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What is Corporate Citizenship? How it Helps Change the World

A group of people handling packaged food to provide for food-insecure community members.

One of the busiest buzzwords in today’s corporate world is the notion of corporate citizenship. Thankfully, it’s also one of the better buzzwords. We all know the importance of businesses taking responsibility for how they affect the world around them. And that’s the premise that gave rise to today’s corporate citizenship movement.

But what is corporate citizenship, and how does it alter the interaction between corporations and society? Simply put, corporate citizenship is the responsibility of a company to its employees, to society at large, and the planet. This concept takes the role of a responsible citizen and applies it to all members of a business and the underlying mission of the business as well. By assuming a conscientious approach to all of its undertakings, a corporation may instill a more positive environmental, social, and governance (ESG) outlook.

Table of Contents:

What is Corporate Citizenship?

Corporate citizenship, also known as corporate social responsibility (CSR), has become prominent fairly recently. As businesses have become more aware of how they impact society, CSR emerges as a guiding force in how a corporation presents itself to the world. 

The question a corporation must answer is how, exactly, they can conduct their affairs in a way that mitigates societal harm and enables positive change. Although this may seem like a difficult task to accomplish, it often isn’t tough for businesses to redirect some of their efforts to help brighten the world around them.

Examples of Corporate Citizenship Efforts in Action

There are many ways a corporation can bolster its social responsibility. The first step is for corporate leadership to look inward and determine where they may fall short of improving the society around them. Then, they can chart a course forward that best serves the company, its staff, society, and the planet.

In order for a corporation to fulfill its obligations to all stakeholders, it must adopt strategies that consider the various types of corporate social responsibility. Corporate citizenship can take many forms, but some of the most common and most impactful are listed below.

  • Environmental There are many ways a corporation can mitigate its environmental impact. Depending on the industry, good steps might be to switch to electronic communications and switch to more eco-friendly methods of production, transit, and distribution of their products. For example, a manufacturer may choose to source their raw materials sustainably and ship them via low-emissions methods, as well as to ensure their product packaging is recyclable or compostable. Engaging in initiatives that support clean air and water are also great ways to uphold CSR.

  • Philanthropic – Via employee volunteer initiatives, donations of time, money, and other materials, and community outreach, a corporation can allocate some of its resources to the greater good. Partnering with local nonprofits is a good way to shuttle volunteer hours and physical donations to the right channel.

  • Ethical – A corporation's commitment to transparency, to publicly defend human rights, and to ensure fair work conditions for its employees all constitute sound corporate citizenship action.

These are but a few ways in which a corporation may take its CSR from an idea and transform it into a change-making activity. It can be challenging for a corporation to integrate these philosophies into its approach, but investing in the right social impact platform can make this task much easier.

Corporate Citizenship and its Capacity for Change

The popularization of corporate citizenship represents a watershed moment in the way businesses evaluate their role in society. It is characterized by a company’s switch from obligations strictly to its shareholders to an understanding of its obligation to stakeholders.

Often, without realizing it, corporations have tremendous impacts on society that transcend the transactional nature of their quests for profit. These impacts are not always beneficial and can even be overtly negative. 

By acknowledging the role their endeavors play in the social, political, and environmental realms, corporations can ensure that their activities are having a positive impact on the planet and all its inhabitants.

But what impacts might CSR initiatives have on a corporation's employees, its business affairs, and the world around it? There are many benefits of corporate citizenship, and they can be both far-reaching and long-lasting. Let’s take a look at a few of these benefits.

For Businesses

With digital technologies revolutionizing the way humans communicate with one another, it seems the public eye is one that never blinks. Gone are the days when businesses operated indiscriminately in ways that would make society cringe. 

But this extra attention comes with good news: corporations fare better in the public eye if they align their brand and business models with efforts to enact positive change. By engaging in CSR initiatives, such as fostering partnerships with nonprofits whose missions are catalysts for good, a business can showcase its commitment to goodwill. 

Corporate citizenship can be looked at as a form of advertising, showcasing the corporate care that makes consumers more likely to buy their product. Studies indicate that consumers are far more likely to support corporations that commit themselves to making positive change.

For Employees

Today’s employee is concerned with more than just their paycheck. People want to work for companies that share their social values. In fact, the vast majority of employees believe corporations should benefit the greater good

Building a strong, cohesive team is not an easy thing to accomplish. By displaying your corporation's commitment to CSR, you can foster a sense of purpose among staff members and even attract new talent to your company's mission. 

It’s possible to pursue both profits and CSR goals, and employees desire to work for companies that are considerate of their ESG impact.

For the World

It can be tricky to figure out where a company can most effectively contribute to the greater good. Fortunately, by making small steps toward sound corporate citizenship practices, a little effort can amount to a whole lot of change.

Corporations and their leaders factor prominently into public life, and this has a trickle-down effect on society at large. 

What do our most successful and accessible business figures think about the environment and social issues? Consumers can be impressionable, and when they see the positions a corporation takes on various issues, they may themselves become inclined to follow suit. 

In this way, corporate leadership can influence public opinion on a profound scale. By simply assuming a stance that mobilizes the public, businesses can drive consumers to be more conscientious about their own ESG positions.

What Does Corporate Citizenship Mean for You?

There is no shortage of ways a corporation can engage in sound CSR practices. Every corporation is unique, and each has an opportunity to cleave its path toward a more sustainable, more socially conscious future.

An easy first step might be to engage with your employees. Listen to their concerns about society at large, let their voices be heard, and see where they would like the company to direct its efforts for the greater good. This will not only boost employee morale, but it will give them a more purposeful stake in corporate activities. 

The effort can then be transformed into action through employee volunteer programs and community outreach, among other examples. A donation matching program – in which corporations match charitable contributions by their employees to double their impact – is also a great way to give back.

Other CSR initiatives to consider might include grants to nonprofits to assist in their efforts and scholarship opportunities for community members. Even modest corporate giving can have a tremendous positive impact on society and will show the public how much CSR means to the corporation’s overarching mission.

Elevate Your Corporate Citizenship with Groundswell

Corporations have a lot on their plate, and adding social responsibility to a to-do list may seem implausible. Fortunately, Groundswell’s all-in-one social impact platform makes corporate citizenship a snap.

Groundswell is a game-changing improvement over earlier workplace giving platforms. It is easy to use, mobile friendly, and is shown to boost employee engagement in CSR initiatives. Its competitive pricing ensures that a larger portion of available resources can go directly to benevolent causes rather than being consumed by software expenses. 

And, with features like automated donation matching and expedited transfers of donations to the assigned charities, you can be assured that Groundswell’s platform is maximizing your financial contributions and allowing you to hit your CSR goals.

Corporate citizenship is an important aspect of operations for businesses of all sizes, and its relevance is only growing. Get ahead of your organization’s CSR initiatives with Groundswell. Contact Groundswell today to schedule a demo and get a jump on your commitment to corporate citizenship.

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