Does Corporate Citizenship Pay Dividends?

Does Corporate Citizenship Pay Dividends?

Being a good corporate citizen does matter, according to recent studies involving both consumers and executives.

Marketing agency Good.Must.Grow (GMG) found that many consumers consider social responsibility when purchasing products or services. Of the 1,015 survey respondents, 60 percent indicated that buying goods from socially responsible companies is important to them. Treatment of employees ranked as the most important factor (45 percent), which was followed closely by environmental impact (38 percent). Transparency, corporate oversight, and impact on society were also cited as considerations.

Companies also continue to recognize the value of corporate responsibility. The Boston College Center for Corporate Citizenship recently found that four of every five executives from all business types and industries believe that environmental, social (including philanthropy) and governance investments generate tangible financial benefits.

On the local level, Newark Mayor Cory Booker recently credited New Jersey businesses with helping revitalize the City. He was the keynote speaker at the third annual Corporate Responsibility Forum. Booker discussed how rather than simply donating money, areas businesses provided human resources and expertise. “The businesses knew more about investing than I did,” he noted.

CR Magazine also released its list of “100 Best Corporate Citizens” during the event. CR ranks companies based on seven categories: environment, climate change, employee relations, human rights, governance, finance, and philanthropy. This year’s top spot went to AT&T. New Jersey based Bristol-Myers Squibb Co. was ranked third.

If you have any questions about corporate responsibility or how it may impact your operations, please contact me, Donald Pepe, or the Scarinci Hollenbeck attorney with whom you work.