The business of water Essay Example | Topics and Well Written Essays - 2000 words - 1

The business of water - Essay Example According to Carroll (1983), corporate social responsibility (CSR) considers few activities of a business, which helps in increasing its profit and in doing so the company should also abide by the rules and regulations that are associated with law and ethics. In order to become socially responsible, a company has to obey laws and conditions that define company’s ethics. The author has organized the different corporate social responsibilities under four layers, which are provided in a pyramid and it is named as pyramid of responsibilities (Visser, 2005). According to the pyramid the four responsibilities are legal, economical, ethical and philanthropic. Carroll and Buchhotlz (2003) have explained that the pyramid should be considered as a whole and the layers are not separated as it does not make any sense. Economic responsibilities: The economic responsibilities indicate the methods that are employed for minimizing the cost and maximizing the sales or even devise strategic decisions, which will generate profit. The economic responsibilities are very important for the society and the company has to take these decisions very carefully (Carroll, 1979). The companies have to fulfil the demand of the shareholders for increased returns on their investment. The companies should employ those employees, who want fair paid jobs and they are also responsible for providing good quality products to the customers at a reasonable rate (Barth and Wolff, 2009). Hence, the primary responsibility of a business is to form a proper functioning unit and operate their business. Therefore, this is the base of the pyramid to which all the layers are connected (Dudovskiy, 2012). Legal responsibilities: The companies are predicted to abide by rules and regulations that are levied by the higher authorities. This norm reflects the strictness of the society towards operation of a business.