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Good Corporate Citizenship and Political Competence

Senior executives from a variety of organizations are often called to testify about health policy issues (as you saw in unit 3's group project about the U.S. congressional hearing). It is in the organization's best interest if these executives are both politically competent and good corporate citizens.

1. In general terms, what knowledge, skills, and individual behaviors must an executive have to be politically competent and to be good corporate citizens?

2.Think about Marilyn Moon who was a witness at the U.S. congressional hearing. did she demonstrate political competence?

3. Think about a healthcare organization's corporate citizenship. How would you describe it (e.g., "good," average or poor) ? what did the organization do (or not do) to achieve this level of corporate citizenship?

Solution Preview

Please see attached response (also presented below). Briefly, by definition, CORPORATE CITIZENSHIP is the "the extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders" (

Investopedia Says:

"As demand for socially responsible corporations increases, investors, consumers and employees are now more willing to use their individual power to punish companies that do not share their values. For example, investors who find out about a company's negative corporate citizenship practices could boycott its products or services, refuse to invest in its stock or speak out against that company among family and friends" (

The example below illustrates "good corporate citizenship: at work in an organization, which is part of the response for #3, some of which in the attached response (also downloaded below).

EXAMPLE:Novartis (excerpt)

How does it work?

For a company to be successful, it is essential that its relationship with the communities it serves be based on trust
and good will. Communities do recognize when companies take responsibility for their actions and when they practice
good corporate citizenship. Communities - patient or interest groups, or investors, to name a few - reward these efforts
with their trust. A strong corporate citizenship program thus reduces business risks, provides a competitive advantage
when entering or operating in emerging markets, and increases access to products.

At Novartis, we put an absolute premium on ethical business conduct and fair dealing. Our credibility provides assurance
for those who regulate and invest in our industry, helping us to finance the costs of pharmaceutical development and
to run our corporate citizenship programs.

Good corporate citizenship also reduces the cost side of the ledger. For example, efficient use of natural resources, such as
energy, and waste reduction will lower manufacturing costs and mitigate environmental risks - along with the associated
legal, insurance and financial expenses. Meanwhile, the community surrounding the manufacturing plant benefits.
Maintaining the support of society facilitates innovation and growth, as it helps us to communicate the benefits of
our products and to overcome

How we manage corporate citizenship?

'We do everything we can to operate in a manner that is sustainable: economically, socially, and environmentally -
in the best interest of long-term success for our enterprise.'

This is the opening sentence of our Corporate Citizenship Policy adopted in 2001. The policy is based on the fundamental rights of every individual, such as the protection of privacy, freedom of opinion and expression, freedom of association and non-discrimination. The policy reflects the 10 principles of the UN Global Compact. Our Corporate Citizenship Policy is ...

Solution Summary

This solution overviews the knowledge, skills, and individual behaviors that demonstrates that an executive is politically competent and a good corporate citizens. It analyzes if Marilyn Moon who was a witness at the U.S. congressional hearing demonstrated political competence. By example, this solution explores the healthcare organization's corporate citizenship (e.g., "good," average or poor), and what the organization did to achieve this level of corporate citizenship.