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CORPORATE & SOCIAL RESPONSIBILITY
This is the simplified summary about the topic that involves businessman as a citizen of a nation.
DEFINITION
CORPORATE SOCIAL RESPONSIBILITY (CSR) was simply put a businessman, controlling a business, in a self-regulations, with it's rules in compliance with social norms, ethical standards, nation's laws and other standards. This was to ensure that they were running a business without any harm and they were contributing for the betterment of society in general.
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| Source: http://www.csrquest.net/imagefiles/CSR%20Pyramid.jpg |
What's in the pyramid, in which it was made by no other than Archie Carroll himself, in his way he describe the very structure of the CSR? What does it really mean? Is it stage-by-stage? Here is the description.
At the base of the Carroll's pyramid is what we call Economic Responsibilities. This was in fact, the very basic of principle, the very reason why this was depicted at the base of the pyramid. It describes the very basic, yet a very purpose of having a business = more profits. This is the very reason why businesses exists - to gain profits. Most of the businesses are doing this as a way to have more cash inflow to sustain the needs of the owner and all of his workers in a company. As simple as that. Right?
Now, let's climb higher the step in the pyramid. And there's the term Legal Responsibilities. And it talks about complying the law. Having documents is one. Tax certificates, business permits, sanitary permits, and other documents are a basis of having complied with law. This makes a business more legit and a very big plus in gaining customers. Trust is priceless. Isn't it?
The higher the pyramid and there is Ethical Responsibilities. It involves the workers, the customers, and other things involving people. It is the way business management, likely the owners, treat their workers, as well as their customers. And as we speak of that, it usually speaks about the need of the employees: wages, salary bonuses, user-friendly facilities, etc. In the case of the customers, it talks about the price, the sales approach, and again, the facilities. And speaking of ethics, we speak also of culture prevailing in the place the business conducted. It is as it was, ethical responsibility eliminates any kind of prejudice, discrimination and racism. And it was the case. They can earn more profits in a way that they also help and treat the people in the society very well.
At the top, there is this thing called Philanthropic Responsibilities. And that is, to become a good, corporate citizen. With all of those factors below the pyramid, and the first three stages are indeed stable and in fact, the very key to reach the very top of the pyramid. In lay man's term, a businessman would need the first three traits aforementioned in this article in order to become a good, corporate citizen, as what Archie Carroll depicts in this well-made pyramid.
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| Source: brainstuck.com |
IN A BUSINESSMAN'S PERSPECTIVE
Now, let us put this theory in the Carroll's pyramid into the test. How can we become a good corporate citizen?
Given the four fundamentals given in the pyramid, the answers be like...
- Treating others equally and wholeheartedly friendly
- Never argue nor discriminate somebody.
- Doing my job without hurting others...
- Be generous. But not too much
- Be responsible at a given job
and,
- There should be integrity. No bias.
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