Corporate Citizenship: Creating Intangible Assets Across Institutional Environments

Abstract

We argue that citizenship programs are strategic investments comparable to R&D and advertising. They can create intangible assets that help companies overcome nationalistic barriers, facilitate globalization, and outcompete local rivals. Program content selection reflects a balance between legitimation and differentiation, and choices are influenced both by local institutional environments that shape expectations of corporate commitment to citizenship and by the degree of customization required because of institutional distance. Citizenship profiles therefore enable the sociocognitive integration that global companies require to operate effectively across diverse local markets.