What is Good Corporate Citizenship?
What do companies such as Disney, Coca-Cola, GE, and Xerox have in common? All these companies embody a value of good corporate citizenship. Yes, they all have great products and services, but there’s more to just being an admired organization. They have made it a conscious effort to engage in the community and environment around them. Not only does this improve the reputation of these companies, but it also boosts sales. In a Nielsen Survey, it was reported that 55% of consumers are willing to pay extra for services and products from companies that are socially responsible. So what does it really mean to engage in good corporate citizenship? The definition can vary slightly, but ultimately it’s the idea of impacting society, and the environment, through corporate giving and philanthropic causes.
Positives of Good Corporate Citizenship
The simple truth is that good corporate citizens have high rates of retention and employee attraction. Because of their strong reputations, companies that engage in good corporate citizenship are more appealing to investors and business partners. Many companies are also engaging in sustainability programs. This allows them to not only be more efficient with their resources, but it also allows companies to save company costs. According to Dr. Tamayo, “firms who are big advertisers and have strong brand recognition, investing in CSR activities certainly increases the company’s value.” Investing in a corporate social responsibility program will open new doors into good corporate citizenship.
Examples of Good Corporate Citizenship
In an effort to increase brand value, Verizon launched Project ROI. This was an effort at increasing Verizon’s ROI through social and environmental causes. The project launched an Employee Incentive Program that helped give back to employees. As a result, Verizon’s market value increased by up to 4-6%. At the same time turnover rates were reduced by up to 50%, and employee engagement increased by up to 7.5%.
How to Successfully Engage in Good Corporate Citizenship
Now that we know the potential benefits that can be produced through good corporate citizenship, it’s time to put them into action! Like any business model, a well thought out strategy is crucial. When it comes to adopting a CSR management framework, it’s important to take a few precautions. First, you must understand the CR commitments that align with your company’s core values, and the expectations of your main stakeholders. Second, you must be willing to commit to the process of increasing CSR standards for your company. In doing so, you must begin to strategize a plan for developing a proper program. This is where most companies fail. It’s no doubt good corporate citizenship is important. We’ve talked about the benefits and the great things it can do for various corporations. But how do we develop a plan of attack? One of my personal favorite CSR tools has to be Involve. Involve allows corporations to easily streamline their CSR efforts. At the same time it allows employees to pick and choose which social and philanthropic causes they would like to engage in, based off their personal interests. The last step in successfully engaging in good corporate citizenship is trust. Building trust with your shareholders and partners, over time, will allow your company to seek the full benefits of being a socially responsible organization.
For more information on how Involve is helping companies improve their CSR efforts, visit our customer success page.