Corporate Social Responsibilities : Carroll 's Pyramid

There are conflicting expectations of the nature of a company’s responsibilities to society. However, those companies that undertake what may be termed ‘Corporate Social Responsibility’ must decide; what are the actual social responsibilities of these companies? I will present a possible paradigm. Also, I will look at the benefit to the business that employs proper management as compared the business with poor management. This research paper describes my view of corporate social responsibility and compares the social responsibilities of Delta Air Lines and Spirit

In figure 3.2 Carroll’s model is summarized into four levels of global corporate social responsibility. The Economic Responsibility is doing what is required by global capitalism and that is being profitable consistently with the expectations for international business. The Legal Responsibility is doing what is required by global stakeholders and that is obeying the law of host countries and international law. The Ethical Responsibility is doing what is expected by global stakeholders being ethical with taking into consideration global standards. The Philanthropic Responsibility is doing what is desired by

Ethical decision making is absolutely essential if our company is to continue to grow and to maintain its standing in the business community. Ethical decision making is something that should not merely pertain to upper levels of management, but should apply to the company at all levels of its corporate hierarchy.

To understand “ethical decision making” it is best to break the phrase up. What is the definition of ethics? According to the website businessdictionary.com (2011), ethics are “basic concepts and fundamental principles of right human conduct.” It stands to reason that ethical decision making is the ability to make decisions based on core or base principles of correct human conduct. We at Acme Toy Company depend on employees at all levels to make the “right” choices when it comes to business decisions and their own conduct. How do we support them in their ethical decision making?

Whole Foods exemplifies all four principles of Carroll’s Global Corporate Social Responsibility Pyramid. From the information we are provided regarding Whole Foods the company aspires to be profitable. Whole Foods has a responsibility to be profitable for all the consituents, and in doing so secures survivability of the company. Profitability is the foundation required to allow participation in social responsibilities.

Nowadays, many international companies take sustainable development seriously. They understand that sustainable development can enhance their quality of life and their reputation in public. Sustainable development is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Brundtland, 1987) Sustainability requires monitoring and managing all the person to ensure that our economy and society can continue to exist without destroying the social and natural environment during development. The sustainability includes three pillars, which are economic, social and environment, forming a triple bottom line. The triple bottom line demands that a company 's responsibility lies

Nowadays, organizations have a corporate social responsibility to fulfill in the business industry. There is a variety of definitions for corporate social responsibility however; a common definition is a business integrates social and environmental concerns in their everyday business operations on a voluntary basis (Murphy, 2010). It is important that managers behave ethically and morally so other individuals will follow their guidance. A manager is responsible for fair treatment of employees, customers, and suppliers, building trustworthy relationships, and being transparent (Murphy, 2010). As a result, managers that are in executive level positions are oftentimes, most responsible for any unethical or

In today’s modern world managers from all companies have to take into account the works of ethical decision making, ethical decision making is an idea that will dramatically help any manager that takes this issue seriously. In the standpoint of the internal customer, ethical behavior improves the actual atmosphere at the job and helps motivate the actual employees, sets an example to the actual employees, and evokes a feeling of pride with the company and improves it is image within the eyes with the employees. From the standpoint of outer customer, ethical behavior improves the image of the company and enhances the overall progress of honourable behavior within the organization. Ethical behavior demands an atmosphere where it can be performed. Furthermore, it necessitates a knowledge about basic fundamentals of honourable behaviour. Eventually it contributes to cultural and behavioral enrichment amid internal staff with the organization.

Corporate Social Responsibility (C.S.R.) is a theory practiced in the business sphere since fifty years. It refers to the duty of business organizations to adopt certain activities that will benefit the society in some way. Charity, health-awareness campaigns are few examples that a business undertakes to fulfil its objectives of C.S.R. According to this ideal, it is important for various corporations today to undertake such social activities, apart from merely focusing on their objective of profit maximization. But, is it an obligation that is most important than other objectives of business? This thought further leads us to another significant question – In contemporary settings, should corporations be guided by the concept of C.S.R.?

After learning more about ethics, my ethical decision making process involves deciding what are the facts in the situation and applying the ethical principles. It would no longer involve making a rush decision on wants but, making the best possible decision base on need while minimizing negative results. It would necessitate patience and really thinking about the consequences of my decision.

It is a crucial thing for both individuals and enterprises to having an ethics-focused decision. Every decision made could result in either positive or negative results. When unethical decisions are made, individuals and enterprises not only would harm themselves, people around them would also be affected in different aspects. In order to protect and be responsible to oneself and to the society as a whole, it is necessary to check whether a decision is ethical or not before taking any further actions.

Corporate social responsibility can simply be identified as a duty, which is not a legal obligation lately, under very much consideration by every multinationals, as well as the growing firm. The ongoing concern is meant to increase the awareness between the business Individuals, to implement and draw line which should clearly indicates that what social obligation an organization has towards the society.(Caroll,1970) (Caroll, Archie, B.(1991). The pyramid of corporate social responsibility is towards the moral management of organization stakeholder.

The first level of the Pyramid is in regards to the economic responsibilities. The original responsibility of companies was to provide goods and services, which consumers wanted, and make profit from that provision. This is the primary motivation for companies to be created. All the other responsibilities are built on the economic responsibility, as the company could not exist if it was not making profit. Legal responsibilities are at the second level of the Pyramid in terms of the historical development, but they are just as important as economic responsibilities. This means that the company has to conform with the laws and regulations provided by governmental institutions, which means that it has to pursue its economic plan as long as it operates within the framework of the law. Ethical responsibilities involve activities and practices, which are either expected or prohibited by key stakeholders, but the company is not obligated to follow these by law. The company finds itself in a continuous state of development as it tries to adjust to changing ethics or values in society. These are often proposed by NGOs who are fighting for the environment, workers’ rights, consumer movements, etc. These changing norms and ethics often precede the law and can be difficult to deal with for companies as stakeholders often have higher standards for companies than required by the current law, therefore making this level in constant interaction with the legal responsibilities. In order for

All employees (including the company executives) should be guided by moral principles and ethical values when making decisions (Balc & Simionescu, 2012). The ability of executives to make ethical decisions can be influenced by their cognitive bias (Zeni, Buckley, Mumford & Griffith, 2015). Utilitarianism is one of the frameworks that can be used to address ethical dilemmas. Utilitarianism holds that decision makers should take alternatives that maximize the happiness of the majority of the stakeholders (Choe & Min, 2011 and Marques, 2015). This presentation will discuss how the 8-step ethical decision making process can be applied when addressing a dilemma using the utilitarianism framework. The presentation will also guide the executives of Toyota on how to address the negative publicity associated with the production of cars with faulty acceleration system.

According to Archie Caroll, who found CSR pyramid, there are 4 aspects of Corporate Social Responsibilities which is divided in Economic, Legal, Ethical and Philanthropic Responsibilities. Corporate Citizens are expected to be profitable, be abiding the laws, be ethical and be charitable to society. (Carrol, July-Aug. 1991.)