Corporations have struggled with the changing idea that financial gain is not the only responsibility they have to shareholders, employees, consumers and the environment. This idea of greater responsibility was introduced in the 1960s, but legislature did not require change until the 1970s. Government legislation began with the adoption of the Environmental Protection Agency, the Occupational Safety and Health Administration, the Equal Employment Opportunity Commission and the Consumer Product Safety Commission. The pyramid of social responsibility involves a four-tiered moral approach to administration regarding economic, legal, ethical and philanthropic responsibilities.
The Base of the Pyramid: Economic Responsibilities
Economic responsibilities are the base of the pyramid, the beginning of a fair and just social responsibility. Beginning early in the establishment of society, businesses were maintained solely as an economic structure. The exchange of money for goods and services was the main goal of a business; earnings predicated all other attributes. Laws were implemented to require just and fair responsibilities to every facet of a business. The importance of the individual and society superseded a profit-only outlook.
The Second Pyramid Layer: Legal Responsibilities
Legal responsibilities are the next layer of the pyramid. Although this legal aspect is a tier on its own, it merges with the economic responsibilities. Earnings are still important, but a legal guideline is established to ensure fairness while maintaining profits. Legal guidelines state that businesses are required to comply with laws and regulations set by the government while still maintaining profitable economic gains.
The Third Layer of the Pyramid: Ethical Responsibilities
Ethical responsibilities regard the standards, expectations and norms that are seen as fair by all entities involved, such as the community, consumers, shareholders and employees. These are the agreed-upon moral obligations of the business. Ethics are controversial and often are the basis of constant debate. What one person sees as unethical, another sees as perfectly fine. These debates of ethics are ever-changing and lead to the introduction of new regulations and laws.
The Top of the Pyramid: Philanthropic Responsibilities
Philanthropic responsibilities are the tip of the pyramid. Philanthropic responsibilities regard the expectations of corporate citizens, encouraging the promotion of concern and the well-being of the community. These are not actions that are required by law, but rather actions to build a secure community. Although greatly desired, philanthropy is not required and is considered less important than the economic, legal and ethical expectations.
