COMPONENTS OF
CORPORATE
SOCIAL
RESPONSIBILITY
Target
Social Responsibility is the adoption by a business of a strategic focus for
fulfilling the economic, legal, ethical, philanthropic responsibilities expected of it by
its stakeholders.
Businesses should look beyond their self-interest and recognize that they
belong to a larger group that expects responsible participation. It adopts a strategic
focus and fulfills societal expectations.
In your previous lesson, you are done describing the different models and
frameworks of social responsibility.
This module will provide you knowledge on how you are going to formulate a
framework of social responsibility which reflects the practice of sound business.
After going through this module, you are expected to:
1. Formulate a framework of social responsibility that will reflect the practice
of sound business. (ABM_ESR12-IVi-l-3.5)
Jumpstart
Activity 1: Read Me! Understand Me!
Directions: Read the concepts about social responsibility. Understand
what you are reading!
Social Responsibility has economic responsibilities, legal,
ethical and philanthropic responsibilities.
Economic responsibility refers to make money. Required by
simple economics, this obligation is the business version of the human
survival instinct.
Legal responsibility refers to the adherence to rules and
regulations.
Ethical responsibility is the ability to recognize, interpret and
act upon multiple principles and values according to the standards
within a given field.
Philanthropic responsibilities to contribute to society’s projects
even when they’re independent of the particular business .
Social responsibility provides greater trust with
stakeholders, greater customer satisfaction, stronger
employee commitment, stronger investor loyalty,
greater profitability and countries with greater trustbased institutions foster a productivity-enhancing
environment.
Stakeholders are those constituents who have a
stake in or claim on some aspect of a company’s
products, operations, markets, industry and outcomes.
Stakeholders are important to companies that operate
with a stakeholder orientation: customers, employees,
investors, stockholders, suppliers, government and
communities.
Discover
Social responsibility applies to all types of business – small
and large, sole proprietorships, partnerships as well as large
corporations. It fulfills societal expectations as it provides a return
on investments for the owners. Obeys the law and regulatory
agencies. Acts in a just, fair and correct manner. Lastly, it promotes
human welfare and good will. For you to understand the lesson
well, do the following activities. Have fun and good luck!
It adopts a strategic focus requiring a formal commitment
from top management like what is stated from Carroll’s
explanation of corporate social responsibility which requires
action and result focusing on fulfilling the economic, legal, ethical
and philanthropic responsibilities expected by its stakeholders.
Figure 1. The Pyramid of Responsibility
Components of Corporate Social Responsibility
Economic Responsibilities: Firm has a responsibility to use the
resources available to produce goods and services for the society in
exchange of money. Examples: Meeting expectations of both social
and ethical standards; ability to adapt to new or developing ethical
and moral standards; being a good corporate citizen.
Legal Responsibilities: The laws and regulations that all firms are
expected to follow as they perform their daily functions. Examples:
Operating consistent with government and legal expectations;
displaying complete compliance with all regulations.
Ethical Responsibilities: Change over time because they are based on
expectations of the society. Examples: Meeting expectations of both
social and ethical standards; ability to adapt to new developing
ethical and moral standards; being a good corporate citizen.
Philanthropic Responsibility: Those responsibilities in which
society does not have a clear message to present to
businesses as to what their courses of action should be. Left
in the hands of managers to make the right judgment.
Example: Giving to charitable organizations. Giving
donations.
Responsibility
Societal Expectation
Required
Be profitable, maximize sales,
minimize costs.
Legal
Required
Obey laws and regulations.
Ethical
Expected
Do what is right, fair and just.
Philanthropic
Desired / Expected
Be a good corporate citizen.
Economic
Example
Table 1. Carroll’s Four-Part Definition, Understanding the Four Components
Explore
Activity 1
Directions: Arrange the jumbled letters below to form the correct word. Use these words to
complete the paragraph below. Write your answer on a separate sheet of paper.
A. AGELL - _______________________________
B. CAITEHL - _______________________________
C. PRAMYDI - _______________________________
D. CEMINOCO - _______________________________
E. PHROTHICAPILN - _______________________________
Figure 1 is Carroll’s (1) _________________ of responsibility. (2) ________________ is a
social responsibility which requires the business to obey laws and regulations while
(3) _________________ responsibility means the expectation of the community from
the business side to do what is right, fair and just. Being good corporate citizen of the
community is an illustration of (4) ________________ responsibility. (5)
___________________ responsibility requires the business to be profitable and to
maximize its sales while minimizing costs incurred by the business operation.
Activity 2
Direction: Think of a company/corporation. Analyze how they practice
sound business using the Carroll’s Pyramid of Responsibility. Copy
the format and answer it in another sheet of paper.
Name of Company/Corporation:_________________________________________
Responsibility
Societal
Expectation
Economic
Required
Legal
Required
Ethical
Expected
Philanthropic
Desired /
Expected
Example
(Concrete)
Source
(printed
materials and
/or online)
Rubrics:
10
7
5
3
Has
completed the
chart with very
concrete and
reliable
examples as
indicated by
the sources.
Has
completed the
chart with
concrete and
reliable
examples but
some sources
not indicated
Has
completed the
chart with
some concrete
and reliable
examples and
not all sources
indicated
Has not
completed the
chart with
concrete
examples and
no source
indicated
Deepen
At this point, let us deepen your understanding of the lesson by
formulating your own framework of social responsibility. Consider all concepts
and theories that you have learned from your previous lessons.
Directions: Formulate your own framework of social responsibility reflecting the
practice of sound business. Explain briefly but substantially the process or flow of
your framework. Do it in a separate sheet of paper.
Rubrics:
Criteria
10
7
5
3
Formulation of
Framework
Framework reflects
very clearly
concepts and
theories previously
learned
Framework reflects
clearly concepts
and theories
previously learned
Framework reflects
some concepts and
theories previously
learned
Framework does
not reflect concepts
and theories
previously learned
Explanation
Explanation was
very substantial.
Explanation was
substantial.
Explanation was
fairly substantial.
Explanation lacks
substance
Gauge
Directions: Read carefully each item. Use a separate sheet of paper for your answers.
Write only the letter of the best answer for each test item.
1. Which refers to the adoption by a business of a strategic focus for fulfilling
economic, legal, ethical and philanthropic responsibilities?
A. Economic Responsibility
B. Ethical Responsibility
C. Legal Responsibility
D. Social Responsibility
2. What component of social responsibility is in charge in making money or
profit?
A. Economic Responsibility
B. Ethical Responsibility
C. Legal Responsibility
D. Philanthropic Responsibility
3. Which of the following refers to those constituents who have stake in or claim
on some aspect of the company’s products and operations?
A. Communities
B. Customers
C. Stakeholders
D. Suppliers
4. Which of the following shows the benefit of social responsibility?
A. Greater customer’s dissatisfaction
B. Greater profitability
C. Lesser employee commitment
D. Stronger grievance of employees
5. What component of social responsibility dictates a business to be a good
corporate citizen and do charitable act?
A. Economic Responsibility
B. Ethical Responsibility
C. Legal Responsibility
D. Philanthropic Responsibility
6. Which of the following choices is TRUE?
A. Employees’ perceptions are not affecting competitive salary
B. Failure to care for employees results to lower loyalty
C. Trust does not hold the organizational relationships together
D. Trust shouldn’t exist between departments within the firm.
7. Who introduces the pyramid of responsibility?
A. Archie Carroll
B. Emmanuel Kant
C. Howard Bowen
D. Robert Wood
8. What component of social responsibility would expect the business to do what
is right, fair and just?
A. Economic Responsibility
B. Ethical Responsibility
C. Legal Responsibility
D. Philanthropic Responsibility
9. All are attributes of social responsibility leading to investor loyalty EXCEPT:
A. Commitment
B. Dependability
C. Tactlessness
D. Trust
10. What component of social responsibility would require the business to obey
laws and regulations?
A. Economic Responsibility
B. Ethical Responsibility
C. Legal Responsibility
D. Philanthropic Responsibility