Human Resources: IN DEPTH OF RECESSION, AMERICAN BUSINESSES CONFIRM VALUE OF CORPORATE CITIZENSHIP

WASHINGTON, DC (SEPTEMBER 23, 2009) The 2009 State of Corporate
Citizenship survey results reveal that, despite the recession, corporate
citizenship practices are ingrained in increasing numbers of American
businesses. Many business leaders report that attention to corporate
citizenship efforts is more important in a recession. As in the 2007 survey,
the most recent data show that attitudes of support for corporate
citizenship are strong but there remain some gaps between those beliefs and
the practices and investments of some businesses.

³As we¹ve been flooded by announcements of business cutbacks and misconduct
over these past months, trust in business dropped. Many members of the
public have undoubtedly wondered if some corporations should have their
citizenship curtailed or revoked,² commented Barbara Dyer, President and CEO
of The Hitachi Foundation. ³This survey shows that business leaders
understand that corporate citizenship entails great responsibilities as well
as extensive rights. Most are diligently working and investing toward
improving their efforts to more fully meet these responsibilities.²

Chris Pinney, Director of Research and Policy at the Boston College Center
for Corporate Citizenship, added that, ³Corporate citizenship is weathering
the storm. Despite the economic downturn, the value of corporate citizenship
is growing as companies realize greater reputational advantage. The survey
also reveals companies are more committed to communicating about their
efforts related to social issues and concern for the environment.²

Weathering the Storm: The State of Corporate Citizenship in the United
States 2009 is a joint project of the Boston College Center and The Hitachi
Foundation. It is the only research of its kind to provide a comprehensive
overview of small, medium, and large-sized U.S. businesses.
Highlights of the survey, available at
http://rosenbergcommunications.com/projects/thf/socc2009.html, include:

- Despite upheaval in the economy, a majority of U.S. companies are not
making major changes in their corporate citizenship practices. Of those who
made changes 38% reduced philanthropy/giving, 27% increased layoffs, and 19%
reduced R&D for sustainable products.

- Most U.S. senior executives believe business should be more involved than
it is today in addressing major public issues including health care, product
safety, education, and climate change. Surveyed in June, just as the
national debate on health care began to intensify, some 65 percent said
business should increase its involvement in this issue.

- Reputation was cited by 70% as a driver for corporate citizenship, tied
for the top spot with ³it fits our company traditions and values.²

- The citizenship response during the recession differed between larger and
smaller companies. Large companies significantly increased their investments
and involvement in citizenship activities, but were more likely to impose
layoffs. Small firms stayed committed to their emphasis on treating
employees well by minimizing layoffs. But they significantly decreased
attention to other aspects of citizenship.

- Based on current economic conditions, 15% of companies are increasing R&D
for new sustainable products; 11% are increasing corporate citizenship
marketing and communications; and 10% are increasing local and/or domestic
sourcing or manufacturing.

- Half of the businesses are supporting skill development for employees
making less than $40,000 annually and see these efforts as boosting
productivity.

- Only 34 percent of executives who responded to the survey say greater
regulatory oversight by the federal government is an important part of
solving the current economic crisis and creating a more stable economy.

Conducted by GlobeScan between June 4 and June 23 of this year, the survey
queried 756 executives, 36% of whom were at small businesses (1-99
employees), 24% at medium (100-999), and 40% at large companies (1000 +
employees). The biennial survey was first conducted in 2003.

The Hitachi Foundation was established as an independent nonprofit
philanthropic organization by Hitachi, Ltd. in 1985. Governed by a Board of
Directors composed of highly accomplished Americans, the Foundation seeks to
discover and expand business practices that create tangible and enduring
economic opportunities for low-wealth Americans, their families, and the
communities in which they reside.

The Boston College Center for Corporate Citizenship is a membership-based
research organization associated with the Carroll School of Management. It
is committed to helping business leverage its social, economic and human
assets to ensure both its success and a more just and sustainable world. As
a leading resource on corporate citizenship, the Center works with global
corporations to help them define, plan, and operationalize their corporate
citizenship. Through the insights of its 350 corporate members, the Center
creates knowledge, value, and demand for corporate citizenship.