Adonis Olukayode HAMBOLU

Bolaji 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 contd

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 contd

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, nongovernment 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 Contd

Ronald Regan /Margaret Thatcher Era

Globalisation Era
The Customer/ popular Awareness Era

Focus of Corporate Citizenship

Social Impact

Economic Impact

Environmental Impact

Corporate Citizenship

Current delivery of triple

bottom line

Helps towards a better

future

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

Stakeholders
Employees,Investors,Custome
rs
Community, Government,
Environment

Strategic Philosophy

Outcomes
Financial Performance,
Commitment,
Trust,
Reputation

Corporate Citizenship
Corporate Social
Responsibility
Economic,
Legal,
Ethical,
Philanthropic

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 Zappal, 2003)

Benefits of
Corporate Citizenship

Customer &
Employee Trust

Corporate
citizenship

Customer
Satisfaction

Profits

Employee
Commitment

Investor Loyalty

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

Conclusion (cont.)

- and responsibility.
The long run achievement would be to
make the world a better place for us and
the incoming generation.

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