Traditionally, companies are evaluated based on how much revenue and profit they generate. This is regarded as the fundamental expectation of business performance. Alongside this, businesses are expected to comply with laws and regulations—compliance being considered a basic corporate responsibility. Beyond this, however, companies are also judged on the ethical nature of their operations, as well as their positive actions, philanthropy, and contributions to society. Further classifications of philanthropic and contributory initiatives can be illustrated through another CSR pyramid.
As introduced in the previous article, sustainability encompasses a wide range of elements, such as the environment, human rights, and governance. Unlike goals that have a clear and measurable finish line, sustainability is more about defining what kind of entity an organization aspires to be. Because of this nature, many may find it confusing to determine “how far is enough.”
To evaluate CSR (Corporate Social Responsibility), a useful reference is the broad framework of the CSR Pyramid proposed by Carroll in 1991.
As introduced in the previous article, sustainability encompasses a wide range of elements, such as the environment, human rights, and governance. Unlike goals that have a clear and measurable finish line, sustainability is more about defining what kind of entity an organization aspires to be. Because of this nature, many may find it confusing to determine “how far is enough.”
To evaluate CSR (Corporate Social Responsibility), a useful reference is the broad framework of the CSR Pyramid proposed by Carroll in 1991.
Traditionally, companies are evaluated based on how much revenue and profit they generate. This is regarded as the fundamental expectation of business performance. Alongside this, businesses are expected to comply with laws and regulations—compliance being considered a basic corporate responsibility. Beyond this, however, companies are also judged on the ethical nature of their operations, as well as their positive actions, philanthropy, and contributions to society.
Further classifications of philanthropic and contributory initiatives can be illustrated through another CSR pyramid.
Traditionally, companies are evaluated based on how much revenue and profit they generate. This is regarded as the fundamental expectation of business performance. Alongside this, businesses are expected to comply with laws and regulations—compliance being considered a basic corporate responsibility. Beyond this, however, companies are also judged on the ethical nature of their operations, as well as their positive actions, philanthropy, and contributions to society.