What is the Pyramid of Corporate Social Responsibility

Pyramid of Corporate Social Responsibility The possibility of corporate social obligation was first presented during the 1950s.

What is the Pyramid of Corporate Social Responsibility?

In the year 1991 article “The Pyramid of Corporate Social Responsibility”, Dr. Archie B. Carroll, a business management author, and professor at the University of Georgia highlighted the four areas that he believed were essential in the corporate social responsibility of the company.

The elements are arranged in the order of importance which is now known as the Pyramid of Corporate Social Responsibility. The pyramid is a basic structure that assists associations with arguing how and why they could and should meet their social duties.

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4 Main Responsibilities of a CSR Program - Economic Responsibilities Legal Responsibilities Ethical Responsibilities Philanthropic Responsibilities

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Economic The most important degree of this pyramid is a business’s economic Responsibilities

responsibilities. As a basic condition for its existence, a business has to be profitable.

It is important to perform in a manner consistent with maximizing earnings per share mode of operation of enterprises should be consistent with the maximization of profit per share.

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Legal Responsibilities Employers have to ensure that their business operations are within the confines of the law. At this point, organizations need to meet their legal requirements.

It is important to perform in a manner consistent with expectations of government and law. Mode of operation of enterprises should be consistent with government expectations and legal requirements.

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Ethical Responsibilities In this phase, the company goes beyond legal needs by acting morally and ethically. To put it differently, company makes a conscious decision to “do the ideal thing.”

It is important to perform in a manner consistent with expectations of societal mores and ethical norms. Companies should operate under the expectations of society moral and ethical norms.

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Philanthropic Responsibilities At this level, the company goes past its ethical responsibilities by knowingly giving back and making a positive influence on society.

It is important to perform in a manner consistent with the philanthropic and charitable expectations of society. Assist voluntarily those projects that enhance a community’s “quality of life."

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Approximately 20 years later the Pyramid remains highly relevant. It is constantly cited, debated, modified, and criticized by academia, corporate leaders, politicians, and social commentators. But to understand the Pyramid’s true relevance one must look beyond the debate and focus more on its practical application.

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About Wachs Strategies The leading corporate social responsibility consulting firm. We believe social impact not only creates brands however collectively is a serious business driver. We work to join leaders and strengthen workforces whereas investing their expertise with company partnerships, government affairs, and corporate philanthropy.

Learn more about how we can help your company with its Corporate Social Responsibility, or contact us at josh@wachsstrategies.com to find out how we can help you be a good corporate citizen.

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