10 Questions
What is the primary function of business according to the CON model?
To operate economically
What is the main idea of the CON model in terms of CSR?
To recognize that business decisions consist of continuous, interrelated economic and moral components
What is the benefit of the responsibility circles structure in the CON model?
It helps the manager to see the interrelationships between responsibilities
What is corporate philanthropy commonly referred to as?
Contributions to humanitarian and social causes outside the firm's natural line of business
How does Carroll's pyramid treat philanthropic giving?
As a discretionary responsibility
According to the IC model, how is corporate philanthropy treated?
As strategic philanthropy under economic responsibility or charity expected by society under ethical responsibility
What is the main difference between the IC model and Carroll's pyramid in terms of corporate philanthropy?
The IC model and Carroll's pyramid consider corporate philanthropy as discretionary
What is the primary purpose of the responsibility circles in the CON model?
To highlight the interrelationships between different responsibilities
How does the CON model recognize the function of business?
As a vital function that is economic
What is the main idea of the IC model in terms of corporate philanthropy?
That corporate philanthropy is a discretionary responsibility
Study Notes
Understanding CSR through Carroll's Pyramid
- Economic Responsibility is the lowest level of the pyramid, representing a business's first responsibility to be profitable, as without profit, the company wouldn't be able to pay workers, and eventually, wouldn't survive long-term.
- Being profitable is the only way for a company to survive long-term and benefit society.
Legal Responsibility
- The second level of the pyramid is a business's legal obligation to obey the law, which is the most important responsibility out of the four levels.
- Examples of legal responsibilities include employment laws, competition with other companies, tax regulations, and health and safety of employees.
Ethical Responsibility
- The ethical layer of the pyramid is about doing the right thing, being fair in all situations, and avoiding harm.
- Unlike the first two levels, this is something a company is not obligated to do, but it is best for a company to be ethical as it shows stakeholders that they are moral and just.
- Being ethical is not only about obeying the law but also about doing what is morally right.
Philanthropic Responsibility
- The philanthropic layer of the pyramid is about being a good corporate citizen and giving back to society.
- This is the highest level of the pyramid and is considered discretionary, meaning it's not an obligation but rather a choice.
Theoretical Assumptions
- The CSR pyramid frames CSR in terms of social expectations that responsible corporations should strive to meet.
- Prevailing social norms and expectations provide external criteria against which corporate performance can be measured.
Nature of CSR
- CSR consists of four kinds of social responsibilities: economic, legal, ethical, and philanthropic.
- The CSR pyramid suggests that businesses can be profitable and ethical, and they should fulfill these obligations simultaneously.
Order of Importance
- The pyramid suggests a ranking of CSR priorities based on the level of essentiality, with economic responsibility being the most fundamental and philanthropic category being the least important.
Understand the four levels of Corporate Social Responsibility (CSR) as proposed by Archie Carroll. Learn how economic, legal, ethical, and philanthropic responsibilities contribute to a company's CSR activities.
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