{"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":"
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 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 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 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 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 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 There are many ways that you can practice corporate citizenship in the workplace. It\u2019s not about doing <\/span>everything<\/span>, <\/span><\/i>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 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 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 Take <\/span>Deloitte\u2019s 2023 Sustainable Consumer<\/span><\/a> 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 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 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 Blue Beyond Consulting<\/span><\/a> 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>expect<\/span> their employer to be a force for good in society.\u00a0<\/span><\/p>\n 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 – and has been for some time. That\u2019s right, investors care more about where their money is going. <\/span>One poll<\/span><\/a> 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 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 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 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 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 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>\nWhat is corporate citizenship?<\/h3>\n
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Examples<\/h3>\n
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Why it matters<\/h3>\n
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Corporate citizenship vs corporate social responsibility<\/h3>\n
Is corporate citizenship a legal requirement for small companies?<\/h3>\n