Carroll's pyramid of Corporate social responsibility: A review and modification

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IntroductionFor the past 27 years, Carroll's corporate social responsibility pyramid (CSR) has been widely used by top management and journals to better define and explore CSR. The different components in the pyramid help managers see the different types of obligations that society expects of businesses. It is easily understandable and simple. However, the new challenges faced by corporations in the 21st century have warranted a re-examination of Carroll's pyramid. Carroll's CSR PyramidCarroll's four part CSR pyramid depicts the economic, legal, ethical and discretionary responsibilities that society expects of organizations. Carroll has integrated concepts of stakeholders and corporate citizenship into his pyramid. The base of the…show more content…
(Hopkins, 2006) Multi-national companies (MNC) such as Wal-Mart have revenues which exceed the gross domestic product of nations. MNCs dominate the global marketplace. Businesses need to expand internationally to remain competitive. Globalization has come to encompass everything from "factories shifting around" to "international bodies that set the rules for the global economy." It has resulted in the outsourcing of jobs to less-developed nations. In the United States, jobs in manufacturing are being outsourced to China and India. In a USA Today poll in 2004, 68 percent of Americans felt outsourcing of jobs was bad for the economy. (Carroll and Buchholtz, 2006:293)Companies from banks to pharmaceuticals operate and compete in a global environment. When MNCs start work in another country, they must fulfil their social responsibilities in order to be perceived as legitimate. MNCs are caught in dilemmas. For example, if it were to repatriate a large part of its profits, it would be seen as depriving the host country of wealth. If it were to invest profits locally, it may be perceived to be tightening its control on the host country's economy. Pay is another sensitive issue. MNCs seem to be exploiting labour with its low wages. However, if it were to pay more to its employees, local businesses would be hurt in the long run. (Carroll and Buchholtz, 2006: 297-300)MNCs may also be assailed for not adhering to standards from their

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