CSR Models

INTRODUCTION
With the continuous changes that are happening in the business world, we
cannot ignore the fact that every corporation has a different style and approach on how
to safeguard their business in an industry full of competition and competitors. Are there
different tools and models that help the business with their everyday operation? How do
these tools and models affect the business?
Friedman Model
What is social responsibility? According to Friedman, a corporate’s responsibility
is to make as much profit for the stockholders as much as possible (Coleman, 2013).
Milton Friedman argued that there is one and only social responsibility of business and
that is to use its resources and engage in different activities that will increase its profits
while conforming to the rules of the society, both in law and in ethical customs
(Friedman, 1962; Zimmerli, 2007).
Ackerman Model
More than a model, Ackerman’s model was a strategy that guided the
implementation of CSR activities, but not their formulation (Kanji & Agrawal, 2016). It
was laid down in three phases. The first phase was about top managers recognizing the
most common problem (Kanji & Agrawal, 2016). The second was an intensive study of
the problem by hiring and getting their suggestions (Ramaswaamy, 2013). And the last
phase was the implementation of the proposed solutions (Kanji & Agrawal, 2016).
Elkington’s Triple Bottom Line Model

Businesses should make a difference to the world in which we live (Fisk, 2010).
The “triple bottom line” term was first coined by John Elkington in 1994 and eventually
take off in mid 1990s (Elkington, 1997). It has become modus operandi for businesses
whether large or small that want to do more than just making profits (Cote, 2016). Triple
bottom line is an accounting framework with three dimensions of performance namely
social, environmental and financial (Slaper & Hall, 2011).
Carroll Model
According to Carroll (1991), social responsibility can only become reality if more
managers become moral instead of amoral or immoral. And for this, Carroll organized
different corporate social responsibilities as a four-layered pyramid model which is
known as the pyramid of responsibilities (Guliyev, 2014). Economic responsibilities
pertain to the maximization of the stakeholders’ wealth and/or value (Carroll, 2012).
Legal responsibilities mean abiding by all laws or government regulations (Carroll,
2012). Ethical responsibilities, on the other hand, mean following the standards of
acceptable behavior as judged by stakeholders (Carroll, 2012). And lastly, Philanthropic
responsibilities pertain to giving back to the society (Carroll, 2012).
Environment, Integrity and Community Model
Environment, integrity and community health model was developed by Redman
(Ramaswaamy, 2013). This model was adopted by different corporations in the United
States (Ramaswaamy, 2013). This model argues that corporate contribution towards
environmental integrity will create greater expansion opportunities for the firm
(Ramaswaamy, 2013).
Corporate Citizenship Model
Corporate citizenship means the social role of the business (Matten & Crane,
2003). Mirvis and Googins have identified five stages of corporate citizenship namely
elementary, engaged, innovative, integrated and transforming which represents distinct
patterns of activity at different points of development (Basu, 2017).
Stockholders and Stakeholders Model
Stockholders theory was originally proposed by Milton Freidman and it states that
the sole responsibility of business is to increase profits (Friedman, 1962). Meanwhile,
stakeholders model states that a company owes a responsibility to a wider group of
stakeholders, other than stockholders (Admin, 2013).
New Models of CSR and Company Models
With the continuous growth of CSR nowadays, there are also lots of people who
research about new models of CSR for the improvement of the company. One example
is the Catch-22 described by Morsing, Schultz and Nielsen in 2008 in which they
describe the expert and endorsed communication processes of CSR (Spoeltra, 2015).
CONCLUSION
To cope up with the ever changing business world, businesses have been relying
on different tools and models to safeguard their position in the industry. These tools and
models act as guidelines to help the business in achieving its objectives, goals, mission
and vision. And due to the fact that change is a constant thing, a lot of groups are still
devising new models that will aid to the betterment of the business.
References
Books
Carroll, A. (2012). Corporate Social Responsibility: The American Experience.

Cambridge: Cambridge University Press.
Elkington, J. (1997). Cannibals with forks – The triple bottom line of 21st century
business. Oxford: Capstone Publishing Ltd.
Fisk, P. (2010). People Planet Profit: How to Embrace Sustainability for Innovation and
Business Growth. London: Kogan Page.
Friedman, M. (1962). Capitalism and Freedom. Chicago: The University of Chicago

Press.
Zimmerli, W. (2007). Corporate Ethics and Corporate Governance. Berlin: Springer

Science+Business Media.
Journals
Carroll, A. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral
Management of Organizational Stakeholders. Business Horizons, 39-41.
Kanji, R. & Agrawal, R. (2016). Models of Corporate Social Responsibility: Comparison,

Evolution and Convergence. Indian Institute of Management Kozhikode, 143.
Matten, D. & Crane, A. (2003). Corporate Citizenship: Towards an extended theoretical

conceptualization. Nottingham University Business School, 1.
Online
Admin, C. (2013). Shareholder & Stakeholder Theories of Corporate Governance.

Retrieved on May 12, 2018. Retrieved from http://www.corplaw.ie.
Basu, C. (2017). Stages of Corporate Citizenship. Retrieved on May 12, 2018.

Retrieved from https://bizfluent.com.
Coleman, T. (2013). Corporate Social Responsibility: Friedman’s View. Retrieved on

May 12, 2018. Retrieved from https://bfi.uchicago.edu.
Cote, J. (2016). People, Planet, Profit: Satisfying the Triple Bottom Line. Retrieved on
May 12, 2018. Retrieved from https://www.snhu.edu.
Guliyev, S. (2014). Carroll’s Pyramid of Corporate Social Responsibility. Retrieved on

May 12, 2018. Retrieved from https://www.linkedin.com.
Ramaswaamy, M. (2013). Corporate Social Responsibility. Retrieved on May 12, 2018.
Retrieved from https://www.slideshare.net/madangkiramaswaamy/bgs-7.
Slaper, T. & Hall, T. (2011). The Triple Bottom Line: What is it and How does it work?
Retrieved on May 12, 2018. Retrieved from http://www.ibrc.indiana.edu.
A Research on Good Governance and Corporate Social Responsibility
A Written Output
Presented to the
College of Accountancy
Polytechnic University of the Philippines – Taguig
Taguig City, Metro Manila
In Partial Fulfillment
of the Requirements for the Degree of
Accountancy
AQUINO, MAE ANGELINE E.
May 2018

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What are the different models of corporate social responsibility discussed in the document?

What are the different models of corporate social responsibility discussed in the document?

What are the key components of Carroll's pyramid of corporate social responsibilities model?

What are the key components of Carroll's pyramid of corporate social responsibilities model?

INTRODUCTION

these tools and models affect the business?

What is social responsibility? According to Friedman, a corporate’s responsibility

(Friedman, 1962; Zimmerli, 2007).

Elkington’s Triple Bottom Line Model

bottom line is an accounting framework with three dimensions of performance namely

social, environmental and financial (Slaper & Hall, 2011).

different corporate social responsibilities as a four-layered pyramid model which is

known as the pyramid of responsibilities (Guliyev, 2014). Economic responsibilities

Legal responsibilities mean abiding by all laws or government regulations (Carroll,

acceptable behavior as judged by stakeholders (Carroll, 2012). And lastly, Philanthropic

responsibilities pertain to giving back to the society (Carroll, 2012).

Environment, Integrity and Community Model

Environment, integrity and community health model was developed by Redman

elementary, engaged, innovative, integrated and transforming which represents distinct

patterns of activity at different points of development (Basu, 2017).

Stockholders and Stakeholders Model

the sole responsibility of business is to increase profits (Friedman, 1962). Meanwhile,

stakeholders model states that a company owes a responsibility to a wider group of

stakeholders, other than stockholders (Admin, 2013).

New Models of CSR and Company Models

Carroll, A. (2012). Corporate Social Responsibility: The American Experience.

Friedman, M. (1962). Capitalism and Freedom. Chicago: The University of Chicago

Zimmerli, W. (2007). Corporate Ethics and Corporate Governance. Berlin: Springer

Kanji, R. & Agrawal, R. (2016). Models of Corporate Social Responsibility: Comparison,

Matten, D. & Crane, A. (2003). Corporate Citizenship: Towards an extended theoretical

Admin, C. (2013). Shareholder & Stakeholder Theories of Corporate Governance.

Basu, C. (2017). Stages of Corporate Citizenship. Retrieved on May 12, 2018.

Coleman, T. (2013). Corporate Social Responsibility: Friedman’s View. Retrieved on

Guliyev, S. (2014). Carroll’s Pyramid of Corporate Social Responsibility. Retrieved on

AQUINO, MAE ANGELINE E.

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