Corporate Social Responsibility
3
Triple Bottom Line
People planet profit
4
Carroll's Pyramid
Economic legal ethical philanthropic
3
ESG Factors
Environmental social governance
Carroll's Pyramid of CSR
economic is at the bottom, not the topCarroll's Pyramid places economic responsibility at the BASE, not at the top. A company must be profitable first.
Foundation at bottom, discretionary at top
The Triple Bottom Line
The triple bottom line framework evaluates organizational success across three dimensions. Financial performance is necessary but not sufficient. Organizations must also account for social impact and environmental stewardship.
People
Social responsibility to employees, communities, and society
Planet
Environmental stewardship and sustainable practices
Profit
Financial viability and economic value creation
ESG and HR's Role
ESG (Environmental, Social, Governance) is the investor-facing framework for evaluating CSR. HR directly influences the "S" through workforce practices, DEI initiatives, employee well-being, and community engagement. HR also contributes to "G" through ethics programs, compliance training, and transparent reporting.
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Practice NowExam Traps
Economic Responsibility Is at the BASE
Carroll placed economic responsibility at the foundation of the pyramid, not the top. A company must first be profitable before it can meet its legal, ethical, and philanthropic obligations. The exam tests pyramid order.
CSR Is NOT Just Philanthropy
Many candidates equate CSR with charitable giving alone. CSR encompasses economic viability, legal compliance, ethical conduct, and then philanthropic contributions. Philanthropy is the smallest layer.
Legal and Ethical Are Separate Layers
Something can be legal but unethical. Carroll's pyramid treats legal compliance and ethical behavior as distinct responsibilities. The exam will present scenarios that test this boundary.
Profit First
Carroll says profit is the foundation. Without economic responsibility, the other three layers cannot exist.
People Planet Profit
Triple bottom line measures success across three dimensions, not just financial return.
The foundation is profit. Without a stable financial base, the house collapses. A company must be economically viable first. This is not greed. It is survival.
The walls are the laws. Building codes exist for a reason. A company must comply with all applicable regulations. You cannot skip this layer and jump to being ethical.
The roof goes beyond what the law requires. It is doing what is right even when no regulation demands it. Treating employees fairly because it is the right thing, not because you will be fined.
The garden is charitable giving and community involvement. It is nice. It is admirable. But it sits on top of all three other layers. You cannot have a garden without a house.
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