LECTURE 4: PERSPECTIVE ON

CORPORATE SOCIAL
RESPONSIBILITY
Corporate social responsibility is
defined by two perspective:
1)Carroll’s Perspective
2)Friedman’s Perspective
Archie Carroll served for 40 years (33 fulltime + 7 part
time) (1972-2012) on the faculty of the Terry College of
Business, University of Georgia.

He received his three academic degrees in business and

management from the College of Business, The Florida
State university.
Carroll’s Perspective
From Carroll who argues that CSR is a multi-dimensional construct
embracing four sets of responsibilities: economic, legal, ethical, and
philanthropic.
Economic Responsibility
The Responsibility for a corporation to be profitable

Example: Be profitable, Maximize sale, minimize cost.

Legal Responsibility
The responsibility for a corporation to be law-
abiding
Example: obey law and regulation
Ethical Responsibility
The responsibility for a corporation to do what
is right.
Example: paying fair wages, being
environmentally, treating suppliers fairly.
´Do what is right, fair and just.
Philanthropic Responsibility
When the corporation has achieved commitment to the above responsibilities,
then it can begin its philanthropic responsibility by engaging in initiatives that
improve the quality of life for communities
Example: donating money to charitable causes or volunteering service to
charitable organization.
Milton Friedman
Perspective
American Economist who received the 1976 Nobel
Memorial Prize in Economic Sciences for his research
on consumption analysis, monetary history and
theory and the complexity of stabilization policy.

Born July 31, 1912, Brooklyn, New York and died

November 16, 2006.
Friedman, an advocate of free markets, was against corporate social
responsibility unless the social responsibility is direct at the company
itself.
A company’s responsibility is to use its resources to engage in activities
to increase the company’s profits as long as it does not participate in
unethical or illegal activities.
A company must make earning a profit its top priority.
Assessment on the
practice of CSR
A CSR assessment is an evaluation of how well a company has
integrated the principles of CSR into their business. An assessment
program is a first step into an ongoing monitoring process.

The objective of the assessment is to get a clear picture of your

Corporate Social Responsibility practices .