Level 1 Business Studies AS90838 Demonstrate an understanding of external factors influencing a small business

Citizenship Students will develop an understanding of the role of business in the development and well being of society Define citizenship from a business perspective Identify a range of community needs Identify how business can contribute to the local community Understand why there is a need for business to demonstrate citizenship Explain the costs and benefits of a business practising good citizenship

Corporate Citizenship A company's role in, or responsibilities towards society. For this reason it is sometimes used interchangeably with corporate social responsibility (CSR) Corporate citizenship recognises that businesses have a responsibility to respect the individuals, the community and the environment in a way that when devising or implementing any rightful business strategy they will abide by laws and regulations, and adhere to high ethical standards.

Corporate Citizenship A company's responsibility to its community and to the world as a whole. A company's corporate citizenship includes passive acts such as avoiding pollution or positive acts such as building a park near its factory. A company may engage in corporate citizenship for charitable or philanthropic reasons, but may also do so to protect its profits.

Investopedia explains Corporate Citizenship As demand for socially responsible corporations increases, investors, consumers and employees are now more willing to use their individual power to punish companies that do not share their values. For example, investors who find out about a company's negative corporate citizenship practices could boycott its products or services, refuse to invest in its stock or speak out against that company among family and friends.

The social responsibility of businesses may cover the following principles: Maintaining a high standard of business ethics Working as part of the community; Protecting the environment; Providing good corporate governance; Engaging in fair trade and business practices, as well as fair workplace relations.

The social responsibility of businesses may cover the following principles: It is believed that when businesses apply high standards of service, thereby instilling consumer confidence in their products and services, they ensure that not only will the business succeed in its endeavours, but also that the community as a whole will benefit from the positive effect this has on maintaining dynamism in the economy

The social responsibility of businesses may cover the following principles: It is believed that when businesses apply high standards of service, thereby instilling consumer confidence in their products and services, they ensure that not only will the business succeed in its endeavours, but also that the community as a whole will benefit from the positive effect this has on maintaining dynamism in the economy

Community Needs Non profit organisation are always in need of extra support. This could be: a. Financial e.g. Sponsorship of an event or some equipment b. Time c. Knowledge / information d. Promotion e. Use of resources, such as buildings or equipment

Community Needs f. Community engagement g. Waste management h. Build green

How can business contribute to the local community?

What is happening in NZ? Corporate/employee volunteering (one day/year) Sponsorship – e.g. sponsorship of community awards Community fund scheme – consulted with customers re allocation of these funds Partnerships – business/NFP (business supporting an organisation) Corporate team building projects e.g. renovation of a building “Principal for a day” - CEOs in schools

What is happening in NZ? Sponsorship – long term partnerships between a business and a specific community organisation - fundraising, do in-house activities Working in own community Individual educational scholarships Projects that bring staff and “clients” together, awareness raising exercises

What is happening in NZ? Payroll giving (employees), customer giving ‘In kind’ donations (resources, stock, retired computers) Community groups doing projects for business Businesses promoting community causes – prizes, brochures, mailouts Use of overseas programme “I have a dream” Mentoring Environmental projects – support an environmental organisation, engagement with stakeholder/landowners

What is happening in NZ? Leadership – bringing emerging leaders into in house leadership programmes Adopt a school – work experience, projects for business Establishing community facilities (e.g. museum centre) Community projects that provide ongoing income for the organisation (Lion/Adult Literacy) Involvement in things important to local communities Establishing a local foundation – local heroes awards, staff putting cases for support Celebrate business heroes

A positive example: Child Cancer Foundation Sponsorship Over the years Professionals offices and salespeople have raised over $3.3 million. This money has: purchased and maintained two Sunshine Lodge Holiday Homes, in Taupo and Queenstown purchased a Family Place in Wellington helped to purchase a Family Place in Auckland helped to purchase a National Centre housing the Child Cancer Foundation helped the associated charity CanTeen. mbedded mbedded

Benefits of Corporate Citizenship Benefits of corporate citizenship have been found to outweigh the negatives. Some companies find their profits increase as they develop a positive reputation for caring for social and environmental issues. Employees take pride in working for and representing a company that is a good corporate citizen. Society finds improvements in social programs and an increase in resources.

Benefits of Corporate Citizenship Save tax dollars Improve dollar and personnel efficiency Investments reflect the values and mission of your company and its stakeholders Better chance that your grants will be used as an investment by the grantees, and not be just a "giveaway" Improved employee morale Gain appropriate recognition for your company, its products and services, and its citizenship its.htm

Costs of Corporate Citizenship Business leaders have their hands full managing their enterprises ethically. They should not be expected to tackle social, economic or environmental problems unrelated to their businesses. Attention to such unrelated matters distracts management from its central task—to run a profitable and ethical business. And certainly, there are more than enough social, economic and environmental problems that are related to business.