Corporate Citizenship

Corporate Citizenship

The extent to which businesses are socially responsible in meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim it to create higher standards of living and quality of life in the community in which it operates, while preserving the profitability of the company for its stakeholders both within and outside the company.

Notes:

As demand for social responsibility on corporations increases, investors, consumers and employees are now more willing to use their individual power to punish those companies that do not share their values. For example, investors who find out about a company's negative corporate citizenship practices could boycott its products or services, refuse to invest in its stock or speak out against that company among family and friends.

See also: The Conference Board, Corporate Governance, Social Responsibility, Socially Responsible Investment - SRI, Stakeholder