Understanding Corporate Social Responsibility (CSR) and the CSR Pyramid

Corporate Social Responsibility (CSR) is increasingly important in business, emphasizing that companies should not only focus on profit but also on social and environmental responsibilities. Archie Carroll's CSR pyramid outlines four layers: economic, legal, ethical, and philanthropic responsibilities. Businesses must first ensure profitability, adhere to laws, and act ethically before engaging in philanthropy. CSR is becoming essential for attracting customers and employees, but critics argue it can distract from economic goals. Evaluating CSR's necessity and effectiveness is crucial in today's business climate.

What is one of the main reasons businesses are focusing more on CSR today?

• To increase their profit margins

• To reduce operational costs

• To comply with international laws

• To address wider social responsibilities

According to Archie Carroll's CSR pyramid, what is the foundational responsibility of a business?

• Philanthropic responsibilities

• Economic responsibilities

• Legal responsibilities

• Ethical responsibilities

What is an example of a company fulfilling its philanthropic responsibilities?

• A company reducing its carbon footprint

• A company donating a portion of its profits to charity

• A company adhering to local labor laws

• A company ensuring customer satisfaction

Why do some critics argue against an excessive focus on CSR?

• It can lead to increased competition

• It may cause businesses to overlook their economic responsibilities

• It results in higher taxes

• It encourages unethical behavior

How can CSR impact a business's ability to attract and retain employees?

• By aligning with employees' values and ethics

• By offering higher salaries

• By reducing the need for training

• By increasing the company's market share