Supporting The Corporations That Support Us
Jacqueline Beretta
August, 2004
When
we're thinking about companies we would like to do business with, isn't it a
good idea to research them to see if they are really worthy of our investment
in them as both an investor and/or a customer?
Today – yes right now – savvy and well run corporations are doing more than
existing just to sell us gas, produce a radio show, or provide us with insurance.
They are realizing that the huge problems of society need the partnership of
the populace, corporations and government to solve the huge problems we have
been dealt.
In the era following Enron, corporations must overcome tides of anti-business
sentiment. Many corporations are repositioning themselves in the communities
in which they do business as constructive parts of society. They are providing
teams of volunteers who make differences in communities, providing funding to
address social issues, and oftentimes, executives provide business expertise
to organizations.
A Good Example of Good Corporate Responsibility Reporting – Allstate
Insurance
“Community outreach is more than a commitment for Allstate; it's a passion.
As a corporate leader, we understand that giving back is good business, which
is why we strive to improve communities across the country. We do so through
the dedication and compassion of our Allstate agencies and employees and through
corporate funding in areas where we can have the greatest impact.”
This brief expression just about sums it all up. According to CSR Network,
there are many methods used to rate corporate accountability: strategic intent,
governance, performance management, stakeholder engagement, assurance, and public
disclosure.
The Allstate foundation funds more than 1,000 national and local program each
year that support their three key focus areas: “safe and vital communities”,
“tolerance, inclusion and diversity”, and “community empowerment.”
The Allstate Corporate Social Responsibility Report highlights national and
local partnerships, investments and community efforts of Allstate agencies and
employees. View it online
or request a free copy at (888) 505-4677.
The State of Corporate Citizenship in the US:
A View from Inside
Lisa Roner
A new report examines the attitudes, expectations and experiences
of executives from small, medium and large US businesses toward corporate citizenship
The Center for Corporate Citizenship at Boston College and the US Chamber of
Commerce Center for Corporate Citizenship, with support from the Hitachi Foundation,
surveyed 515 business leaders from companies of various sizes and from a broad
range of industries to examine the executives' perceptions of the state of corporate
citizenship in the US.
“The State of Corporate Citizenship in the US: A View from Inside” concludes
that regardless of company size, business executives see corporate citizenship
as a fundamental part of business and central to good business practice.
Eighty-two per cent of respondents say good corporate citizenship helped the
bottom line and 59% feel these practices improve company image and reputation.
Fifty-three per cent report corporate citizenship is important to their customers.
More than half of the executives surveyed say corporate citizenship is part
of their business strategy. The vast majority say corporate citizenship should
be completely voluntary and not dictated by law.
The survey's results indicate that business leaders consider their obligation
as citizens to be broader than the classic definition of good business practice
– returning profit to shareholders, paying taxes and obeying the law. Most US
companies say good corporate citizenship also includes meeting ethical, environmental
and social objectives.
Business leaders say they are sensitive to the attitudes and expectations of
the public and believe the public expects companies to meet or exceed legislative
or regulatory requirements on product safety (75%), environmental performance
(58%) and community support (53%). And the public, according to 74% of respondents,
has a right to expect good corporate citizenship.
Survey participants identify customers (84%) and owners/shareholders (79%) as
the most influential external stakeholders on business decision-making. But
two-thirds cite employees as an influencing factor, 40% note government influence
and more than 30% identify local communities and suppliers as influencers.
Forty-six per cent of survey participants say a lack of resources is the greatest
obstacle to practicing good corporate citizenship. But, despite the economic
recession occurring in the US at the time of the survey in 2003, 30% of companies
said they were increasing investment in corporate citizenship, while 14% reported
having decreased these investments.
Twenty-three per cent report increased investments in economically distressed
communities. And even among the 32% of businesses that faced a decline in financial
performance, 25% increased investments in corporate citizenship, with 17% bolstering
their efforts in economically distressed communities.
The top community-investment priorities cited by survey participants are economic
development and “K-12” home education.
Most respondents believe companies should be part of the solution to social
problems and more than half say their companies should play a role in improving
education, healthcare and the development of alternative energy sources.
Some businesses are taking action to support low-income stakeholders. One-third
provide training for low-wage employees; nearly 20% are working to improve conditions
in economically distressed communities; 12% hire people from poor communities;
and 10% locate company facilities in these communities.
While corporate scandals and abuses have taken center stage, Barbara Dyer, chief
executive of the Hitachi Foundation, said: “Hundreds of thousands of businesses
that play by the rules receive less focus.”
The report's findings provide a portrait of executives' perceptions of the state
of corporate citizenship in the US in 2003 and a basis to track its evolution
over time, the authors said.
The sponsoring partners said the survey's participants are from a random sample
of US Chamber of Commerce members and closely mirror the US population of small,
medium and large businesses.
“This survey takes a giant leap toward developing a more accurate and comprehensive
picture of the state of corporate citizenship in the United States,” Dyer said.
“It is the first to include the voices of small and medium-size businesses.”
According to the sponsors, one of the survey's objectives is to determine the
gaps and commonalities between the outsider and insider views of corporate citizenship.
Bridging the “definition gap”, the survey's sponsors said, may be critical to
the future of corporate citizenship.
“Without a deeper understanding of business leaders' attitudes, those who champion
good corporate citizenship are ill-prepared for a more constructive dialogue,
one that could potentially move the field forward,” the authors said. “The survey
supports the contention that the foundation for this dialogue is present. American
companies and advocates agree that corporate citizenship is good business.”
his article was printed with permission of Ethical Corporation magazine
in London, England. More information may be found at www.ethicalcorp.com.
© Ethical Corporation 2004
