Corporate Citizenship Values Grow, Along with Workforce Development Focus, Despite Recession
The
2009 State of Corporate Citizenship Survey results reveal that, despite the recession, corporate citizenship practices are ingrained in increasing numbers of American businesses. Many business leaders report that attention to corporate citizenship efforts is more important in a recession. As in the 2007 survey, the most recent data show that attitudes of support for corporate citizenship are strong but there remain some gaps between those beliefs and the practices and investments of some businesses.
As we’ve been flooded by announcements of business cutbacks and misconduct over these past months, trust in business dropped. Many members of the public have undoubtedly wondered if some corporations should have their citizenship curtailed or revoked, commented Barbara Dyer, president and CEO of The Hitachi Foundation. This survey shows that business leaders understand that corporate citizenship entails great responsibilities as well as extensive rights. Most are diligently working and investing toward improving their efforts to more fully meet these responsibilities.
Chris Pinney, director of research and policy at the Boston College Center for Corporate Citizenship, added, Corporate citizenship is weathering the storm. Despite the economic downturn, the value of corporate citizenship is growing as companies realize greater reputational advantage. The survey also reveals companies are more committed to communicating about their efforts related to social issues and concern for the environment.
Highlights of the survey include:
- Despite upheaval in the economy, a majority of U.S. companies are not making major changes in their corporate citizenship practices. Of those who made changes 38 percent reduced philanthropy/giving, 27 percent increased layoffs, and 19 percent reduced R&D for sustainable products.
- Most U.S. senior executives believe business should be more involved than it is today in addressing major public issues including health care, product safety, education, and climate change. Surveyed in June, just as the national debate on health care began to intensify, some 65 percent said business should increase its involvement in this issue.
- Reputation was cited by 70 percent as a driver for corporate citizenship, tied for the top spot with it fits our company traditions and values.
- The citizenship response during the recession differed between larger and smaller companies. Large companies significantly increased their investments and involvement in citizenship activities, but were more likely to impose layoffs. Small firms stayed committed to their emphasis on treating employees well by minimizing layoffs. But they significantly decreased attention to other aspects of citizenship.
- Based on current economic conditions, 15 percent of companies are increasing R&D for new sustainable products; 11 percent are increasing corporate citizenship marketing and communications; and 10 percent are increasing local and/or domestic sourcing or manufacturing.
- Half of the businesses are supporting skill development for employees making less than $40,000 annually and see these efforts as boosting productivity.
- Only 34 percent of executives who responded to the survey say greater regulatory oversight by the federal government is an important part of solving the current economic crisis and creating a more stable economy.
Conducted by GlobeScan between June 4 and June 23 of this year, the survey queried 756 executives, 36 percent of whom were at small businesses (1-99 employees), 24 percent at medium (100-999), and 40 percent at large companies (1000 + employees). The biennial survey was first conducted in 2003.
Source: Boston College Center for Corporate Citizenship. Complete survey results can be found at: http://rosenbergcommunications.com/projects/thf/socc2009.html.
Reprinted with permission. © CCH
<p>A recent survey shows that business leaders understand that corporate citizenship entails great responsibilities.</p>
Corporate Citizenship Values Grow, Along with Workforce Development Focus, Despite Recession
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