The document describes Carroll's Pyramid of Social Responsibility, which presents four types of responsibilities for businesses: economic, legal, ethical, and philanthropic. It places economic responsibilities at the base as the foundation, with legal, ethical, and philanthropic responsibilities ascending higher up the pyramid. The pyramid provides a framework for understanding a business' evolving responsibilities to society.

1. Carroll’s Pyramid of Social Responsibility Source : A Carroll (1991) The pyramid of corporate social responsibility, Business Horizons , July-August, pp 39-48 Compare with the Reidenbach and Robin Model

2. PHILANTHROPIC Responsibilities Be a good Corporate Citizen. Contribute resources to the community; improve quality of life. ETHICAL Responsibilities Be ethical. Obligation to do what is right, just and fair; Avoid harm . LEGAL Responsibilities Obey the Law Law is society’s codification of right and wrong; Play by the rules ECONOMIC Responsibilities Be Profitable The foundation upon which all others rest Source: Carroll (1991) The Pyramid of Social Responsibility

3. Level 1 ECONOMIC Responsibilities Be profitable The foundation upon which all other levels rest

5. Level 2 LEGAL Responsibilities Obey the Law Law is society’s codification of right and wrong; Play by the rules

7. Level 3 ETHICAL Responsibilities Be Ethical Obligation to do what is right, just and fair; Avoid harm.

9. Level 4 PHILANTHROPIC Responsibilities Be a Good Corporate Citizen Contribute resources to the community; improve quality of life

24. Issues, Questions and Reflections Marketing Ethics Social Responsibility Moral Management

25. Marketing and Ethics From Buyer Beware to Seller Beware See: Smith, N.C., (1995) Marketing Strategies for the Ethics Era, Sloan Management Review , Summer, pp. 85-97.

26. Marketing Ethics Continuum Producer Interests Producer Interests Favoured Less favoured Consumer Interests Consumer Interests Less Favoured More Favoured Caveat Industry Ethics Consumer Caveat Emptor Practice Codes Sovereignty Venditor Profit General business Codes of Capability Consumer maximisation practice (average individual satisfaction across all firms) firms Information Subject to Practices of Industry Choice legal constraints specific industries codes Practice of Professional best firms codes Source: N C Smith (1995)

31. Moral Management ‘Cartel’ - 1999 Style

32. Vitamins Inc - A n International Cartel Featuring Europe’s Top Companies BASF - Germany Roche - Switzerland Rhone-Poulnec - France This Cartel lasted 9 years and was busted in May 1999 Members were fined $ 725m under US Anti-trust laws and a Senior Executive was jailed for 4 months and fined $100,000 See FT cuttings in Readings/Cartel Folder