Corporate Citizenship And Corporate Social Responsibility

Corporate Citizenship

Corporate citizenship is the business strategy that shapes the values underpinning a company's mission and the choices made each day by its executives, managers and employees as they engage with society. Three core principles define the essence of corporate citizenship, and every company should apply them in a manner appropriate to its distinct needs: minimizing harm, maximizing benefit, and being accountable and responsive to stakeholders.

Much of the debate in recent years about corporate social responsibility has been framed in terms of corporate citizenship, partly because of unease about using words like ethics and responsibility in the context of business decisions. Is has been suggested that there are three perspectives or corporate citizenship.

1 – Limited view

This is based on voluntary philanthropy undertaken in the business's interests. The main stakeholder groups that the corporate citizen engages with are local communities and employees. Citizenship in action takes the form of limited focus projects.

2 – Equivalent view

This is based on a wider general definition of corporate social responsibility that is partly voluntary and partly imposed. The organization focuses on a broad range of stakeholders and responds to the demands of society. Self-interest is not the primary motivation; instead the organization is focused on legal requirements and ethical fulfillment.

3 – Extended view

This view is based round a partly voluntary, partly imposed view of active social and political citizenship Corporations must respect citizens' rights, particularly as governments have failed to provide some of the safeguards necessary for their society's citizens. Corporations are the most powerful institutions in society. Again the focus is on a wide range of stakeholders, with a combination of self interest promoting corporate power (and responding to political campaigns aimed at corporations), and wider responsibility towards society.

Under the extended view, organizations will promote:

Ø      Social rights of citizens by provision (for example provision of decent working conditions)

Ø   Civil rights, by intervening to promote citizens' individual rights themselves or to pressurize governments to promote citizens' rights

Ø  Political rights by channeling (allowing individuals to promote their causes by using corporate power)