{"id":12579,"date":"2024-08-10T18:20:29","date_gmt":"2024-08-10T17:20:29","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=12579"},"modified":"2024-08-13T13:13:43","modified_gmt":"2024-08-13T12:13:43","slug":"corporate-citizenship","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/corporate-citizenship\/","title":{"rendered":"What is corporate citizenship?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Broadly speaking, corporate citizenship is about doing the right thing. For businesses, that extends beyond merely turning a profit and promotes a deeper sense of purpose that focuses on social, environmental, and ethical responsibility. Think of it as a happy medium between driving business success and helping the community.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In practice, that can translate to a myriad of initiatives, like charity work or switching to renewable energy sources. Essentially, it\u2019s about giving something back and, in turn, strengthening your organisation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this blog, we explain corporate citizenship in detail and explore why it\u2019s important for businesses to embrace it. We also examine the benefits of corporate citizenship for small businesses.<\/span><\/p>\n<h3>What is corporate citizenship?<\/h3>\n<p><span style=\"font-weight: 400;\">Corporate citizenship is an umbrella term for a company\u2019s social, environmental, and ethical responsibilities. In other words, it\u2019s about being a good citizen who adopts positive policies to benefit the internal organisation as well as the wider community.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As well as individual actions you take, corporate citizenship stresses the importance of reporting your activities and being transparent about your values, goals, progress, and policies. Some organisations issue dedicated corporate citizenship reports, some publish trust badges that represent their achievements, and some integrate their ethical beliefs into their marketing campaigns, for example.\u00a0<\/span><\/p>\n            <div class=\"revolut_shortcode\">\n                <a href=\"https:\/\/revolutbusiness.ngih.net\/daV2kQ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/revolut_mobile.png\"\n                        alt=\"Revolut Business & Affiliates.\"\n                        class=\"revolut_shortcode-mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/revolut_desktop.png\"\n                        alt=\"Revolut Business & Affiliates.\"\n                        class=\"revolut_shortcode-desktop\">\n                <\/a>\n            <\/div>\n            \n<p><span style=\"font-weight: 400;\">In addition, practising corporate citizenship is a group effort, a shared success. As opposed to a business prioritising shareholder profits, it\u2019s more concerned about stakeholder engagement. This means that clients, employees, suppliers, investors, and anyone else who has an interest in your company should strategically work together to integrate positive measures into the business mission, thus strengthening the organisation for the long term.\u00a0<\/span><\/p>\n<h3>Examples<\/h3>\n<p><span style=\"font-weight: 400;\">There are many ways that you can practice corporate citizenship in the workplace. It\u2019s not about doing <\/span><span style=\"font-weight: 400;\">everything<\/span><i><span style=\"font-weight: 400;\">, <\/span><\/i><span style=\"font-weight: 400;\">but rather committing to to a good cause that personally matters to your business and drives its success. Here are some examples of what corporate citizenship can look like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using renewable energy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reducing waste<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adopting clean technologies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using sustainable ingredients<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building an inclusive, diverse, and gender-balanced workforce<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Looking after your employees\u2019 well-being<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Developing a company culture that promotes corporate citizenship<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encouraging staff to support a good cause outside of work\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supporting local charities and encouraging staff to participate in volunteering<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Working with ethical and sustainable suppliers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collaborating with and supporting other businesses that practice corporate citizenship<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Running internal fundraising events<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Securing certifications and awards that represent your corporate citizenship activities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Running thorough impact assessments regularly to identify improvement opportunities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fostering transparency and accountability for corporate citizenship<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">No matter your company size, there\u2019s always something you can do to embrace corporate citizenship. For a small business, resources are generally limited, especially funds, but there are plenty of ways to get involved.<\/span><\/p>\n<h3>Why it matters<\/h3>\n<p><span style=\"font-weight: 400;\">Now more than ever, people are paying close attention to companies\u2019 ethical practices before choosing to work or shop with them. Especially since the pandemic, there\u2019s magnified attention on the social, economic, and environmental challenges the world faces, and more and more people are not only taking action themselves but shaping their decisions around their moral stances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take <\/span><a href=\"https:\/\/www.deloitte.com\/uk\/en\/Industries\/consumer\/research\/sustainable-consumer.html\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Deloitte\u2019s 2023 Sustainable Consumer<\/span><\/a><span style=\"font-weight: 400;\"> study, for instance. It found a significant increase in the number of consumers adopting more sustainable behaviours. These behaviours very much feed into their purchase decisions, meaning they actively search for responsible and biodiverse brands.\u00a0<\/span><\/p>\n            <div class=\"complete_package__shortcode\">\n                <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/fully-inclusive-package\/\" data-wpel-link=\"internal\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_sidebar.png?v=2\"\n                        alt=\"Fully Inclusive Package Special Offer\"\n                        class=\"complete_package__mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_banner.png?v=3\"\n                        alt=\"Complete Package Special Offer\"\n                        class=\"complete_package__desktop\">\n                <\/a>\n            <\/div>\n        \n<p><span style=\"font-weight: 400;\">Crucially, the study also found that a quarter of shoppers are willing to pay more for sustainable products and packaging, and will choose suppliers who commit to ethical working practices over those that don\u2019t.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s no different for employees. There\u2019s no doubt that their salaries are important to them, but workers tend to be more ethically driven nowadays.<\/span><\/p>\n<p><a href=\"https:\/\/www.bluebeyondconsulting.com\/closing-the-employee-expectations-gap-the-undeniable-and-promising-new-mandate-for-business-download\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Blue Beyond Consulting<\/span><\/a><span style=\"font-weight: 400;\"> discovered that more than half of workers are willing to quit their jobs if company values don\u2019t align with their own. In addition, nearly 80% <\/span><span style=\"font-weight: 400;\">expect<\/span><span style=\"font-weight: 400;\"> their employer to be a force for good in society.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But that\u2019s not all. If you\u2019re a small business owner seeking funding, you should know that environmental, social, and governance (ESG) investing is on the rise &#8211; and has been for some time. That\u2019s right, investors care more about where their money is going. <\/span><a href=\"https:\/\/www.devere-investment.com\/esg-investing-is-on-the-rise-as-over-50-of-investors-look-to-increase-their-esg-investments-in-2024\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">One poll<\/span><\/a><span style=\"font-weight: 400;\"> found that over half of investors had planned to make a sustainable investment this year, showcasing a \u201cfundamental shift\u201d in lenders\u2019 mindsets.\u00a0<\/span><\/p>\n<p>                                                    <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/uk-business-climate-hub\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">UK Business Cimate Hub &#8211; helping SMEs save money and go green<\/span><\/a>\n                                                                        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/4-best-social-media-management-tools-for-smes\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">4 best social media management tools for SMEs<\/span><\/a>\n                                                                        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/retain-top-people\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">8 tips to retain the top people in your business<\/span><\/a>\n                    <\/p>\n<p><span style=\"font-weight: 400;\">Just from these few examples, it\u2019s clear just how important corporate citizenship is and that it can affect your business from every angle. Your customers, staff, and financial backers are just some of the groups expecting you to do your bit for society.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With that in mind, we must address the fact that, as a business leader, you are in a powerful position to drive genuine change and encourage others to follow in your footsteps. And by practising corporate citizenship, you\u2019re not sacrificing your company\u2019s success to achieve this. This holistic approach allows you to look after your business while running a sustainable, positive, and responsible company that inspires outsiders.\u00a0<\/span><\/p>\n<h3>Corporate citizenship vs corporate social responsibility<\/h3>\n<p><span style=\"font-weight: 400;\">The term \u2018corporate citizenship\u2019 is often used synonymously with \u2018corporate social responsibility\u2019 (CSR). While both terms are ethically conscious, they have some distinct differences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CSR can be considered a stepping stone towards corporate citizenship. It\u2019s more about companies meeting their legal obligations regarding social responsibility. Meanwhile, corporate citizenship is about exceeding those obligations to proactively help your community, embed positive ethical values in your core business mission, and engage key stakeholder groups in this collective success.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike CSR, corporate citizenship is a long-term perspective that aims to create a sustainable business strategy that benefits both the company and the community.\u00a0<\/span><\/p>\n<h3>Is corporate citizenship a legal requirement for small companies?<\/h3>\n<p><span style=\"font-weight: 400;\">Corporate citizenship is not a legal requirement for small private companies. Some relevant mandatory laws apply to larger companies, but small businesses are generally self-regulated.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, all companies in the UK are subject to more general obligations in terms of promoting company success, which corporate citizenship is relevant to. As per <\/span><a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2006\/46\/section\/172\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">section 172 of the Companies Act 2006<\/span><\/a><span style=\"font-weight: 400;\">, company directors must act in the company\u2019s best interest by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Considering the long-term effects of decisions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Considering employees\u2019 interests<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fostering strong stakeholder relationships<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Evaluating the company\u2019s operational impact on the community and the environment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assist in maintaining high company standards and reputation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Promote fairness between the company\u2019s shareholders<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you practice corporate citizenship, you may also wish to implement certain internal policies and regulations for internal stakeholders to follow. However, there are no specific laws on this concept for small private companies.\u00a0<\/span><\/p>\n<h3>Benefits of corporate citizenship<\/h3>\n<p><span style=\"font-weight: 400;\">The most obvious benefit of corporate citizenship is helping your community and looking after our planet. But what are the wider benefits of businesses &#8211; particularly small businesses &#8211; embracing corporate citizenship? Let\u2019s take a look at how this concept can transform your company.\u00a0<\/span><\/p>\n<h4>Enhance your brand image<\/h4>\n<p><span style=\"font-weight: 400;\">One of the main challenges you\u2019ll face as a new company is getting your brand name out there and building a reputation for yourself. Corporate citizenship can significantly boost your credibility, attract new customers, and encourage existing ones to stay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By putting corporate citizenship at the heart of your business mission, you\u2019ll demonstrate to your audience that your company is a force for good, that your priorities extend far beyond making money, and that you\u2019re interested in long-term prosperity. As a result, people will view your business as more trustworthy and be happy to support you.\u00a0<\/span><\/p>\n<h4>Attract investors<\/h4>\n<p><span style=\"font-weight: 400;\">Financing is another significant hurdle for a small business. Whether you\u2019re looking for private investors or applying for a traditional bank loan, all types of lenders will be happy to see that your business has a corporate citizenship focus.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We discussed earlier that ESG investing is rising. Lenders want to support projects that mean something to them and make a difference in the world. Therefore, corporate citizenship can set your business apart and inspire the right investors to support you.\u00a0<\/span><\/p>\n<h4>Gain a competitive advantage<\/h4>\n<p><span style=\"font-weight: 400;\">The world is incredibly advanced. It\u2019s hard to come up with ground-breaking ideas that\u2019ll set your small business apart in a congested market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nowadays, it takes more than competitive pricing and unique products to win over customers &#8211; these are still important, but as we discovered earlier, people actually <\/span><span style=\"font-weight: 400;\">want <\/span><span style=\"font-weight: 400;\">to pay more for products and services that make a positive difference in the world.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want to stand out from the competition, you\u2019ll need to demonstrate that your business is ethically focused by embracing corporate citizenship. This will help you build personal connections with potential customers and inspire them to choose your brand over others.<\/span><\/p>\n<h4>Improve business performance<\/h4>\n<p><span style=\"font-weight: 400;\">Corporate citizenship benefits not only the community but also your business performance. For example, you can reduce your expenses by implementing energy efficiency, boost profits by attracting more customers, and increase funding by appealing to investors.\u00a0<\/span><\/p>\n<h4>Strengthen stakeholder relationships<\/h4>\n<p><span style=\"font-weight: 400;\">For corporate citizenship to work, everyone needs to do their bit. This includes yourself, the business owner, shareholders, directors, managers, and employees. By working towards a common goal, you can strengthen all these key stakeholder relationships and create long-term, meaningful partnerships that will bolster your business.\u00a0<\/span><\/p>\n<h4>Find top talent<\/h4>\n<p><span style=\"font-weight: 400;\">If you\u2019re getting ready to recruit for the first time, you might be wondering how you can find top talent. How can you make your job listing stand out from a sea of similar job ads, and how can you make sure that you\u2019re attracting the right people that\u2019ll fit into your company culture?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Corporate citizenship can help. Workers want an employer that stands for something positive. They want to work for companies that match their personal values and join a workplace that allows and encourages them to get involved in a cause that matters to them.\u00a0<\/span><\/p>\n            <div class=\"hubspot_shortcode\">\n                <a href=\"https:\/\/hubspot.sjv.io\/OrKdGZ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_mobile.png\"\n                        alt=\"Get Started With HubSpot's Free Tools.\"\n                        class=\"hubspot_shortcode-mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_desktop.png\"\n                        alt=\"Get Started With HubSpot's Free Tools.\"\n                        class=\"hubspot_shortcode-desktop\">\n                <\/a>\n            <\/div>\n        \n<p><span style=\"font-weight: 400;\">If your company practices corporate citizenship, be sure to shout about it in your recruitment process. Make it a prominent feature in your job adverts, explain how the company gets employees involved in corporate citizenship, and discuss these matters with candidates during interviews. This will help you bond with recruits and find the best people to enrich your business.<\/span><\/p>\n<h4>Boost employee morale<\/h4>\n<p><span style=\"font-weight: 400;\">If you have an existing team, you can boost morale by adopting corporate citizenship. For example, running staff volunteering days is a great way to get your staff involved in a good cause. It\u2019s also an excellent team bonding opportunity, giving people a chance to step away from the typical office environment and get to know each other better over a common goal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees generally feel happier, more engaged in their work, and more connected to the business by giving back to their communities. Meaningful work can also increase staff loyalty and motivation to excel in their roles.\u00a0<\/span><\/p>\n<h3>Conclusion<\/h3>\n<p><span style=\"font-weight: 400;\">Corporate citizenship means conducting business with integrity. Rather than simply ticking a box, it\u2019s about proactively enforcing social, ethical, and environmental values into your core business outlook and empowering others to make a difference.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses that embrace corporate citizenship are a force for good and can generate increased commercial success.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We hope this blog inspires you to act if you aren&#8217;t currently practising corporate citizenship. Remember that there are plenty of ways for a small business to be resourceful and find achievable ways to support the community whilst growing the company. Start small, and you can always expand your impact as you evolve.\u00a0<\/span><\/p>\n"},"excerpt":{"rendered":"<p>Broadly speaking, corporate citizenship is about doing the right thing. For businesses, that extends beyond merely turning a profit and promotes a deeper sense of purpose that focuses on social, environmental, and ethical responsibility. Think of it as a happy medium between driving business success and helping the community.\u00a0 In practice, that can translate to&hellip;<\/p>\n","protected":false},"author":27,"featured_media":12688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[114],"tags":[],"class_list":["post-12579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-advice","category-114","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.5 (Yoast SEO v23.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Corporate Citizenship?<\/title>\n<meta name=\"description\" content=\"We explain corporate citizenship, explore why businesses should embrace it, and examine the benefits of doing so. Let&#039;s get started.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/corporate-citizenship\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is corporate citizenship?\" \/>\n<meta property=\"og:description\" content=\"We explain corporate citizenship, explore why businesses should embrace it, and examine the benefits of doing so. 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