What is Carroll’s pyramid of corporate social responsibility (CSR)? It’s a holistic picture of what a responsible business looks like, and philanthropy is only the tip of the iceberg. Businesses that fail to take Carroll’s big picture into account often find that their attempts at gaining publicity by “doing good” fall flat.
Those that do take all the elements of Carroll’s pyramid of social responsibility into account, even when they have never seen this way of defining it, are universally respected. Consumers notice, employees are proud of it, and other businesses strive to emulate it. This article examines Carroll’s pyramid from its foundations to its apex. Where does your business stand? Here is where you find out.
Carroll’s CSR Pyramid Levels
The Foundation: Economic Responsibility
A responsible business is financially stable. It fulfils its purpose, namely, the ability to make profits. As such, it is a business that consumers, employees, and shareholders can rely on. It contributes to society by providing stability and supporting economic growth.
Legal Responsibilities
There are times when legal compliance can be an onerous task. However, laws and regulations are all there for good reason, and no responsible business shirks its responsibility to comply with the law. Many of these laws relate to safety and fairness, so without compliance, businesses place individuals and society at risk.
Ethical Responsibilities
There are areas that may not be prohibited by law but still do not stand up to scrutiny as being “right.” In simple terms, just because you can do something doesn’t mean that you should. Providing a positive workplace culture, for example, isn’t, strictly speaking, a law. But recognising your employees as people deserving of individual recognition and understanding is the right thing to do.
You can also look beyond your business to your supply chains, ensuring that all contributors, even those not governed by UK law, are working in an ethical way. By including supply chain choices in your business’s ethics, you encourage other entities to work in ways that benefit society and the environment.
The Apex of Carroll’s Pyramid: Philanthropic Responsibilities
Once you have built your way up, ensuring that all elements that are directly under your control represent best practice, it’s time to look further afield. How can your business share some of its prosperity with others?
Philanthropic giving, whether it be time, money, or other resources, helps to uplift society and the environment in which we live. In contributing to causes, you are going the “extra mile.”
How Does Carroll’s CSR Pyramid Compare to Other CSR Models?
While other CSR models recognise the same elements of CSR as Carroll depicted in his pyramid, not all of them agree on the pyramid form. For example, the Intersecting Circle Model of CSR depicts each element in a series of intersecting circles.
The reason for choosing this depiction is that each element overlaps with the other, creating harmonies and sometimes conflicts. In essence, the philosophy is that CSR is not a hierarchy. Instead, it is a series of equally-important elements that act upon each other.
The Concentric Circle Model of CR places economic responsibility at the core of a series of concentric circles presented in the same order as Carroll’s pyramid. Again, the rejection of a hierarchy underlies the thinking behind this model. From the core outward, each element of CSR embraces the preceding circles.
Finally, some companies prefer numerical models. For example, they may set percentages of time, equity, and profits to be used for the benefit of others.
The Benefits of Carroll’s Pyramid
Although the thinking behind other CSR models remains valid, Carroll’s pyramid offers an easily understandable representation of the priorities businesses should bear in mind. For instance, it would be reckless to engage in giving if financial stability is in question, and it would be hypocritical to do so when legal and ethical matters have not been prioritised internally.
Many businesses have been accused of CSR-washing – trying to make themselves look good through charitable acts even though their businesses may have negative impacts on people and the environment. By paying attention to Carroll’s order of priority, striving to reach the apex of the pyramid, they can be confident that they are not diluting what should be an internal focus with an external one.
Latest Trends in Carroll’s CSR Pyramid
Various adjustments to Carrol’s pyramid have been proposed. Among these is the suggestion that legal compliance should represent the foundation of economic stability, occupying the bottom of the pyramid. This is a logical proposal in that economic stability without legal compliance is unlikely.
Further suggestions include building a footing below that, consisting of beliefs, values, and assumptions informed by the broader environment. Again, this adds depth to Carroll’s model, allowing organisations to align their CSR with pressing external needs and internal values.
Another suggestion proposed by researchers involves adding a layer of innovation between each level of Carroll’s pyramid. This would allow for fresh perspectives with the potential for enhancing overall business sustainability and approaches to philanthropy.
Nestlé reinvented Carroll’s pyramid, adding some elements of its own. It proposes that compliance and human rights should share the base of the pyramid with environmental sustainability issues in the next tier. It also suggests that “philanthropy” should be replaced with the concept of creating shared value, addressing issues like water, nutrition, and rural development.
See some inspirational Corporate Social Responsibility (CSR) examples here.
RSVP Restart: A Sterling Example of Shared Value
The notion of giving to beneficiaries and society while also getting something back forms the backbone of RSVP’s Restart Program and is the essence of shared value creation. As a leading London-based business process outsourcing (BPO) company with a focus on sales and customer service, we have found a way for us and our customers to work together for the benefit of all.
Partnering with His Majesty’s Prison and Probation Service, we are extending training, a qualification, real-world workplace experience, an ability to earn, and potential for employment upon release to rehabilitated prisoners whose release date is drawing near.
You Benefit
Clients who support this program will receive RSVP’s services, under our oversight, from imprisoned people who are preparing to re-enter society. We will undertake to offer the same quality of service for less. The mutual benefits are significant.
We Benefit
We offer a way to give back, and we invest our time and resources, but we also train individuals we may one day employ. Meanwhile, we benefit from the efforts of our highly-motivated trainees.
They Benefit
People can make life-altering mistakes. They should not pay the price forever after. However, the stigma follows rehabilitated prisoners – they may struggle to find employment after their release and have difficulty caring for their families. We will seek ways to deploy our trainees productively after their release from HMP Five Wells.
Society Benefits
Reoffending should not be the only career option for former prisoners. Indeed, research has shown that people who find employment after imprisonment are far less likely to reoffend. Statistics spanning two years after prisoners’ release show a 50 percent lower likelihood of those with employment returning to crime.
Enquire Today And Boost Your CSR Profile While Benefiting From RSVP-Quality Service
Through our Restart Program, we offer a perfect circle of benefits for all, and we encourage you to explore this program with us. Remember, RSVP’s call centre and BPO services are renowned for their excellence. We partner with you to build stronger businesses and a better world for everybody. Contact us today for more information.