Institutionalising corporate citizenship: The case of Barloworld and its 'Employee Value Creation' process

Abstract

This article investigates the institutionalisation of corporate citizenship (CC) at Barloworld Limited, a diversified industrial enterprise. It describes a model that relates corporate identity, stakeholder engagement, internal structure and accountability and applies this model to a case study of Barloworld. The case study illustrates the importance of the company's corporate identity, or guiding philosophy, and its impact on organisational culture and management processes. The company's 'Employee Value Creation' strategy has comprehensively overhauled employee relations to achieve a high degree of employee commitment and participation. It institutionalises CC by integrating social or environmental issues into the organisation 'from below' and by helping employees understand why such issues matter to the organisation and are relevant to employees' responsibilities. Whereas the relevant literature emphasises the possible role of CC in creating employee commitment, this case study illustrates the reverse possibility: that employee commitment can be a catalyst for integrating CC into a company. © 2006 Development Bank of Southern Africa.