Adonis Olukayode HAMBOLUBolaji Ibrahim ABDULLAHI

Introduction

This is an academic attempt at making lucid presentation of the content and process of the emerging concept of corporate citizenship in the contemporary business world as a subject akin to corporate social responsibility .

•Agenda Background Definitions& Theoretical arguments Focus Overview Corporate Citizenship Model Features Effects 12 Generic Principles Ripple Effects Conceptualisation Legislation & Control Benefits Conclusion References

Background of Corporate Citizenship

Corporate Citizenship; it is a resultant effect of the global economy that make business to automatically be open to the challenges of societal expectations/ responsibilities. Which enhance the legitimating and the liberation of the private commercial enterprises globally in the 1980s/90s occasioned by the exponential manifestation of corporate networking globally via technology.

As in the political sense of human individual, a business is assumed to be a citizen of its operational environment and should as a matter of fact owe it some level of active allegiance and commitment.

Citizenship according to Drucker (1993) means the legal rights and duties of a member of a country

Background cont’d

Corporate identity is the selfness awareness and fundamental of answering the question of who are we by rganisations (Albert& Whetten ,1985,Benning 1999)

Definition and Theoretical Arguments

The definitions and conceptions of corporate citizenship are fuzzy, varied and constantly evolving

More akin to the concept of CSR and sustainability

It involves the act of proactively addressing business and society issues ,while building stakeholders partnerships

(Post et al,2002)

Good corporate citizenship integrates social, ethical, environmental, economic and philanthropic values in the core decision making processes of a business. Corporate citizenship has supporters and detractors from Corporate citizenship is defined as the act of 'business taking greater account of its social, environmental and financial footprints

(Gianni Zappala, 2003)

Definition cont’d

Corporate Citizenship is the management of organisations wider influences within the society for the mutual benefit of the company and the society

(Mersden & Andriof, 1998) It is a philanthropic managerial strategic ideology evolveed

by practitioners

Good corporate citizenship integrates social, ethical, environmental, economic and philanthropic values in the core decision making processes of a business. Corporate citizenship has supporters and detractors from across the political and ideological spectrum, business, non-government organisations (NGOs) and the general public.

Historical Evolution

Edward Mason (1959)of Harvard propound business as the most important economic institution affecting the community much more than ever thought of

The American firms post World War II era domination of global economy

(Thorne et al (2003)

Rice University Management School academic Theoretical construct in the 1980s

Became a common terminology on the 1990s

Evolution Cont’d

Ronald Regan /Margaret Thatcher Era Globalisation Era The Customer/ popular Awareness Era

Focus of Corporate Citizenship

Social Impact

Economic Impact

Environmental Impact

Corporate Citizenship

Helps towards a better futureCurrent delivery of triple

bottom line

Overview

Origin : 1990s Basis :Evolving a collaborative partnership effort with key stakeholder groups Focus :Discovering Genuine business opportunities via partnership Actions: Management of Corporate social and financial activities

....Post et al(2002)

Corporate Citizenship Model

Employees,Investors,CustomersCommunity, Government,Environment

Economic,Legal,Ethical,Philanthropic

Financial Performance,Commitment,Trust,Reputation

Corporate Citizenship

Strategic Philosophy

Stakeholders

Outcomes

Corporate Social Responsibility

•Fombrun,C (1997)

Features of Corporate Citizenship

Universality( it applies to all business type) Adopts strategic focus Fulfilment of social responsibility

(economic, legal, ethical and philanthropic) Stakeholder oriented (responsibility to

govt ,customer, community, employee, investors etc)

Global nature (due to globalisation of business)

..Thorne et al (2003)

Core Effects of Corporate Citizenship

Ethical Commitment/ behavioural approach to Business

Commitment to Stakeholders interest

Passion /Commitment to the Environment

Sustainability Advocacy

12 Generic Principles

Making difference in the wider society Stakeholder empowerment Accountability Transparency Sustainable capitalism (profitability & Prosperity) Sharing responsibility Triple bottom line Long Term oriented Dialogue Stakeholders Inclusion Communication Engagement

The UN & Corporate Citizenship

• The United nation in its initiative under the leadership of Kofi Annan as the Secretary general sees the world business sector as a citizen of the world and indeed a veritable tool / solution to the world problems rather than cause

• Global Compact published in 2000 providing the requisite information on the principle, code and practice of good corporate citizenship

Ripple Effects of Corporate Citizenship

       

       

Adapted from Gianni Zappala(2003)

Conceptualisation of Corporate Citizenship

Legislation & Control

Corporate citizenship has been a voluntary business act but more often in conformance with the reputed global bodies also as a competitive advantage

The Global Compact International labour organisation OECD Multinational Enterprises

Guidelines Global Reporting Initiatives ( GRI) ISO 14000 Accountability 1000 Social accountability 8000 Business in the Community

(BITC) UK London Benchmarking Group

(LBG) Corporate-citizenship.co.uk ..(Thorne et al,2003, Gianni Zappalà, 2003)

Benefits of Corporate Citizenship

Employee Commitment

Corporate citizenship

Investor Loyalty

Profits

Customer Satisfaction

Customer & Employee Trust

Adapted from Thorne et al, 2003

Conclusion

Corporate Citizenship, is another phrase normally used by business executives to describe different rights and responsibility of business activities in the society were they operate or intend to, and with the growing concern of concept of sustainability a lot of companies are aware of the major challenges before them as corporation to carryout business activities

- and responsibility.

The long run achievement would be to

make the world a better place for us and

the incoming generation.

Conclusion (cont.)

References Andriof,j & McIntosh ,M (2001)Perspectives on Corporate Citizenship,

Greenleaf, UK Bush Geoffrey(2005) Corporate Citizenship as part of The Business Model

( Hancock Ed) Carroll & Buchholtz (2006) Business & Society: Ethics and Stakeholder

Management, Thomson, Australia Fombrun,C (1997)The three pillars of corporate citizenship (Corporate global

citizenship) Lexington , San Francisco   Gianni Zappala( 2003)Corporate citizenship :A Brief Overview John Hancock(2005) Investing in Corporate Social Responsibility, Kogan Page, London Kim Davenport(1999) The Social Auditing Teaching Packet Post,J et al (2002) Business and society: corporate strategy , public

policy ,ethics 10th Ed, McGraw-Hill, Boston. Thorne et al(2003) Business and Society : A Strategic Approach to Corporate

Citizenship, Houghtom Mifflin, Boston Thorne et al(2003) Business and Society : A Strategic Approach to Corporate

Social Responsibility, 3rd Ed ,Houghtom Mifflin, Boston