The Center for Corporate Citizenship at Boston College and The Center for Corporate Citizenship at The U.S. Chamber of Commerce teamed up to deliver the first survey of American businesses of all sizes on The State of Corporate Citizenship in the U.S. The survey was supported by The Hitachi Foundation who has been on the forefront of driving research and understanding of Corporate Citizenship around the globe.
This survey was designed to gain a baseline from which to measure biennially the progress and state of Corporate Citizenship first in the U.S. and then globally.
Corporate Citizenship in this baseline survey was defined primarily by the companies’ responses. Some leading-edge corporations provide an expansive definition of corporate citizenship to encompass commitment to the environment, treatment of employees, safe and reliable products, and ethical practices, in addition to more traditional strategic philanthropy, employee volunteerism, and signature community involvement programs.
With a national sample that included small, medium and large size companies, we found that size does not matter. The main driver of corporate citizenship is values. Companies see corporate citizenship as good for the bottom line and obstacles to engaging in corporate citizenship activities are mainly lack of resources.
-What’s most interesting about this first survey is the breakdown by company size, and while the obvious is true that Corporate Citizenship efforts range depending on size and budget, there is an overall commitment regardless of size to Corporate Citizenship as a core business imperative. There are also well developed views of what constitutes Corporate Citizenship,” said Suzanne Clark, Chief Operating Officer of The U.S. Chamber of Commerce and President of The Center for Corporate Citizenship at The U.S. Chamber.
The survey clearly showed that U.S. companies are walking the talk of Corporate Citizenship. Over 90% stated that they have increased or maintained their efforts to reach out to economically distressed communities over the past two years. The momentum behind these numbers suggests that the future of corporate citizenship is bright, as there is much more that businesses can do. Our research suggests that in addition to traditional corporate citizenship efforts, companies are paying increased attention to non- traditional stakeholders and an increased involvement in addressing tough global challenges like global warming, poverty and human rights.
Good corporate citizenship is good business:
82% of companies state that good corporate citizenship helps the bottom line
74% believe that the public has a right to expect companies to act as good citizens
Additionally, the motivating factors for companies to adopt corporate citizenship range from reactive to proactive.
Nearly one third of respondents are tying their efforts closely to their business by providing -in-kind” donations of products and services as a portion of their efforts
24% of companies said that they engage in corporate citizenship as a response to laws and political pressures
75% of companies said that corporate citizenship is a core part of their company’s traditions and values
-Corporate Citizenship is widely misunderstood and poorly defined in the U.S., yet we know it is increasingly a differentiator on many dimensions and companies care and think about it when doing business. Corporate reputation, ability to attract and retain an engaged workforce, and a basic license to operate are just a few examples of why companies are engaging in corporate citizenship. This survey is a critical first step in understanding the motivations and practices that U.S. companies use to define Corporate Citizenship at a time when expectations are increasing for business to better define their role in society,” said Dr. Bradley Googins, Executive Director of The Center for Corporate Citizenship at Boston College.
“We intend this groundbreaking survey to move the conversation about business in society beyond abuse and scandal,” observed Hitachi Foundation President and CEO Barbara Dyer. We wanted to capture the nuances and complexity of corporate citizenship, especially within small and medium-sized businesses. Moreover, The Hitachi Foundation wanted to see how business can make a real difference in distressed places. About one in five businesses report in the survey one or more activities that assist hard-pressed communities. That’s encouraging but business can do more in helping places that have remained adrift from the economic and social mainstream for far too long.”