Free

The pyramid of corporate social responsibility - article review - Book Report/Review Example

Comments (0) Cite this document
Summary
Name Instructor Course Date Archie B. Carroll. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons. 34(4), 39-48 Introduction In the book, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders”, Carroll B, Archie introduces the various levels of social responsibilities along with a pyramid of corporate responsibilities…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
The pyramid of corporate social responsibility - article review
Read TextPreview

Extract of sample "The pyramid of corporate social responsibility - article review"

Archie B. Carroll. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of OrganizationalStakeholders. Business Horizons. 34(4), 39-48 Introduction In the book, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders”, Carroll B, Archie introduces the various levels of social responsibilities along with a pyramid of corporate responsibilities. He describes three types of moral or ethical approaches and their orientation towards stakeholders. The main purpose of writing this article is to put forward a clear understanding of responsibilities and ethics expected in a business setting. Although the author states these ideas to isolate the moral components of corporate social responsibility, stakeholder management in a moral fashion is not easily acquired. Background Information The article was published to give an in-depth description of what needs to be done in order to establish social responsibility in business environment. Previously corporate executives had a hard time solving the issue of firms’ responsibilities to its societies (Carroll 39). Following the regulations enacted by governmental bodies to control firms and introduce stakeholder policies, there was a need to clarify the concepts of social and stakeholder responsibility. Summary Social responsibility idea among corporations has undergone several steps. In the past, the most prevailing belief was that firms were only responsible for maximizing profits. With time, there emerged a concept that organizations have moral and unrestricted responsibility to the society. This article establishes a background for corporate firm obligations and illustrates the guidelines to achieving social responsibility, which has been a long struggle. Carroll develops a policy that consists of a pyramid with four different responsibility levels namely, ethical responsibility, economic, legal, philanthropic, and ethical responsibility (Carroll 40). The pyramid of social responsibility among firms illustrates levels of responsibilities starting with the economic one at its base, which provides that the firm’s primary responsibility is to meet the needs of the market by producing goods and services of high demand, with the aim of making profit. The legal responsibility comes second on the pyramid with requirement that a business should not only be profit oriented, but also comply the regulations and laws documented by the state and local government. The ethical responsibility of the pyramid embraces the practices and activities that are prohibited or expected by the society even though they are not included in law. It embodies those norms, standards, and expectations that concern consumers, shareholders, employees, and the society regard as fair and just. Philanthropic responsibilities, includes those corporate activities that respond to society’s expectations that firms be good corporate “citizens.” it should actively engage in programs that promote human welfare such as financial and human resource contributions. Though philanthropy may seem less significant, most firms prefer working by it. The author goes ahead to discuss the types of moral management and how they link to key stakeholder groups. The three moral types include moral, immoral, and amoral management. Immoral management features include managerial skills of which decisions, behavior, and actions oppose what is ethical. The second main type of management ethics is the amoral management. Managers who are amoral are neither moral nor immoral but do not care that their daily business decisions negatively affect others (Carroll 44). They lack ethical; awareness or perception. Two kinds of amoral managers have been discussed. Unintentional amoral managers do not realize that their actions have an impact, or may be inattentive or careless to their implications though they may be well intentioned. Intentional amoral managers perceive that ethical considerations are meant for private lives and not for their business. To them, business activity is out of the business sphere to which ethical judgment apply. The third and last moral type is moral management which provides that, norms that adhere to high level standards of right behavior are practiced. In the article, Carroll proposes profiles of what stakeholders’ orientation is towards the main stakeholder groups applying the three moral approaches (Carroll 45). He mentions five major stakeholder sets recognized by most businesses. These are shareholders (owners), customers, employees, local communities, and the entire society. The general moral obligation to each of these groups is identical, that is, protecting their rights, and treats them with fairness and respect. However, orientations and behaviors arise due to the differing nature of the sets. Of these three groups, immoral management is the most exploitive while moral management considers the welfare and satisfaction of its stakeholders and is viewed as a basis for excellent leadership. Evaluation From this article, it is quite evident that most managers are likely to adopt the attractive ethics to their firms in order to improve managerial skills. However, the proposed types of management may not be an easy task for firms to achieve due to difference in what people consider to be morally bright or wrong. Financial shortages are also a hindrance in applying all the levels of the pyramid. Most significantly, businesses must maximize profits but still have to operate under government regulations. Most managers fall under the immoral manager category due to their profit-driven goals yet do it at lower expenses. For a successful business, managers are required to be moral and focus on the concepts of philanthropy for them to increase profits. Firms can invest in the welfare of the society by funding communal organizations thus attracting customers (Carroll 48). Direct comment Conclusively, the article is an outstanding build-up towards the idea of improving moral organizational climate as shown by ethical management. Leadership by example is preferred as the most efficient way in improving business morals. As much as achieving these social responsibilities may be challenging, all members of the society benefit from their applications. Reference Carroll, Archie. “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders”. Business Horizons. 34(4), (1991): 39- 48.Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The pyramid of corporate social responsibility - article review Book Report/”, n.d.)
Retrieved from https://studentshare.org/management/1393564-article-review
(The Pyramid of Corporate Social Responsibility - Article Review Book Report/)
https://studentshare.org/management/1393564-article-review.
“The Pyramid of Corporate Social Responsibility - Article Review Book Report/”, n.d. https://studentshare.org/management/1393564-article-review.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The pyramid of corporate social responsibility - article review

Corporate Social Responsibility

.... Why Should Business Companies Engage In CSR? Importance of CSR to Business. [Online] Available at: http://www.scribd.com/doc/3934672/Importance-of-CSR-to-Business [Accessed April 28, 2012]. Waldman, D. & et. al., 2012. Corporate Social Responsibility: What It Really Is, Why It’s So Important, And How It Should Be Managed. ECRC. [Online] Available at: http://www.ecrc.org.eg/Uploads/documents/Articles_Corporate%20Social%20Responsibility.pdf [Accessed April 27, 2012]. Zur, A., 2009. Corporate Social Responsibility Orientation And Organisational Performance Within The Retailing Sector. The Berkeley Electronic Press. [Online] Available at:...
9 Pages(2250 words)Essay

Corporate Social Responsibility Practices

...performance. International Journal of Productivity and Performance Management, 59(3), pp. 229–254. Burger, A., 2011. Shell in Nigeria: Oil, Gas, Development & Corporate Social Responsibility. Triple Pundit, [online] 29 July. Available at: < http://www.triplepundit.com/2011/07/shell-nigeria-csr-corporate-social-responsibility/ > [Accessed 15 July 2013]. Chen, C.H., 2011. The major components of corporate social responsibility. Journal of Global Responsibility, 2(1), pp. 85-89. Galbreath, J., 2010. How does corporate social...
9 Pages(2250 words)Essay

Corporate Ethics & Corporate Social Responsibility

...it. This paper is a study of corporate social responsibility in the context of increasing privatization of schools in the country. It also takes a look at whether education can be equated with other industries in the same context. During the course of the study it will also touch issues like the role of education and who are the ultimate beneficiaries of the education system. To arrive at a conclusion, the paper will take the following structure. After the introduction a review of what CSR is will be given, followed by privatization in general and with particular reference to education, both in the context of the UK. A deeper analysis of CSR with reference to education...
14 Pages(3500 words)Essay

Corporate social responsibility

...suppliers), employment (positive discrimination in favor of minorities) or community activities are some external aspects that provides a checklist against which an organizations actions on corporate social responsibility can be assessed. Some authors recommend social auditing as a way to ensuring that these issues of corporate social responsibility get systematically reviewed (Cluterbuck, 1998). There is today a growing perception among enterprises that sustainable business success and shareholders value cannot be achieved solely through maximizing short term profits but instead through market- oriented...
6 Pages(1500 words)Essay

Corporate Social Responsibility

...The practice of CSR or Corporate Social Responsibility as a paradigm for firms and businesses to follow has evolved from its early days as a slogan that was considered trendy by some firms following it to the present day realities of the 21st century where it is no longer just fashionable but a business requirement to be socially responsible. This evolution has been necessitated both due to the myriad problems that we as a race face which has changed the environment under which firms operate as well as a realization among business leaders that profits as the sole reason or raison d’être for existence can no longer hold good. Hence, the great economist and...
12 Pages(3000 words)Essay

Corporate Social Responsibility (CSR)

...). The importance of corporate responsibility. [Pdf]. Available at: http://graphics.eiu.com/files/ad_pdfs/eiuOracle_CorporateResponsibility_WP.pdf. [Accessed on: on December 8, 2011]. Heal, P. G. (2004). Corporate Social Responsibility ñ An Economic and Financial Framework. [Pdf]. Available at: http://poseidon01.ssrn.com/delivery.php?ID=335074111074013067109100126089099073109017024072035030106078020111120086009066088107037033035060058099112001012103026097123011002078032048105123119116031029059095093031075065125124088101082114&EXT=pdf. [Accessed on: on December 8, 2011]. Karnani, A. (August 23, 2011). The Case against Corporate Social Responsibility. [Online]. Available at: http://online.wsj.com/article... Corporate...
4 Pages(1000 words)Essay

Corporate Social Responsibility

...an acceptable return from the value of their investment by issuing dividends and ensuring the share prices of the company do not decline (Aguilera, Rupp & Williams 456). Conclusion Corporate social responsibility has enabled companies to improve their corporate image, increase the share prices and retain qualified employees. Some CSR activities include environmental stewardship, respect for human rights and avoidance of bribery activities. CSR should lead to business sustainability and growth. References: Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting back Corporate social...
1 Pages(250 words)Research Paper

Corporate Social Responsibility Plan

...Corporate Social Responsibility Plan 0 Executive Summary Nationwide Insurance is identified as a major stakeholder in the insurance and for that matter financial industry. Much of the company’s success can be attributable to leadership successes in terms of the kind of strategic plans that have been introduced and implemented over the years. In most cases, these strategic plans have been operated from four major themes, three of which are directly found in the 3 spheres namely economic, political and civil society. The forth is environmental. It has however been established that not much focus has been given to the need to incorporate these plans directly into corporate...
11 Pages(2750 words)Assignment

The Pyramid of Corporate Social Responsibility: Review

...The Pyramid of Corporate Social Responsibility: Review al Affiliation Executives of firms usually have a hard time dealing with responsibilities of their corporation towards the society. Initially it had been argued that the sole purpose of firms was to ensure shareholders reap maximum profits. However, it was realized that firms had a role to play towards the society. The article being reviewed tries to explain the duties assigned to corporate bodies towards ensuring there’s a moral management system governing organizational stakeholders. The Pyramid of...
5 Pages(1250 words)Article

Carrolls Pyramid of Corporate Social Responsibility based on Thames Water

...of the company. These responsibilities have assisted Thames Water to satisfy the community it operates. It has also helped the company to encourage the public for preserving water. Reference list Banerjee, S., 2011. Corporate social responsibility. The good, the bad and the ugly. New York: Harper Collins. Barth, R. and Wolff, F., 2009. Corporate social responsibility in Europe. 3rd ed. London: Harvester Wheatsheaf. Carroll, A. B., 1979. Three-Dimensional Conceptual Model of Corporate Performance. Academy of Management Review, 4 (4), pp. 497–505. Carroll, A., 1991. The...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Book Report/Review on topic The pyramid of corporate social responsibility - article review for FREE!

Contact Us