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Corporate Citizenship: How Can Companies Be Good Citizens?

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Soulful Corporations

Part of the book series: India Studies in Business and Economics ((ISBE))

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Abstract

Corporate Citizenship really means developing mutually beneficial, interactive and trusting relationship between the company and its many stakeholders—employees, customers, communities, suppliers, government, investors and even non-governmental organisations (NGOs) and activists through the implementation of the company’s strategies and operating practices. It implies a comprehensive initiative on the part of a company to ensure that the expectations of all the stakeholders receive active consideration and appropriate response (Fig. 8.1).

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Notes

  1. 1.

    Editorial, The Journal of Corporate Citizenship, Issue 9, 2003.

  2. 2.

    Porter, Michael E. and Kramer, Mark R. (2006), Strategy and Society, The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review, Vol. 84(12), pp. 76–92.

  3. 3.

    Graves, Samuel B. and Sandra A. Waddock (2000), ‘Beyond Built-to-Last: Stakeholder Relation in Built-to-Last Companies’, Business and Society Review, Vol. 105(4), pp. 393–418.

  4. 4.

    ‘Built-to-last companies’ were 18 organisations studied as part of a 6-year research project at the Stanford Research Institute (SRI) led by Jim Collins and Jerry Porras, later published as a book in 1994 with the same title. The authors Collins and Porras defined a built-to-last/visionary company as one that is a premier institution in its industry, is widely admired by knowledgeable businesspeople, made an imprint on the world, had multiple generations of chief executive officers (CEOs), had multiple product/service life cycles and was founded before 1950.

  5. 5.

    Sundar, Pushpa (2000), Beyond Business: From Merchant Charity to Corporate Citizenship, New Delhi: Tata McGraw Hill.

  6. 6.

    Hicks L (1996) ‘Caterpillar Flunks Corporate Citizenship Test’, York Dispatch, p. A7, May 1996.

  7. 7.

    Solomon, J.F., A. Solomon and Norton, S.D. (2002), ‘Socially Responsible Investment in the UK, Drivers and Current Issues’, Journal of General Management, Vol. 27(3), pp. 1–13.

  8. 8.

    Porter, Michael and Kramer, Mark (2011), ‘Creating Shared Value: How to reinvent capitalism and unleash a wave of innovation and growth’, Harvard Business Review, Vol. 89 (1), pp. 62–77.

  9. 9.

    Personal rates of taxation went up from 77 % in 1960–1961 to 97.75 % in 1972–1973, when it became one of the highest in the world.

  10. 10.

    Lala, R.M. (2004), The Creation of Wealth: The Tatas from the 19th to the 21st Century, India: Penguin Books.

  11. 11.

    With such exemplary labour welfare measures in place, the TISCO was able to gain the loyalty of its workers. In 1978, when the Government of India decided to nationalise TISCO, the employee unions approached the then Prime Minister India—Mr. Morarji Desai—and dissuaded him from nationalising TISCO.

  12. 12.

    A detailed case study on the Tata Group’s projects for the society and local community stakeholders has been included in Chap. 10 of this book.

  13. 13.

    Details about SST’s rural empowerment projects have been given in the case study on TVS Motor Company in Chap. 10 of this book.

  14. 14.

    Details provided in an earlier chapter.

  15. 15.

    Details about HUL’s Shakti and reverse Shakti projects have been given in Chap. 10 of this book.

  16. 16.

    The Satya Bharti School Programme is the flagship rural education initiative of Bharti Foundation aimed at holistic development of children. Its goal is to provide quality education to underprivileged children to develop them into confident, employable and responsible citizens of tomorrow. It is intended at delivering free quality education to underprivileged children across rural pockets and lays special emphasis on education for the girl child and children from marginalised communities. As of October 2011, over 33,000 children were enrolled across 250 Satya Bharti Schools, of which 233 are primary schools, 12 elementary and five senior secondary Satya Bharti Schools in six states of India (Punjab, Haryana, Uttar Pradesh, Rajasthan, Tamil Nadu and West Bengal).

  17. 17.

    Details about the WATIS and Mission X Projects of Wipro have been elaborated in a case study on Wipro in Chap. 10.

  18. 18.

    Corporate Social Responsibility in India: No Clear Definition, but Plenty of Debate: India Knowledge@Wharton; accessed at http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4636

References

  • Fitzegerald, N., & Cormack, M. (2006). The role of business in society (Corporate social responsibility initiative report No. 12). Cambridge, MA: Kennedy School of Government, Harvard University.

    Google Scholar 

  • Graves, S. B., & Waddock, S. A. (2000). Beyond built-to-last – Stakeholder relation in built-to-last companies. Business and Society Review, 105(4), 393–418.

    Article  Google Scholar 

  • Hicks, L. (1996, May). Caterpillar flunks corporate citizenship test. York Despatch.

    Google Scholar 

  • Kolb, R. W. (2007). Encyclopedia of business ethics and society. Los Angeles: Sage Publications.

    Google Scholar 

  • Porter, M., & Kramer, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 76–92.

    Google Scholar 

  • Porter, M., & Kramer, M. (2011). Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review, 89(1), 62–77.

    Google Scholar 

  • Solomon, J. F., Solomon, A., & Norton, S. D. (2002). Socially responsible investment in the U.K., drivers and current issues. Journal of General Management, 27(3), 1–13.

    Google Scholar 

  • Sundar, P. (2000). Beyond business: From merchant charity to corporate citizenship. New Delhi: Tata McGraw Hill.

    Google Scholar 

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Author information

Authors and Affiliations

  1. Department of Management Studies, Sri Sathya Sai Institute of Higher Learning Prasanthi Nilayam, Anantapur District, Andhra Pradesh, India

    Shashank Shah (Post-Doctoral Fellow)

  2. Faculty of Management and Commerce, Sri Sathya Sai Institute of Higher Learning Prasanthi Nilayam, Anantapur District, Andhra Pradesh, India

    V. E. Ramamoorthy (Former Hon. Professor)

Authors
  1. Shashank Shah
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  2. V. E. Ramamoorthy
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Shah, S., Ramamoorthy, V.E. (2014). Corporate Citizenship: How Can Companies Be Good Citizens? . In: Soulful Corporations. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1275-1_8

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