Community stands for a group of interdependent people who live in close proximity and interact regularly for fulfilment of needs. This interdependency creates a sense of responsibility in the minds of community members along with the prevailing expectations. For sustaining this co-operative relationship, there is a need for Community Development which calls for partnering initiatives with external organizations for empowering community members or corporation to empower individuals based on the ideals of social justice and mutual respect.
Community Development is based on the principles of fairness, equality, accountability, opportunity, choice,participation, mutuality, reciprocity and continuous learning with core emphasis on Educating, Enabling and Empowering community members (Federation of Community Development Learning, 2009). True development is facilitated when citizens from all strata of society engage together with a sense of community solidarity through combined processes, programs, strategies, and activities (Community Glossary, 2009).
As per United Nations, the external organizations which can be potential partners for Corporate Citizenship includegovernment and non-government organizations, corporations such as small and medium enterprises (SMEs) and multinational corporations (MNCs). The emphasis is on instilling creativity and self-reliance in the community for short and longterm goals taking forward Community development as an educational as well as an organizational process.
As per Towers Perrin (2009), CSR is the third most important driver of employee engagement. In the U.S., the perception of the community for a company isits reputation forsocial responsibility.CSR helps in reducing the negative consequences of industrialization by encouraging conscience-focused marketplaces with focus on ethical business processes. For e.g., in U.K. high road tax is levied on vehicles with higher emission which reduces the burden of small vehicle owners which could be re-channeled for more productive uses in the community.
CSR encouragescloser ties between corporations and community as it helps in reinstating the belief that corporation is not just a place get employment andboth these wings can collaborate together and establish social capital.
CSR helps organizations in hiring and retaining committed talent pool through their reputation which strengthens their appeal as an attractive employer. This in turn helps in inculcating a culture of social responsibility in the organization which brings in more positivity, trust and loyalty resulting into better productivity. This inspires them to address and resolve customer’s concerns in time so that they would be rewarded by their organization for recognizing their customer as an important economic asset in the community.
CSR also facilitates transfer of technology (TOT) between MNCs which are inclined towards CSR and communities in the host countries in which the MNC is operating. This helps the target community to gain expertise in product development, thereby benefitting in better price and quality, along with people’s wellbeing.
CSR helps organizations to protect ecology by reducing their environmentalfootprint which helps them to drive company growth and social reputation. For e.g. “We green the earth” slogan made by some MNCs in Malaysia who own large golf areaswithin the vicinity of residential areas is another CSR initiative seems to protect environment. Other initiatives like “Friendsof the Earth” and “Green Peace Mission” highlight the environmental impact of some MNCs and campaign for strongerlaws on environmental responsibility. Green Peace is an independently operating global campaigning organization having presence in 42 countrieswhich inspires society to raise concern for change in attitude and behavior for protecting the environment and promoting peace through direct action, lobbying andresearch to achieve its goals.
CSR is in line with United Nations’ ‘Global Compact’ initiative which is the largest corporate citizenship and sustainability endeavor with 4700 corporate participants and stakehodlers from 130 countries for promotinghuman right corporate sustainability (UN Global Compact, 2009). Through this initiative, CSR aims to build markets, combat corruption, safe-guardenvironment and ensure social inclusion through partnerships among business, government, civil society,labor and United Nations. This ever-increasing understanding is reflected in the growth of the
CSR has an important role in strengthening close link of collaboration, participation and co-operation between corporations and community. For e.g. Shell Foundation in the Flower Valley and Marks and Spencer in Africa gave aid to underprivileged communities through CSR projects. Malaysian reality show‘Bersamamu’ of TV3 is sponsored by Syarikat Faiza Sendirian Berhad (SFSB), which is local enterprise-cum-philanthropist who responded to government’s appeal to help impoverishedcommunity to improve their livelihoods through help from the local mediafor publicity and audience support. This show focusses on the life of poverty and every purchase of Faiza’s Product,entitles the buyer to make a donation to Tabung Bersamamu TV3. This is a novel endeavor which may inspire other corporations to help the nation in its effort of alleviating poverty leading to development of community.
Technology corporations can benefit community and support business objectives through their CSR laden technical expertise by facilitating data collection for public organizations. Ex. Intel and IBM in U.S. assisted under-staffed police departments by collecting and processing information of regions with high crime rate.
Through CSR, organizations evolve a corporate sustainability framework based on a set of economic, social and environmental objectives which are progressive. For e.x, Towers Perrin (2009), developed a methodology to assess the employee perspective on sustainable business practices (SBP) which throws light on a corporation’s commitment to be ethically responsible for contributing improving the quality of life of all its stakeholders thus yielding to economic development. Towers Perrin’s SBP index deals with awareness and perceived importance among employees, employee sustainable behaviors, social and community performance, environmental performance, and ethical and legal performance.