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Many companies striving to be good corporate citizens today face an internal tug of war between giving attention to community initiatives that address social problems and the growing demand to make environmental issues paramount.
Global Education Research Network study now available
By Susan Thomas, Assistant Director, Electronic Communications, Boston College Center
While many business practices are shared universally, social and political realities that can affect the way business is managed can vary greatly among countries.
That is the finding of Mapping Stakeholder Landscapes, a new Center report that describes how stakeholder groups differ around the world and the need to balance the variation at the local level with interests shared globally.
The report is the result of a one-year research project by the Global Education Research Network (GERN), a network of 12 global institutions, including the Boston College Center, focused on responsible business working together. Funded by the UPS Foundation, this is the second report on global corporate citizenship produced by the GERN.
The research reflects dynamics such as the spread of market capitalism, increasing wealth and power of business, the mounting pressure for companies to take on greater social and environmental responsibilities and the growing public distrust of business.
The new report helps corporate social responsibility (CSR) leaders understand differences such as:
- The U.K. government appears to be the most supportive of CSR, while the U.S. government is much less involved.
- Developing countries such as Chile and South Africa are deeply influenced by international organizations such as the U.N. Global Compact, while these organizations hold less influence in the United States and Italy.
- Business associations play a large supportive role in South Africa, but hold little power or credibility in Mexico.
- The influence of the socially responsible investment (SRI) market is growing in developed countries such as the United States and United Kingdom, but remains almost non-existent in countries such as Chile and the Philippines.
- Italian media seems to have the greatest appetite for CSR news, while the role of media is rather minimal in Chile, the Philippines and South Africa
“This is essential reading for business leaders,” said Chris Pinney, director of research and policy for the Boston College Center. “Companies that understand where the support and pressure for corporate citizenship is coming from are better able to map strategies and devise programs that meet the interests of the company and key stakeholders.”
Key findings include:
- Government is the most powerful and positive force for corporate citizenship globally.
- Mainstream investors do not yet appreciate or understand the financial value of corporate citizenship.
- Many stakeholders — especially employees and consumers — are “on the fence” due to a lack of awareness about corporate citizenship and weak social movements advancing these issues.
- Developing countries differ from developed countries in the influence of certain stakeholder groups such as socially responsible investors and ethical consumers.
The report also provides details, analysis and charts for each country regarding how stakeholders influence issues ranging from market entry to production practices, advertising, community relations and employment. The nine countries examined are: Chile, China, Germany, Italy, Mexico, the Philippines, South Africa, United Kingdom and United States. It also provides country-specific analysis of the levers of influence used by groups as diverse as government, investors, nongovernmental organizations, labor, media and consumers.
Download the report for free (registration required).
