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Varied researchers and academicians have proposed various models that the organizations could follow to manage their corporate social responsibility liabilities. Carroll model of Corporate Social Responsibility is one important model in that context. Carroll classified the varied CSR prerogatives and obligations of the corporations as a pyramid (Carroll 1991). Economic responsibilities constitute the first level of the pyramid (Carroll 1991). It is the duty of all the corporations to strive to be profitable.
It is the profitability objective that sustains all the other types of corporate responsibilities and obligations. Legal responsibilities constitute the second level of Carroll’s pyramid (Carroll 1991). Laws are nothing but a formal codification of what the society considers to be right or wrong. It is important for the companies to obey laws and play by the rules. It is the responsibility of the corporations to operate in a manner that respects the national and international laws. For example it is the duty of the companies to look to it that the products manufactured by them are as per the set quality and safety standards.
Ethical responsibilities constitute the next level of this pyramid that is related to the moral conscience of a company (Carroll 1991). It is important that the companies act in a way that is considered to be right and just and that does not intends to harm others. For instance, if a company uses its financial power and influence to access the resources in a third world community, say mineral wealth or oil, by forcibly uprooting the inhabitants in that community, it may turn out to be profitable, but is certainly not ethical.
Companies must behave in a manner that upholds the norms and considerations valued by the society. Philanthropic responsibilities constitute the top level of Carroll’s CSR pyramid. It is when the corporations take the initiative to contribute their resources for achieving social good and for improving the lives of the citizens. For example if a company donates money to support schools and libraries in a community, it could be considered to be a philanthropically responsible company.
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