Corporate citizenship vs corporate social responsibility
In a world facing growing social and environmental challenges, companies are increasingly expected to step up as contributors to the greater good. And one of the biggest groups calling on companies to drive change is employees themselves.
Positive actions
Speakers
No items found.
According to Deloitte, 69% of employees want their employer to invest in sustainability efforts like reducing emissions and minimizing waste, a number that’s even higher among younger workers.*
As the pressure to act with purpose grows, the language we use to describe that action matters. Corporate social responsibility (CSR) and corporate citizenship are often used interchangeably, but they reflect different strategies for making a meaningful impact.
So what sets them apart, and why does it matter for your business? Let’s take a closer look.
What's the difference between corporate citizenship and corporate social responsibility?
Corporate citizenship and CSR reflect different dimensions of a company’s social impact strategy.
Corporate citizenship speaks to a company's role as an agent of positive change within its broader community. CSR describes the specific programs, initiatives and actions that bring that positive change to life.
In a past episode of Benevity’s Social Impact Show on corporate citizenship and CSR, Chris Jarvis, Co-Founder of Realized Worth, observed that corporate citizenship tends to focus more on people and community, while CSR often centers on business practices like sustainability and supply chains.
Janelle St. Omer, former Regional Vice-President at Benevity, echoed that view, describing corporate citizenship as the people-focused actions that “bring individuals together to stand up, make a difference and get involved.”
Despite the difference in intent, both approaches deliver similar benefits, from improved brand trust and stronger employee engagement to long-term business value.
Category
Corporate citizenship
Corporate social responsibility (CSR)
Definition
A company’s role as a responsible member of society, committed to contributing to collective well-being through ethical, people-focused action.
A self-regulating business model that guides companies to operate ethically and balance profit with positive social and environmental outcomes.
Scope
Broader in scope than CSR, encompassing community engagement, philanthropy, employee volunteering and sustainable business practices.
A subset of corporate citizenship focused on environmental, social and governance (ESG) policies and practices across a business.
Focus area
Builds community connection, employee engagement and shared social impact at a grassroots level.
Addresses ESG through structured initiatives.
Primary goal
To contribute meaningfully to society by fostering community well-being and a sense of shared purpose.
To operate responsibly by minimizing harm and addressing social and environmental risks through ethical practices.
Key activities
Includes CSR initiatives like volunteering and giving, with an emphasis on employee-led, people-first programs.
Shares many activities with corporate citizenship, but frames them within formal ESG strategies tied to business performance.
Stakeholder engagement
Centers on engagement with a wide range of stakeholders to create shared value. This includes employees, customers, communities, suppliers and the environment.
Engages primarily with investors, regulators and shareholders through compliance, reporting and oversight.
Measurement
Assessed holistically through both qualitative and quantitative measures, including employee satisfaction, community engagement and broader societal impact.
Uses KPIs and ESG metrics to measure success, though no single standard exists for CSR. Metrics vary by initiative, from emissions and volunteer hours to ethical sourcing. Often, ESG reporting is needed for investors.
Business integration
Often embedded into company culture and employee experience, with a focus on aligning values and day-to-day actions.
Typically implemented through dedicated policies and programs that operate alongside core business functions./td>
Want a better understanding of how corporate citizenship and CSR compare? Watch our episode on CSR vs corporate citizenship for expert insights.
Corporate citizenship unpacked
Corporate citizenship reflects the role a company plays in society beyond profit. It’s a commitment to act ethically and contribute to the well-being of people and the planet. Rather than being limited to standalone programs, it’s embedded in a company’s culture and how it shows up in the world.
As Chris puts it, “How I express my values has to be more than just a program.”
Benefits of corporate citizenship efforts
Adopting corporate citizenship activates your people, scales your impact and embeds purpose into your business. Below are some of the key benefits for business and society.
Improved brand reputation and trust
Corporate citizenship efforts enhance a company’s reputation by showing a genuine commitment to people and the planet. Whether through sustainability efforts, ethical sourcing or community partnerships, values-led actions signal integrity to the outside world.
88% of customers who trust a brand will buy again, and trusted companies can outperform peers by up to 400%. Additionally, employees who trust their employer are 50% less likely to leave.
When companies lead with purpose, they build deeper trust with customers, investors, employees and local communities. That trust becomes a foundation for long-term resilience.
Better employee engagement
A growing number of employees want their work to reflect their values.
Deloitte reports that nearly nine in 10 Gen Z and millennial workers say a sense of purpose is essential to job satisfaction. Similarly, McKinsey found that employees whose purpose aligns with their company’s are more engaged, more productive and more likely to recommend their workplace.
When companies connect work to social impact through initiatives like volunteering and community engagement, employees feel a stronger sense of belonging and motivation. And by investing in meaningful corporate citizenship efforts, you help build workplaces where people feel invested and choose to stay.
Competitive business advantage
Companies that embed corporate citizenship into their strategy often gain a clear edge. For instance, 94% of executives view supply chain sustainability as a competitive advantage, thanks in large part to its critical role in global trade.
People also increasingly choose to work for, buy from and invest in businesses that prioritize their social and environmental impact.
Demonstrating values through action, not just messaging, helps companies attract conscious consumers and mission-focused talent. In addition, it strengthens relationships with partners and investors who prioritize sustainable, ethical practices.
Stronger customer loyalty
Today’s consumers reward brands that align with their values. Corporate citizenship builds that connection by demonstrating authentic engagement with social and environmental issues.
Surveys show most customers will pay more, or stay loyal to, sustainable companies. For example, more than 70% of shoppers say they’re willing to pay more for sustainably produced goods.
By building trust and aligning with customer values, companies that lead with corporate citizenship create deeper emotional connections and stronger brand loyalty and advocacy.
Corporate citizenship examples
Many leading companies are developing corporate citizenship philosophies that redefine how we do business. Here are just a few corporate citizenship examples to inspire you:
Lego prioritizes environmental stewardship and education. Through its partnership with the World Wildlife Fund (WWF), the company works to cut carbon emissions and reduce waste. It has committed to powering factories with renewable energy and supports community projects like building schools.
Ben & Jerry’s integrates social justice into every part of its business. It advocates for climate action, racial equity and fair trade and has maintained B Corp certification since 2012.
Patagonia has restructured to prioritize the planet. In 2022, it transferred all ownership (estimated to be $3 billion USD) and profits (estimated at $100 million USD annually) to climate and nature protection efforts. The company embeds sustainable practices into every aspect of its operations.
Corporate social responsibility unpacked
Back to CSR. This is a business approach that prioritizes ethical operations, environmental sustainability and social accountability. It reflects a company’s commitment to act responsibly.
It shows up through tangible practices like emissions reduction, supply chain ethics, diversity programs and giving strategies that align business goals with broader societal outcomes.
Benefits of CSR
Companies pursuing strong CSR report a host of measurable benefits, from improved brand reputation and market differentiation to increased long-term profitability. Let’s take a closer look.
Stronger brand image
CSR strengthens brand image by showing a company’s values in action. When businesses lead on issues like sustainability and ethical sourcing, they build trust with customers, investors and communities.
Visible CSR efforts help brands stand apart. Done well, they increase goodwill and show stakeholders the company is serious about doing what’s right, instead of just saying it. Over time, these actions contribute to a stronger, more resilient public image.
Employee retention
In a competitive talent market, a company’s commitment to doing good can be the reason top performers choose to stay. Benevity’s own research supports this: nine in 10 CSR leaders say companies that foster a community-oriented culture are more likely to retain and attract talent.
CSR helps companies build cultures where people feel valued and committed for the long term. And when employees see their organization taking action on social and environmental issues, they’re more likely to stay and remain engaged.
Market differentiation
CSR helps companies stand out in a crowded marketplace by demonstrating integrity and long-term thinking. In industries where offerings are similar, CSR can be the reason customers and investors choose one brand over another.
Products with ESG or sustainability claims see 28% cumulative growth, outpacing similar products by nearly 10%. And companies that report on CSR performance, like emissions and sourcing, create a competitive advantage through their credibility.
Long-term profitability
CSR investments can deliver meaningful financial returns. Beyond enhancing brand image and loyalty, responsible practices often lead to cost savings and stronger long-term performance.
Many companies see measurable value in areas like energy efficiency, supply chain resilience and employee retention. Benevity research found that 43% of executives who increased CSR budgets said they did so because their programs delivered clear business ROI, proving that purpose and profitability can go hand in hand.
Examples of CSR
Top companies are integrating CSR into their business practices in impactful ways. Here are some examples:
Chipotle rounds up customer donations through its Round Up for Real Change program and has raised over $17.3 million for local nonprofits. Its “Food with Integrity” initiative also includes ethical sourcing and a 50% GHG reduction goal by 2030.
Danone has committed $22 million through 2029 to improve access to nutritious food and fund nutrition education. Its BeWell program supports employee wellness and its FutureSkills initiative offers global reskilling.
Salesforce follows a 1-1-1 philanthropy model, committing 1% of its equity, 1% of its employees’ time, and 1% of its products to charitable causes. Employees receive seven paid volunteer days annually and up to $10,000 USD in donation matches.
Why corporate citizenship and CSR are better together
Corporate citizenship and CSR are distinct but deeply connected strategies for driving meaningful impact.
Corporate citizenship efforts reflect your company’s values and role in society, while CSR puts those values into action through measurable practices. Together, they help build trust, deepen engagement, and create business value.
From brand reputation to employee retention and long-term profitability, doing good doesn’t need to be separate from doing well. Companies that lead with purpose and back it up with action are better positioned to thrive in a changing world.
But embedding CSR into your company’s DNA isn’t always easy, which is why it’s best to work with a tool like Benevity that helps you drive good and demonstrate your impact. We support an enterprise-wide impact strategy — all through one comprehensive, seamless platform.
According to Deloitte, 69% of employees want their employer to invest in sustainability efforts like reducing emissions and minimizing waste, a number that’s even higher among younger workers.*
As the pressure to act with purpose grows, the language we use to describe that action matters. Corporate social responsibility (CSR) and corporate citizenship are often used interchangeably, but they reflect different strategies for making a meaningful impact.
So what sets them apart, and why does it matter for your business? Let’s take a closer look.
What's the difference between corporate citizenship and corporate social responsibility?
Corporate citizenship and CSR reflect different dimensions of a company’s social impact strategy.
Corporate citizenship speaks to a company's role as an agent of positive change within its broader community. CSR describes the specific programs, initiatives and actions that bring that positive change to life.
In a past episode of Benevity’s Social Impact Show on corporate citizenship and CSR, Chris Jarvis, Co-Founder of Realized Worth, observed that corporate citizenship tends to focus more on people and community, while CSR often centers on business practices like sustainability and supply chains.
Janelle St. Omer, former Regional Vice-President at Benevity, echoed that view, describing corporate citizenship as the people-focused actions that “bring individuals together to stand up, make a difference and get involved.”
Despite the difference in intent, both approaches deliver similar benefits, from improved brand trust and stronger employee engagement to long-term business value.
Category
Corporate citizenship
Corporate social responsibility (CSR)
Definition
A company’s role as a responsible member of society, committed to contributing to collective well-being through ethical, people-focused action.
A self-regulating business model that guides companies to operate ethically and balance profit with positive social and environmental outcomes.
Scope
Broader in scope than CSR, encompassing community engagement, philanthropy, employee volunteering and sustainable business practices.
A subset of corporate citizenship focused on environmental, social and governance (ESG) policies and practices across a business.
Focus area
Builds community connection, employee engagement and shared social impact at a grassroots level.
Addresses ESG through structured initiatives.
Primary goal
To contribute meaningfully to society by fostering community well-being and a sense of shared purpose.
To operate responsibly by minimizing harm and addressing social and environmental risks through ethical practices.
Key activities
Includes CSR initiatives like volunteering and giving, with an emphasis on employee-led, people-first programs.
Shares many activities with corporate citizenship, but frames them within formal ESG strategies tied to business performance.
Stakeholder engagement
Centers on engagement with a wide range of stakeholders to create shared value. This includes employees, customers, communities, suppliers and the environment.
Engages primarily with investors, regulators and shareholders through compliance, reporting and oversight.
Measurement
Assessed holistically through both qualitative and quantitative measures, including employee satisfaction, community engagement and broader societal impact.
Uses KPIs and ESG metrics to measure success, though no single standard exists for CSR. Metrics vary by initiative, from emissions and volunteer hours to ethical sourcing. Often, ESG reporting is needed for investors.
Business integration
Often embedded into company culture and employee experience, with a focus on aligning values and day-to-day actions.
Typically implemented through dedicated policies and programs that operate alongside core business functions./td>
Want a better understanding of how corporate citizenship and CSR compare? Watch our episode on CSR vs corporate citizenship for expert insights.
Corporate citizenship unpacked
Corporate citizenship reflects the role a company plays in society beyond profit. It’s a commitment to act ethically and contribute to the well-being of people and the planet. Rather than being limited to standalone programs, it’s embedded in a company’s culture and how it shows up in the world.
As Chris puts it, “How I express my values has to be more than just a program.”
Benefits of corporate citizenship efforts
Adopting corporate citizenship activates your people, scales your impact and embeds purpose into your business. Below are some of the key benefits for business and society.
Improved brand reputation and trust
Corporate citizenship efforts enhance a company’s reputation by showing a genuine commitment to people and the planet. Whether through sustainability efforts, ethical sourcing or community partnerships, values-led actions signal integrity to the outside world.
88% of customers who trust a brand will buy again, and trusted companies can outperform peers by up to 400%. Additionally, employees who trust their employer are 50% less likely to leave.
When companies lead with purpose, they build deeper trust with customers, investors, employees and local communities. That trust becomes a foundation for long-term resilience.
Better employee engagement
A growing number of employees want their work to reflect their values.
Deloitte reports that nearly nine in 10 Gen Z and millennial workers say a sense of purpose is essential to job satisfaction. Similarly, McKinsey found that employees whose purpose aligns with their company’s are more engaged, more productive and more likely to recommend their workplace.
When companies connect work to social impact through initiatives like volunteering and community engagement, employees feel a stronger sense of belonging and motivation. And by investing in meaningful corporate citizenship efforts, you help build workplaces where people feel invested and choose to stay.
Competitive business advantage
Companies that embed corporate citizenship into their strategy often gain a clear edge. For instance, 94% of executives view supply chain sustainability as a competitive advantage, thanks in large part to its critical role in global trade.
People also increasingly choose to work for, buy from and invest in businesses that prioritize their social and environmental impact.
Demonstrating values through action, not just messaging, helps companies attract conscious consumers and mission-focused talent. In addition, it strengthens relationships with partners and investors who prioritize sustainable, ethical practices.
Stronger customer loyalty
Today’s consumers reward brands that align with their values. Corporate citizenship builds that connection by demonstrating authentic engagement with social and environmental issues.
Surveys show most customers will pay more, or stay loyal to, sustainable companies. For example, more than 70% of shoppers say they’re willing to pay more for sustainably produced goods.
By building trust and aligning with customer values, companies that lead with corporate citizenship create deeper emotional connections and stronger brand loyalty and advocacy.
Corporate citizenship examples
Many leading companies are developing corporate citizenship philosophies that redefine how we do business. Here are just a few corporate citizenship examples to inspire you:
Lego prioritizes environmental stewardship and education. Through its partnership with the World Wildlife Fund (WWF), the company works to cut carbon emissions and reduce waste. It has committed to powering factories with renewable energy and supports community projects like building schools.
Ben & Jerry’s integrates social justice into every part of its business. It advocates for climate action, racial equity and fair trade and has maintained B Corp certification since 2012.
Patagonia has restructured to prioritize the planet. In 2022, it transferred all ownership (estimated to be $3 billion USD) and profits (estimated at $100 million USD annually) to climate and nature protection efforts. The company embeds sustainable practices into every aspect of its operations.
Corporate social responsibility unpacked
Back to CSR. This is a business approach that prioritizes ethical operations, environmental sustainability and social accountability. It reflects a company’s commitment to act responsibly.
It shows up through tangible practices like emissions reduction, supply chain ethics, diversity programs and giving strategies that align business goals with broader societal outcomes.
Benefits of CSR
Companies pursuing strong CSR report a host of measurable benefits, from improved brand reputation and market differentiation to increased long-term profitability. Let’s take a closer look.
Stronger brand image
CSR strengthens brand image by showing a company’s values in action. When businesses lead on issues like sustainability and ethical sourcing, they build trust with customers, investors and communities.
Visible CSR efforts help brands stand apart. Done well, they increase goodwill and show stakeholders the company is serious about doing what’s right, instead of just saying it. Over time, these actions contribute to a stronger, more resilient public image.
Employee retention
In a competitive talent market, a company’s commitment to doing good can be the reason top performers choose to stay. Benevity’s own research supports this: nine in 10 CSR leaders say companies that foster a community-oriented culture are more likely to retain and attract talent.
CSR helps companies build cultures where people feel valued and committed for the long term. And when employees see their organization taking action on social and environmental issues, they’re more likely to stay and remain engaged.
Market differentiation
CSR helps companies stand out in a crowded marketplace by demonstrating integrity and long-term thinking. In industries where offerings are similar, CSR can be the reason customers and investors choose one brand over another.
Products with ESG or sustainability claims see 28% cumulative growth, outpacing similar products by nearly 10%. And companies that report on CSR performance, like emissions and sourcing, create a competitive advantage through their credibility.
Long-term profitability
CSR investments can deliver meaningful financial returns. Beyond enhancing brand image and loyalty, responsible practices often lead to cost savings and stronger long-term performance.
Many companies see measurable value in areas like energy efficiency, supply chain resilience and employee retention. Benevity research found that 43% of executives who increased CSR budgets said they did so because their programs delivered clear business ROI, proving that purpose and profitability can go hand in hand.
Examples of CSR
Top companies are integrating CSR into their business practices in impactful ways. Here are some examples:
Chipotle rounds up customer donations through its Round Up for Real Change program and has raised over $17.3 million for local nonprofits. Its “Food with Integrity” initiative also includes ethical sourcing and a 50% GHG reduction goal by 2030.
Danone has committed $22 million through 2029 to improve access to nutritious food and fund nutrition education. Its BeWell program supports employee wellness and its FutureSkills initiative offers global reskilling.
Salesforce follows a 1-1-1 philanthropy model, committing 1% of its equity, 1% of its employees’ time, and 1% of its products to charitable causes. Employees receive seven paid volunteer days annually and up to $10,000 USD in donation matches.
Why corporate citizenship and CSR are better together
Corporate citizenship and CSR are distinct but deeply connected strategies for driving meaningful impact.
Corporate citizenship efforts reflect your company’s values and role in society, while CSR puts those values into action through measurable practices. Together, they help build trust, deepen engagement, and create business value.
From brand reputation to employee retention and long-term profitability, doing good doesn’t need to be separate from doing well. Companies that lead with purpose and back it up with action are better positioned to thrive in a changing world.
But embedding CSR into your company’s DNA isn’t always easy, which is why it’s best to work with a tool like Benevity that helps you drive good and demonstrate your impact. We support an enterprise-wide impact strategy — all through one comprehensive, seamless platform.
According to Deloitte, 69% of employees want their employer to invest in sustainability efforts like reducing emissions and minimizing waste, a number that’s even higher among younger workers.*
As the pressure to act with purpose grows, the language we use to describe that action matters. Corporate social responsibility (CSR) and corporate citizenship are often used interchangeably, but they reflect different strategies for making a meaningful impact.
So what sets them apart, and why does it matter for your business? Let’s take a closer look.
What's the difference between corporate citizenship and corporate social responsibility?
Corporate citizenship and CSR reflect different dimensions of a company’s social impact strategy.
Corporate citizenship speaks to a company's role as an agent of positive change within its broader community. CSR describes the specific programs, initiatives and actions that bring that positive change to life.
In a past episode of Benevity’s Social Impact Show on corporate citizenship and CSR, Chris Jarvis, Co-Founder of Realized Worth, observed that corporate citizenship tends to focus more on people and community, while CSR often centers on business practices like sustainability and supply chains.
Janelle St. Omer, former Regional Vice-President at Benevity, echoed that view, describing corporate citizenship as the people-focused actions that “bring individuals together to stand up, make a difference and get involved.”
Despite the difference in intent, both approaches deliver similar benefits, from improved brand trust and stronger employee engagement to long-term business value.
Category
Corporate citizenship
Corporate social responsibility (CSR)
Definition
A company’s role as a responsible member of society, committed to contributing to collective well-being through ethical, people-focused action.
A self-regulating business model that guides companies to operate ethically and balance profit with positive social and environmental outcomes.
Scope
Broader in scope than CSR, encompassing community engagement, philanthropy, employee volunteering and sustainable business practices.
A subset of corporate citizenship focused on environmental, social and governance (ESG) policies and practices across a business.
Focus area
Builds community connection, employee engagement and shared social impact at a grassroots level.
Addresses ESG through structured initiatives.
Primary goal
To contribute meaningfully to society by fostering community well-being and a sense of shared purpose.
To operate responsibly by minimizing harm and addressing social and environmental risks through ethical practices.
Key activities
Includes CSR initiatives like volunteering and giving, with an emphasis on employee-led, people-first programs.
Shares many activities with corporate citizenship, but frames them within formal ESG strategies tied to business performance.
Stakeholder engagement
Centers on engagement with a wide range of stakeholders to create shared value. This includes employees, customers, communities, suppliers and the environment.
Engages primarily with investors, regulators and shareholders through compliance, reporting and oversight.
Measurement
Assessed holistically through both qualitative and quantitative measures, including employee satisfaction, community engagement and broader societal impact.
Uses KPIs and ESG metrics to measure success, though no single standard exists for CSR. Metrics vary by initiative, from emissions and volunteer hours to ethical sourcing. Often, ESG reporting is needed for investors.
Business integration
Often embedded into company culture and employee experience, with a focus on aligning values and day-to-day actions.
Typically implemented through dedicated policies and programs that operate alongside core business functions./td>
Want a better understanding of how corporate citizenship and CSR compare? Watch our episode on CSR vs corporate citizenship for expert insights.
Corporate citizenship unpacked
Corporate citizenship reflects the role a company plays in society beyond profit. It’s a commitment to act ethically and contribute to the well-being of people and the planet. Rather than being limited to standalone programs, it’s embedded in a company’s culture and how it shows up in the world.
As Chris puts it, “How I express my values has to be more than just a program.”
Benefits of corporate citizenship efforts
Adopting corporate citizenship activates your people, scales your impact and embeds purpose into your business. Below are some of the key benefits for business and society.
Improved brand reputation and trust
Corporate citizenship efforts enhance a company’s reputation by showing a genuine commitment to people and the planet. Whether through sustainability efforts, ethical sourcing or community partnerships, values-led actions signal integrity to the outside world.
88% of customers who trust a brand will buy again, and trusted companies can outperform peers by up to 400%. Additionally, employees who trust their employer are 50% less likely to leave.
When companies lead with purpose, they build deeper trust with customers, investors, employees and local communities. That trust becomes a foundation for long-term resilience.
Better employee engagement
A growing number of employees want their work to reflect their values.
Deloitte reports that nearly nine in 10 Gen Z and millennial workers say a sense of purpose is essential to job satisfaction. Similarly, McKinsey found that employees whose purpose aligns with their company’s are more engaged, more productive and more likely to recommend their workplace.
When companies connect work to social impact through initiatives like volunteering and community engagement, employees feel a stronger sense of belonging and motivation. And by investing in meaningful corporate citizenship efforts, you help build workplaces where people feel invested and choose to stay.
Competitive business advantage
Companies that embed corporate citizenship into their strategy often gain a clear edge. For instance, 94% of executives view supply chain sustainability as a competitive advantage, thanks in large part to its critical role in global trade.
People also increasingly choose to work for, buy from and invest in businesses that prioritize their social and environmental impact.
Demonstrating values through action, not just messaging, helps companies attract conscious consumers and mission-focused talent. In addition, it strengthens relationships with partners and investors who prioritize sustainable, ethical practices.
Stronger customer loyalty
Today’s consumers reward brands that align with their values. Corporate citizenship builds that connection by demonstrating authentic engagement with social and environmental issues.
Surveys show most customers will pay more, or stay loyal to, sustainable companies. For example, more than 70% of shoppers say they’re willing to pay more for sustainably produced goods.
By building trust and aligning with customer values, companies that lead with corporate citizenship create deeper emotional connections and stronger brand loyalty and advocacy.
Corporate citizenship examples
Many leading companies are developing corporate citizenship philosophies that redefine how we do business. Here are just a few corporate citizenship examples to inspire you:
Lego prioritizes environmental stewardship and education. Through its partnership with the World Wildlife Fund (WWF), the company works to cut carbon emissions and reduce waste. It has committed to powering factories with renewable energy and supports community projects like building schools.
Ben & Jerry’s integrates social justice into every part of its business. It advocates for climate action, racial equity and fair trade and has maintained B Corp certification since 2012.
Patagonia has restructured to prioritize the planet. In 2022, it transferred all ownership (estimated to be $3 billion USD) and profits (estimated at $100 million USD annually) to climate and nature protection efforts. The company embeds sustainable practices into every aspect of its operations.
Corporate social responsibility unpacked
Back to CSR. This is a business approach that prioritizes ethical operations, environmental sustainability and social accountability. It reflects a company’s commitment to act responsibly.
It shows up through tangible practices like emissions reduction, supply chain ethics, diversity programs and giving strategies that align business goals with broader societal outcomes.
Benefits of CSR
Companies pursuing strong CSR report a host of measurable benefits, from improved brand reputation and market differentiation to increased long-term profitability. Let’s take a closer look.
Stronger brand image
CSR strengthens brand image by showing a company’s values in action. When businesses lead on issues like sustainability and ethical sourcing, they build trust with customers, investors and communities.
Visible CSR efforts help brands stand apart. Done well, they increase goodwill and show stakeholders the company is serious about doing what’s right, instead of just saying it. Over time, these actions contribute to a stronger, more resilient public image.
Employee retention
In a competitive talent market, a company’s commitment to doing good can be the reason top performers choose to stay. Benevity’s own research supports this: nine in 10 CSR leaders say companies that foster a community-oriented culture are more likely to retain and attract talent.
CSR helps companies build cultures where people feel valued and committed for the long term. And when employees see their organization taking action on social and environmental issues, they’re more likely to stay and remain engaged.
Market differentiation
CSR helps companies stand out in a crowded marketplace by demonstrating integrity and long-term thinking. In industries where offerings are similar, CSR can be the reason customers and investors choose one brand over another.
Products with ESG or sustainability claims see 28% cumulative growth, outpacing similar products by nearly 10%. And companies that report on CSR performance, like emissions and sourcing, create a competitive advantage through their credibility.
Long-term profitability
CSR investments can deliver meaningful financial returns. Beyond enhancing brand image and loyalty, responsible practices often lead to cost savings and stronger long-term performance.
Many companies see measurable value in areas like energy efficiency, supply chain resilience and employee retention. Benevity research found that 43% of executives who increased CSR budgets said they did so because their programs delivered clear business ROI, proving that purpose and profitability can go hand in hand.
Examples of CSR
Top companies are integrating CSR into their business practices in impactful ways. Here are some examples:
Chipotle rounds up customer donations through its Round Up for Real Change program and has raised over $17.3 million for local nonprofits. Its “Food with Integrity” initiative also includes ethical sourcing and a 50% GHG reduction goal by 2030.
Danone has committed $22 million through 2029 to improve access to nutritious food and fund nutrition education. Its BeWell program supports employee wellness and its FutureSkills initiative offers global reskilling.
Salesforce follows a 1-1-1 philanthropy model, committing 1% of its equity, 1% of its employees’ time, and 1% of its products to charitable causes. Employees receive seven paid volunteer days annually and up to $10,000 USD in donation matches.
Why corporate citizenship and CSR are better together
Corporate citizenship and CSR are distinct but deeply connected strategies for driving meaningful impact.
Corporate citizenship efforts reflect your company’s values and role in society, while CSR puts those values into action through measurable practices. Together, they help build trust, deepen engagement, and create business value.
From brand reputation to employee retention and long-term profitability, doing good doesn’t need to be separate from doing well. Companies that lead with purpose and back it up with action are better positioned to thrive in a changing world.
But embedding CSR into your company’s DNA isn’t always easy, which is why it’s best to work with a tool like Benevity that helps you drive good and demonstrate your impact. We support an enterprise-wide impact strategy — all through one comprehensive, seamless platform.
According to Deloitte, 69% of employees want their employer to invest in sustainability efforts like reducing emissions and minimizing waste, a number that’s even higher among younger workers.*
As the pressure to act with purpose grows, the language we use to describe that action matters. Corporate social responsibility (CSR) and corporate citizenship are often used interchangeably, but they reflect different strategies for making a meaningful impact.
So what sets them apart, and why does it matter for your business? Let’s take a closer look.
What's the difference between corporate citizenship and corporate social responsibility?
Corporate citizenship and CSR reflect different dimensions of a company’s social impact strategy.
Corporate citizenship speaks to a company's role as an agent of positive change within its broader community. CSR describes the specific programs, initiatives and actions that bring that positive change to life.
In a past episode of Benevity’s Social Impact Show on corporate citizenship and CSR, Chris Jarvis, Co-Founder of Realized Worth, observed that corporate citizenship tends to focus more on people and community, while CSR often centers on business practices like sustainability and supply chains.
Janelle St. Omer, former Regional Vice-President at Benevity, echoed that view, describing corporate citizenship as the people-focused actions that “bring individuals together to stand up, make a difference and get involved.”
Despite the difference in intent, both approaches deliver similar benefits, from improved brand trust and stronger employee engagement to long-term business value.
Category
Corporate citizenship
Corporate social responsibility (CSR)
Definition
A company’s role as a responsible member of society, committed to contributing to collective well-being through ethical, people-focused action.
A self-regulating business model that guides companies to operate ethically and balance profit with positive social and environmental outcomes.
Scope
Broader in scope than CSR, encompassing community engagement, philanthropy, employee volunteering and sustainable business practices.
A subset of corporate citizenship focused on environmental, social and governance (ESG) policies and practices across a business.
Focus area
Builds community connection, employee engagement and shared social impact at a grassroots level.
Addresses ESG through structured initiatives.
Primary goal
To contribute meaningfully to society by fostering community well-being and a sense of shared purpose.
To operate responsibly by minimizing harm and addressing social and environmental risks through ethical practices.
Key activities
Includes CSR initiatives like volunteering and giving, with an emphasis on employee-led, people-first programs.
Shares many activities with corporate citizenship, but frames them within formal ESG strategies tied to business performance.
Stakeholder engagement
Centers on engagement with a wide range of stakeholders to create shared value. This includes employees, customers, communities, suppliers and the environment.
Engages primarily with investors, regulators and shareholders through compliance, reporting and oversight.
Measurement
Assessed holistically through both qualitative and quantitative measures, including employee satisfaction, community engagement and broader societal impact.
Uses KPIs and ESG metrics to measure success, though no single standard exists for CSR. Metrics vary by initiative, from emissions and volunteer hours to ethical sourcing. Often, ESG reporting is needed for investors.
Business integration
Often embedded into company culture and employee experience, with a focus on aligning values and day-to-day actions.
Typically implemented through dedicated policies and programs that operate alongside core business functions./td>
Want a better understanding of how corporate citizenship and CSR compare? Watch our episode on CSR vs corporate citizenship for expert insights.
Corporate citizenship unpacked
Corporate citizenship reflects the role a company plays in society beyond profit. It’s a commitment to act ethically and contribute to the well-being of people and the planet. Rather than being limited to standalone programs, it’s embedded in a company’s culture and how it shows up in the world.
As Chris puts it, “How I express my values has to be more than just a program.”
Benefits of corporate citizenship efforts
Adopting corporate citizenship activates your people, scales your impact and embeds purpose into your business. Below are some of the key benefits for business and society.
Improved brand reputation and trust
Corporate citizenship efforts enhance a company’s reputation by showing a genuine commitment to people and the planet. Whether through sustainability efforts, ethical sourcing or community partnerships, values-led actions signal integrity to the outside world.
88% of customers who trust a brand will buy again, and trusted companies can outperform peers by up to 400%. Additionally, employees who trust their employer are 50% less likely to leave.
When companies lead with purpose, they build deeper trust with customers, investors, employees and local communities. That trust becomes a foundation for long-term resilience.
Better employee engagement
A growing number of employees want their work to reflect their values.
Deloitte reports that nearly nine in 10 Gen Z and millennial workers say a sense of purpose is essential to job satisfaction. Similarly, McKinsey found that employees whose purpose aligns with their company’s are more engaged, more productive and more likely to recommend their workplace.
When companies connect work to social impact through initiatives like volunteering and community engagement, employees feel a stronger sense of belonging and motivation. And by investing in meaningful corporate citizenship efforts, you help build workplaces where people feel invested and choose to stay.
Competitive business advantage
Companies that embed corporate citizenship into their strategy often gain a clear edge. For instance, 94% of executives view supply chain sustainability as a competitive advantage, thanks in large part to its critical role in global trade.
People also increasingly choose to work for, buy from and invest in businesses that prioritize their social and environmental impact.
Demonstrating values through action, not just messaging, helps companies attract conscious consumers and mission-focused talent. In addition, it strengthens relationships with partners and investors who prioritize sustainable, ethical practices.
Stronger customer loyalty
Today’s consumers reward brands that align with their values. Corporate citizenship builds that connection by demonstrating authentic engagement with social and environmental issues.
Surveys show most customers will pay more, or stay loyal to, sustainable companies. For example, more than 70% of shoppers say they’re willing to pay more for sustainably produced goods.
By building trust and aligning with customer values, companies that lead with corporate citizenship create deeper emotional connections and stronger brand loyalty and advocacy.
Corporate citizenship examples
Many leading companies are developing corporate citizenship philosophies that redefine how we do business. Here are just a few corporate citizenship examples to inspire you:
Lego prioritizes environmental stewardship and education. Through its partnership with the World Wildlife Fund (WWF), the company works to cut carbon emissions and reduce waste. It has committed to powering factories with renewable energy and supports community projects like building schools.
Ben & Jerry’s integrates social justice into every part of its business. It advocates for climate action, racial equity and fair trade and has maintained B Corp certification since 2012.
Patagonia has restructured to prioritize the planet. In 2022, it transferred all ownership (estimated to be $3 billion USD) and profits (estimated at $100 million USD annually) to climate and nature protection efforts. The company embeds sustainable practices into every aspect of its operations.
Corporate social responsibility unpacked
Back to CSR. This is a business approach that prioritizes ethical operations, environmental sustainability and social accountability. It reflects a company’s commitment to act responsibly.
It shows up through tangible practices like emissions reduction, supply chain ethics, diversity programs and giving strategies that align business goals with broader societal outcomes.
Benefits of CSR
Companies pursuing strong CSR report a host of measurable benefits, from improved brand reputation and market differentiation to increased long-term profitability. Let’s take a closer look.
Stronger brand image
CSR strengthens brand image by showing a company’s values in action. When businesses lead on issues like sustainability and ethical sourcing, they build trust with customers, investors and communities.
Visible CSR efforts help brands stand apart. Done well, they increase goodwill and show stakeholders the company is serious about doing what’s right, instead of just saying it. Over time, these actions contribute to a stronger, more resilient public image.
Employee retention
In a competitive talent market, a company’s commitment to doing good can be the reason top performers choose to stay. Benevity’s own research supports this: nine in 10 CSR leaders say companies that foster a community-oriented culture are more likely to retain and attract talent.
CSR helps companies build cultures where people feel valued and committed for the long term. And when employees see their organization taking action on social and environmental issues, they’re more likely to stay and remain engaged.
Market differentiation
CSR helps companies stand out in a crowded marketplace by demonstrating integrity and long-term thinking. In industries where offerings are similar, CSR can be the reason customers and investors choose one brand over another.
Products with ESG or sustainability claims see 28% cumulative growth, outpacing similar products by nearly 10%. And companies that report on CSR performance, like emissions and sourcing, create a competitive advantage through their credibility.
Long-term profitability
CSR investments can deliver meaningful financial returns. Beyond enhancing brand image and loyalty, responsible practices often lead to cost savings and stronger long-term performance.
Many companies see measurable value in areas like energy efficiency, supply chain resilience and employee retention. Benevity research found that 43% of executives who increased CSR budgets said they did so because their programs delivered clear business ROI, proving that purpose and profitability can go hand in hand.
Examples of CSR
Top companies are integrating CSR into their business practices in impactful ways. Here are some examples:
Chipotle rounds up customer donations through its Round Up for Real Change program and has raised over $17.3 million for local nonprofits. Its “Food with Integrity” initiative also includes ethical sourcing and a 50% GHG reduction goal by 2030.
Danone has committed $22 million through 2029 to improve access to nutritious food and fund nutrition education. Its BeWell program supports employee wellness and its FutureSkills initiative offers global reskilling.
Salesforce follows a 1-1-1 philanthropy model, committing 1% of its equity, 1% of its employees’ time, and 1% of its products to charitable causes. Employees receive seven paid volunteer days annually and up to $10,000 USD in donation matches.
Why corporate citizenship and CSR are better together
Corporate citizenship and CSR are distinct but deeply connected strategies for driving meaningful impact.
Corporate citizenship efforts reflect your company’s values and role in society, while CSR puts those values into action through measurable practices. Together, they help build trust, deepen engagement, and create business value.
From brand reputation to employee retention and long-term profitability, doing good doesn’t need to be separate from doing well. Companies that lead with purpose and back it up with action are better positioned to thrive in a changing world.
But embedding CSR into your company’s DNA isn’t always easy, which is why it’s best to work with a tool like Benevity that helps you drive good and demonstrate your impact. We support an enterprise-wide impact strategy — all through one comprehensive, seamless platform.
According to Deloitte, 69% of employees want their employer to invest in sustainability efforts like reducing emissions and minimizing waste, a number that’s even higher among younger workers.*
As the pressure to act with purpose grows, the language we use to describe that action matters. Corporate social responsibility (CSR) and corporate citizenship are often used interchangeably, but they reflect different strategies for making a meaningful impact.
So what sets them apart, and why does it matter for your business? Let’s take a closer look.
What's the difference between corporate citizenship and corporate social responsibility?
Corporate citizenship and CSR reflect different dimensions of a company’s social impact strategy.
Corporate citizenship speaks to a company's role as an agent of positive change within its broader community. CSR describes the specific programs, initiatives and actions that bring that positive change to life.
In a past episode of Benevity’s Social Impact Show on corporate citizenship and CSR, Chris Jarvis, Co-Founder of Realized Worth, observed that corporate citizenship tends to focus more on people and community, while CSR often centers on business practices like sustainability and supply chains.
Janelle St. Omer, former Regional Vice-President at Benevity, echoed that view, describing corporate citizenship as the people-focused actions that “bring individuals together to stand up, make a difference and get involved.”
Despite the difference in intent, both approaches deliver similar benefits, from improved brand trust and stronger employee engagement to long-term business value.
Category
Corporate citizenship
Corporate social responsibility (CSR)
Definition
A company’s role as a responsible member of society, committed to contributing to collective well-being through ethical, people-focused action.
A self-regulating business model that guides companies to operate ethically and balance profit with positive social and environmental outcomes.
Scope
Broader in scope than CSR, encompassing community engagement, philanthropy, employee volunteering and sustainable business practices.
A subset of corporate citizenship focused on environmental, social and governance (ESG) policies and practices across a business.
Focus area
Builds community connection, employee engagement and shared social impact at a grassroots level.
Addresses ESG through structured initiatives.
Primary goal
To contribute meaningfully to society by fostering community well-being and a sense of shared purpose.
To operate responsibly by minimizing harm and addressing social and environmental risks through ethical practices.
Key activities
Includes CSR initiatives like volunteering and giving, with an emphasis on employee-led, people-first programs.
Shares many activities with corporate citizenship, but frames them within formal ESG strategies tied to business performance.
Stakeholder engagement
Centers on engagement with a wide range of stakeholders to create shared value. This includes employees, customers, communities, suppliers and the environment.
Engages primarily with investors, regulators and shareholders through compliance, reporting and oversight.
Measurement
Assessed holistically through both qualitative and quantitative measures, including employee satisfaction, community engagement and broader societal impact.
Uses KPIs and ESG metrics to measure success, though no single standard exists for CSR. Metrics vary by initiative, from emissions and volunteer hours to ethical sourcing. Often, ESG reporting is needed for investors.
Business integration
Often embedded into company culture and employee experience, with a focus on aligning values and day-to-day actions.
Typically implemented through dedicated policies and programs that operate alongside core business functions./td>
Want a better understanding of how corporate citizenship and CSR compare? Watch our episode on CSR vs corporate citizenship for expert insights.
Corporate citizenship unpacked
Corporate citizenship reflects the role a company plays in society beyond profit. It’s a commitment to act ethically and contribute to the well-being of people and the planet. Rather than being limited to standalone programs, it’s embedded in a company’s culture and how it shows up in the world.
As Chris puts it, “How I express my values has to be more than just a program.”
Benefits of corporate citizenship efforts
Adopting corporate citizenship activates your people, scales your impact and embeds purpose into your business. Below are some of the key benefits for business and society.
Improved brand reputation and trust
Corporate citizenship efforts enhance a company’s reputation by showing a genuine commitment to people and the planet. Whether through sustainability efforts, ethical sourcing or community partnerships, values-led actions signal integrity to the outside world.
88% of customers who trust a brand will buy again, and trusted companies can outperform peers by up to 400%. Additionally, employees who trust their employer are 50% less likely to leave.
When companies lead with purpose, they build deeper trust with customers, investors, employees and local communities. That trust becomes a foundation for long-term resilience.
Better employee engagement
A growing number of employees want their work to reflect their values.
Deloitte reports that nearly nine in 10 Gen Z and millennial workers say a sense of purpose is essential to job satisfaction. Similarly, McKinsey found that employees whose purpose aligns with their company’s are more engaged, more productive and more likely to recommend their workplace.
When companies connect work to social impact through initiatives like volunteering and community engagement, employees feel a stronger sense of belonging and motivation. And by investing in meaningful corporate citizenship efforts, you help build workplaces where people feel invested and choose to stay.
Competitive business advantage
Companies that embed corporate citizenship into their strategy often gain a clear edge. For instance, 94% of executives view supply chain sustainability as a competitive advantage, thanks in large part to its critical role in global trade.
People also increasingly choose to work for, buy from and invest in businesses that prioritize their social and environmental impact.
Demonstrating values through action, not just messaging, helps companies attract conscious consumers and mission-focused talent. In addition, it strengthens relationships with partners and investors who prioritize sustainable, ethical practices.
Stronger customer loyalty
Today’s consumers reward brands that align with their values. Corporate citizenship builds that connection by demonstrating authentic engagement with social and environmental issues.
Surveys show most customers will pay more, or stay loyal to, sustainable companies. For example, more than 70% of shoppers say they’re willing to pay more for sustainably produced goods.
By building trust and aligning with customer values, companies that lead with corporate citizenship create deeper emotional connections and stronger brand loyalty and advocacy.
Corporate citizenship examples
Many leading companies are developing corporate citizenship philosophies that redefine how we do business. Here are just a few corporate citizenship examples to inspire you:
Lego prioritizes environmental stewardship and education. Through its partnership with the World Wildlife Fund (WWF), the company works to cut carbon emissions and reduce waste. It has committed to powering factories with renewable energy and supports community projects like building schools.
Ben & Jerry’s integrates social justice into every part of its business. It advocates for climate action, racial equity and fair trade and has maintained B Corp certification since 2012.
Patagonia has restructured to prioritize the planet. In 2022, it transferred all ownership (estimated to be $3 billion USD) and profits (estimated at $100 million USD annually) to climate and nature protection efforts. The company embeds sustainable practices into every aspect of its operations.
Corporate social responsibility unpacked
Back to CSR. This is a business approach that prioritizes ethical operations, environmental sustainability and social accountability. It reflects a company’s commitment to act responsibly.
It shows up through tangible practices like emissions reduction, supply chain ethics, diversity programs and giving strategies that align business goals with broader societal outcomes.
Benefits of CSR
Companies pursuing strong CSR report a host of measurable benefits, from improved brand reputation and market differentiation to increased long-term profitability. Let’s take a closer look.
Stronger brand image
CSR strengthens brand image by showing a company’s values in action. When businesses lead on issues like sustainability and ethical sourcing, they build trust with customers, investors and communities.
Visible CSR efforts help brands stand apart. Done well, they increase goodwill and show stakeholders the company is serious about doing what’s right, instead of just saying it. Over time, these actions contribute to a stronger, more resilient public image.
Employee retention
In a competitive talent market, a company’s commitment to doing good can be the reason top performers choose to stay. Benevity’s own research supports this: nine in 10 CSR leaders say companies that foster a community-oriented culture are more likely to retain and attract talent.
CSR helps companies build cultures where people feel valued and committed for the long term. And when employees see their organization taking action on social and environmental issues, they’re more likely to stay and remain engaged.
Market differentiation
CSR helps companies stand out in a crowded marketplace by demonstrating integrity and long-term thinking. In industries where offerings are similar, CSR can be the reason customers and investors choose one brand over another.
Products with ESG or sustainability claims see 28% cumulative growth, outpacing similar products by nearly 10%. And companies that report on CSR performance, like emissions and sourcing, create a competitive advantage through their credibility.
Long-term profitability
CSR investments can deliver meaningful financial returns. Beyond enhancing brand image and loyalty, responsible practices often lead to cost savings and stronger long-term performance.
Many companies see measurable value in areas like energy efficiency, supply chain resilience and employee retention. Benevity research found that 43% of executives who increased CSR budgets said they did so because their programs delivered clear business ROI, proving that purpose and profitability can go hand in hand.
Examples of CSR
Top companies are integrating CSR into their business practices in impactful ways. Here are some examples:
Chipotle rounds up customer donations through its Round Up for Real Change program and has raised over $17.3 million for local nonprofits. Its “Food with Integrity” initiative also includes ethical sourcing and a 50% GHG reduction goal by 2030.
Danone has committed $22 million through 2029 to improve access to nutritious food and fund nutrition education. Its BeWell program supports employee wellness and its FutureSkills initiative offers global reskilling.
Salesforce follows a 1-1-1 philanthropy model, committing 1% of its equity, 1% of its employees’ time, and 1% of its products to charitable causes. Employees receive seven paid volunteer days annually and up to $10,000 USD in donation matches.
Why corporate citizenship and CSR are better together
Corporate citizenship and CSR are distinct but deeply connected strategies for driving meaningful impact.
Corporate citizenship efforts reflect your company’s values and role in society, while CSR puts those values into action through measurable practices. Together, they help build trust, deepen engagement, and create business value.
From brand reputation to employee retention and long-term profitability, doing good doesn’t need to be separate from doing well. Companies that lead with purpose and back it up with action are better positioned to thrive in a changing world.
But embedding CSR into your company’s DNA isn’t always easy, which is why it’s best to work with a tool like Benevity that helps you drive good and demonstrate your impact. We support an enterprise-wide impact strategy — all through one comprehensive, seamless platform.
.jpg)
