MNN3701 - SUMMARY OF CORPORATE CITIZENSHIP TEXTBOOK

CORPORATE CITIZENSHIP (MNN370-1)


TOPIC 1: THE CONTEXT OF CORPORATE CITIZENSHIP .................................................... 2

LEARNING UNIT 1: CHAPTER 1: INTRODUCTION TO CORPORATE CITIZENSHIP .................... 2

LEARNING UNIT 2: CHAPTER 2: SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE ........... 3

LEARNING UNIT 3: CHAPTER 3: EVOLUTION OF CORPORATE CITIZENSHIP ........................ 11

TOPIC 2: THE “WHY” OF CORPORATE CITIZENSHIP ....................................................... 17

LEARNING UNIT 4: CHAPTER 4: RATIONALE OF CORPORATE CITIZENSHIP ........................ 17

TOPIC 3: THE “HOW” OF CORPORATE CITIZENSHIP (PART 1) ............................................ 22

LEARNING UNIT 5: CHAPTER 5: RESPONSIBLE LEADERSHIP ........................................... 22

LEARNING UNIT 6: CHAPTER 6: CORPORATE GOVERNANCE AND RISK MANAGEMENT ............ 28

LEARNING UNIT 7: CHAPTER 7: STRATEGIC MANAGEMENT AND COMPETITIVE ADVANTAGE ... 41

LEARNING UNIT 8: CHAPTER 8: STAKEHOLDER ENGAGEMENT ........................................ 46

TOPIC 4: THE “HOW” OF CORPORATE CITIZENSHIP (PART II) ........................................... 64

LEARNING UNIT 10: CHAPTER 10: SUSTAINABLE PROCUREMENT AND SUPPLY CHAIN

MANAGEMENT ................................................................................................. 64

LEARNING UNIT 11: CHAPTER 11: OPERATIONS AND LOGISTICS MANAGEMENT ................. 73

LEARNING UNIT 12: CHAPTER 12: HUMAN RESOURCE MANAGEMENT ............................... 79

LEARNING UNIT 13: CHAPTER 13: MARKETING MANAGEMENT ....................................... 87

LEARNING UNIT 14: CHAPTER 14: FINANCIAL MANAGEMENT ........................................ 90

LEARNING UNIT 15: CHAPTER 15: CONCLUSION ........................................................ 96




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, TOPIC 1: THE CONTEXT OF CORPORATE CITIZENSHIP

LEARNING UNIT 1: CHAPTER 1: INTRODUCTION TO CORPORATE CITIZENSHIP

CORPORATE CITIZENSHIP DEFINED

We’ve Elected to follow Matten and Crane’s conceptualisation of corporate citizenship.

According to Matten and Crane: Corporate Citizenship is defined as the ‘role of the corporation in administering

citizenship rights for individuals.’

The two features of the definition:
1. Grounded in a thorough consideration of the idea of citizenship with a specific emphasis of the liberal
political-economic tradition that characterises most industrial societies.
2. Specifies emphatically, that corporate citizenship is not about corporates and citizens but that roles that

corporates might play in administering citizenship rights to citizens.
Three different classes of Citizenship Rights

Social rights (positive rights): include things like the right to education, health care, and housing.

Civil rights (negative rights): focus on the protection of citizens against intrusions on their freedoms. Freedom

of speech, thought and religion would fall into this category.

Political rights: includes all of the rights necessary to allow citizens to participate in the formulation of public

policies and practices by which society is governed. Things like the right to vote would be included here.

Table 1.1: Social, environmental and governance (ESG) issues
Issue Examples

Social Inequality, poverty, increasing world population

Environmental Lack of ecosystem respect, pollution, fast depleting natural resources

Governance Corporate scandals, greed, poor ethical conduct

Furthermore, it has been argued that the administering of these rights has been the responsibility of

governments. However, for many reasons, corporations are increasingly finding themselves in a position where

they are able (and often expected) to administer these rights to society.

Two factors have led to corporations being in the position of administering citizenship rights, namely:

• the process of globalisation

• the smaller capacity of state governments

CORPORATE CITIZENSHIP WITH A CAPITALIST STANCE

Contrary to the various views of corporate citizenship, for instance, that corporate citizenship simply covers

corporate charity (also referred to as corporate social investment or corporate philanthropy), the definition in

this module implies the contrary. “Corporations are indeed principally engaged in the pursuit of profit for the

owners and that any activities that corporates might undertake under the banner of corporate citizenship
must be consistent with this ultimate purpose.”
Privately owned entities are ultimately engaged in the pursuit of profit for the owners.

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