Advocates and practitioners of corporate citizenship have been on a quest to make the business case for corporate citizenship as a way to show a causal link between doing good socially and environmentally and doing well financially. Making this case justifies how resources are allocated and can help ensure the sustainability of citizenship programs. An abundance of notable studies now demonstrate that business success can accrue from an organization’s commitment to corporate citizenship. Yet skeptics and disbelievers of the corporate citizenship business case still exist. Metrics proving causality between financial performance and social performance, in particular, are underdeveloped, while those proving a link between financial performance and environmental performance are more robust. Very often, evidence in support of the business case is anecdotal, industry specific and confined to one geographical location.
This In Focus report highlights four corporations - FedEx, NovoNordisk, Agilent Technologies and Manpower - to provide case study examples of how firms have approached the business case for corporate citizenship. We examine the arguments from all sides and explore how many business commentators and managers are now beginning to argue that a traditional business case orientation is insufficient for understanding the value a company accrues through corporate citizenship.
Advocates and practitioners of corporate citizenship have been on a quest to make the business case for corporate citizenship as a way to show a causal link between doing good socially and environmentally and doing well financially. Making this case justifies how resources are allocated and can help ensure the sustainability of citizenship programs. An abundance of notable studies now demonstrate that business success can accrue from an organization’s commitment to corporate citizenship. Yet skeptics and disbelievers of the corporate citizenship business case still exist. Metrics proving causality between financial performance and social performance, in particular, are underdeveloped, while those proving a link between financial performance and environmental performance are more robust. Very often, evidence in support of the business case is anecdotal, industry specific and confined to one geographical location. 