Corporate Citizen

Definition

Corporate citizen is the concept that a corporation is a member of society and should conduct business and contribute to the society in alliance with other elements of societies, such as governmental organizations, NPOs, NGOs, and individuals.

Criticism of corporate activities in 1970s resulted in the ideas that "companies are a fundamental element in local communities that participate through their employees and business activities", and "the role companies play in society by supplying products and services, paying taxes and employing people can only be realized if the local society and society in general is healthy". From this arose the view that "companies should conduct business as a contributing member of society" and the concept of "corporate citizen".

The term frames a company as an individual member of society, but it is also a contributor to the structure of society and is expected to contribute to society on various levels, including generating business activity and actively contributing to the local community, environment, education, and culture just as if it were a living individual. Until recently, companies were generally viewed as "good corporate citizens" if they participated in philanthropy (supporting art and culture) or volunteer activities; however, the term now carries a much broader meaning regarding contribution to society *1. The Charter of Corporate Behaviour of the Nippon Keidanren (Japan Business Federation) includes the following in the definition of "good corporate citizen": "A 'good corporate citizen' actively contributes to society" *2.