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The State of Corporate Citizenship 2005

June 1, 2005

The Center for Corporate Citizenship at Boston College, with the support of the Hitachi Foundation and in partnership with the U.S. Chamber of Commerce Center for Corporate Citizenship, has launched the 2005 State of Corporate Citizenship Survey.

This is the second survey being conducted, and follows on the 2003 survey and resulting report, the 2004 State of Corporate Citizenship. Addressing The Center's 2005 Conference, Joseph Kasputys, chair of the Hitachi Foundation's board of directors, said, "When the foundation first funded this survey of over 500 companies on the state of corporate citizenship in U.S. society, we found that four out of five corporations believed that corporate citizenship was important, and that the public has a right to expect companies to engage in corporate citizenship.”(View video of Kasputys address.)

The current 2005 effort uses a more focused and revised set of questions. It has been distributed across the country to businesses of all sizes, with hopes of receiving up to 1,000 responses.

The data collected in this survey are essential to moving the corporate citizenship field forward. Because there is very little data on business’ commitment to corporate citizenship, it is a story that goes largely untold. The survey and report present an opportunity to better understand this relationship, and are also useful in building an internal case within companies around corporate citizenship and why it is important.

Here we provide a first look at some preliminary findings based on the initial 125 responses to the survey. The final State of Corporate Citizenship Report will be released in fall 2005.

Initial Responses to the State of Corporate Citizenship Survey

Below are preliminary results based on 125 early responses to the survey. (It is important to note that the sample for these initial findings is highly representative of practitioners in larger organizations, while the final responses will likely include a broader range of company sizes and diversity in persons completing the survey. These differences may account for discrepancies in the final report from the initial findings below.)

The role of business in society
The following were rated “Very Important” or “Critical” by companies when asked how important these activities are to their role in society.

Operating with ethical business practices
99%
Managing and reporting company finances accurately
96%
Ensuring employee health and safety
90%
Improving conditions in your community
81%
Maximizing long-run profits for owners
80%
Providing employee benefits
79%
Providing jobs
78%
Protecting consumers
76%
Building employee diversity within your business
74%
Working with suppliers/vendors to ensure they operate ethically
70%

Companies indicated that they are acting or supporting the action taken by others to address the following issues to a “Large” or “Very Great” extent.

Improving K-12 Education
58%
Responding to disasters
52%
Improving the safety and efficacy of products
51%
Supporting community development
49%
Providing training for the incumbent workforce
44%
Improving community college and higher education
43%
Improving the environment
43%
Helping to support dependent care
34%
Expanding international trade
31%
Improving public health
25%
Ensuring infrastructure development
22%
Helping to safeguard civil or human rights
18%
Developing alternative energy sources
17%
Expanding access to affordable health care insurance
16%
Addressing global climate change
16%
Reducing poverty
14%

Drivers and Barriers of Corporate Citizenship

Companies cited the following as drivers of their company’s corporate citizenship to a “Large” or “Very Great” extent:

  2005 2003 * % Change
It fits our company’s traditions and values
91%
92%
-1%
It improves our reputation/image
74%
66%
8%
It’s part of our business strategy
65%
51%
14%
It’s important to our customers/consumers
58%
53%
5%
It helps to recruit and retain employees
55%
48%
7%
It’s expected in our community
52%
47%
5%
It responds to laws and political pressures
23%
21%
2%

Companies cited the following as barriers to their company’s corporate citizenship to a “Large” or “Very Great” extent:

  2005 2003 * % Change
Lack of resources
36%
46%
-10%
Middle management does not support it
11%
8%
3%
Not sure what being a good “corporate citizen” means
10%
10%
0%
Top management does not support it
10%
15%
-5%
No significant benefit to the business
10%
4%
6%
Not of real interest to our employees
4%
12%
-8%

Corporate Citizenship Performance
Overall, 70% of companies rate their corporate citizenship performance as “Above Average” or “Excellent.”

pie chart

Read more June 2005 articles >