MICHAEL LEE-CHIN FAMILY INSTITUTE FOR CORPORATE CITIZENSHIP
Creating
a Definition Project for Business Leadership
AIC Definition Detailed View
Definition
The notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law and union contract. Two facets of this definition are critical. First, the obligation must be voluntarily adopted; behaviour influenced by the coercive forces of law or union contract is not voluntary. Second, the obligation is a broad one, extending beyond the traditional duty to shareholders to other societal groups, such as customers, employees, suppliers, and neighbouring communities.