Corporate Social Responsibility: Exploring Carroll's Pyramid

This article explores the various aspects of corporate social responsibility (CSR) through theoretical research on Carroll's Pyramid of CSR and its components. It discusses the background of CSR, Carroll's Pyramid, current trends in CSR initiatives, and provides examples of corporate initiatives by companies like Singtel, OCBC Bank, and DBS Group Holdings. The article highlights the importance of CSR in modern business organizations and its impact on society.

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26 MARCH 2019

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Introduction
Corporate social responsibility is the set of commitments that are required to be
carried on by the business organisations to address the needs and issues of the varied range of
stakeholders (Moon, 2014). Over the years with the increased globalisation, need for the
transparent and efficient business practices, and consideration of objectives and values of the
society as a whole, the framework of the corporate social responsibility has widened
considerably (Morrison, 2015). The following work is aimed to explore the various aspects of
the corporate social responsibility through theoretical research on various related concepts
and models combined with research on CSR initiatives undertaken by companies. The work
would primly be focussed on the Carroll's Pyramid of Corporate Social Responsibility and its
various components.
Background of CSR
The concept of Corporate Social Responsibility came into light in the year 1953, in
the notable work of Howard R. Bowen, namely the “Social Responsibilities of the
Businessman” (Katamba, Zipfel, Haag, & Kazooba, 2012). Some of the most noted
international entities that are dedicatedly established for the governance of business
enterprises and their functions are the World Business Council for Sustainable Development,
the International Organization for Standardization, UN Global Compact, Global Reporting
Initiative, the Organization for Economic cooperation and development, and others (Zientara,
2017).
Carrol’s Pyramid

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One of the most celebrated theories on the said concept is that of Archie B. Caroll,
popularly known as Carroll's pyramid. According to Carroll, CSR activities of an
organisation are comprised of following four categories of societal expectations namely, the
economic, the legal, the ethical and finally the discretionary, as described in the following
figure (Carroll, 2016).
The ethical responsibilities and philanthropic responsibilities comprise of the
foundational tiers of the CSR Pyramid along with the legal and economic responsibilities.
The normative expectations of most of the societies revolve around the fact that business
organisations must conduct their operations in an overall ethical manner that goes beyond the
compliance of the laws and regulations (Schwartz, 2011). The prime reason for consideration
of ethical responsibilities in the foundation tier of the said model is that the businesses must
honour the moral rights of consumers, employees, owners and the community; and dedicate
its resources for the protection of the same, as the business cannot function without the
contribution of these and in isolation. Some of the functions that form the part of the said tier
include embracing corporate citizenship, devising a sound corporate governance structure,
recognition of the business integrity and ethical behaviour while striving to achieve the
business goals. While the corporate citizenship means to produce higher standards of living
and quality of life for the surrounding communities, the corporate governance structure refers
to the collection of the policies, structure, people and roles to facilitate the management to be
fair and accountable (Tricker, 2015).
Philanthropic responsibilities include all forms of voluntary or discretionary activities
of the businesses as an objective to participate in social activities. The chief reason for the
inclusion of the responsibility in its foundation tiers is that "as the corporates gather their

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resources from the society, they must pay back the same.” The companies adopt a range of
means to give back to the society such as gifts of monetary resources, volunteering
campaigns by the companies involving its employees and other members, donations of the
products and services, literacy or health campaigns for the families of the labours or the
employees, and the overall community development. Most of the entities engage in the said
activities as a practical means to build up their goodwill by the demonstration of their good
citizenship. According to Carrol's model, though both the responsibilities comprise the
definition of CSR while ethical responsibilities hold more value, the philanthropic
responsibilities are more voluntary in nature. The businesses cannot be regarded as unethical
just because they do not engage in a desired level of philanthropy.
In the context of the economic responsibilities, it is essential to note that as the
societies sanction the functioning of the business organisations, they also establish a wide
range of standards and statutes through the regulators for the business activities to be
governed. Adherence to these makes sure that the business practices are within the ambit of
the fair business practices as formulated in the federal, state and local level laws. The chief
difference in the legal responsibilities and the other responsibilities of the CSR framework is
that the legal responsibilities are mandatory to be complied with as per the national or state
laws of a region in which the business is established. The failure to abide by such laws would
lead to penalties or other legal actions for the entities.
Current trends as depicted by the corporate examples
With the increased complexities in the business transactions and consequent increase
in the range of the stakeholders, the idea has become a global notion with a wide range of
national and international organisations working for the same. Sustainable reporting has
lately become a compulsory requirement of the financial statement preparation in a number
of nations. It refers to the systematic and comprehensive reporting of the economic,
environmental, and social and governance performance of an enterprise for the reporting
period in question.
The corporate sustainability initiatives can be developed on the lines of the UN
Sustainable Development Goals. United Nations is one of the notable organisations that has
developed a list of the 17 Sustainable Development Goals, and the companies across the
globe are increasingly adhering by the same to address the variety of the global challenges
(United Nations, 2019). The following segment would describe the corporate initiatives that

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can be developed by the entities as undertaken by the various companies in the region and
other parts of the globe.
As per the latest sustainability report of the Singapore Telecommunications Ltd,
popularly known as Singtel, the organisation covers the Environmental, Social and
Governance (ESG) and sustainability strategies, initiatives and the performances in its
corporate social responsibility (Singtel, 2018). The company has developed a range of the
Singtel Group Digital Citizenship programmes which are aimed at supporting and enhancing
online activities of the students in terms of safety, responsibility and digitalization. In
addition, to the above mentioned, the company has developed a SCORE+ in Singapore and
Enterprise Leadership programme in Australia, that is aimed at provision of scholarships and
apprenticeships to a wide range of population (Singtel, 2018). Thus, corporations can develop
programmes for ensuring the safety of the online activities in the country while enhancing the
knowledge of the employees.
Another longest established entities of Singapore is the OCBC Bank that was formed
in the year 1932 (OCBC, 2019). The entity has established the OCBC Cares Programme
among others to offer a holistic approach to make a difference to the society. Through the
said programme, the company donated a whopping S$1.6 Million together with 9100
employees contributing their talents and time to contribute towards the sustainable
development of communities (OCBC, 2017). Thus, the corporates can engage its employees
and members in the organisation of education, creativity, environment workshops for the
families of the labours and the nearby communities.
Yet another major Singapore based organisation is DBS Group Holdings Ltd. which
is one of the largest banks of Asia with the headquarters in Singapore. According to the latest
Annual Report of the company of 2017, the company adheres to the United Nations
Sustainable Development Goals (SDGs) namely the Affordable and Clean Energy, Decent
Work and Economic Growth, Responsible Consumption and Production and Climate Action
(DBS Bank Ltd, 2017). One of the popular CSR initiatives of the bank has rolled out in the
year 2017 was the “DBS CYBRFIT programme” which is an online tool aimed to build cyber
security awareness and good practices among the employees (DBS Bank Ltd, 2017). Thus, an
initiative can be developed by the corporates to raise the awareness in relation to cyber and
financial crimes and raise the standards of compliance of environmental and money
laundering laws.

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A corporate initiative can be developed for the protection of the natural resources sucha s
lakes, forest, and others. For instance, Wilmar International is a founding member of the Fire
Free Alliance (FFA) in 2016, which is a voluntary multi-stakeholder programme aimed to
address the challenges and preventing of the issues of the land and forest fires in Indonesia
(Wilmar International Ltd, 2017). Through the programme and with the aid of the other
members, the company has laid impact on 96 villages in South Sumatra and Central
Kalimantan since February 2016 in terms of the addressing the incidence of fires in the said
regions.
A corporate initiative can be developed by the companies to extend the financial,
infrastructural and other support to small companies and relevant start-ups. For instance, the
United Overseas Bank has a popular initiative named as “InnoVen Capital” programme,
which is a joint venture with Temasek Holdings, and is aimed at providing the entrepreneurs
and start-ups in the region the venture debt financing which would further facilitate growth
and value addition for the said small businesses (UOB, 2017). In quantitative terms, the
impact of the said programme is that a more than 20 high-growth companies throughout
Singapore, Thailand, China and other regions have been funded and as a result expanded
because of the said programme.
Conclusion
Thus, the discussion on the various aspect of the corporate social responsibility aid to
conclude that it is one of the most essential components of modern business organisations. As
stated above, the entities are increasingly engaged in a range of corporate social initiatives
because of the various reasons such as regulatory, ethical or philanthropic. Examples of
popular corporate initiatives have been provided to back the wide variety of programmes and
the impact of the same on the society and companies as well.

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References
Carroll, A. B. (2016). Carroll’s pyramid of CSR: taking another look. International journal
of corporate social responsibility, 1(1), 3.
DBS Bank Ltd. (2017). Annual Report 2017. Retrieved from:
https://www.dbs.com/annualreports/2017/pdfs/governance-and-risk-management/
DBS-AR17-97-107.pdf
Katamba, D., Zipfel, C., Haag, D., and Kazooba, C. T. (2012) Principles of Corporate Social
Responsibility (CSR): A Guide for students and practising managers in developing
and emerging countries. Houston: Strategic Book Publishing and Rights Co.
Moon, J. (2014). Corporate Social Responsibility: A Very Short Introduction. New York:
Oxford University Press, 3.
Morrison, J. (2015). Business Ethics: New Challenges in a Globalised World. London:
Palgrave Macmillan, 226
Oversea-Chinese Banking Corporation Ltd. (2017). Annual Report 2017. Retrieved from:
https://www.ocbc.com/assets/pdf/annual%20reports/2017/ocbc_ar17_fullreport_engli
sh.pdf
Oversea-Chinese Banking Corporation Ltd. (2019). Overview. Retrieved from:
https://www.ocbc.com/group/who-we-are/group-business.html
Schwartz, M. S. (2011). Corporate Social Responsibility: An Ethical Approach. New York:
Broadview Press.
Singapore Telecommunications Ltd. (2018). Singtel Group Sustainability Report 2018.
Retrieved from: https://www.singtel.com/content/dam/singtel/about-us/sustainability/
reports/singtel-sustainability-report-2018.pdf
Tricker, B. (2015). Corporate Governance: Principle, Policies and Practices. 3rd ed. Oxford:
Oxford University Press.
United Nations. (2019). About the Sustainable Development Goals. Retrieved from:
https://www.un.org/sustainabledevelopment/sustainable-development-goals/

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United Overseas Bank. (2017). UOB Annual Report 2017. Retrieved from:
https://www.uob.com.sg/AR2017/documents/Full-Annual-Report-2017.pdf
Wilmar International Limited. (2017). Annual Report 2017. Retrieved from:
https://www.wilmar-international.com/sustainability/wp-content/uploads/2018/05/
Wilmar-Sustainability-Report-2017.pdf
Zientara, P. (2017). Socio emotional Wealth and Corporate Social Responsibility: A Critical
Analysis. Journal of Business Ethics, 144(1), 185–186.