Archie B. Carroll’s 4-level model, which was one of the first to attempt to describe CSR in a model, shows a hierarchy of corporate responsibilities. The responsibility to secure the company, i.e. to make a profit, is considered necessary. In addition, the responsibility of companies to comply with applicable legislation in their business activities is necessary in the sense of an unconditional obligation. One of the responsibilities that society expects or owes companies is to orient themselves towards ethical principles and values. This includes, for example, compliance with international standards of conduct and norms. Finally, the top of the responsibility pyramid is so-called philanthropy, i.e. voluntary commitment to a good cause, through which a company proves itself to be a “good corporate citizen”. Only this fourth level of corporate social responsibility is a purely voluntary category of responsibility that cannot legitimately be demanded by society or other stakeholders of the company. The first three levels, on the other hand, are about economically, legally or ethically required responsibilities that also have an objective obligation character. Carroll’s pyramid is one of the most frequently cited models when it comes to the graphic representation of CSR; although science, politics and society now agree that the three lower levels are not hierarchically based on one another, but are equal to one another and are interdependent. For example, a company that is economically successful but does not respect human rights in its suppliers can lose its economic legitimacy both on the level of legality (especially against the background of human rights due diligence obligations) and on the level of ethics. This can and will be called into question today by an increasingly critical public, caused or reinforced by investigative journalism, social media and NGOs. Mistakes by companies quickly become public and they must be able to react ad hoc with convincing answers – a key reason why many companies now understand and include CSR as part of risk management. Carroll’s model therefore already shows that holistic CSR management helps to comprehensively consider the company’s own obligations and legitimate social expectations and to shape one’s own understanding of compliance and risk management accordingly. Any form of CSR perception that goes beyond this offers additional opportunities and valuable differentiation potential in the various markets in which companies are active.
CSR 4-stage model (Carroll)
