company supports educational campaigns or programmes. 
  The company supports local institutions, organisations or programmes with f inancial 

or other kinds of  donations. 

  The company supports a specific economy by purchasing its local produce.  
  The company respects local communities’ needs and values by protecting its cultural 

heritage and respecting the natural environment.  

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Provide training 
and/or employment 
opportunities 

Internship, traineeship or apprenticeship opportunities, visits to 
company facilities, partnerships  with schools or other education 
institutions,  mentorship or guidance initiatives, employment of persons 
from vulnerable groups or specific communities. 

Support local sports 

Support education  

Partner with local 
organisations to 
support initiatives 

Financial support to  local sports facilities, teams or singular athletes, 
partnerships with sports clubs to run specific initiatives (healthy 
lifestyle for children, diversity through  sports, etc.). 

Education or awareness-raising activities on specific product use, 
services or a particular problematic issue. 

Partnerships with  various institutions  to support initiatives on 
education, culture, health, or the environment.    

Help communities in 
need 

Financial or other kind of donations (e.g. some company products) to 
communities affected by natural disasters, specific diseases etc.  

Conduct due 
diligence in areas 
affected by conflict 

Need support?  

Screen/audit suppliers that  (may) have sourcing operations in areas 
affected by conflict. 

•  The  Social  Innovation  Community Learning Repository is  a  handbook, a 
collection of  tools, resources, methods and case examples helping guide and inspire 
your social innovation practice. 

•  Erasmus for  Young  Entrepreneurs is  a  cross-border exchange programme 
which gives new or aspiring entrepreneurs the chance to learn f rom experienced 
entrepreneurs running small businesses in other Participating Countries. You can 
also of fer Erasmus+ internship vacancies to individuals  seeking international 
opportunities. 

•  Take a look at the websites of local NGOs, business organisations or CSR networks 
to f ind potential partners and implement initiatives that benefit your community.  
15 

 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Human 
rights 

Human rights 

Does your company strive to protect human rights? 

Tick all that apply:  

  Human rights are respected at the workplace. 
  Discrimination and harassment are not tolerated.  
  The company has a channel through which human rights abuses or any unwanted 

behaviour can be reported and remedied.  

  Risk of  human rights abuses by business partners and/or suppliers is monitored and 

measures to mitigate it are in place. 

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Ensure workplace 
diversity 

Formalised hiring  practices (e.g. code of conduct), efforts to include 
underrepresented groups by catering to  their specific needs 

Undertake  human 
rights due diligence 

Screening/ auditing  suppliers to ensure protection of human  rights in 
the supply chain, including human rights  clauses in company contracts 

Integrate 
disadvantaged 
groups 

Additional efforts to include disadvantaged groups by catering to their 
needs (e.g. setting  up a workplace for a person with  disabilities)   

Get  certified for your 
efforts 

Certificates such as SA8000, WRAP, Fair  Wear, Fair Trade (UTZ) and 
others. 

Need support?  

•  Guide to  human rights for SMEs developed by the  European Commission. Helps 
SMEs comprehend how their enterprise might contribute to human rights abuses and 
how to prevent this. 

•  Diversity within  small  and  medium-sized  enterprises –  best  practices and 
approaches f or moving ahead.  Developed by  the  European Commission, provides 
guidance on how to improve the competitiveness of companies via workforce diversity.  
•  ILO  tools and  resources f or business on  non-discrimination and equality provide 
guidelines,  examples  and  toolkits  on  gender  equality  at  work  (incl.  equal  pay, 
workplace solutions f or childcare), employing persons with disabilities (e.g. managing 
disability at the workplace), working with younger or older employees, etc. 

•  The Women’s Empowerment Principles Gender Gap Analysis Tool, a business-
driven tool  designed to  help  companies assess gender equality perf ormance at the 
workplace.   

16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Responsible business  relations 

Does your company strive to ensure responsible 
business relations? 

Business 
relations 

Tick all that apply:  

  The company participates in f air competition against other companies. All illicit 

practices are avoided.  

  The company always pays suppliers f or their service on time. 
  The company sells goods or services f or a f air price.   
  The company provides complete, accurate and truthf ul inf ormation about its products 

or services to other businesses. 
  The company conducts supply chain due diligence.  

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Conduct supply chain 
due diligence 

Choose sustainable 
business services 

Supplier code of conduct, questionnaire or check -list to monitor 
risks, use of industry-specific guidelines (e.g. raw minerals), 
supplier audits by third  parties. 
Transportation, warehousing, distribution  or customer service 
carried out by responsible, reliable and sustainable business 
partners. 

Purchase sustainably-
made  produce 

Goods or raw materials sourced from reliable (e.g. certified) 
suppliers that  produce in  a sustainable way.  

Need support? 

•  The SME Compass, a tool f or environmental and human rights due diligence along the 
value chain, tailored specif ically to  SMEs. In  5  phases, it  helps  SMEs to understand 
risks, take action and comply with due diligence.  

•  CSR Risk Check tool with interactive world map to manage risks when importing from 

or producing in other countries than your own. 

•  Guidance on due diligence for EU businesses to address the risk of forced labour 
in their operations and supply chains. Guidance provides with practical aspects of due 
diligence  as  well  as  an  overview of   international  standards that  are  relevant  for 
combatting f orced labour.  

•  If  you are not sure whether your company can do it on its own – join a network to 
help you. The f ollowing networks provide support for supply chain due diligence: amfori, 
Fair Labor Association, Responsible Business Alliance, Ethical Trading Initiative.  

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The SME Checklist f or Responsible and Sustainable Conduct 

Organisational 
governance 

Organisational 
governance 

Does your company follow a clear form of business 
governance? 

Tick all that apply:  

  The company f ollows a clear and transparent process of decision-making with respect 

to business development and operations. 

  The company is not engaged in illegal activities of  any kind (especially tax avoidance, 

money laundering, and bribery). 

  The company is transparent about f inancial and other performance indicators to 

employees and shareholders. 

  Employees regularly participate in decision-making at the company. 

Did you leave anything out? Why is that? 

______________________________________________________________________ 

Want to do better?  

Activity 

Examples 

Communicate on 
transparency 

Clear guidelines to employees and/or suppliers/buyers/investors on 
company commitments, annual financial and non-financial reports 
(available to company stakeholders, including  employees) 

Commit to 
responsible and/or 
sustainable conduct 

CSR/sustainability strategy, pledge or another type of commitment that 
includes specific guidelines or a code of conduct for company 
operations. 

Follow-through on 
commitments 

Performance targets for commitments (here are some suggestions), 
activities to improve performance. 

Need support? 

•  “Five Corporate Governance Guidelines to Accelerate Change and Sustainable 
Growth in Europe” (ecoDa, 2021) can be usef ul for executives and non-executives to 
benchmark their own governance practices to the best practices observed in Europe. 
This  includes  promoting  diversity  and  collaboration  between  the  Board  and  the 
Executive committee, involvement of all relevant stakeholders, committing to ESG and 
other guidelines.  

•  The SME Business Integrity Kit (Transparency International Italia, 2018) has been 
designed to help spread the values of  transparency, integrity and anti-corruption. 
•  Close the Gap has developed a f ree, online self -assessment tool designed specif ically 
f or smaller employers. The Think Business, Think Equality tool enables you to assess 
your employment practices, and provides tailored advice and guidance on how small 
changes to the way you run your business can make a big dif ference to you and your 
employees. 

18 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Information sharing 

Inform others about your efforts! 

Information 
sharing 

You can do the f ollowing: 

 Publish inf ormation about your efforts on social media or your company’s website 

 Report on specif ic social and/or environmental impacts of your business. However, 
you might need some monitoring indicators to do that. See Tips for developing a 
CSR/sustainability strategy. 

 Make your efforts a part of  your organisation’s identity and make sure this is 
communicated to all company stakeholders, from employees, to customers and 
investors.  

 Obtain a label or certif icate to show customers that you take CSR/sustainability 
commitments seriously. However, it can be dif f icult to choose which one is right f or you. 
The EU runs several  labelling and certif ication schemes, you can f ind about more by 
clicking here. If  you are looking f or something else, f or example the   Ecolabel Index 
lists 455 various labels f rom 199 countries and 25 industry sectors that you may choose 
f rom.   

Want to report your company’s ef forts in  a 
more f ormal manner by following a global 
standard? 

A variety of reporting standards are available, 
such as: 
•  Global Reporting Initiative 
•  United Nations Global Compact 
• 

ISO 26000 Guidance to Social 
Responsibility 

•  UN Guiding Principles Reporting 

Framework (applicable to business and 
human rights) 
•  SA8000 Standard 

The EU Ecolabel promotes 
environmental excellence across 
a wide range of  products and 
services. It helps to showcase 
your customers and consumers 
that your product meets strict 
ecological criteria, and the label 
is recognised in all EU countries. 
Discounts to SMEs when 
obtaining the label are available.   

19 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Tips for developing a CSR/sustainability strategy 

1.  Identify, which aspects of your business need to be improved. You can use the 

guiding questions at the start of  this Checklist.  

2.  Use the Checklist to find ideas for activities that could work f or your business. 
Links to good practices and support available can give you a better idea of  what 
could be f easible and suitable f or your company.    

3.  Get a better idea of the resources you need:  

•  Who in the company will be responsible f or maintaining activities? How many 
persons, working full- or part-time, would you need to conduct activities on a 
regular basis?  

•  How much will you need to invest f or starting and maintaining activities? How 
much can you af f ord to invest f or activities to be prof itable in medium term?  
•  If you are struggling, perhaps you can approach a business consultant to help 

you? Perhaps your sectoral association, local Chambers of  Commerce or a 
business support organisation can provide some assistance?  

4.  Set performance targets and monitor progress. Ideas f or performance indicators 
under each action area are provided in the table below. However, you can choose to 
f ollow more formalised standards or obtain a label or certif icate f or f ulfilling specif ic 
criteria.  

Action area 

Examples of performance indicators 

Decent work 

Consumer 
issues 

Environment 

- One-on-one interviews to monitor employee well-being based on set 
criteria 
- Share of  employees participating in training/hours spent in training 
per employee 
- Severity and/or f requency of OHS accidents 
- Gender equality indicators (positions occupied and gender pay gap),  
- Hours spent on overtime 
- Salary level in comparison to country average  
- Benchmarks in consumer satisfaction surveys  
-  Service delivery time, number of  customer complaints and  their 
causes 
- Response time in case of  complaints 
- Specif ic KPIs f or product quality and saf ety  
- Share of  sustainable or adapted products sold in  relation to other 
products 
- Specif ic targets f or energy, water and/or f uel consumption levels 
- Targets f or CO2 or other gas emissions 
- Share of  energy sourced f rom renewable sources 
-  Amount of  various materials (un-)used or recycled (especially if  
reducing waste is a priority) 
- Amount of  f ood waste (target at zero) 
- Share of  products/product parts developed f rom recycled materials 
- Number of trees planted 
- Number of animals protected.   

20 

 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Action area 

Examples of performance indicators 

Community 
involvement 
and 
development 

Human rights 

Business 
relations 

Organisational 
governance 

- Number of persons or programme participants to which support had 
been provided  
- Number of projects/initiatives or programmes supported 
- Follow-up on persons or groups to ensure the success of delivered 
support 
- Share of  income from products/services targeting particular groups.  
- Number of persons that benefited from support 
- Number of employees trained on relevant topics (diversity, inclusion, 
corruption, human rights’ risks, etc.) 
- Workforce diversity statistics (gender equality, inclusion of  various 
groups).  
- Number of suppliers committed to the company’s CSR/sustainability 
code of  conduct (e.g. by signing a charter) 
- Number of certified products purchased f rom suppliers 
- Number of corruption alerts 
- Number of supplier misconduct 
- Benchmarks f or third-party audits.      
- Financial indicators (revenue, profit, cash f low, etc.) 
- Scheduled meetings with employees 
- Perf ormance in accordance to ISO or other standards. 

5.  Communicate your efforts to customers and investors. You can prepare a 

CSR/sustainability report based on performance targets, or f ind other means of  doing 
it. 

21 

 
 
 
 
 
 
 
The SME Checklist f or Responsible and Sustainable Conduct 

Available support and resources

•  The European Enterprise Network 

helps companies innovate and grow 
internationally. Local Network contact 
points can help you with advice, 
support and opportunities f or 
international partnerships, as well as 
improving the sustainability of  your 
business.  

•  Low Carbon Business Action helps 
SMEs that produce low carbon, 
resource efficient, circular economy 
technologies to f ind potential clients 
in Canada and the Americas.  

•  Erasmus f or Young Entrepreneurs is a 
cross-border exchange programme 
which gives new or aspiring 
entrepreneurs the chance to learn 
f rom experienced entrepreneurs 
running small businesses in other 
Participating Countries. 

•  The Social Innovation Community 

Learning Repository is a handbook, a 
collection of  tools, resources, 
methods and case examples helping 
guide and inspire your social 
innovation practice. 

•  The European Institute of  Innovation 
and Technology (EIT) brings together 
leading business, education and 
research organisations to f orm 
dynamic cross-border partnerships. It 
provides f unding opportunities under 
Horizon Europe.  

•  CSR Europe is the leading European 
business network f or Corporate 
Sustainability and Responsibility. 
Their National Partner Organisations 
can support your journey towards 
practical solutions and sustainable 
growth. 

•  OECD Guidelines f or Multinational 

Enterprises are the most 
comprehensive international standard 
on Responsible Business Conduct.  
•  My Business and Human Rights: A 

guide to human rights f or small and 
medium-sized enterprises serves as 
an inspiration and a practical 
ref erence f or enterprises that are 

seeking to integrate human rights 
more explicitly into what they do. 
•  The Global Compact Self  Assessment 
Tool enables companies of all sizes 
and sectors to diagnose their 
perf ormance across all ten UN Global 
Compact principles. It provides 
indicators to track and demonstrate 
progress. 

•  The SME Compass guides companies 

step by step towards greater 
sustainability and robust supply 
chains. In 5 phases, it helps SMEs to 
understand risks, take action and 
comply with due diligence. 

•  The CR Compass offers SMEs support 
in setting up their CR management as 
well as in preparing sustainability 
reports and progress reports in 
accordance with the requirements of  
the UN Global Compact. 

•  The CSR Risk Check tool is aimed at 

companies that are importing f rom or 
have production f acilities in f oreign 
countries. You can f ind out which 
international CSR risks your business 
activities are exposed to and what 
you can do to manage them. 

•  The CSRhub Ireland includes guidance 

and resources on taking the f irst 
steps towards CSR (esp. f or SMEs), 
as well as case studies.  

•  The SME Climate Hub helps SMEs 

take concrete steps towards reducing 
their carbon emissions and 
undertaking climate actions.  
•  The Eco-Management and Audit 

Scheme (EMAS) was developed by 
the European Commission f or 
organisations to evaluate, report, and 
improve their environmental 
perf ormance. Implementation tools 
f or SMEs are available too.  

22 

 
 
 
 
HOW TO OBTAIN EU PUBLICATIONS 

Free publications: 

•  one copy: 

via EU Bookshop (http://bookshop.europa.eu); 

•  more than one copy or posters/maps: 

f rom the European Union’s representations (http://ec.europa.eu/represent_en.htm);  
f rom the delegations in non-EU countries 
(http://eeas.europa.eu/delegations/index_en.htm);  
by contacting the Europe Direct service 
(http://europa.eu/europedirect/index_en.htm) or calling 00 800 6 7 8 9 10 11 
(f reephone number f rom anywhere in the EU) (*). 

(*)  The information given is free, as are most calls (though some operators,  phone boxes or hotels may 
charge  you). 

Priced publications: 

•  via EU Bookshop (http://bookshop.europa.eu). 

Priced subscriptions: 

•  via one of  the sales agents of  the Publications Of fice of  the European Union 

(http://publications.europa.eu/others/agents/index_en.htm). 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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