Although the literature on corporate citizenship (sometimes referred to as corporate social responsibility—CSR) is extensive and contains many subtle distinctions, it can be divided among four highly stylized models: (1) minimalist, (2) philanthropic, (3) encompassing, and (4) social activist conceptions of corporate citizenship. These four models differ both in terms of the supposed beneficiaries of corporate action (shareholders vs. broader societal stakeholders) and in the motivation behind these actions (instrumental vs. moral/ethical).

The more traditional or minimalist conception of corporate citizenship was perhaps best articulated by the economist Milton Friedman. According to Friedman, "the social responsibility of business is to increase the wealth of its shareholders" (1970). In other words, the sole responsibility of business is to those who have invested capital in the company. By maintaining a singular focus on wealth creation, businesses will promote efficiency and achieve optimal economic performance, which in this view is the ultimate good that a business can do for society. Of course, corporations should not violate laws or engage in any irregular activities that could harm the wealth of shareholders, but any attempt to incorporate social goals into core business activities will, according to this conception, lead to inefficiencies. Moreover, given that most managers do not have expertise in the area of social responsibility, engaging in these activities will simply distract them from their primary fiduciary responsibility, which is to protect and promote shareholder wealth.

The philanthropic model is an extension of this traditional view. Although it, too, is concerned primarily with the optimization of efficiency and shareholder wealth, it