Corporate citizenship: improving transparency and reputation by communicating value to stakeholders

In an ever-changing world marked by the digital revolution, companies must act both in the interests of their stakeholders, employees, and partners, and also in the interests of those not directly involved in their production activities such as customers, suppliers, the environment, and so on. Companies now know they must behave like responsible citizens as they represent the heart of the social development of a country.

The relationship between countries and politics is often contaminated and threatened by corruption. Corruption scandals have triggered many crises that drastically harm the reputations companies have built for themselves.

Combatting this problem can be done by reporting to stakeholders, especially on Corporate Social Responsibility (CSR) and Public Affairs activities. CSR has been a “game changer” for many Italian companies as it represents the voluntary integration of social and environmental concerns, both in commercial operations and in relations with stakeholders, through the communication of these performances to the public (European Commission Green Paper, 2001).

CSR has become a vehicle of transparency towards stakeholders who are made aware of the relationships between companies and the actors associated with them. This concept, known as “Corporate Citizenship,” entails the actions implemented by companies to act ethically, contribute to the economic development of their territory, and improve the quality of life of employees and their families, the local community, and society as a whole. These actions taken by companies improve relationships with stakeholders and ideally minimize corruption.