This document comprises a progress report on the 1987-88 activities of Corporate/Community Schools of America (C/CSA), a not-for-profit coalition of business executives, concerned educators, and community leaders working to reform urban public education by setting standards for higher quality and by demonstrating successful instructional methods and sound school management principles that can be replicated in inner-city public schools nationwide. C/CSA establishes and operates business-sponsored elementary schools grounded in sound research, successful teaching methods, and "market-driven" innovations. The following highlights of 1987-88 activities are outlined: (1) hiring a principal for the first model school; (2) assembling an advisory board; (3) reviewing the histories of model schools and incorporating effective elements into planning; and (4) developing criteria for effective school reform in Chicago and beginning to work with leaders to promote that vision. A chart illustrates original objectives and results achieved. The following objectives for 1988-89 are outlined: (1) open the Chicago model school and make significant progress in fulfilling the school's mission; (2) continue to establish strong ties with leaders in Chicago to assure that methods demonstrated are adopted by public schools; (3) expand national advisory board membership to establish C/CSA programs in at least one other city; and (4) secure the pledges needed to meet the 3-year funding target. A summary of expenditures, cash flow, and future funding is illustrated with statistical data on two graphs and two tables. The appendices comprise the following material: (1) background material on principal selection, a corporate education partnership study, a model school study, and involvement in reform activity; (2) lists of investors, personal contributors, and endorsements; and (3) a description of the organization and board structure. (FMW)