The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders – Article Example
The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders Introduction Corporate social Responsibility program is adopted now a days since it acts as an empowerment towards strengthening the future today so that the risk are minimized, value is created and certainty is gained . It helps to gain responsiveness of the business towards its stakeholders. CSR commitment is towards commitment of the organization towards improvement in society and environment can go hand in hand with better quality and management. Economic and legal factors also contribute towards maintaining the CSR activity as it helps to maintain a high level of operating efficiency, earning per share and maintain a competitive position.
The review deals with the pyramid of Corporate Social Responsibility like economic responsibility which deals with profitability, as every organization deals with production of goods and services in order to meet the needs and demands of the consumer resulting in maximization of profit. Legal responsibility which deals with obeying the rules and regulations formulated in the company guidelines it has to comply the rules and regulations of the government, ethical responsibility is concerned about maintain or carrying out the work in an ethical manner so that the morality of the values and ethics are not disturbed. Philanthropic responsibility deals with being a good corporate citizen to assist the institute to help the NGO to deliver service for enhancement of the society to provide a quality life (Idowu, 2008, pp.124 165).
The author is Archie B Carroll of the article.
Corporate Social Responsibility is undertaken by the organizations as CSR is also known as corporate citizenship responsibility whereby the organizations looks after the interest of the society and the impact of their activities on customers , suppliers, employees, shareholders , community and stake holders . These activities restrict the businessmen from only considering the profit motive ignoring the society; it acts as a watch dog for the government to supervise the organizations. Many organizations all over the world have realized the significance of corporate social responsibility. In short it can be said that corporate social responsibility contributes towards the fulfillment of the firms economic, legal, ethical and philanthropic responsibilities.
Corporate Social Responsibility deals with ensuring that the organization fulfills its legal, social, ethical, economic obligations towards the society. The review also analyses over the organizational stakeholders. Stakeholders of an organization play a major role they are interested in the activities of the organization as they have interest claim and stake in the organization, they actively take part in decision making process of the organization. The organization must first select who are their stakeholders and their contribution towards the organization, basically the stakeholders can be categorized as employees, customers, local communities and society at large, three types of management are carried out towards the orientation of different types of stakeholders such as immoral management, amoral management and moral management. The review deals with moral management as it deals with building a notion towards improving organization ethical climate. Model management deals with leadership which is the most efficient tactic to improve the business ethics.
The author Archie B Carroll in his review has stressed on the Corporate Social Responsibility which every organization should maintain in a way together with earning profit the organization should maintain responsibility towards the society, economic, social, legal, philanthropic responsibilities as well as moral management, to be a good corporate citizen. The different stakeholder’s responsibility is towards social, legal, ethical and philanthropic aspects. The review deals with maintaining the norms, code of ethics. The learning of the review is that the organization should carry out its operation abiding by the rules and regulations framed by the government of the respective countries and the well being of the society is maintained.
This article covers in detail with good explanation about the pyramid of corporate social responsibility its impact and importance in the organization. The central lesson of the article is that the organizations should value for charity responsibility, law responsibility and profit responsibility. The explanation of the theories is the strength of the article, the explanations should have been supported by real life examples is the shortcoming. Personal experience from the article is a wide and vast learning of the moral types.
Organizations should value for charity responsibility which will support community welfare, value for virtue for justifying what is right and fair, value for law responsibility for maintaining compliance and value for profit responsibility for economic viability. Philanthropic Responsibility needs a further research. This study matters as it gives a wider idea about why the organizations should practice CSR activities and its impact on the society.
Idowu, S.O. and Filch, W.L. (2008). Global Practices of Corporate Social Responsibility Business and Economics. London, Springer Science & Business Media.