Corporate Citizenship


DEFINITION of 'Corporate Citizenship'

The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders.

BREAKING DOWN 'Corporate Citizenship'

As demand for socially responsible corporations increases, investors, consumers and employees are now more willing to use their individual power to punish companies that do not share their values. For example, investors who find out about a company's negative corporate citizenship practices could boycott its products or services, refuse to invest in its stock or speak out against that company among family and friends.

  1. Citizenship Test

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  2. Socially Responsible Investment ...

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  3. Stakeholder

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  4. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  5. Corporate Governance

    The system of rules, practices and processes by which a company ...
  6. Social Responsibility

    The idea that companies should embrace its social responsibilities ...
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  1. How does limited government affect corporate citizens?

    Corporate citizenship – the actions of corporations as they relate to social causes, environmental issues, political justice ... Read Full Answer >>
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    An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Full Answer >>
  3. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  4. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
  5. What impact did the Sarbanes-Oxley Act have on corporate governance in the United ...

    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
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