Page 33 - BA1 Integrated Workbook STUDENT 2018

Ethics and corporate social responsibility

1.4 Models of CSR

There are three main models surrounding the concept of CSR:

Carroll’s pyramid

Four levels of CSR:

 philanthropic – be a good corporate citizen

 ethical – do what is right and fair

 legal – obey the law

 economic – be profitable.

Carroll’s philosophies

Four approaches to CSR:

 Reaction – deny responsibility

 Defence – admit responsibility but fight it

 Accommodation – do enough to keep stakeholders happy

 Proaction – go beyond industry norms and requirements.

Ethical stances (Johnson, Scholes and Whittington)

Four approaches to CSR:

 short-term shareholder interest – follow the law

 long-term shareholder interest – spend on CSR in the short term
to make long-term financial gains

 multiple stakeholder obligation – involve stakeholders. The
company has a purpose beyond the financial

 shaper of society – financial and other stakeholder interests are
secondary.

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