Before the industrial revolution, when all businesses were small, there was no welfare state; helping those around us to get through life's battles was largely instinctive. The baker knew that by giving his stale loaves to the workhouse he was not only improving the lot of the needy, but also endearing himself to their family and friends: his customers. The industrial revolution brought an end to such community self-sufficiency. People left their villages for the big towns and relied on their employers, the mill and factory owners, to meet their needs. Some did it well; others didn't.

Corporate social responsibility has become a tired cliché, bandied about by those seeking to distract the media with good works. That's not to say that big business doesn't make a big difference. Look how Bill Gates invests billions in world-changing international programmes. But in the 21st century, CSR is returning to its roots. Small is once more beautiful and those who give are comfortable to look those who receive directly in the eye.

For the small business, social responsibility can be the most powerful tool in its marketing armoury. There has to be a business payback because philanthropy always has a motive, and in my experience business motives are usually more wholesome than the others.

Consider that baker, providing bread to the workhouse. The 21st century equivalent can make public the fact that it sends its 'past their best' pies and bread to the local night shelter. This sends out two very clear messages. First, here is a business that cares, choosing to help others rather than squeeze the last pound out of the customer. Second, you know that if yesterday's pies were given to the night shelter, the ones you buy at nine the next morning have been freshly made!

In an era when technological excellence is a given, where customer service can be good anywhere, how does the small business differentiate itself from the large one? Only by wearing its heart on its sleeve can the small business clearly differentiate itself from the corporate player.

The independent garage that provides work experience for local students and runs free evenings to help women learn to check the oil and change a wheel will be highly regarded within its immediate trading area. Supporting the local community puts the independent streets ahead of the multiple-outlet operator.

Here then are ten things your small business clients might consider:

• Open the doors: provide work experience for local students and get involved with your local school.

• Share what's free: give away with a smile what you know you won't sell easily.

• Get involved: volunteer to help run projects that help your customer group.

• Collaborate: take the lead and organise activities that involve your business and others too. Unite to raise profile, cross-sell and build resilience.

• Buy locally: if your business is part of a local economy, buy from those you hope will buy from you.

• Don't reinvent wheels: engage with what exists before creating something new.

• Start small: don't underestimate the impact even very small acts can have in boosting your profile and helping those around you.

• Pace yourself: be upfront about what you can do and keep doing it. Little and often is better than the periodic big project.

• Don't stop when you go home: most small businesses reflect the owners' personality. Being generous at work and mean at home sends out mixed messages and make people suspicious.

• Be modest: the less you shout about what you do, the more people will find out and respect you for doing it.

Robert Ashton is an author, entrepreneur and social activist. The second edition of his book The Entrepreneur's Book of Checklists is out this month