Corporate Citizenship and Governance of Firms in India

Corporations have taken a step ahead in contemporary times endorsing ‘Corporate Citizenship’ for positive impact within organizations and society. In departure to the classic definition of organizations just being profit-maximizing bodies exercising powers granted to it for the interests of the shareholders; business organizations in the twenty first century have assumed a prodigious role of ‘a legal construct that needs to be economically competitive as well as socially responsible’. The ambit of Corporate Citizenship is more than social responsibility. Corporations cannot ignore global issues which increasingly impact business, and choosing not to engage with communities can hurt the bottom line which may impact businesses. Organizations are required today to also protect their employees, engage them as ambassadors in company's citizenship efforts, without which good governance in corporations remains unfulfilled.