It’s about business: “Corporate citizenship is not about how a company gives away its money; it’s about how it makes money. ” This dictum may seem surprising at first glance. After all, corporate citizenship is regarded as obvious: the civic engagement of companies – as a more or less costly good deed for the benefit of the general public, but not as an instrument of profit maximization. Properly understood, however, corporate citizenship is not a selfless act of charity, but a method of strategic business management.
The characteristic feature of this concept – and this is at the same time its socio-political appeal – is the systematic linking of corporate and public interests. It can be done thorough deliberate charity
What is corporate citizenship
Correctly understood, corporate citizenship is not an altruistic charity event, but motivated by tangible business interests of the committed company: a “business case”. This orientation to business value is another hallmark of corporate citizenship in the modern sense, as opposed to traditional forms of entrepreneurial charity.
Experts diagnose “a marked shift in emphasis”. The participants are not interested in unselfish public involvement, but as corporate citizens, they pursue the intention of strategically linking corporate goals and public interest interests.
The majority of civic-minded companies show unsystematic charity, and even though for the comparatively sophisticated charity culture of the New World complains that too many companies still complain about corporate citizenship confused with aimless philanthropy. In practice, therefore, one cannot often point out that corporate citizenship is not a decorative appendix, but requires the systematic embedding of the charitable activities in the business strategy.
After all, a company will only be able to make a lasting commitment and invest its best resources in a commitment if this commitment clearly benefits its genuine (business) interests.
The real business benefits resulting from charity
These benefits can have many facets:
- public image gain,
- more motivated and qualified employees,
- team spirit,
- less absenteeism or even competitive advantages among the customers
It is important that the public interest-oriented commitment is also supported by tangible interests, which as a rule are a more reliable and sustainable driving force for the human acting is as idealistic beliefs because the idea always embarrasses itself before interest.
Systematic development and learning processes
Businesses tend to grow from occasional philanthropy to integrated business strategy. Corporate citizenship activities seldom start directly with the big hit. It is far more likely that excellent programs that result of gradual search movements are. However, such a result is not random by itself. It demands, in turn, of serious commitment and tolerance, willingness to innovate and learn as well as a commitment on the level of the most important decision-maker in the company.
Social responsibility in business
Corporate social responsibility is a process for companies, that goes beyond the sustainability criteria, such as social compatibility, corporate governance, environmental sustainability as well as sustainability in the supply chain, operations and corporate strategy. The set of common guidelines is formulated, with expectations regarding the most important aspects of social responsibility and sustainability, such as human rights and the environment protection. Working conditions and business ethics are also outlined.
In line with the Guidelines, this self-inquiry questionnaire (SAQ) addresses the performance of suppliers
Respect for human rights and fundamental social standards is the principle of everyone human coexistence. Working conditions that violate such rights and standards, contradict this principle. This applies within our company as well as in cooperation with business partners. Each employee contributes in his and sphere of influence responsibility for ensuring that human rights and fundamental social standards not hurt.
More and more modern companies base their leadership philosophy on success factors for growth while maintaining profitability and responsibility. These basic thoughts are under the term of business principles. In a successful business, there can be no profitability and sustainable development without social responsibility.