In search of ethics: from Carroll to integrative CSR economics

Abstract

Purpose Revisiting Carroll’s classic corporate social responsibility (CSR) pyramid framework, this paper aims to evolve a novel synthesis of ethics and economics. This yielded an “integrative CSR economics”. Design/methodology/approach This theory paper examined how to conceptually set up CSR theory, argue its ethical nature and establish its practical, social and empirical relevance. Economic analysis reached out from contemporary institutional economics to Smith’s classic studies. Findings The paper reconstructed all of Carroll’s four dimensions of CSR – economic, legal, ethical and philanthropic responsibilities – through economics. The paper discounted a core assumption of much CSR research that economic approach to CSR, including the instrumental, strategic “business case” approach to CSR, were unethical and lacked any foundations in ethics theory. Integrative CSR economics reframes research on viability and capability requirements for CSR practice; redirecting empirical research on links between CSP (corporate social performance) and CFP (corporate financial performance). Research limitations/implications The paper focused on Carroll as the leading champion of CSR research. Future research needs to align other writers with integrative CSR economics. Friedman or Freeman, or the historic contributions of Dodd, Mayo, Bowen or Drucker, are especially interesting. Practical implications The paper set out how integrative CSR economics satisfies the “business case” approach to CSR and develops practical implications along: a systemic dimension of the market economy; a legal-constitutional dimension; and the dimension of market exchanges. Social implications Integrative CSR economics creates ethical benefits for society along: a systemic dimension of the market (mutual gains); a legal-constitutional dimension (law-following); and the dimension of market exchange (ethical capital creation). Social benefits are not only aspired to but also are achievable as a business case approach to CSR is followed. Originality/value The paper’s main contribution is a new synthesis of economics and ethics that yields an “integrative CSR economics”.

How CSR Affects Polish Enterprises

“…Of course, the proposal to change the order of importance of CSR fields (legal and ethical responsibility by economic and philanthropic) requires verification by research addressed to CSR managers in other countries. The positive verification of hypothesis 2 (strong positive correlation between all areas of CSR responsibility) confirms the assumption that individual CSR domains permeate each other (Carroll, 2016;Wagner-Tsukamoto, 2019). CSR managers do not treat them as competitive domains.…”

“…actions that members of society would expect from enterprises. It is associated with adopting standards that go beyond the minimum requirements defined by law (it includes additional behaviours and actions not necessarily codified, taking into account the interests of members of society) (Carroll, 2016;Wagner-Tsukamoto, 2019). The highest level in the pyramid is philanthropic / discretionary activities related to devoting part of the enterprise's resources, such as financial resources or employee time (e.g.…”

Does corporate social responsibility matter to management forecast precision? Evidence from China

“…This reputation for transparent and responsible disclosure can lessen the transaction cost caused by opaque disclosure, thereby helping to reduce the company's capital cost, increase the wealth of stakeholders and ultimately achieve 'win-win' outcomes (Cho et al, 2013;Jones, 1995;Miller & Bahnson, 2002), which aligns with the long-term value maximization objective pursued by the CSR strategy (Garriga & Mel e, 2004). On the basis of mutual gains, the interaction between the company and its stakeholders can be sustained (Costa-Climent & Mart ınez-Climent, 2018;Wagner-Tsukamoto, 2019).…”

Does CSR Affect the Profitability and Valuation of Energy Companies? An Example from Poland

“…Strong pressure from owners may cause managers to show a tendency to marginalize activities aimed at social interests and the environment, due to uncertainty about the return on investment [25]. In response to these doubts, the authors presenting the economic approach indicate that CSR activities should have a business justification [21,26], and only those that bring positive financial results can be treated as socially responsible [27]. CSR does not have to mean a compromise between profit and social benefits [4], and the decision to undertake CSR activities may be based on a cost benefit analysis.…”