The Importance Of Corporate Citizenship

768 Words4 Pages
In this section of the report, I will be discussing the meaning of corporate citizenship. I will be explaining how companies can be considered good corporate citizens and taking into thought Corporate Accountability, Corporate Governance and the 3 Pillars of Sustainability, and why companies would need to change the audit model.
What is Corporate Citizenship?
“Corporate Citizenship” can be defined as the ways in which all companies interact with the interest of shareholders and other stakeholders of the organisation. It mentions in (Ganguly, 2017) that corporate citizenship is about how companies behave ethically in the business through a variety of different methods such as in monitoring the accounting information or being sustainable taking
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One of their main goals should be that they want to be good corporate citizens. In order for a company to be a good corporate citizen they should be doing a range of different activities within their organisation taking into consideration the 3 pillars of sustainability which are Profit which is part of the economic and financial aspect, People looks at the social part, and Planet which is to do with the environment. As mentioned in (Shah and Ramamoorthly, 2014), that from a company’s perspective of corporate citizenship, it is to make sure that the impact is positive and they try to reduce the negative effect on society and the environment, making sure that they still receive a good enough return from the investors. For a company within the accounting and finance sector, one of the main elements of being a good corporate citizen is to ensure that they comply with the reporting and disclosure requirements. This is very important because when they have to prepare their accounts and financial statements it is vital that they follow the strict guidelines that have been stated by the IFRS. If these guidelines are not followed, then the company will have to face several…show more content…
Examples of Stakeholder’s could be: managers, directors, employees etc. It is based upon a conceptual framework approach in which it provides moral and ethical values to a business organisation. When in practice, majority of organisations are mainly going to focus on corporate social responsibility. The reason for this is because CSR is seen to have a big impact on the firm as many people are recognising that there is a increasing number of businesses that are both socially and environmentally friendly. On the other hand, if the government doesn’t intervene with companies in terms of both regulation and legislation, this means that firms will only be concentrating on the accounting figures. If companies are primarily focusing on the accounting figures, this indicates that businesses are not taking in the social and environmental impact of the activities within the organisation. In (Liu, Fellows and Tuuli, 2011), it refers to corporate citizenship values in which it considers and identifies the different demands of the stakeholder groups to see where the overall value of the company comes from taking into thought the environment and
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