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Carroll'S Model of CSR (Pyramid of CSR) : 6) Fair Business Prac Ces

The document outlines the principles of Corporate Social Responsibility (CSR), emphasizing fair business practices, stakeholder engagement, and the benefits of CSR initiatives for brand image and cost efficiency. It introduces Carroll's Pyramid of CSR, which categorizes responsibilities into economic, legal, ethical, and philanthropic levels, illustrating the foundational role of profitability and compliance with laws. Examples from companies like Tata Group, Reliance Industries, and Infosys highlight the application of these principles in real-world business practices.

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Nandini Nutts
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14 views2 pages

Carroll'S Model of CSR (Pyramid of CSR) : 6) Fair Business Prac Ces

The document outlines the principles of Corporate Social Responsibility (CSR), emphasizing fair business practices, stakeholder engagement, and the benefits of CSR initiatives for brand image and cost efficiency. It introduces Carroll's Pyramid of CSR, which categorizes responsibilities into economic, legal, ethical, and philanthropic levels, illustrating the foundational role of profitability and compliance with laws. Examples from companies like Tata Group, Reliance Industries, and Infosys highlight the application of these principles in real-world business practices.

Uploaded by

Nandini Nutts
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ac vist, or charitable nature.

This involves voluntarily adop ng prac ces that benefit


society.

6) Fair Business Prac ces: CSR includes fair business prac ces, supply chain
management, employee volunteering, and community development. This involves
conduc ng business in a manner that is fair to all stakeholders.

7) Stakeholder Engagement: CSR involves engaging with various stakeholders,


including employees, customers, suppliers, communi es, governments, and
regulators. This involves considering the interests and concerns of all stakeholders in
decision-making processes.

8) Brand Image: CSR ini a ves can help to create a posi ve brand image. This involves
demonstra ng commitment to societal and environmental well-being, which can
enhance a company’s reputa on.

9) Cost Efficiency: CSR ini a ves can result in cost savings for businesses, such as
through reduced packaging, increased efficiency, and sustainable prac ces. This
involves adop ng prac ces that are both economically and environmentally
beneficial.

CARROLL'S MODEL OF CSR (PYRAMID OF CSR)


The Carroll Pyramid of Corporate Social Responsibility (CSR) is a model that categorizes CSR
into four levels:

 Economic Responsibili es:

 These are the basic responsibili es of a business to be profitable and provide a


return on investment to its shareholders. This forms the founda on of the
pyramid. The basic responsibility of any business is to be profitable for longer
survival in compe ve market.

 A business is responsible for being profitable. From this founda on, they can
invest in the community by crea ng jobs, suppor ng local organisa ons and
partnering with nonprofits.
 To carry on with ac ons while encountering other obliga ons - legal, ethical, and
philanthropic – a company must be financially stable. BE PROFITABLE

 EXAMPLE - The Tata Group, one of the largest employers in India, is known for its
commitment to employee welfare and community development.

 Legal Responsibili es:

 Businesses are expected to comply with the laws and regula ons of the countries
they operate in. This is the second level of the pyramid. Business should abide by
the laws and regulatory norms to avoid any legal complica ons in work.

 A business is responsible for obeying all na onal and interna onal rules, laws and
regula ons for their industry.

 Businesses not encountering the minimal legal prerequisites will confront pricey
legal ac ons and a tarnished reputa on. OBEY THE LAW

 EXAMPLE - Reliance Industries Limited, one of the largest private sector


companies in India, is known for its strict adherence to laws and regula ons

 Ethical Responsibili es:

 These are responsibili es that the community expects from businesses over and
above legal requirements. This includes business prac ces that are fair, just, and
right. This represents the responsibility of business to be morally right and prac se
fair business.

 A business is responsible for being just, moral and fair. It must avoid causing harm.

 Since law might straggled technology and can reflect a leading class instead of the
public good, encountering ethical obliga on in business is crucial. DO WHAT'S
RIGHT.

 EXAMPLE - Infosys, a global leader in consul ng, technology, and outsourcing, is


known for its commitment to transparency and ethical business prac ces.

 Philanthropic Responsibili es:

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