FOUR SOCIAL RESPONSIBILITIES

Carroll organized different corporate social responsibilities as a four-layered pyramid

model and called it the pyramid of responsibilities. The four different responsibilities economical, legal, ethical and philanthropic are the layers of the pyramid.
While Corporate Social Responsibility (CSR) has been around since the 1950s, its
importance and practice took hold much later. The basis of what we consider to be the modern
definition of CSR is rooted in Archie Carrolls Pyramid of Corporate Social Responsibility. In
this Pyramid a corporation has four types of responsibilities.
According to Carroll and Buchholtz (2003), the pyramid of responsibilities should be
seen as a whole and the different parts should not be separated. To be profitable as a company,
minimize cost and maximize sales or make sensible strategic decisions are at the base
of economic responsibilities. Economic performance is required by the society. The second
layer is the legal responsibilities and it is also required by society. In these responsibilities
companies are expected to obey the law, because the law mirrors show the society regards as
accepted or unaccepted. The difference of the ethical responsibilities from the first two
responsibilities is that the ethical responsibilities are not required but expected by society.
To assert ethical leadership, avoid questionable practices or operate above the minimum
standard of the law could be examples for the ethical responsibilities. The philanthropic
responsibilities stand at the top of the pyramid and to be a good corporate citizen and improve
the quality of life for the society is the aim of these responsibilities. Corporate contributions, to
support the community by providing programs or engagement in volunteerism can be example
for the philanthropic responsibilities.
A stakeholder model is represented by the Pyramid of CSR where the
different stakeholders are affected by the different responsibilities. If the
business is not profitable Economic responsibilities will directly affect

employees and owners. Legal responsibilities are vital to the owners, but it is
also necessary in the relation with employees and consumer stakeholders.
Ethical responsibilities impact on all stakeholders, but most frequently they
engage consumers and employees. The major effect of the Philanthropic
responsibilities are on the community, but there is also impact on the
employees since the companys philanthropic performance influences the
employees morale.

References: Master thesis by Rashad N. Ayyubzada, University of Stirling,

Management Department, 2012 September.
Maximiano, Jose Mario B. Business Ethics and Corporate Social Responsibility
National Library, Manila
https://www.linkedin.com/pulse/20140905115337-70750023-carroll-s-pyramid-ofcorporate-social-responsibility
https://www.growyourgiving.org/giving-blog/pyramid-corporate-social-responsibility