63. • Corporate citizenship is defined as a company's social responsibility
regarding its surrounding community. It can be explained as the social
responsibility that a business assumes and the lengths they are willing to
go to meet society's legal, ethical, and socio-economic responsibilities.
What does it mean to be a corporate citizen? A corporate citizen refers to
all the stakeholders and the employees that bring in profits and improve
the standard of living in society.
• corporate citizenship has an array of importance, including providing a
work-friendly environment for the employees since it improves their
productivity. Another implication of corporate citizenship is that it enhances
public trust. Consumers are convinced to buy products when they realize
that a company is socially responsible and follows the set ethical practices.
It is also crucial in brand marketing as it mirrors the values of a business. A
business with sound values has a good reputation which increases sales.
64.
65. • Per Deloitte, the power of human connection may help society become
more inventive, productive, and welcoming to all. People at Deloitte can
develop innovative solutions to some of society’s most challenging problems
by bringing together people, clients, nonprofit organizations, and
communities. These problems range from the current global pandemic to
assisting nonprofit organizations in delivering on their missions and
innovating into the future. With the help of the Deloitte community, they hope
to have a positive and lasting effect on society for the benefit of everybody.
• They convey how they helped communities during COVID-19. Deloitte
helps organizations and communities battle COVID-19. Deloitte had made a
financial contribution to response and relief activities regarding the
pandemic’s toll on the country and the crucial need to assist individuals
suffering to acquire resources, materials, and aid in the short term. They also
state how they supported society by investing in education and making efforts
to bring about equality.
66. • Stage #1 – Primary
• This is often where companies begin when they are confronted with the
requirement to adopt rules about their corporate responsibility for the first
time. Besides, these companies use a compliance-based corporate social
responsibility (CSR) strategy in response to government rules and
guidelines; they are not proactive in responding to shifts in societal norms.
In the modern world dominated by social media, this style of citizenship is
performative and gets skepticism.
• Stage #2 – Engaged
• Companies are beginning to see the need to take action as firms
become more aware of and sensitive to the public’s expectations. When
businesses reach this level, they often start committing to measurable
goals, putting official procedures in place, and interacting with their
stakeholders.
67. • Stage #3 – Innovative
• Companies are searching for methods to continue the work they did in the stage before
this one at this point in the process. It requires Internal innovation and restructuring of
resources for some firms once they conclude that they do not have the structural ability to
fulfill new and significant obligations. Eventually, launching programs, corporations taking
the initiative to audit and report on their results, and maintaining an open discussion among
stakeholders are all taking place.
• Stage #4 – Integrated
• In the fourth stage, firms are completely integrating citizenship programs into their
businesses’ bottom lines. Some examples of these types of activities include diversity and
environmental projects. Certainly, this involves substantial work developing collaborations
with other corporations and organizations, pioneering methods and technology to
strengthen CSR initiatives, and more consistent corporate messaging towards social
responsibility.
• Stage #5 – Transforming
• At this point, companies have established themselves as industry leaders in terms of
social responsibility, and the pursuit of corporate citizenship is in full agreement with other
main objectives of the company, such as making profits. In other words, companies have
reached the final stage of the model. Frequently, these firms collaborate beyond national
and industry lines to solve significant societal issues.
68. • What is the difference between CSR and corporate
citizenship?
The term “corporate social responsibility” (CSR) refers to a wide-
ranging principle of corporate citizenship that takes different
forms for different businesses and sectors. For example,
companies may improve society and strengthen their brands
through corporate social responsibility (CSR) initiatives,
charitable donations, and community service.
70. • Corporate Social Responsibility (CSR) is a business
approach companies follow to make a social impact and focus
beyond profits. Its main purpose is to enhance the company’s
image, earn customer loyalty and generate more sales. It also
benefits society and the environment as businesses work for
the collective good.
• There are four main types of corporate social responsibility –
environmental, ethical, philanthropic, and economical.
• Common CSR initiatives include donating to charity,
providing disaster relief, promoting renewable energy,
encouraging gender equality, addressing racial discrimination,
etc.
71. 1. Environmental CSR – Companies focus on environmental protection
and conservation in this category. They launch initiatives to reduce
pollution or emission, offset carbon footprint, recycle waste, and use
renewable energy sources.
2. Ethical CSR – The ethical responsibility of a business has to do with the
moral values and ethical beliefs of organizations. It usually covers all the
stakeholders of the company – employees, suppliers, and investors.
Issues like gender equality, reasonable working hours, high minimum
wage, etc., fall under ethical CSR.
3. Philanthropic CSR – Businesses’ donations and contributions made to
charity are considered philanthropy. Helping malnourished children or
rescuing people in war-torn regions come under this.
4. Economical CSR – The last type of social responsibility focuses on the
financial aspects of environmental, ethical, philanthropic, and social
initiatives. A company should not just make profits but also practice fair
measures like paying taxes responsibly to support the economy.
72. • Firm PQR sells electronic devices and appliances. Due to the mounting
concern about e-waste management, PQR has decided to introduce an e-waste
collection program. Through this program, individuals who own a PQR product
can collect and sell any e-waste to their nearest PQR store by weight.
• That is, customers can sell 1 pound of e-waste for $5. Also, customers selling
e-waste from PQR products will get an additional $3 per pound. The firm will
recycle the collected e-waste. Customers will be able to visit their PQR
membership account and check the contributions made by them and others.
They can also view the total quantity of e-waste recycled, recycling videos, etc.
• Through this program, PQR sells itself. For example, only those individuals
who own a PQR product can participate in this program, encouraging others to
buy from the company. Also, it has a good image among the public for
addressing a significant issue. Further, the company can segregate the
components and sell them as scrap.
