What It Really Means to Be a Good Corporate Citizen

Over the years, I have written hundreds of blogs, but when I searched, I could not find that I had ever specifically written a blog about being a Good citizen. I have written about lots of companies and products that have changed the world but not about the fundamentals for any organisation being a good citizen. Maybe that is because I feel the whole website is about it but I realise this is not very helpful.

Obviously, in my book “Winning by being Good” there is a full chapter on what it means, but in brief, being a Good Citizen is about having a positive impact on the wider world. From paying fair taxes and being a good neighbour to showing care for people in need and rewarding investors

Why Being Good Helps You Make Money

Identifying “who” you want to positively impact and the “how” you do it, in a way that reinforces what makes you a great organisation and your mission, so that “Being good” means you are more successful commercially and in generating money, as well as changing the world for the better. First I want to share this example of a company that is a good citizen and has used it as part of creating their commercial success. Then I will discuss the complexity of being a Good Citizen and how even charities can get it wrong.

TOMS Shoes: A Powerful Example of Integrated Social Impact

In the USA, TOMS Shoes was founded in 2006 with an integrated business strategy: for every pair of shoes purchased, TOMS would donate a pair of shoes to a child in need – One for One®. The name even came from thinking about how shoes can create a better tomorrow, which got shortened to TOMS Shoes. As well as making sense for a shoe company, it also addresses a significant need, as almost a quarter of the world’s population suffers from soil-transmitted infections.

One hundred million pairs of shoes have been donated, protecting children against infections, as well as injury and disease. 106 million total lives positively impacted and $200 million + given in the form of grants and shoe donations since 2006. Many communities reported a drastic decrease in foot disease since the distribution of TOMS Shoes. The reduction is, on average, over 60%. They have also extended what they sell and give. In 2011, they launched TOMS Eyewear, partnering first with the Seva Foundation to expand the One for One® model. Through this partnership, they help provide medical treatment, sight-saving surgery and prescription glasses to those in need. In 2014, they launched TOMS Roasting Co® in conjunction with Water For People. TOMS coffee sales have helped to provide safe living conditions and economic prosperity to developing communities through sustainable water systems. By 2025,it had had an impact on over 106 million lives giving shoes, sight, safe water and impact grants. Working in 95 countries and with 290 nonprofit partners.

“We are committed to dedicating at least one-third of our annual net profits to a giving fund managed by our very own Giving Team. We will then distribute shoes and grants according to an annual investment plan that reflects the needs of our Giving Partners, as well as the causes our community cares most about.”

However they are truly a good citizen as they explain in their 2025 Impact report

“Wildfire Response When Our Hometown Needed Us Most As an LA-based brand, this city isn't just where we work—
 it's home. When devastating wildfires struck our community in January 2025, we didn't hesitate to step up with a $100,000 commitment in cash grants and footwear donations to support local relief efforts”They list the partner organisations they worked with and how they helped from baby supplies to medical and mental health care. They also understand that it is not just about money:

“While funding is crucial, our partnerships 
 go so much deeper than dollars. We build real, lasting relationships that offer continuous support—through volunteering, product donations, and creating connections that outlast any single donation. Because meaningful change requires more than money; it requires showing up, again and again.”

“Community Impact Day On October 16th, we closed every TOMS office worldwide, giving all employees the opportunity to volunteer in their local communities. The results were incredible”

The commercial dynamic

Every TOMS purchase is your superpower in action. When you choose TOMS, you're not just choosing style.
 You're choosing to help change the life of a child. Your trust has empowered us to support incredible Giving Partners, who implement life-changing initiatives that address some of the world's most pressing challenges. But this is just the beginning. Every step you take in TOMS creates ripples of hope, opportunity, and joy that reach far beyond what we can measure. You're part of a global community of changemakers who believe that better tomorrows aren't just possible—they're inevitable when we work together”

See more about TOMS impact here

The Responsible Organisation Charter (ROC©): A Framework for Long‑Term Success

Many of the fundamentals of being a good citizen are fulfilled by adhering to the other principles of the Responsible Organisation Charter© (ROC).

There are 15 elements of the ROC©, which are split into five themes, each with three key elements. These themes are not just theoretical—they represent the main areas that drive an organisation’s long-term success. By focusing on these themes, business leaders can ensure their organisations are not only responsible but also resilient, competitive and inspiring to staff, customers and partners.

• Leadership: Shared values, A clear vision, Action focused
• Culture: Adaptable, Pioneer Learning, Collaborative
• Relationships: Treat staff well, Treat suppliers fairly, Good citizen
• Product Offerings: Life changing, Reliably consistent, Minimising environmental impact
• Financial Success: An identifiable market niche, Innovative Growth, Sustainable profit

The Minimum Standards for Being a Good Corporate Citizen

The first step, which I am taking as a given, is that you obey the laws of the place you are based, though I recognise that even that can be difficult in areas where bribery and corruption are endemic. Paying taxes in the places where you work is also fundamental to being a good citizen.

Similarly, the minimum, within your organisation, is that you treat your staff fairly and they are safe, you are a good neighbour and pay suppliers on time, and do not pollute the environment. You meet required quality standards and provide reliable customer service.

How Your Organisation Creates Social Impact

Being a good citizen is about where you make your social impact; social impact has been defined as:

In terms of social impact, an employer in an area has a significant social impact by just being an employer, as this injects money into the local economy by creating jobs and worthwhile activity for people.

For example, treating staff well and being fair with suppliers is part of being a good citizen, this is more than minimum wage and paying the lowest you can get away with to suppliers. The broader impact is that if you pay staff enough and ensure that they have a good pension, they don’t need state support. Well-paid staff have a positive impact on public-sector demand, and employing local people with spare disposable income supports the local economy, which is one of the most powerful things a company can do: they spend in the local economy, creating more jobs and reducing the burden on statutory services. The reality is that people on benefits, who are not in work, tend to be less healthy, have more accidents, have more social problems, need help with housing, etc., so providing good jobs is an incredibly powerful way of being a good citizen.

Giving staff time to volunteer or take public roles, such as being a councillor, is not only fulfilling for them but is also part of being a good citizen as a company and supporting the local community.

Many charities and organisations that are supposed to do good do not treat their staff well.

Treating suppliers fairly and paying on time are also fundamentals which won’t be compensated for by a few gifts to a charity which supports the people or organisations you are treating unfairly e.g. donating to the Royal Agricultural Benevolent Institution (RABI), a charity dedicated to supporting farmers and their families in times of need offering practical, financial, and emotional assistance to those facing challenges in the agricultural sector, with services include grants for essential living costs, mental health support, and advice on various issues affecting farming families is not enough if you pay below the market rate for farm produce.

The direct impact of poverty and instability on global supply chains also means multinationals can no longer afford to be uninvolved in the well-being of all the communities where they operate.

Choosing Who You Want to Positively Impact — and How

You cannot solve every problem, so you need to decide who you want to impact. Even if what you do is focused on the environment or some other impact other than on people, you still need to be clear about where you will do it geographically so which audience will know about it.

Being a good citizen is to consider on whom you want to have an impact, plus what aligns with your values and ethics. NB you need to rank your values in order of importance (see below).

It makes sense to link how you have an impact with what you do or know, because this will not only maximise your impact but also reinforce your core activities as an organisation, as the TOMS Shoes example illustrates.

Why Good Citizenship Must Be Integrated, Not a Marketing Add‑On

But it will not convince or work either in terms of social impact or helping your organisation to be more successful if you just see it as this year's “marketing strategy”!

Doing good needs to be integral not an add-on which can be forgotten.

How you want to change the world for the better in terms of being a good citizen should relate to how you change the world in terms of what you do to make money or create social impact that attracts funding because it is not then an add-on but integral like the Toms example.

I repeat this is not a marketing stunt.

Practical Ways Organisations Can Be Good Citizens

Many, both inside and outside the private sector, believe that companies have a wider role to play in society. This broader role ranges from being a good neighbour to supporting those in need with corporate giving, both financial and in-kind.

For many people, giving to charity is a sign of a ‘good’ company. I believe it is only a part of Being Good; it can be a crucial element that helps companies be more successful, but a Good Citizen is more than that. And for a small organisation, giving might not be money but expertise or other resources.

There is growing customer demand for socially responsible products and ways of working. You can also be a Good Citizen by allowing time for volunteering and by being active in supporting policy development relevant to your business that improves your sector.

Similarly, minimising environmental impact not only helps the planet, but if it involves buying locally, this supports the local economy. The local multiplier effect, first identified by John Maynard Keynes in his 1936 book The General Theory of Employment, Interest and Money, means that money spent locally is worth almost 400% more to the local economy.

If it also consists of selling products that can be repaired, this helps create more jobs as well as reducing waste.

As well as treating suppliers fairly, which means that they thrive and can employ more people, your relationship can also encourage them to be good citizens and uphold the principles of the ROC©.

Being a good citizen is behaving well in all your relationships with stakeholders, i.e. anyone or any organisation that has a connection to you or you have an impact on, including your investors.

Why it makes sense to be a good citizen

In the era of social media, failure to be a good citizen is a high-risk strategy for any business. While many gamble on the short memories of their customers, governments are also becoming more proactive in several areas, including addressing tax avoidance.

Agree what constitutes being a good citizen for the company, such as the percentage of turnover/profit donated to charity/community; levels of volunteering; numbers of collaborations. Agree who and where this applies and survey critical stakeholders to identify success.

How to Measure Your Organisation’s Good Citizenship

Using the ROC© a maximum score of ten on the ROC© would mean you consider all your stakeholders and proactively find ways to be supportive. Classic examples include donations to charity, staff volunteering schemes, and involvement in industry and relevant public bodies. A low score would indicate an organisation that is inward-looking and has a default position of no to requests from the outside.

A good question to ask to help you score your organisation is

"What have we done in the last 12 months that has had a positive impact on the world?"

Why Ranking Your Values Is Essential for Responsible Decision‑Making

If you do not have ranked values then before you do anything else read the blog listed below to understand why it is critical to your success not only as a good citizen. The other blog includes a great anecdote about the start of FedEx and illustrates ranked values in action.

Why you need to rank your values to radically change your business

Are shared values either realistic or achievable?

Using the ROC© to Strengthen Culture, Relationships and Impact

My book Winning by being Good is focused on helping anybody or organisation to be successful both in terms of changing the world and being financially successful. It uses the Responsible Organisation Charter © (ROC) as the tool that people can use to identify what they need to do. The ROC© provides a practical framework for guiding decision-making, allowing business leaders to assess how their organisation aligns with responsible practices and target areas for improvement. To start using the ROC©, leaders can review the fifteen elements and consider how their organisation performs in each area, identify gaps, and set specific goals to strengthen their culture, relationships and impact. By using the ROC© as a checklist, businesses can take immediate steps to embed responsible practices and track their progress over time.