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CSR (Pyramid & TBL)

The document discusses definitions of corporate social responsibility (CSR) including that it is a management concept where companies integrate social and environmental concerns into their business operations and interactions with stakeholders. It also outlines Carroll's four-part pyramid model of CSR which categorizes a company's responsibilities as economic, legal, ethical, and philanthropic.

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Aarya Khopkar
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40 views9 pages

CSR (Pyramid & TBL)

The document discusses definitions of corporate social responsibility (CSR) including that it is a management concept where companies integrate social and environmental concerns into their business operations and interactions with stakeholders. It also outlines Carroll's four-part pyramid model of CSR which categorizes a company's responsibilities as economic, legal, ethical, and philanthropic.

Uploaded by

Aarya Khopkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CORPORATE

SOCIAL
RESPONSIBILITY
Dr. Shruti Vijay Vaghela
UNDERSTANDING CSR

• Corporate Social Responsibility can be explained as:


Corporate - means organized business
Social - means everything dealing with the people
Responsibility - means accountability between the two
There is no single commonly accepted definition of corporate social responsibility.

• CSR “is a management concept whereby companies integrate social and environmental
concerns in their business operations and interactions with their stakeholders”.

• CSR is a process by which an organization thinks about and evolves its relationships with
stakeholders for the common good and demonstrates its commitment in this regard by adoption
of appropriate business processes and strategies. Thus, CSR is no charity or mere donations.
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DEFINITIONS OF CSR
• According to Browin H.R., social responsibility is defined as ―the obligation of businessmen to
pursue those policies, to make those decisions, or to follow those lines of action which are
desirable in terms of objectives and values of society.

• The World Business Council for Sustainable Development has proposed a definition of
Corporate Social Responsibility as: Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute to the economic development
while improving the quality of life of the workforce and their families as well as of the local
community and the society at large.

• CSR has been defined as the continuing commitment by business to behave fairly and
responsibly and contribute to economic development while improving the quality of life of the
workforce and their families as well as the local community and society at large.
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Carroll’s Four-Part Definition of CSR

• In 1991, Carroll first presented his CSR model as a pyramid.

• Carroll' CSR Pyramid is a simple framework that helps to understand as to how and why
organizations should meet their social responsibilities.

• It was suggested that, although the components are not exclusive, it “helps the manager to see
that the different types of obligations are in a constant tension with one another.”

• The pyramid was developed by Archie Carroll and highlights the four main responsibilities of
the organization as Economic, Legal, Ethical and Philanthropic.

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Carroll' CSR Pyramid

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Carroll' CSR Pyramid
• The Carroll's CSR Pyramid comprise of following responsibilities:

1. Economic Responsibility: (REQUIRED)


• CSR is built on the foundation of profit. Therefore, profit must come first.
• Firm has a responsibility to use the resources available to produce goods and services for society.
• Examples: Generating a high and consistent level of profitability, establishing and maintaining a strong
competitive position, operating the firm at a high efficiency level.

2. Legal Responsibility: (REQUIRED)


• Business to ensure it complies with applicable laws & regulations.
• The laws and regulations that all firms are expected to follow as they perform their daily functions.
• Examples: Operating consistent with government and legal expectations; displaying complete
compliance with all regulations.
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Carroll' CSR Pyramid

3. Ethical Responsibility: (EXPECTED)


• Before a business considers its philanthropic options, it also needs to meet its ethical duties.
• It Changes over time because they are based on expectations of society.
• Examples: Meeting expectations of both social and ethical standards; ability to adapt to new or
developing ethical and moral standards; Avoid Harm.

4. Philanthropic Responsibility: (EXPECTED/ DESIRED)


• Those responsibilities in which society does not have a clear message to present to businesses as to
what their courses of action should be.
• Be a good corporate citizen and contribute towards the society.
• Examples: Giving to charitable organizations; providing drug treatment programs; providing day care
centers.
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Take Away from Carroll’s Pyramid of Corporate
Social Responsibility
• If the company does not fulfill its economic responsibilities and not generate enough profits, it directly
affects the employees and owners of the company.

• Legal set of responsibilities are quite important and vital for the business to survive within the
ecosystem, but they also have a relationship with the employees, customers, and other stakeholders of
the company.

• Ethical responsibilities frequently engage with the customers and employees, but they impact the other
stakeholders of the firm.

• Philanthropic responsibilities influence the morale of the employees, enhance the brand value, and have
a major impact on the community.
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