Strategic CSR and Corporate Responsibility Principles

A set of vocabulary flashcards covering the definitions of CSR, Carroll's Pyramid of responsibilities, motivations for corporate responsibility, and the concept of B Corps.

Corporate Social Responsibility (Carroll, 1979)

Encompasses the economic, legal, ethical and philanthropic expectations that society has of organisations at a given point in time.

Corporate Social Responsibility (Freeman, 1984)

A view of the corporation and its role in society that assumes a responsibility among firms to pursue goals in addition to profit maximisation and responsibility of the stakeholders to hold the firm responsible for its actions.

Strategic CSR

A holistic and long-term approach to creating a net positive social impact based on brand alignment, stakeholder integration and ethical behaviour (Haski-Leventhal, 2025).

Economic Responsibility

Required by society, this involves providing investment, creating jobs, paying taxes, and producing an acceptable return on its owners’ investment.

Legal Responsibility

Required by society, this is the duty to act within the legal framework drawn up by the government and judiciary by obeying the law.

Ethical Responsibility

Expected by society, this involves doing the right thing, adopting voluntary codes of governance and ethics, and doing no harm to stakeholders.

Philanthropic Responsibility

Desired by society, these actions include giving money to charity, corporate volunteering, and specific CSR projects.

Discretionary Responsibility

Represents proactive and strategic behaviours that can benefit the firm and society, or both.

Invisible Hand (Narrow View)

The argument that companies exist only to maximise profit and that the market itself will ensure responsibility.

Caring Hand

The counter-argument to the invisible hand, stating that responsibility is needed due to information asymmetry.

Moral Motivation

The driver for CSR based on the idea that society makes business possible and companies have a reciprocal obligation or a social licence to operate.

Relational Motivation

The driver for CSR that focuses on building relationships with stakeholders and minimising restrictions.

Economic Motivation

The driver for CSR focused on brand and reputation, employee engagement, and profits.

B Corps

Businesses that have complied with and met the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose.

B Lab

A non-profit organization founded in 2006 that independently assesses and administers the B Corp Certification.