Lesson 1
What is Corporate citizenship ?
Corporate citizenship, as defined by Matten and Crane, refers to the role of a corporation in
administering citizenship rights to individuals. This concept goes beyond corporate philanthropy
or charity and includes a broader scope where businesses play a part in ensuring citizens' social,
civil, and political rights are upheld.
• Citizenship rights are categorized into:
o Social rights: The right to education, healthcare, and housing.
o Civil rights: Protection against infringements on freedoms like speech,
religion, and private property.
o Political rights: The right to participate in public decision-making, such as
voting.
Historically, governments have been responsible for these rights, but due to globalization,
corporations are increasingly expected to help administer them to maintain social legitimacy and
the right to operate.
Examples:
• Ethical trade: Corporations like Woolworths are working to ensure rights are
protected within their supply chains, such as fair wages, non-discrimination, and
preventing forced labor. Woolworths has a "Good Business Journey" approach to
ethical sourcing, aiming to uphold these rights.
• 1.3Corporations, companies and business Packaging management:
Environmental rights, defined as civil rights (e.g., the right to a healthy environment),
are also within corporate responsibility. Woolworths' efforts to reduce packaging
minimize waste, conserve resources, and promote sustainable practices,
contributing to the protection of the environment.
1.3Corporations, companies and business
Key points:
- **Corporations and companies**: Both are defined as privately owned entities focused on profit.
- **Scope of corporate citizenship**: The idea isn’t limited to large businesses; small businesses
also play a significant role in the economy, society, and the environment.
,- **Example**: In 2012, small businesses in South Africa contributed over 45% of GDP, while
large multinationals like Shell and BP had revenues exceeding the entire GDP of South Africa.
This shows the massive influence corporations of all sizes have on society and the environment.
- **Impact on society**: Businesses, whether small or large, can either drive positive socio-
economic development or harm society and the environment if they prioritize profit at the expense
of broader responsibilities.
- **Global focus**: While the examples in the book may often feature large corporations due to
their global presence, the principles discussed apply to businesses of all sizes.
This book focuses on corporate citizenship from a capitalist perspective, emphasizing that
corporations are privately owned entities aiming to make a profit. While much of corporate
citizenship has challenged capitalist, profit-driven ideals, this book assumes that corporate
citizenship must align with a corporation's ultimate goal: profit. It examines how businesses can
contribute to society while pursuing this goal.
Key Points:
1. Capitalist Stance on Corporations: The book defines corporations as entities primarily
focused on making a profit for owners. Corporate citizenship, in this context, must be
aligned with this goal.
2. Approach to Corporate Citizenship: Instead of using experts in corporate citizenship,
the authors have invited management experts to contribute, reflecting the growing
mainstream importance of corporate citizenship.
3. Book Structure:
o Part 1 sets the context:
▪ Chapter 1 introduces corporate citizenship.
▪ Chapter 2 discusses sustainability issues (environmental, social,
economic).
▪ Chapter 3 covers the historical development and differing
perspectives on corporate citizenship.
▪ Chapter 4 explains the social need for corporations to participate in
corporate citizenship, emphasizing a capitalist approach.
o Part 2 focuses on how to implement corporate citizenship:
▪ Chapter 5 explores leadership and management for corporate
citizenship.
▪ Chapter 6 looks at the importance of corporate governance.
▪ Chapter 7 examines integrating corporate citizenship into strategic
management.
▪ Chapter 8 highlights stakeholder engagement.
▪ Chapter 9 focuses on managing ethics in business.
o Part 3 addresses corporate citizenship in key business functions:
, ▪ Chapter 10 covers procurement and supply chain.
▪ Chapter 11 looks at operations and logistics.
▪ Chapter 12 discusses human resources and employee-related
issues.
4. Conclusion: Global sustainability challenges require corporations to take a role in
addressing societal issues while staying focused on profitability. The book aims to equip
businesses to meet these challenges through effective corporate citizenship, ensuring that
profit and social responsibility are balanced.
This structure provides both the theory and practical steps for businesses to effectively administer
citizenship rights while maintaining their primary profit-driven purpose.
Lesson 2 Sustainable development and climate change
Corporate citizenship, introduced in Chapter 1, emphasizes how business practices can
influence citizenship rights and how addressing environmental, social, and governance
(ESG) issues is essential for corporate sustainability. Companies need to view sustainability
not just as a challenge but as a vital opportunity and innovation driver. To achieve this,
understanding sustainable development is crucial. This chapter unpacks the concept of
sustainable development, addressing its environmental, social, and economic aspects and
exploring the tension between these factors. Sustainable development is defined as
development that meets the needs of the present without compromising future generations’
ability to meet their needs. It highlights two key aspects: prioritizing the needs of the world’s
poor and recognizing the limitations of current technological and social capabilities.
Sustainable development has gained attention in recent years due to technological
advances, which allow better measurement of unsustainable development’s impacts.
Issues like environmental degradation, climate change, rising inequalities, and scandals
have made the unsustainable use of resources impossible to ignore. Biodiversity is a key
indicator of the environment’s health, with recent reports showing a dramatic 52% decline
in biodiversity between 1970 and 2010. This loss signifies the increasing strain on natural
capital, making it harder to meet future needs.
This chapter covers the emergence of sustainable development, its elements, society’s
ecological footprint, responses to sustainability challenges, and the future of sustainable
, development. It concludes with a discussion on climate change in the context of
sustainability. The concepts of “developing” and “developed” countries are also clarified,
highlighting disparities in economic development, with developing countries facing lower
ratings on key criteria like income, life expectancy, and literacy.
Sustainable development emerged from the post-WWII development era, where
international institutions like the World Bank aimed to rebuild after the war. However, this
era also saw growing inequalities between rich and poor nations. By the 1960s,
environmental issues like pollution and ecosystem destruction led to a global environmental
crisis. Activists began criticizing the traditional economic development model, sparking a
movement focused on sustainability.
Key milestones in the emergence of sustainable development include:
- **1968**: The **Club of Rome** discussed resource consumption and global
interdependence.
- **1969**: The **IUCN** called for a new ethical approach to managing the biosphere and
linking it to poverty reduction.
- **1972**: The **United Nations Conference on the Human Environment** in Stockholm
led to the establishment of the UNEP, focusing on economic growth that protected the
environment. The publication “The Limits to Growth” warned of unsustainable resource use.
- **1974**: The **World Council of Churches** addressed the environmental crisis,
promoting an ecologically sustainable society.
- **1980**: The **World Conservation Strategy** emphasized balancing social, ecological,
and economic factors for sustainable development.
- **1983-1987**: The **UN World Commission on Environment and Development** (WCED)
defined sustainable development in the **Brundtland Report**, emphasizing global
interdependence and the link between the economy and environment.
This evolution shows the growing awareness and efforts to address sustainability at a global
level.
2.3 Conceptualising Sustainable Development
What is Corporate citizenship ?
Corporate citizenship, as defined by Matten and Crane, refers to the role of a corporation in
administering citizenship rights to individuals. This concept goes beyond corporate philanthropy
or charity and includes a broader scope where businesses play a part in ensuring citizens' social,
civil, and political rights are upheld.
• Citizenship rights are categorized into:
o Social rights: The right to education, healthcare, and housing.
o Civil rights: Protection against infringements on freedoms like speech,
religion, and private property.
o Political rights: The right to participate in public decision-making, such as
voting.
Historically, governments have been responsible for these rights, but due to globalization,
corporations are increasingly expected to help administer them to maintain social legitimacy and
the right to operate.
Examples:
• Ethical trade: Corporations like Woolworths are working to ensure rights are
protected within their supply chains, such as fair wages, non-discrimination, and
preventing forced labor. Woolworths has a "Good Business Journey" approach to
ethical sourcing, aiming to uphold these rights.
• 1.3Corporations, companies and business Packaging management:
Environmental rights, defined as civil rights (e.g., the right to a healthy environment),
are also within corporate responsibility. Woolworths' efforts to reduce packaging
minimize waste, conserve resources, and promote sustainable practices,
contributing to the protection of the environment.
1.3Corporations, companies and business
Key points:
- **Corporations and companies**: Both are defined as privately owned entities focused on profit.
- **Scope of corporate citizenship**: The idea isn’t limited to large businesses; small businesses
also play a significant role in the economy, society, and the environment.
,- **Example**: In 2012, small businesses in South Africa contributed over 45% of GDP, while
large multinationals like Shell and BP had revenues exceeding the entire GDP of South Africa.
This shows the massive influence corporations of all sizes have on society and the environment.
- **Impact on society**: Businesses, whether small or large, can either drive positive socio-
economic development or harm society and the environment if they prioritize profit at the expense
of broader responsibilities.
- **Global focus**: While the examples in the book may often feature large corporations due to
their global presence, the principles discussed apply to businesses of all sizes.
This book focuses on corporate citizenship from a capitalist perspective, emphasizing that
corporations are privately owned entities aiming to make a profit. While much of corporate
citizenship has challenged capitalist, profit-driven ideals, this book assumes that corporate
citizenship must align with a corporation's ultimate goal: profit. It examines how businesses can
contribute to society while pursuing this goal.
Key Points:
1. Capitalist Stance on Corporations: The book defines corporations as entities primarily
focused on making a profit for owners. Corporate citizenship, in this context, must be
aligned with this goal.
2. Approach to Corporate Citizenship: Instead of using experts in corporate citizenship,
the authors have invited management experts to contribute, reflecting the growing
mainstream importance of corporate citizenship.
3. Book Structure:
o Part 1 sets the context:
▪ Chapter 1 introduces corporate citizenship.
▪ Chapter 2 discusses sustainability issues (environmental, social,
economic).
▪ Chapter 3 covers the historical development and differing
perspectives on corporate citizenship.
▪ Chapter 4 explains the social need for corporations to participate in
corporate citizenship, emphasizing a capitalist approach.
o Part 2 focuses on how to implement corporate citizenship:
▪ Chapter 5 explores leadership and management for corporate
citizenship.
▪ Chapter 6 looks at the importance of corporate governance.
▪ Chapter 7 examines integrating corporate citizenship into strategic
management.
▪ Chapter 8 highlights stakeholder engagement.
▪ Chapter 9 focuses on managing ethics in business.
o Part 3 addresses corporate citizenship in key business functions:
, ▪ Chapter 10 covers procurement and supply chain.
▪ Chapter 11 looks at operations and logistics.
▪ Chapter 12 discusses human resources and employee-related
issues.
4. Conclusion: Global sustainability challenges require corporations to take a role in
addressing societal issues while staying focused on profitability. The book aims to equip
businesses to meet these challenges through effective corporate citizenship, ensuring that
profit and social responsibility are balanced.
This structure provides both the theory and practical steps for businesses to effectively administer
citizenship rights while maintaining their primary profit-driven purpose.
Lesson 2 Sustainable development and climate change
Corporate citizenship, introduced in Chapter 1, emphasizes how business practices can
influence citizenship rights and how addressing environmental, social, and governance
(ESG) issues is essential for corporate sustainability. Companies need to view sustainability
not just as a challenge but as a vital opportunity and innovation driver. To achieve this,
understanding sustainable development is crucial. This chapter unpacks the concept of
sustainable development, addressing its environmental, social, and economic aspects and
exploring the tension between these factors. Sustainable development is defined as
development that meets the needs of the present without compromising future generations’
ability to meet their needs. It highlights two key aspects: prioritizing the needs of the world’s
poor and recognizing the limitations of current technological and social capabilities.
Sustainable development has gained attention in recent years due to technological
advances, which allow better measurement of unsustainable development’s impacts.
Issues like environmental degradation, climate change, rising inequalities, and scandals
have made the unsustainable use of resources impossible to ignore. Biodiversity is a key
indicator of the environment’s health, with recent reports showing a dramatic 52% decline
in biodiversity between 1970 and 2010. This loss signifies the increasing strain on natural
capital, making it harder to meet future needs.
This chapter covers the emergence of sustainable development, its elements, society’s
ecological footprint, responses to sustainability challenges, and the future of sustainable
, development. It concludes with a discussion on climate change in the context of
sustainability. The concepts of “developing” and “developed” countries are also clarified,
highlighting disparities in economic development, with developing countries facing lower
ratings on key criteria like income, life expectancy, and literacy.
Sustainable development emerged from the post-WWII development era, where
international institutions like the World Bank aimed to rebuild after the war. However, this
era also saw growing inequalities between rich and poor nations. By the 1960s,
environmental issues like pollution and ecosystem destruction led to a global environmental
crisis. Activists began criticizing the traditional economic development model, sparking a
movement focused on sustainability.
Key milestones in the emergence of sustainable development include:
- **1968**: The **Club of Rome** discussed resource consumption and global
interdependence.
- **1969**: The **IUCN** called for a new ethical approach to managing the biosphere and
linking it to poverty reduction.
- **1972**: The **United Nations Conference on the Human Environment** in Stockholm
led to the establishment of the UNEP, focusing on economic growth that protected the
environment. The publication “The Limits to Growth” warned of unsustainable resource use.
- **1974**: The **World Council of Churches** addressed the environmental crisis,
promoting an ecologically sustainable society.
- **1980**: The **World Conservation Strategy** emphasized balancing social, ecological,
and economic factors for sustainable development.
- **1983-1987**: The **UN World Commission on Environment and Development** (WCED)
defined sustainable development in the **Brundtland Report**, emphasizing global
interdependence and the link between the economy and environment.
This evolution shows the growing awareness and efforts to address sustainability at a global
level.
2.3 Conceptualising Sustainable Development
