In the depths of recession, it’s tough for companies to think about something as removed from the bottom line as being a good corporate citizen. Yet doing so actually improves P&L. – By Isaac Rudik from Compliance Solutions Canada
A sure sign that the world is changing comes from a study done by the Centre for Corporate Citizenship at Boston College. Nearly one-third of companies surveyed said good “corporate citizenship” is a key component in recruiting and retaining quality employees. Yet just five years earlier, less than 10% of companies in a similar study said it was important.
Moreover, other surveys of customers, investors or lenders, and other stakeholders show that a plurality of them prefer doing business with responsible companies. Indeed, an increasingly common question in consumer market research asks if respondents avoid companies that don’t reflect their values and, consistently, more than half say they do.
Admittedly, in the depths of a strangling recession, it’s tough for companies to think about something as seemingly ethereal and removed from the bottom line as being a good corporate citizen. Yet doing so actually shows up on the P&L statement, either because loyal customers who like a company are more likely buy from them again, or – and this is just as likely – because an irresponsible company can end up paying hefty fines for a cavalier attitude. Keep Reading.