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Description of the Pyramid

The pyramid is divided into four levels, each representing a distinct type of responsibility:

1. Economic Responsibilities (Base of the Pyramid)
• What it means: The foundation of business responsibility is to be profitable. Companies must produce goods and services that society needs and generate enough profit to sustain operations.
• Role: Required by society.
2. Legal Responsibilities
• What it means: Businesses must obey laws and regulations set by governments. This ensures fair competition, consumer protection, and compliance with societal rules.
• Role: Required by society.
3. Ethical Responsibilities
• What it means: Beyond legal requirements, organizations are expected to do what is right, just, and fair—even if not legally mandated. This includes avoiding harm and respecting moral norms.
• Role: Expected by society.
4. Philanthropic Responsibilities (Top of the Pyramid)
• What it means: Companies are encouraged to be good corporate citizens by contributing to society through charitable activities, community support, and voluntary initiatives.
• Role: Desired by society

Overall Meaning

Carroll's Pyramid shows that CSR is multi-dimensional. At the core, businesses must first ensure financial viability and legal compliance. However, society also expects them to act ethically and contribute voluntarily to social and environmental well-being.

This model emphasizes that true corporate responsibility goes beyond profit, integrating legal, ethical, and philanthropic duties to create sustainable and positive impacts.

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