Stages of corporate citizenship

California Management Review

Volumn 48, Issue 2, 2006, Pages

  Mirvis, Philip ^a   Googins, Bradley ^a,b  

^a Center for Corporate Citizenship

^b BOSTON COLLEGE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33645527860     PISSN: 00081256     EISSN: None     Source Type: Journal    
DOI: 10.2307/41166340     Document Type: Conference Paper

References (68)

1. Corporate citizenship applies to actions taken by a company and concerns the extent to which they minimize harms and maximize benefits to all stakeholders including investors, consumers, employees, and customers, as well as to the natural environment and society. Others use terms such as corporate responsibility, social responsibility, sustainability, or the triple bottom line.
2. Research includes surveys of public opinion and of business leaders [The State of Corporate Citizenship in the U.S.: A View from Inside 2003-2004 and the follow up study, Business Perspectives in 2005. (Boston, MA: Center for Corporate Citizenship, Boston College, 2004-2005)];
3. a multi-year research forum involving Abbott, AMD, Agilent, JP Morgan Chase, Levi Strauss & Co., Petro-Canada, and Verizon [Integration: Critical Link for Corporate Citizenship. (Boston, MA: Center for Corporate Citizenship, Boston College, 2005)];
4. a measurement forum including IBM, GE, 3M, FedEx, Diageo, Cargill, Manpower, Omron, GM, and CEMEX [Putting the Corporate into Corporate Responsibility (London: Accountability Forum, 2005)];
5. and several case studies [for a description, see 〈www.bc.edu/ centers/ccc/Pages/kn_ld.html〉].
6. P.H. Mirvis and B. Googins, "The Best of the Good," Harvard Business Review, 82/12 (December 2004): 20-21.
7. Based on The State of Corporate Citizenship in the U.S., op cit.
8. See J. Piaget, The Psychology of the Child (New York, NY: John Wiley, 1969);
9. S.A. Wheelan, Group Processes: A Developmental Perspective (Sydney: Allyn & Bacon, 2004);
10. Greiner, "Evolution and Revolution as Organizations Grow," Harvard Business Review, 50/4 (July/August 1972): 37-46.
11. On evolution of the concepts, see W.C. Frederick, "Theories of Corporate Social Performance," in W.C. Frederick, Business and Society (Lexington, MA: D.C. Heath, 1987), pp. 142-161;
12. DJ. Wood, "Corporate Social Performance Revisited," Academy of Management Review, 16/4 (1991): 171-181;
13. T.N. Gladwin, J.J. Kennelly, and T.S. Krause, "Shifting Paradigms for Sustainable Development: Implications for Management Theory and Research," Academy of Management Review, 20/4 (1995): 874-907;
14. S.L. Hart, "Beyond Greening: Strategies fora Sustainable World," Harvard Business Review, 75/1 (January/February, 1997): 66-76.
15. st Century Business (London: Capstone/John Wiley, 1997);
16. P. Shrivastava, "Corporate Self-Greenewal: Strategic Responses to Environmentalism," Business Strategy and the Environment, 1/3 (1992): 9-21.
17. J. Post and B. Altman, "Models of Corporate Greening: How Corporate Social Policy and Organizational Learning Inform Leading Edge Environmental Management," Research in Corporate Social Performance and Policy, 13 (1992): 3-29.
18. S. Zadek, "The Path to Corporate Responsibility," Harvard Business Review, 82/12 (December 2004): 125-133.
19. For details on the natural and logical processes underlying developmental theories and on the potential for learning to shape the trajectory, see A.H. Van de Yen and M.S. Poole, "Explaining Development and Change in Organizations," Academy of Management Review, 20/3 (1995): 510-540.
20. D. Vogel, The Market for Virtue: The Potential and Limits of Corporate Responsibility (Washington, D.C.: Brookings Institution Press, 2005).
21. rd Edition (San Francisco, CA: Myers Templeton Publishers, 2004).
22. D. Matten and A. Crane, "Corporate Citizenship: Toward an Extended Theoretical Conceptualization." Academy of Management Review, 30/1 (2005): 166-179.
23. H.C. de Bettignies, "Reviewing Meanings and Contexts of Role of Business in Society," presentation at the launch of the European Academy of Business in Society, Fontainebleau, France, July 5, 2002.
24. N.C. Smith, "Corporate Social Responsibility: Whether or How?" California Management Review. 45/4 (Summer 2003): 52-76.
25. S.A. Rochlin and B.K. Googins, The Value Proposition for Corporate Citizenship (Boston, MA: Center for Corporate Citizenship, Boston College, 2005).
26. See Responding to the Leadership Challenge: Findings of a CEO Survey on Global Corporate Citizenship (Geneva: World Economic Forum, 2002);
27. The Changing Role of Business in Society: A Global CEO Survey (New York, NY: The Conference Board, International Business Leaders Forum, Asian Institute of Management, and Instituto Ethos, 2002).
28. Integration: Critical Link for Corporate Citizenship, op. cit.
29. State of Corporate Public Affairs Survey (Washington, D.C.: Center for Public Affairs Management, 2002);
30. J.J. Mahon and S.A. Waddock, "Strategic Issues Management: An Integration of Issue Life Cycle Perspectives," Business & Society, 31/1 (1992): 19-32.
31. On web sites, see C.B. Bhattacharya and S. Sen, "Doing Better at Doing Good: When, Why, and How Consumers Respond to Corporate Social Initiatives," California Management Review. 47/1 (Fall 2004): 9-24.
32. M. Friedman, "The Social Responsibility of Business Is to Increase Its Profits," New York Times, September 13, 1970.
33. J. Welch, Jack: Straight from the Gut (New York, NY: Warner Business Books, 2003).
34. Millennium Report (Toronto, CA: Environics, 1999; 2003).
35. The State of Corporate Citizenship in the U.S., op. cit.
36. Putting this promise into practice took time and involved missteps. It took over four years, for example, to fully enlist senior management and for DuPont to form an executive-level Environmental Policy Committee, and then another four, and new CEO, to embrace principles of sustainability.
37. Zadek, The State of Corporate Citizenship in the U.S. op. cit.
38. For a description of Shell's response, see P.H. Mirvis, "Transformation at Shell: Commerce and citizenship," Business and Society Review, 105/1 (Spring 2000): 63-84.
39. The UN sponsored Global Reporting Initiative (GRI) issued reporting guidelines in 1997 and updated them in 2002. The Coalition for Environmentally Responsible Economies, a network of environmental activists and investors, first issued the Valdez principles after the Exxon tanker disaster and later the ten point CERES environmental performance and reporting guidelines. Baxter is one of seventy companies overall and thirteen Fortune 500 companies that has endorsed these principles at this point.
40. K.H. Hammond, "Harry Kraemer's Moment of Truth," Fast Company, 64 (2002): 93.
41. For a recent review, see J.D. Margolis and J.P. Walsh, People and Profits? The Search for a Link between a Company's Social and Financial Performance (Mahwah, NJ: Lawrence Erlbaum Associates, 2001)
42. The World Economic Forum's 2002 Global CEO survey found that over 80 percent agree that corporate citizenship is essential to "managing reputation and brand equity." Responding to the Leadership Challenge: Findings of a CEO Survey on Global Corporate Citizenship (Geneva: World Economic Forum, 2002).
43. BP Social Report, 2003, 〈www.bp.com〉. "For us 'sustainability' means the capacity to endure as a group by renewing assets, creating and delivering products and services that meet the evolving needs of society, attracting successive generations of employees, contributing to a flourishing environment and retaining the trust and support of customers, shareholders and communities."
44. 2003 Sustainability Assessment (Zurich: Sustainability Asset Management, 2003).
45. The website include 130 questions-ranging from food safety and human resource policies to the environment and relationships with suppliers-that Group companies are asked to complete to assess their own performance, 〈www.danone.com〉.
46. This charter is integrated into the company culture through management and employee training, a monthly newsletter, and an innovative "live the brand" campaign whereby all employees are expected to spend at least one day every year with someone connected to Novo's mission to treat diabetes - either a patient, family member who cares for them, or health care professional. Employees are expected to then prepare a report of observations and suggestions for improving the way the company does business.
47. Quoted in "Beyond the Numbers," KPMG, 2004.
48. See C.K. Prahalad and A. Hammonds, "Serving the World's Poor, Profitably," Harvard Business Review, 80/9 (September 2003): 48-57.
49. C.K. Prahalad, The Fortune at the Bottom of the Pyramid (Upper Saddle River, NJ: Wharton School Publishing, 2005).
50. D. Dunn and K. Yamashita, "Microcapitalism and the Megacorporation," Harvard Business Review, 81/8 (August 2003): 46-54.
51. J. Hollender, What Matters Most (New York, NY: Basic Books, 2003).
52. K. Cox, "Leadership for Global Sustainability," doctoral dissertation, Benedictine College, 2005.
53. Also, see J. Hollender, "What Matters Most: Corporate Values and Social Responsibility," California Management Review. 46/4 (Summer 2004): 111-119.
54. Zadek, California Management Review op cit.
55. P.H. Mirvis, "Environmemalism in Progressive Businesses," Journal of Organizational Change Management, 7/4 (1994): 82-100.
56. Some contend that this is a function of the distinct stakeholder environment in the United States. See, for example, S. Brammer and S. Pavelin, "Corporate Community Contributions in the United Kingdom and United States," Journal of Business Ethics, 56/1 (2005): 15-26.
57. On components of corporate value statements in U.S., European, and Asian companies and relative emphasis given to environmental and social performance, see C. Kelly, P. Kocourek, N. McGaw, and J. Samuelson, Deriving Value from Corporate Values (Washington, D.C.: The Aspen Institute and Booz Allen Hamilton, 2005).
58. Some 68 percent of large companies in Western Europe versus 41 percent in the U.S. report "triple bottom line" information. Social Reporting Fact Sheet (Boston, MA: Center for Corporate Citizenship, Boston College, 2004);
59. "Toward Transparency: Progress on Global Sustainability Reporting 2004," 〈www.corporateregister.com〉.
60. I.M. Jawahar and G.L. Mclaughlin, "Toward a Descriptive Stakeholder Theory: An Organizational Life Cycle Approach," Academy of Management Review, 26/3 (2001): 397-415.
61. S. Waddock, Leading Corporate Citizens: Visions, Values, Value Added (New York, NY: McGrawHill Irwin, 2002).
62. See Mirvis (2000), Leading Corporate Citizens: Visions, Values, Value Added op. cit.
63. Responding to the Leadership Challenge: Findings of a CEO Survey on Global Corporate Citizenship (Geneva: World Economic Forum, 2002)
64. K. Ayas and P.H. Mirvis, "Bringing Mission to Life: Corporate Inspiration from Indian Communities," Reflections, 5/10 (2004): 1-12.
65. Companies that are based in or do business in Europe now have to comply with many more laws around employment, environmental protection, and even community welfare than do U.S. domestic corporations. Interestingly, surveys show that U.S. companies, even the one most developed in this arena, are near unanimous in their belief that "corporate citizenship should be completely voluntary-no laws should govern it."
66. D. Vogel, "The Low Value of Virtue," Harvard Business Review, 83/6 (June 2005): 26.
67. See M. Orlitzky, F.L. Schmidt, and S.L. Rynes, "Corporate Social and Financial Performance: A Meta-analysis," Organization Studies. 24/3 (2003): 403-441;
68. Margolis and Walsh, Organization Studies op. cit.