Carroll's CSR Pyramid

What is CSR?

• The extent to which a business addresses the concerns and obligations of its wider stakeholders

• The actions a business takes over and above the minimum required by law in addressing societal needs and wants

What is the traditional view from Friedman?

The social responsibility of businesses is to increase profit…

What is Archie Carroll’s view?

Profit is important, but businesses have a wider purpose and social responsibility

What are Carrolls CSR Pyramid 4 responsibilites?

1. Economic

2. Legal

3. Ethical

4. Philanthropic

What is the economic responsibility?

• Responsibility of business to be profitable

• The only way to survive and benefit society in long-term

What is the legal responsibility?

• Responsibility to obey laws and other regulations

• E.g. Employment, Competition, Health and Safety

What is the ethical responsibility?

• Responsibility to act morally and ethically

• Go beyond the narrow requirements of the law

• E.g. Treatment of suppliers and employees

What is the philanthropic responsibility?

• Responsibility to give back to society

• Discretionary but still important

• E.g. charitable donations, staff time on projects

What is the strength of CSR?

• Easy to understand

• Simply message- CSR has more than one element

• Emphasises the importance of profit

What are the weaknesses of CSR?

• Should ethics be at the top?

• Businesses don’t always do what they claim when it comes to CSR