Corporate citizenship

This paper presents an overview of the concept of Corporate Citizenship.

It defines the concept as:

• corporate citizenship relates to the interplay between the private sector and society not only in relation to the immediate internal stakeholders (employees) and key external stakeholders including shareholders but also in terms of wider society stakeholders through products, supply chains, advertising, social and environmental impact etc.
• corporate citizenship is in many ways similar to the idea of citizenship as it may apply to an individual
• it takes into account both practical and ethical dimensions of doing business and the nature of the work environment. It is both local and global in it's remit and applies equally to large or small companies, industries or even the state in its economic capacity
• adopting good corporate citizenship practices can deliver a range of benefits that directly improve the financial bottom line while at the same time promoting societal value and sustainable development.

The paper also presents different possibilities regarding the levels to which a company can develop it's capacity as a good corporate citizen:

• Limited corporate giving: involves a company or organisation having a broad awareness of wider societal issues and giving of funds and gifts in kind where this is appropriate to support local initiatives.
• Active corporate social responsibility: involves a company or organisation providing more than just financial support and gifts in kind but active programme and executive support to local civil society organisations and government programmes.
• Pro-active corporate citizenship: involves companies integrating corporate social responsibility strategy into their core business strategy. It requires developing business linkages and supply chain management in a way that promotes a wider development agenda.