Stages of Corporate Citizenship
At the time of developing corporate citizenship, a company or organization is always experiencing various stages of development. There are five stages of the development of corporate citizenship, which are as follows:
Elementary: In this stage, the organizationâ€™s citizenship activities are undefined due to a lack of senior management contribution and less and inadequate corporate awareness. Here, the company does not get any opportunities nor any resources to completely create a more prominent network association. The company, especially in social and environmental sectors, usually gets limited interaction or single direction communication with external shareholders.
Engaged: In the second stage, the top management starts to receive a new outlook of the organizationâ€™s role and responsibilities and begins to expand the societyâ€™s desires. Here, the companies will frequently create policies regarding the promotion of the managers and employees.
Innovative: In this stage, the corporate citizenship approaches become more comprehensive, with expanding meetings with investors that promote a high level of innovative corporate citizenship strategies. There are two ways for a company to develop, such as expanding its plan about citizenship and extending its contribution as a top leader.
Integrated: This is one of the developmental challenges stages for the organization to progress from coordination to cooperation in driving citizenship efforts. Here, the Board of Directors are progressively setting norms and observing corporate execution in these fields.
Transforming: This is the last stage, where the organization once in a while works solo in the social and environmental fields. It also works with different organizations, NGOâ€™s, or communities to handle issues and create local economies by reaching for new markets.
Benefits of Corporate citizenship
Corporate citizenship enhances the organization profitability and value by increasing its investment in capital.
This improves a companyâ€™s reputation among investors.
It creates better customer relations by expanding the companyâ€™s brand.
It is also expanded sales and consumer loyalty.
It encourages long-term profits for company.
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