The concept of corporate citizenship originally evolved from a responsibility to shareholders for directing the legal, ethical and economic goals of a company. Today, however, there are other factors that help shape a company’s culture and performance.
Now that the unemployment rate is lower, the job market is heating up and employers must compete for the best candidates. Normally that would mean beefing up compensation and benefit packages. However, that may not be enough to entice today’s idealistic young adults.
In fact, a recent survey found that 61 percent of young professionals consider a company’s engagement and reputation for corporate citizenship as part of their job decision. Seventy percent say they are far more likely to choose a company with strong community involvement. It’s not just about making money for millennials, they want their work to mean something and contribute to the greater good.1 Furthermore, millennials aren’t big on hierarchies, having been educated and trained to work in a team environment, and they insist on transparency.2
Bear in mind that millennials change jobs often and, if they’re not finding a work environment they like, they could become competitors to their former employers. According to one report, millennial-owned businesses are posting significantly higher revenue growth than their older counterparts.3
Now that the job market is coming around, this type of pressure to be the company that employees want to be proud of can be a powerful influencer on the corporate mission — and share price. But while there are many factors that tend to influence stock prices these days, most individuals would do well to stick with a long-term investment plan and not try to time trades in the market.4 After all, corporate citizenship is a long-term pursuit, so good companies are likely to perform well over time. Any time that you would like to discuss concerns about your financial strategy, please give us a call.
Today, corporations are at more risk than ever of falling prey to bad public relations due to the power of the “Tweet.” Whether it’s a disgruntled employee or a high-profile celebrity not happy with his service, stock prices can rise or fall on the power of a message on Twitter. On the other hand, a quick company response can cement customer loyalty.5
Another force that may influence corporate citizenship in the coming months and years is Donald Trump. He’s already threatened not to purchase new Air Force One airplanes from Boeing and tossed his weight around with car manufacturers. If the country doesn’t want to increase debt created by tax cuts and infrastructure spending, the private sector may have to step up its game in adopting and supporting local schools, sports and cultural venues that could be impacted by lower government funding.6 This, however, is a good way for companies to enhance their corporate citizenship.
1 David Coons. Insurance Journal. Dec. 19, 2016. “The Corporate Citizenship Mandate.” http://www.insurancejournal.com/magazines/ideaexchange/2016/12/19/435374.htm. Accessed Jan. 17, 2017.
2 Pratik Dholakiya. Entrepreneur. Jan. 17, 2017. “3 Tips for Creating a Millennial-Friendly Workplace.” https://www.entrepreneur.com/article/287201. Accessed Jan. 17, 2017.
3 Shubhomita Bose. Small Business Trends. Jan. 16, 2017. “Yelp Report: Is This the Year of Millennial and Minority-owned Businesses?” https://smallbiztrends.com/2017/01/minority-owned-business-statistics.html. Accessed Jan. 17, 2017.
4 James F. Peltz. Los Angeles Times. Jan. 16, 2017. “When Trump tweets, Wall Street trades — instantly.” http://www.latimes.com/business/la-fi-agenda-trump-tweets-stocks-20170116-story.html. Accessed Jan. 17, 2017.
5 Elizabeth Armstrong Moore. Fox News. Jan. 10, 2017. “After a Twitter Complaint, Elon Musk Makes a Rapid Fix.” http://www.foxnews.com/tech/2017/01/10/after-twitter-complaint-elon-musk-makes-rapid-fix.html. Accessed Jan. 17, 2017.
6 Jennifer Rubin. The Washington Post. Jan. 5, 2017. “How Business Can Survive the Know-Nothing Politics of Populism.” https://www.washingtonpost.com/blogs/right-turn/wp/2017/01/05/how-business-survives-the-know-nothing-politics-of-populism/?utm_term=.0c6ed57a1557. Accessed Jan. 17, 2017.
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Content prepared by Kara Stefan Communications