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Chapter 7

1.2 The nature of CSR

Carroll’s definition of CSR:

CSR encompasses the economic, legal, ethical and philanthropic
expectations placed on organisations by society at a given point in
time.'

A four-part model of CSR:

Economic responsibility

 Shareholders demand a reasonable return.

 Employees want safe and fairly paid jobs.

 Customers demand quality at a fair price.

Legal responsibility

 The law is a base line for operating within society.

 It is an accepted rule book for company operations.

Ethical responsibility

 This relates to doing what is right, just and fair.

Philanthropic responsibility

 Relates to discretionary behaviour to improve the lives of others.

e.g. charitable donations and recreational facilities.

NB True CSR requires satisfying all four parts consecutively.

Illustrations and further practice

Now try TYU question 1.

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