- Carroll's pyramid suggests that corporate has to fulfil responsibility at four levels – Economic, Legal, Ethical and Philanthropic.
- The lowest level of the pyramid represents a business's first responsibility, which is to be profitable.
- The second level of the pyramid is the business's legal obligation to obey the law.
What is Carroll’s Pyramid of corporate social responsibility?
Carroll has proposed a CSR concept, Carroll’s Pyramid of Corporate Social Responsibility, which states the organizations four business responsibilities – (i) economic, (ii) Legal, (iii) Ethical, and (iv) Discretionary (philanthropic). These four components are complementary to each other (not mutually exclusive).
How many responsibilities does Carroll list in order of priority?
Carroll lists these four responsibilities in order of priority. Which of the following does Carroll note has the highest priority? Economic Dr. Milton Friedman's traditional views of business responsibility include all of the following EXCEPT ____________.
What is Archie Carroll’s CSR pyramid?
Carroll’s CSR pyramid is a framework that explains how and why organisations should take social responsibility. The pyramid was developed by Archie Carroll and highlights the four most important types of responsibility of organisations.
Who is Carroll Carroll?
Carroll is a Fellow of the Academy of Management, International Association for Business and Society, and Southern Management Association. He received the Lifetime Achievement Award in Corporate Social Responsibility in 2012, given by Humboldt University, Berlin. He received his BS, MBA, and PhD degrees in Management from Florida State University.
How many types of responsibilities are under Carroll's model?
four levelsAccording to the theory, in order to achieve this, companies must fulfil their responsibilities at four levels: Economic, Legal, Ethical, and Philanthropic.
How many components are there in Carrolls CSR Pyramid?
In short, the four-part definition of corporate social responsibility (CSR) and Carroll's CSR pyramid offer a conceptual framework for organisations that consists of the economic, legal, ethical, and philanthropic or discretionary responsibility.
Which two of Carroll's 4 responsibilities of a business are social responsibilities?
Carroll's four part definition of CSR was originally stated as follows: “Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time” (Carroll 1979, 1991).
How many models are there in Carrolls model?
The authors critiqued Carroll's pyramid as he found that it was insufficient to address the relationship between the four components, it considers philanthropy separately and was theoretically underdeveloped. The three-domain model consists of only three categories; economic, legal and ethical.
What are the 4 types of corporate responsibility?
Corporate social responsibility is traditionally broken into four categories: environmental, philanthropic, ethical, and economic responsibility.
What are the 4 four four dimension of CSR?
Carroll's four dimensions are: economical, legal, ethical, and philanthropic responsibilities, as illustrated in Figure 1 for Carroll's classic social responsibility model.
What are the four components of Carroll's CSR pyramid?
Organizations should engage on all four levels of Carroll's pyramid of corporate social responsibilityEconomic responsibilities. At the most basic level, organizations need to create profit through growth. ... Legal responsibilities. ... Ethical responsibilities. ... Philanthropic responsibilities.
What are the four levels of social responsibility quizlet?
Terms in this set (32) Corporate Social Responsibility is the idea that corporations have a responsibility to society, not just to making a profit. Carroll's four levels are: economic, legal, ethical, and philanthropic.
What are the responsibilities contained in Carroll's pyramid?
The pyramid was developed by Archie Carroll and highlights on the four main responsibilities of the organization, namely, Economic, Legal, Ethical, and Discretionary or Philanthropic.
What are the 3 models of CSR?
Milton Friedman's statement that management is to make as much money as possible within the limits of the law and ethical custom embraces three components of the CSR pyramid—economic, legal, and ethical.
What are the 3 corporate social responsibility?
For a comprehensive CSR strategy, businesses should make multiple commitments that address all branches of corporate social responsibility: environmental, social, and supply chain/sourcing.
What are the 3 essence of CSR?
It is therefore imperative to be able to identify such activity and we take the view that there are three basic principles which together comprise all CSR activity. These are: Sustainability; • Accountability; • Transparency.
What is pyramid model of CSR?
The pyramid of corporate social responsibility is a theoretical concept that implies that corporate social responsibility is presented by four dimensions: economic, legal, ethical, and philanthropic responsibility.
Which is the component of a Carroll's pyramid model of CSR?
The four-part definitional framework for CSR Carroll's four part definition of CSR was originally stated as follows: Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time.
What are the four components of Carroll's CSR pyramid?
Organizations should engage on all four levels of Carroll's pyramid of corporate social responsibilityEconomic responsibilities. At the most basic level, organizations need to create profit through growth. ... Legal responsibilities. ... Ethical responsibilities. ... Philanthropic responsibilities.
What is Carroll's CSR pyramid used for?
Carroll's CSR Pyramid is a simple framework that helps argue how and why organisations should meet their social responsibilities.
What is the Carroll's pyramid?
The first and foremost feature of the pyramid is that it is built on the foundation and objective of profit signifying that the aspect of profit always comes first for the company.
How long has corporate social responsibility been around?
The factor of Corporate Social Responsibility has been around for more than six decades now, but its importance and practice came into the picture much later.
What is the pyramid of corporate social responsibility?
Pyramid of Corporate Social Responsibility is a simple framework that argues on the aspect that why organizations should meet their corporate social responsibilities. The pyramid was developed by Archie Carroll and highlights on the four main responsibilities of the organization, namely, Economic, Legal, Ethical, and Discretionary or Philanthropic.
What is philanthropic responsibility?
Philanthropic – It is the responsibility of the company to give back to society. This facet of responsibility holds an important place even though it is discretionary in nature.
How do philanthropic responsibilities affect the community?
Philanthropic responsibilities influence the morale of the employees, enhance the brand value, and have a major impact on the community.
Why is legal responsibility important?
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.
What is expected from the corporate companies in the current era?
In the current era, it is expected from the corporate companies to come forward and help the various institutions and communities and take part in filling the shortages for the welfare of the society and as a part of their corporate social responsibilities.
How many categories are there in Carroll's pyramidal model?
The ensuing discussion explains briefly each of the four categories that comprise Carroll’s four-part definitional framework upon which the pyramidal model is constructed.
What is Carroll's pyramid?
In this review article, the author takes another look at the well-known Carroll's Pyramid of Corporate Social Responsibility (CSR). In this article, he comments on the framework's popular useage and then presents a summary of the four-part definitional framework upon which the pyramid was created. He then comments on several characteristics of the model that were not emphasized when initially published: ethics permeates the pyramid; tensions and tradeoffs inherent; its' integrated, unified whole; its' sustainable stakeholder framework, and; its' global applicability and use in different contexts. The article concludes by looking to the future.
What is the CSR pyramid?
The CSR pyramid holds that firms should engage in decisions, actions, policies and practices that simultaneously fulfill the four component parts. The pyramid should not be interpreted to mean that business is expected to fulfill its social responsibilities in some sequential, hierarchical, fashion, starting at the base. Rather, business is expected to fulfill all responsibilities simultaneously. The positioning or ordering of the four categories of responsibility strives to portray the fundamental or basic nature of these four categories to business’s existence in society. As said before, economic and legal responsibilities are required; ethical and philanthropic responsibilities are expected and desired. The representation being portrayed, therefore, is that the total social responsibility of business entails the concurrent fulfillment of the firm’s economic, legal, ethical, and philanthropic responsibilities. Stated in the form of an equation, it would read as follows: Economic Responsibilities + Legal responsibilities + Ethical Responsibilities + Philanthropic Responsibilities = Total Corporate Social Responsibility. Stated in more practical and managerial terms, the CSR driven firm should strive to make a profit, obey the law, engage in ethical practices and be a good corporate citizen. When seen in this way, the pyramid is viewed as a unified or integrated whole (Carroll and Buchholtz 2015 ).
What is the business case for CSR?
The business case for CSR refers to the underlying arguments supporting or documenting why the business community should accept and advance the CSR cause. The business case is concerned with the primary question – What does the business community and commercial enterprises get out of CSR? That is, how do they benefit tangibly and directly from engaging in CSR policies, activities and practices (Carroll and Shabana 2010 ). There are many business case arguments that have been made in the literature, but four effective arguments have been made by Kurucz, et al., and these include cost and risk reductions, positive effects on competitive advantage, company legitimacy and reputation, and the role of CSR in creating win-win situations for the company and society (Kurucz et al. 2008 ). Other studies have enumerated the reasons for business to embrace CSR to include innovation, brand differentiation, employee engagement, and customer engagement. The purpose for business case thinking with respect to the Pyramid of CSR is to ameliorate the believed conflicts and tensions between and among the four categories of responsibilities. In short, the tensions and tradeoffs will continue to be important decision points, but they are not in complete opposition to one another as is often perceived.
How many definitions of CSR are there?
Dozens of definitions of corporate social responsibility have arisen since then. In one study published in 2006, Dahlsrud identified and analyzed 37 different definitions of CSR and his study did not capture all of them (Dahlsrud 2006 ).
What are the four components of responsibility?
Each of the four components of responsibility addresses different stakeholders in terms of the varying priorities in which the stakeholders might be affected. Economic responsibilities most dramatically impact shareholders and employees because if the business is not financially viable both of these groups will be significantly affected. Legal responsibilities are certainly important with respect to owners, but in today’s litigious society, the threat of litigation against businesses arise most often from employees and consumer stakeholders. Ethical responsibilities affect all stakeholder groups. Shareholder lawsuits are an expanding category. When an examination of the ethical issues business faces today is considered, they typically involve employees, customers, and the environment most frequently. Finally, philanthropic responsibilities most affect the community and nonprofit organizations, but also employees because some research has concluded that a company’s philanthropic involvement is significantly related to its employees’ morale and engagement.
Who wrote the book Social Responsibility of the Businessman?
Bowen, H. (1953). Social responsibilities of the businessman. New York: Harper & Row.
How many categories are there in Carroll's pyramidal model?
The ensuing discussion explains briefly each of the four categories that comprise Carroll’s four-part definitional framework upon which the pyramidal model is constructed.
What is corporate social responsibility?
To be sure, evidences of businesses seeking to improve society, the community, or particular stakeholder groups may be traced back hundreds of years (Carroll et al. 2012 ). In this discussion, however, the emphasis will be placed on concepts and practices that have characterized the post-World War II era. Much of the literature addressing CSR and what it means began in the United States; however, evidences of its applications, often under different names, traditions, and rationales, has been appearing around the world. Today, Europe, Asia, Australia, Africa, South America, and many developing countries are increasingly embracing the idea in one form or another. Clearly, CSR is a concept that has endured and continues to grow in importance and impact.
What is the CSR pyramid?
The CSR pyramid holds that firms should engage in decisions, actions, policies and practices that simultaneously fulfill the four component parts. The pyramid should not be interpreted to mean that business is expected to fulfill its social responsibilities in some sequential, hierarchical, fashion, starting at the base. Rather, business is expected to fulfill all responsibilities simultaneously. The positioning or ordering of the four categories of responsibility strives to portray the fundamental or basic nature of these four categories to business’s existence in society. As said before, economic and legal responsibilities are required; ethical and philanthropic responsibilities are expected and desired. The representation being portrayed, therefore, is that the total social responsibility of business entails the concurrent fulfillment of the firm’s economic, legal, ethical, and philanthropic responsibilities. Stated in the form of an equation, it would read as follows: Economic Responsibilities + Legal responsibilities + Ethical Responsibilities + Philanthropic Responsibilities = Total Corporate Social Responsibility. Stated in more practical and managerial terms, the CSR driven firm should strive to make a profit, obey the law, engage in ethical practices and be a good corporate citizen. When seen in this way, the pyramid is viewed as a unified or integrated whole (Carroll and Buchholtz 2015 ).
What is the purpose of the CSR pyramid?
The purpose of the pyramid was to single out the definitional aspect of CSR and to illustrate the building block nature of the four part framework.
What is the business case for CSR?
The business case for CSR refers to the underlying arguments supporting or documenting why the business community should accept and advance the CSR cause. The business case is concerned with the primary question – What does the business community and commercial enterprises get out of CSR? That is, how do they benefit tangibly and directly from engaging in CSR policies, activities and practices (Carroll and Shabana 2010 ). There are many business case arguments that have been made in the literature, but four effective arguments have been made by Kurucz, et al., and these include cost and risk reductions, positive effects on competitive advantage, company legitimacy and reputation, and the role of CSR in creating win-win situations for the company and society (Kurucz et al. 2008 ). Other studies have enumerated the reasons for business to embrace CSR to include innovation, brand differentiation, employee engagement, and customer engagement. The purpose for business case thinking with respect to the Pyramid of CSR is to ameliorate the believed conflicts and tensions between and among the four categories of responsibilities. In short, the tensions and tradeoffs will continue to be important decision points, but they are not in complete opposition to one another as is often perceived.
What is CSR in business?
In general, CSR has typically been understood as policies and practices that business people employ to be sure that society, or stakeholders, other than business owners, are considered and protected in their strategies and operations.
How many definitions of CSR are there?
Dozens of definitions of corporate social responsibility have arisen since then. In one study published in 2006, Dahlsrud identified and analyzed 37 different definitions of CSR and his study did not capture all of them (Dahlsrud 2006 ).
What are the four components of Carroll’s CSR pyramid?
The four different types of responsibilities organisations must take as shown in the pyramid are:
How long after Carroll's pyramid was developed is it still relevant?
The relevance of Carroll's pyramid. Almost 30 years after the pyramid was developed, it's as important as ever. The design is still regularly quoted, changed, discussed, and criticised by business leaders, politicians, scholars, and social pundits. In order to understand the real relevance of Carroll's CSR pyramid, ...
What is the CSR pyramid?
Carroll's CSR pyramid is a framework that explains how and why organisations should take social responsibility. The pyramid was developed by Archie Carroll and highlights the four most important types of responsibility of organisations. These are: Economic responsibility. Legal responsibility. Ethical responsibility. Philanthropic responsibility.
What is CSR in business?
This four-part definition was originally published by Carroll in 1979: CSR refers to a business's behaviour, that it's economically profitable, complies with the law, is ethical, and is socially supportive. Profitability and compliance ...
Why is economic responsibility important in pyramids?
As with a building’s foundation that keeps the entire structure up, durable profitability helps to support the expectations of society, shareholders, and other stakeholders.
What is the economic responsibility of a company?
The economic responsibility of companies is about producing goods and services that society needs and to make a profit on them . Companies have shareholders who expect and demand a reasonable return on their investments, they have employees who want to do their jobs safely and fairly, and have customers that want quality products for fair prices. That’s the foundation of the pyramid upon which all the other layers rest.
What is the most important condition for corporate social responsibility?
Profitability and compliance with the law are the most important conditions for corporate social responsibility and when discussing the company's ethics, and the level to which it supports the society it's part of with money, time, and talent. In 1991, he expanded on this definition using a pyramid.
Who proposed that managers of business organizations have four responsibilities?
Archie Carroll proposed that the managers of business organizations have four responsibilities. Carroll lists these four responsibilities in order of priority. Which of the following does Carroll note has the highest priority?
What are the four responsibilities of a business manager?
Archie Carroll proposed that the managers of business organizations have four responsibilities: economic, legal, ethical, and discretionary.
Why is there room for misunderstanding in a corporation?
There is room for misunderstanding because the corporation's relationship with each stakeholder is not covered by written or verbal agreements.
Introduction
The Four-Part Definitional Framework For CSR
- Carroll’s four part definition of CSR was originally stated as follows: “Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time” (Carroll 1979, 1991). This set of four responsibilities creates a foundation or infrastructure t...
Economic Responsibilities
- As a fundamental condition or requirement of existence, businesses have an economic responsibility to the society that permitted them to be created and sustained. At first, it may seem unusual to think about an economic expectation as a social responsibility, but this is what it is because society expects, indeed requires, business organizations to be able to sustain themselv…
Legal Responsibilities
- Society has not only sanctioned businesses as economic entities, but it has also established the minimal ground rules under which businesses are expected to operate and function. These ground rules include laws and regulations and in effect reflect society’s view of “codified ethics” in that they articulate fundamental notions of fair business practices as established by lawmakers …
Ethical Responsibilities
- The normative expectations of most societies hold that laws are essential but not sufficient. In addition to what is required by laws and regulations, society expects businesses to operate and conduct their affairs in an ethical fashion. Taking on ethical responsibilities implies that organizations will embrace those activities, norms, standards and practices that even though th…
Philanthropic Responsibilities
- Corporate philanthropy includes all forms of business giving. Corporate philanthropy embraces business’s voluntary or discretionary activities. Philanthropy or business giving may not be a responsibility in a literal sense, but it is normally expected by businesses today and is a part of the everyday expectations of the public. Certainly, the quantity and nature of these activities are volu…
The Pyramid of CSR
- 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. The purpose of the pyramid was to single out the definitional aspect of CSR and to illustrate the building block nature of the four part framework. The pyramid was selected as a geometric design because it is simple, intuitive, and …
Ethics Permeates The Pyramid
- Though the ethical responsibility is depicted in the pyramid as a separate category of CSR, it should also be seen as a factor which cuts through and saturates the entire pyramid. Ethical considerations are present in each of the other responsibility categories as well. In the Economic Responsibility category, for example, the pyramid implicitly assumes a capitalistic society where…
Tensions and Trade-Offs
- As companies seek to adequately perform with respect to their economic, legal, ethical and philanthropic responsibilities, tensions and trade-offs inevitably arise. How companies decide to balance these various responsibilities goes a long way towards defining their CSR orientation and reputation. The economic responsibility to owners or shareholders requires a careful trade-off b…
The Pyramid Is An Integrated, Unified Whole
- The Pyramid of CSR is intended to be seen from a stakeholder perspective wherein the focus is on the whole not the different parts. The CSR pyramid holds that firms should engage in decisions, actions, policies and practices that simultaneously fulfill the four component parts. The pyramid should not be interpreted to mean that business is expected to fulfill its social responsibilities in …