Corporate Social Citizenship
Corporate Social Citizenship Matters: Being Responsible can Lead to Profitability Emad Rahim »
Business organizations that currently do not use social responsibility initiatives don’t have a clear understanding of how social responsibility can be beneficial to a company’s success. However, this perspective is not common.
growth in the long-run. In addition, CSR can
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ing to stakeholder and stockholder gain. The firms identified as socially responsible and ethical have greater returns than S&P 500 companies, hence confirming it pays to be ethical.
ccording to Bowen, corporate social
these actions are also expected of organiza-
CSR in Action
responsibility (CSR) began as a field
tions. Advocates of the corporate citizenship
Starbucks Corporation is an organization that
of study in 1946 when Fortune maga-
theory employ the same themes and concepts
has an official CSR statement in which they
zine published an article in which the editors
as corporate social responsibility. These advo-
refer to it as a global responsibility, or the
suggested that the term CSR meant that
cates believe that maintaining a positive image
“shared planet” initiative. The program is a
businessmen were responsible for the con-
or good reputation as responsible citizens
major component of Starbucks’ franchise objec-
sequences of their actions in a sphere some-
would greatly enhance an organization’s long-
tives. As part of their global responsibility
what wider than that covered by their profit
term success.
initiatives, Starbucks emphasizes the following activities; coffee purchasing practices, growth
and loss statements. The phenomenon gained traction in later years as evidenced by the
Leveraging Responsibility
and expansion, environmental impacts, health
establishment of business communities, such
A trend in contemporary literature emphasizes
and wellness, and workplace practices.
as Business for Social Responsibility (BSR) in
the use of corporate social responsibility as a
Ben & Jerry’s Homemade Holdings, Inc. is
1992 and Ethical Corporations in 2001.
public relations and marketing strategy. Many
another organization known for its extensive
research studies have found that consumers do
CSR program. To demonstrate the practice
Corporate Citizenship vs. Corporate Social Responsibility (CSR)
care and are paying attention to corporations
and value of CSR, consider that Ben & Jerry’s
contributing to the betterment of society. Con-
hosted a Social Mission Summit, held in Burl-
There has been a global consensus that sus-
sumers care deeply about societal problems
ington, Vermont, home of the organization’s
tainable development should encompass at
such as cancer, the environment, child labor,
headquarters, which included company leaders
least economic growth, social progress, and
and human rights, and will make purchasing
from around the world. The goal of the “Social
stewardship of the environment. Sustainability
decisions based on corporate social responsi-
Mission Summit” was to present the CSR and
is often considered in terms of three pillars;
bility. Business leaders should take note.
social initiatives that the company had under-
economic, social, and environmental considera-
Research reveals that by engaging in CSR
taken. They outlined their major initiatives
tions. The three pillars could also equate into
activities, private firms can increase earnings
including; furthering the cause of peace and
what is known as the triple bottom line (TBL),
justice, harmonizing their global supply chain
measuring a company’s ROI based on its impact
and leading global sustainable practices.
on the people/community, planet and profit/ economy. Both corporate citizenship and corporate social responsibility encompass all three of these pillars when we consider the terms and meaning of these two topics under the umbrella of being sustainable. Corporate citizenship uses
Southwest
Airlines
(SWA)
found
the
relationship of social responsibility and economic performance enviable, positive and a performing strategy that has sustained both internal and external stakeholders and surrounding communities
inclusively.
SWA
stakeholders have enjoyed sig-
the same themes and con-
nificant dividends based on the
cepts
social
corporate strategic planning
responsibility. A corporation
and strategic implementation
is regarded as a legal entity
that ties down to the vision,
as
corporate
that possesses many of the
mission, value and culture of
rights, duties, and powers,
the organization. The com-
and also assumes some of
pany has outperformed all of
the same obligations, as those
their competitors in the airline
of the individual citizen. Just
industry for decades. Many
as there are expectations that
attribute their success to their
individuals will act as responsible citizens by performing duties that contribute to the common good and welfare of the community at large,
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enhance a firm’s competitive advantage, lead-
CSR mission and vision. Although Starbucks and Ben & Jerry’s are smaller in scale than organizations such as Ford, IBM, or
Consumers care deeply about societal problems such as cancer, the environment, child labor, and human rights, and will make purchasing decisions based on corporate social responsibility. Business leaders should take note. Microsoft, these companies are good exam-
of what is an effective and viable approach.
aforementioned, a corporation’s vision should
ples of what organizations are doing in terms
In addition, business effectiveness is measured
be to have a sustainable future that balances
of their social responsibilities. As mentioned
in other intangible factors beyond financial and
the business model between their employees,
before, the efforts displayed by these pioneers
individualistic emphases. Business behavior
the community, the environment and, primar-
are huge leaps on from 50 or 60 years ago when
has both economic and non-economic impact.
ily, their financial viability.
the concept of corporate social responsibility
As Ben Cohen – author and co-founder of Ben
was emerging.
& Jerry’s – indicates, once consumers see
A study completed by Pederson outlined the
examples of prosperous companies integrating
current business environment relative to CSR.
social concerns into their business practices,
Pederson discovered that corporate activities
they are emboldened to demand the same of
have broad impacts on society, but the findings
other businesses.
from the analysis indicate that managers still
The
strategic
management
tools
and
have a relatively narrow perception of societal
models that organizations implore in the driv-
responsibilities, which can be summarized as
ing wheels of their core activities help in the
taking care of their workers, and making prod-
determination of the sustainability solution of
ucts and services that customers want in an
an organization. These strategic elements, if
environment-friendly way. According to Peder-
developed well with considerable understand-
son, this perception is narrow as a result of the
ing of environmental, political, economic and
traditional line of thought that an organization
social factors, give an organization the desired
is running soundly if profit margins remain
competitive advantage necessary to dominate
high and stakeholders are satisfied.
their market and the industry as a whole.
Implications
that have sustained the company in economic
Corporations looking for sustainability solu-
performance and in their environmental stew-
tions must engage their business both in
ardship. Its core values, goals, mission, vision
economic performance and social responsibil-
and culture have to be sustained regardless.
ity, both of which have a direct relationship
Corporations stand for so many things, such
despite
environmental
as the environmental stewardship across
differences. The current dilemma, with more
their system, and they want to provide their
organizations adopting corporate social respon-
employees with a stable working environ-
sibility initiatives similar to Starbucks and Ben
ment that provides equal opportunity for
and Jerry’s, is that they often lack a clarity
learning and personal growth. Apart from the
BIOGRAPHY ★ Emad Rahim, DM, PMP is Dean of Business and Management at Colorado Technical University..
Corporations should maintain the strategies
organizational
and
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