Chapter 5

• Pyramid of corporate social responsibility: Economic, Legal, Ethical, Environmental, and Philantropic
• Economic responsibility - the first and apparent of this responsibility is to be profitable. The focus here is on the different practices that would lead to the long-term growth of the business. In the first place businesses are created to be livelihood of their workers.
• Legal responsibility - the second level of the pyramid is this responsibility to obey the all laws set forth by society all the time.
• Ethical Responsibility -the third in the pyramid. That is to do what is right even when business is not obligated to do so by law. Fair labor practices to employees in the form of equal pay for equal work and living wage compensation initiatives is an example of this responsibility.
• Philanthropic responsibility - also known as discretionary responsibility, is described by the resources donated by companies towards social, educational, recreational and or cultural intentions. These donated resources could be in the form of time, money or other types of resources to charitable organizations and other institutions at the local.
• SocRep towards Consumers: Quality, Fair prices, Truthful advertising, Training, Consumer's safety, Research and development, Regular supply, Attend complaints, Avoid monopolistic competition
• SocRep towards Employees: Fair returns, Meaningful work and job satisfaction, Recognition of unions, Health and safety measures, Grievance procedure, Participation in the management, Proper personnel policies, Best physical and mental atmosphere, Training, promotion and welfare schemes
• SocRep towards the Government: Pay taxes, Follow environmental regulations, Abide by labor laws, Avoid restrictive trade practices, Financial disclosure, Avoid corruption
• SocRep towards the Local Community: Housing facilities, Transporation, Health and education, Industrial aid to education in urban areas, In the field of industry, In the field of the agriculture
• SocRep towards the Environment: Reduce paper waste, Use LED light bulbs, Allow telecommuting, Improve air quality with indoor plants, Power off computers, Reduce travel, Give filtered water, Set-up recycling bins in common areas