CORPORATE SOCIAL RESPONSIBILITY - CARROLL’S CSR PYRAMID Flashcards
What is Carroll’s CSR pyramid
A hierarchy illustrating the different ways in which companies can engage in CSR
What is the pyramids layer from top to bottom
Philanthropic responsibilities
Ethical responsabilities
Legal responsabilities
Economic responsibilities
What are economic responsabilities
Economic responsibility: With a profitable base, a business can survive and benefit society in the long term. A business has an economic responsibility to make a profit, to keep its workers employed, customers well, and if they don’t make a profit they can’t engage in activities like climate change etc. - Businesses won’t survive without profit.
What are legal responsabilities
Legal responsibilities: It’s arguable that a business can survive without legal responsibility, but down the line, it’s probably going to run into trouble as a result of that. By doing that you’re going to be treating your employees and customers at the lowest possible standard.
What are ethical responsabilities
Ethical responsibilities: Businesses aren’t required by law to behave ethically (ethics = the moral standards which people live by). For example, businesses may go above the required legal responsibilities, and make sure that their workers in foreign countries are treated well, are paid a reasonable wage, aren’t working in slave conditions (that may be the required law in some countries anyway though)
What are philanthropic responsabilities
Philanthropic responsibilities: Giving your time, your money, you resources to society at large (maybe give money to charity, or the company volunteers to build a playground of high deprivation because they have a factory there) - This is above ethics, as the company is physically contributing time, money, labour, materials etc to benefit society at large.
What factors on the pyramid are optional
The top 2 factors of the pyramid are optional, but there are various advantages and disadvantages to choosing it. For example: less chances of being sued by workers who are being treated badly
What is CSR reporting
Listed companies (Plc and Ltd) obliged by law to report on CSR. Reports to include:
Environmental protection
Social responsibility and treatment of employees
Respect for human rights
Anti-corruption and bribery
Diversity on company boards (in terms of age, gender, education and professional background)
What does the pyramid look like
https://docs.google.com/document/d/1A8vOHM1l8bBZcoxSsJNuQbrfyGVCcEfPTZhzI0XR2Rc/edit
