Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons. 34(4), 39-48. Introduction
In Archie B. Carroll’s article “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders”, Carroll touches on the four key components of corporate social responsibility (CSR) within a pyramid called Pyramid of Corporate Social Responsibility. The article demonstrates how CSR would benefit the executives and their relationship with their shareholders and ultimately, the stakeholders. In addition, he also separates the moral or ethical components of CSR and how it relates to the three major ethical approaches. I think Carroll’s idea of corporate social responsibility is decent and executives should follow his ideas but on the other hand, the expectations for management are unrealistic. Background Information
Carroll expresses in his article what a firm’s social responsibility is and how they deal with some new changes. For many years, corporate executives were not aware of how important firms were to its society. Many argued that the main responsibility for a corporation was to deliver the greatest return to its shareholders. No actions for social responsibility were taken until many years later where the government established regulations that came into play for corporations. Instead of delivering the greatest returns to only the shareholders, corporations had to also balance their stakeholders as well. Summary
Since social responsibility has progressed from delivering the greatest returns to attempting to claim ethical and legal rights, Carroll’s Corporate Pyramid of Corporate Social Responsibility plays an important role in the changes. In the pyramid, there are four key components for CSR, which are: economic, legal, ethical, and philanthropic. First, at the base of the pyramid, are economic...