Corporate Social Responsibility and Corporate Citizenship ensure that businesses bear broad responsibilities to society as they aim for economic objectives. All organization stakeholders expect that the business operate responsibly by incorporating social goals into the overall business strategies as well as adopting good corporate citizenship goals. Therefore, both corporate social responsibility and citizenship responsibilities establish a positive relationship with the stakeholders and open opportunities to serve society as well as transforming the financial performance into a strategy of integrated social, financial and environmental performance (Lawrence & Weber, 2014).
Corporate social responsibility ensures that organization actions take responsibility for its activity’s impacts on the environment and society. It ensures that business actions are consistent with the interests of the society and sustainable development. Also, it ensures that business activities are based on the ethical behaviour and comply with the applicable laws. On the other hand, corporate citizenship encompasses all the facets of the effect of actions of business on the society. Corporate citizenship embraces all the sub-concepts like the corporate social responsibility and responsiveness, and social performance for the corporation (Lawrence & Weber, 2014). Corporate citizenship of organizations ensures strategies that move from short-term transactions to long-term and anchored on value-based relationships with all stakeholders and society.
Corporate social responsibility ensures the principles of charity and stewardship as well as having moral obligations to the society at large. In contrast, corporate citizenship builds a collaborative partnership with all stakeholders of the organization and pursues to discover business opportunities through partnerships. Besides, corporate social responsibility is the trustee and philanthropy of the public interests by organizations, while corporate citizenship ensures effective management of corporate financial and social performance. As compared to corporate social responsibility, corporate citizenship ensures that ethical business behaviours engage in honest and fair business practices in its relations with stakeholders, sets high employees’ behaviour standards and exercises ethical oversight of the board and executive levels.
Corporate social responsibility ensures that an organization’s actions enhance society and its inhabitants as well as being held accountable for activities that impact the society and the environment. Corporate social responsibility has enabled organizations to act responsibly to achieve societal changes through its activities and products or services to consumers. On the other hand, corporate citizenship ensures social performance audit. Corporate citizenship ensures systematic evaluation of business’ social and ethical performance by examining the ethical and social impacts of the business activities against the organization’s mission statement and other organizations’ behaviour and social norms. Corporate citizenship ensures companies’ reports to stakeholders encompass financial results, social and environmental impacts. The triple bottom line for corporate citizenship ensures that organizations incorporate financial, environmental and social responsibility in the corporate strategy and goals (Schwartz, 2017).
On the broader perspective, corporate citizenship involves business social responsibilities and how they meet ethical, legal and economic responsibilities developed by stakeholders. The goal of corporate citizenship is to ensure a higher quality of life, and living standards for the society as business maximizes stakeholders’ profits. Unlike corporate social responsibility, corporate citizenship involves five stages, which include the elementary, engaging, innovative, integrating and transforming (Andriof & McIntosh, 2017).
Corporate social responsibility ensures that business actions preserve the…………..
Andriof, J., & McIntosh, M. (Eds.). (2017). Perspectives on corporate citizenship. Routledge.
Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics, public policy. Tata McGraw-Hill Education.
Schwartz, M. S. (2017). Corporate social responsibility. Routledge.