Innovating Carroll's Pyramid of Corporate Social Responsibility (Presentation Slides)

Abstract

Without effective corporate governance mechanisms in place, it would be more difficult to achieve profit maximization goals associated with economic responsibilities, and even more difficult to ensure that profits or resources derived from economic activities are diverted through the right channels to achieve their intended goals.

From the perspective of the need to realize primary objectives associated with economic responsibilities – namely profit maximization goals, as well as secondary objectives which could be better fostered as a result of the realization of primary objectives – namely poverty alleviation objectives and job creation, the need to ensure that effective corporate mechanisms are in place – such that effective compliance and enforcement of rules, regulations, ethical codes of conduct are achieved, necessitates the categorization of legal and ethical responsibilities as constituting core responsibilities.

Whilst supporting Carroll’s pyramid of Corporate Social Responsibility, it should also be reiterated that ideally, no level of responsibility should be treated with lesser respect than the other.

This paper seeks to justify the above observations, and also proposes a model whereby responsibilities denoted within the sphere of Carroll’s pyramid of CSR could be visualized more appropriately.

Keywords: Carroll’s pyramid of Corporate Social Responsibility, IASB, FASB, disclosure, financial reporting standards, corporate governance