What Is Corporate Citizenship and How Can Your Company Get Started?

August 15, 2016
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Cultural values have been changing rapidly for several decades, and corporate citizenship is the latest manifestation of these ideas in the business world. Contrary to popular conception, it isn’t simply charity, or even philanthropy, as you’ll see…

Just a few decades ago, companies were considered “good” for providing jobs, making a product that people enjoyed, or offering a convenience that made people’s lives easier. Environmentally hazardous manufacturing and exporting jobs were purely financial decisions. There was no public backlash to consider. The mass media had not yet exposed the underside of some business practices, including contaminating the environment, causing coronary diseases with trans fats, building vehicular deathtraps, or using third world child labor.

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In the 70s, these issues started coming to light, and transgressing companies began to compensate for their offenses with “cause marketing.” For a company that made unhealthy fast foods, it was sufficient to create a home where families with sick children could stay. A company that polluted lungs could offset their customers’ shortened life spans by donating to cancer research.

For most companies without serious transgressions, and for several decades, cause marketing was simply about donations and occasional philanthropic endeavors. It was never about a long-term, deeply felt commitment or a desire to make a difference. It was simply good PR.

Today in part because of the influence of 24/7 mass media and social media, the expectations and standards for corporate behavior are higher. To do “good,” companies—and their employees and stakeholders—must engage in sincere, sustained efforts, to prove their values and to make a difference. They must have a clearly articulated positive role in society. It’s no longer about perception; it’s about reality. These values are reflected in what we call corporate citizenship or corporate social responsibility (CSR).

If you’d like to get involved in taking your company’s charitable and philanthropic work to the level of corporate citizenship or CSR, here are a few ideas to consider:

1. Be Truthful: Whether the truth is pretty or not, tell it to your employees, tell it to your stakeholders, and tell it to the general public. If you make fast food that shouldn’t be consumed every day, be honest. If global economics force you to export jobs, be honest—and then say what you’re going to do to redeem your business.

2. Address the Greatest Needs: Corporate citizenship is about solving real problems, and going where the greatest needs are, in your community, in your country, and around the world. Find the greatest opportunities to help by engaging with your employees, customers, and stakeholders to find out where the sustainable passions are, and the needs that align best with your abilities to address them.

3. Incentivize and Recognize Employees: It isn’t enough to ask employees to get involved. Make contributing to your corporate citizenship objectives an expectation, and incentivize involvement. Encourage competition and reward the greatest contributors. To make a maximum difference, do what you can to maximize involvement. Use social media to engage employees, to reward employees, and to share your ongoing work with the communities you serve. Visuals are especially helpful, so take pictures of your employees as they happily contribute, and share them on Facebook, Twitter, Instagram, and other social media channels.

If the trend continues along the same arc, we may soon live in a society where businesses must demonstrate a long-term commitment to corporate citizenship to survive. This is a good thing for America’s future. Learn more about this topic by reading Attention, Skeptics! 5 Reasons It Pays to Invest in Corporate Citizenship.