4 Level Model of

Social Responsibility
 Companies are said to display CSR if they
recognize that they have a responsibility to
give back to the environment and put
programs in place to ensure that they are
giving back to society beyond simply making a
profit.
 Year 1991
Archie B. Carroll
organized the expected corporate
social responsibilities into a four-
level model called the ‘Pyramid of
corporate social responsibilities’
framework consists of four different
responsibilities: Economic, Legal, Ethical and
Philanthropic
Carroll’s Pyramid of CSR
Economic Responsibility
- it states that the first priority should be
creating profit through economic growth
- From that foundation, they can invest in the
community by creating Jobs, Support Local
organizations, and partnering with Non-profit
organizations.
 Legal Responsibility

- company’s responsibility to follow all

laws, regulations and compliances as they
apply to the business operations.
-obeying ALL Nation and International laws
and regulations for their industry.
 Ethical Responsibility
- Management determines ethical responsibilities,
which include making moral decisions that impact
employees, customers, the supply chain and the
environment.

- Being just, moral and fair. It must avoid

causing harm.
Philanthropic Responsibility
- expectation that a business will contribute to the
quality of life for society.
- To be a good corporate citizen, a company
should take part in initiatives such as
volunteering or fundraising to give back to
society.
Importance of CSR
- Improved Brand Perception

- CSR can have a positive impact on

the perception of an organization’s
brand, as well as the organization’s
overall reputation.
- Boosted Morale for Employees

- CSR practices help boost employee

morale as employees and employers
gain a greater sense of purpose in
their work
- Improved customer loyalty

- Customers value CSR and

companies that invest in it will likely
have higher customer retention and
loyalty.
- Greater Competitive Advantage
- Companies that are socially responsible
are more likely to obtain a competitive
advantage in the marketplace due to
superior brand recognition and the ability
to attract and retain the best staff.
SAMPLE BUSINESSES
WITH BEST CSR
PRACTICES
 ADIDAS
they’re heavily involved in the war against plastic. They
currently work with Parley to turn plastic waste into high-
performance sportswear. They’ve also partnered with
Greenpeace for a DETOX campaign to eliminate toxic
chemicals from global supply chains. Run For The Oceans is
another long-standing campaign they’ve organized since 2018
to help raise funds and awareness.
 Johnson & Johnson
focused on reducing its carbon footprint. Their methods
range from taking advantage of wind power to providing safe
water to communities worldwide. To further their efforts,
they purchased a privately-owned energy supplier in Texas
to reduce pollution while providing a renewable, economical
alternative to electricity. Their ultimate goal is to have 100%
of their energy needs from renewable sources by 2025.
 Coca-Cola
Their key areas of sustainability are climate, packaging,
agriculture, product quality, and water stewardship.
They’ve advertised their messaging to be “a world without waste,” which
means that they’re going to make active efforts to reduce their carbon
footprint through packaging and water use. They plan to collect and recycle
every bottle, make their packaging 100% recyclable, and replace all water
used in creating their drinks back to the environment to ensure water
security. By 2030, they want their carbon footprint reduced by 25%. .
 Examples of CSR in action
• Reducing the carbon footprint
• Engaging in charity work
• Purchasing fair trade products
• Investing in environmentally conscious
businesses
• Getting involved in volunteer work
• Improving labor policies