ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility
Kestrel Foods plc pays its suppliers on time, complies with all food safety regulations, and has been profitable for ten years. A director proposes that, in addition, the company should fund a new community sports centre in the towns where it operates, although no law or contract requires this. Under Carroll's CSR pyramid, which level of responsibility does the sports centre proposal represent?
Voluntarily funding a community sports centre is philanthropic responsibility, the top level of Carroll's pyramid. It is a discretionary contribution of resources to society, not required by law and not merely an expected ethical norm in how the company operates.
- AEconomic responsibility
- BLegal responsibility
- CEthical responsibility
- DPhilanthropic responsibilityCorrect
Explanation
Carroll's pyramid has four levels: economic (be profitable), legal (obey laws), ethical (do what is right, fair and just beyond the law) and philanthropic (be a good corporate citizen by contributing resources to the community). Funding a voluntary community facility is a discretionary contribution, which is philanthropic. Ethical responsibility is wrong because it concerns expected norms of fair conduct in operations rather than discretionary giving.
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