The idea of ‘good corporate citizenship’ has become popular recently among business ethicists and corporate leaders. You may have noticed its appearance on corporate websites and CEO speeches. But what does it mean and does it matter? Is it any more than a new species of public relations flimflam to set beside terms like ‘corporate social responsibility’ and the ‘triple bottom line’? Is it just a metaphor?
The history of the term does not promise much. It does indeed seem to have evolved out of corporate speak – how corporations represent themselves rather than how they view themselves – selected, perhaps, for sounding reassuring but vague. Its popularity has far preceded its definition; ‘corporate citizenship’ is still evolving, looking for a place to settle.
But what it is about is important. For it represents a political turn to the old question, Who are corporations for and how is their power to be managed? Are corporations bound to serve society’s interest, or are they free to follow their own? Are they public institutions, part of the governance of our society and publicly accountable to us for their actions, or are they private associations accountable only to their managers and owners?