Archie Caroll: Model of Corporate Social Responsibility

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According to Carroll (1979, 1991), the corporate social responsibility is more than complying with economic and legal obligations; it also includes ethical and philanthropic responsibility for the long-term benefit of the society at large. a. The Economic Responsibilities (“Be profitable”) are the first and foremost social responsibilities of a business organization, the foundation upon which all other rest. Any business institution has the responsibility to produce goods and services the society wants and to sell them at an (acceptable) profit. The economic components of CSR are: to perform in a manner consistent with maximizing earnings per share; to be committed to being as profitable as possible; to maintain a strong competitive position; to maintain a high level of operating efficiency; to be consistently profitable in order to achieve a successful position on the market. b. The Legal Responsibilities (“Obey the law”) are strictly co-related with the economic ones and they reflect the society’s expectations regarding businesses to fulfil their economic mission within the framework of legal requirements. The most important legal components of CSR are: to perform in a manner consistent with expectations of government and law; to comply with various state and local regulations; to be a law-abiding corporate citizen; to be defined as one that fulfils its legal obligations in order to be successful; to provide goods and services that at least meet minimal legal requirements. c. The Ethical Responsibilities (“Be ethical”) of a company embrace those activities and practices that are expected or prohibited by societal members even though they are not codified into law. A business organization has the obligation to avoid harm and to do what is right, just, and fair. A company has to take into account also the ethical components of its activity: to perform in a manner consistent with expectations of societal mores and ethical norms; to recognize and...
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