Pyramid of corporate responsibility

The pyramid of corporate responsibility model suggests CORPORATE SOCIAL RESPONSIBILITY is composed of four components: economic, legal, ethical, and philanthropic. The model uses economic responsibility as its foundation, arguing a company must be profitable in order to survive and contribute to the other levels in the pyramid. While pursuing PROFITs is the foundation, the next level of the pyramid is legal responsibility; playing by the rules of the competitive-market “game.” The third level is ethical responsibilities includes doing what is right, just and fair, avoiding harm to people and the environment. At the top of the pyramid are philanthropic corporate responsibilities, contributing to and improving the quality of life in a community. Critics of the pyramid of corporate responsibility suggest that the “business of business is business,” and efforts that distract from the pursuit of profits are a disservice to STAKEHOLDERS, whether owners or workers. Supporters of corporate social responsibility point out the right to establish a CORPORATION is a charter granted by society, one that, in theory, can be revoked. Advocates of SUSTAINABLE GROWTH AND DEVELOPMENT challenge the tendency to focus on short-term profits versus the long-term social and economic impact of business decisions.