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Joseph Ezenwa Joseph EzenwaManaging ConsultantPublished Mar 8, 2021 Corporate Social Responsibility(CSR) is one of the tools used by organizations today to build their corporate image or reputation. CSR is one of the chapters in my book entitled Contemporary Business Strategies and Models.The definition of the concept of corporate social responsibility most frequently used was developed by Archure B.Carroll in the late '80s and 90s.The definition has four parts ie economic, ethica,legal and philanthropic aspects.CSR is defined as operating a business in a manner that exceeds the ethical,legal,commercial and public expectations that society has of business.(CSR) essentially, does not only emphasize on philanthropic responsibilities. It has ethical ,legal and economic components. The foundation of the pyramid is economic responsibilities. This is where all others that is philanthropic , ethical and legal responsibilities rest upon. Organizations are expected to meet philanthropic, ethical and legal responsibilities before they talk about profitability which is where economic responsibilities lay major emphasis. Economic responsibilities Historically, business organizations were created as economic entities designed to provide goods and services to societal members. The profit motive was established as the primary incentive for entrepreneurship. Before it was anything else, the business organization was the basic economic unit in our society. As such, its principal role was to produce goods and services that consumers needed and wanted and to make an acceptable profit in the process. At some point the idea of the profit motive got transformed into a notion of maximum profits, and this has been an enduring value ever since. All other business responsibilities are predicated upon the economic responsibility of the firm, because without it the others become moot consideration. Legal Responsibilities Society has not only sanctioned business to operate according to the profit motive; at the same time business is expected to comply with the laws and regulations promulgated by federal, state, and local governments as the ground ailes under which business must operate. As a partial fulfillment of the "social contract" between business and society, firms are expected to pursue their economic missions within the framework of the law. Legal responsibilities reflect a view of "codified ethics" in the sense that they embody basic notions of fair operations as established by our lawmakers. They are depicted as the next layer on the pyramid to portray their historical development, but they are appropriately seen as coexisting with economic responsibilities as fundamental precepts of the free enterprise system. Ethical Responsibilities Although economic and legal responsibilities embody ethical norms about fairness and justice, ethical responsibilities embrace those activities and practices that are expected or prohibited by societal members even though they are not codified into law. Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for what consumers, employees, shareholders, and the community regard as fair, just, or in keeping with the respect or protection of stakeholders' moral rights. In one sense, changing ethics or values precede the establishment of law because they become the driving force behind the very creation of laws or regulations. For example, the environmental, civil rights, and consumer movements reflected basic alterations in societal values and thus may be seen as ethical bellwethers foreshadowing and resulting in the later legislation. In another sense, ethical responsibilities may be seen as embracing newly emerging values and norms society expects business to meet, even though such values and norms may reflect a higher standard of performance than that currently required by law. Ethical responsibilities in this sense are often ill-defined or continually under public debate as to their legitimacy, and thus are frequently difficult for business to deal with. Superimposed on these ethical expectations emanating from societal groups are the implied levels of ethical performance suggested by a consideration of the great ethical principles of moral philosophy. This would include such principles as justice, rights, and utilitarianism. The business ethics movement of the past decade has firmly established an ethical responsibility as a legitimate CSR component. Though it is depicted as the next layer of the CSR pyramid, it must be constantly recognized that it is in dynamic interplay with the legal responsibility category. That is, it is constantly pushing the legal responsibility category to broaden or expand while at the same time placing ever higher expectations on businesspersons to operate at levels above that required by law. Philanthropic Responsibilities Philanthropy encompasses those corporate actions that are in response to society's expectation that businesses be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill. Examples of philanthropy include business contributions of financial resources or executive time, such as contributions to the arts, education, or the community. A loaned-executive program that provides leadership for a community's United Way campaign is one illustration of philanthropy. The distinguishing feature in between philanthropic and ethical responsibilities is that the former are not expected in an ethical or moral sense. Communities desire firms to contribute their money, facilities, and employee time to humanitarian programs or purposes, but they do not regard the firms as unethical if they do not provide the desired level. Therefore, philanthropy is more discretionary or voluntary on the part of businesses even though there is always the societal expectation that businesses provide it. One notable reason for making the distinction between philanthropic and ethical responsibilities is that some firms feel they are being socially responsible if they are just good citizens in the community. This distinction brings home the vital point that CSR includes philanthropic contributions but is not limited to them. In fact, it would be argued here that philanthropy is highly desired and prized but actually less important than the other three categories of social responsibility. In a sense, philanthropy is icing on the cake—or on the pyramid, using our metaphor.
Others also viewedExplore topicsWhat are the 4 responsibilities of a firm as outlined in the Pyramid of CSR model?Carroll's pyramid imposes a four-part definition of CSR, which is: To be socially responsible a business must meet economic, legal, ethical, and philanthropic expectations given by society at a given point in time. Carroll's pyramid rates the importance of each CSR dimension.
What is the Pyramid of social responsibility?Created in 1979 by Archie Carroll, the pyramid of corporate social responsibility includes four layers of responsibilities that a business can strive for and achieve in order to integrate ethics and sustainability into their business models. What are the 3 P's? People, planet, profit.
What are the 4 types of social responsibility quizlet?1. Social responsibility categories—economic, legal, ethical, and discretionary (philanthropic).
When did the 4 levels of corporate social responsibility organized?The four-part definition of CSR was originally published in 1979. In 1991, Carroll extracted the four-part definition and recast it in the form of a CSR pyramid.
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