Organizations possess responsibilities in relation to the concept of CSR. Carroll in 1979 proposed a pyramid model based on the responsibilities of CSR. The model is christened as Carroll’s pyramid model. The model highlights the responsibilities benefitting the shareholders, the society, and the consumers at various levels. The four types of responsibilities are Economic, Legal, Ethical, and philanthropic responsibilities.
The Carroll’s pyramid explains the important components of corporate social responsibility which involves the conduct of a business so that it is economically profitable, law abiding, ethical, and socially supportive. For an organization to be socially responsible means that profitability is the most important one where all other components rest. Obeying the laws and legal regulations is the next foremost condition when deliberating the firm’s ethics and the extent to which it supports the society by contributing to the disadvantaged.
The four components constitute the different layers of the CSR pyramid that helps managers to understand the different types of obligations that the society expects of businesses.
- Economic responsibility: The first responsibility of a company is the economic responsibility which is the basic concern of the organization. It deals with the economy of profits. The responsibilities form the foundation of the firm. The organizations need to give back to the society which is carried out in the form of CSR activities.
- Legal Responsibilities: Legal Responsibilities highlight the rules and regulations to be enacted by the organizations. The guidelines are guided by the government which provides/paves the way to a good governing environment, security, and labour welfare laws.
- Ethical Responsibilities: Ethical responsibilities are the responsibilities of a company for certain ethical activities they believe. The Ethical responsibilities are considered to be rational as the society expects a company to follow the ethical standards and ethical norms. Some of the ethical responsibilities are treating the employees fairly, being environment friendly, paying fair wages, and providing an equal employment opportunity to all.
- Philanthropic Responsibilities: Philanthropic responsibilities are activities that make the society better and improve the quality of life. Some of the examples of philanthropic activities are giving donations to the needy and the disadvantaged and donating money for the environmental projects.
Carroll’s CSR Pyramid is the most important model of Corporate Social Responsibility, with its four levels indicating the relative importance of Economic, Legal, Ethical, and Philanthropic responsibilities respectively. Thus according to Windsor, economic and legal responsibilities are important for the society whereas ethical responsibility and philanthropy are socially expected and socially desired respectively. These responsibilities are mutually interrelated and each responsibility forms the basic component of the total social responsibility of a business firm.
For citing this article use:
- R, M. (2017). Consumer Buying Behaviour of Personal Care Products Towards CSR Initiatives.