How does corporate citizenship contribute to long-run investor loyalty? Why is investor loyalty so important to a company`s long-term stability?

CORPORATE CITIZENSHIP

INTRODUCTION

This describes the contribution of a company to all aspects of the community , with a view of adding values to the structure and life in them . It incorporates programs which include charity , giving , donations community projects , employee volunteer services , within the limit of their available resources

INVESTOR LOYALTY AND COMPANY STABILITY

Corporate social responsibility contributes immensely to the improvements of the community they serve . It improves employee working environment and relationships . This builds a viable company with diverse groups of people ready to invest their knowledge

, experience , and other resources into creating an enabling pliable community that would be receptive of its products and or services . Its overall benefits are enormous extend to all cadres of community and company

Corporate citizenship is a foundation that makes the building of a credible market easier . It indeed creates an extensive advertising circle among the community members that have enjoyed of the services offered by the company . A good citizen company therefore has a good societal record which stimulates and sustains a back-flow . This back-flow is the reaction of some members of the larger society to invest in such gestures , especially when they accept such values , and are ready to pay the price to achieve its overall all-encompassing results . It has been shown convincingly that investor loyalty to such `good citizen ' companies increase , and are sustained over time

CONCLUSION

With effective contribution to the society and promotion of fruitful relationship between company and community members , increased employee responsibility and loyalty , heightened investor trust in the viability the stability of the company is ascertained . Its persistent customer patronage also makes the company stable , even in the face of economic upheavals and instability

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