Economic and Legal Responsibilities of CSR

  A scholar called Carroll divided CSR into four parts: economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities. In this part, I will focus on the economic and legal responsibilities.
Figure 1:The pyramid of  corporate social responsibility
  First is economic responsibilities. The main goal of this part is to be profitable, which means entrepreneurs should make good and deliberate decisions in order to make profit for the company. Thus give their investors plentiful pleasing profit.

An institution whose objective is to produce goods and services that society wants and to sell them at fair pricesprices that society thinks represent the true value of the goods and services delivered and that provide business with profits adequate to ensues its survival and growth and to reward its investors.

  Yes, entrepreneurs’ goal is to maximize sales, minimize costs. In a selfish point of view, not only businessmen but also most of the people in this world care about our own profit. The reason why businessmen establish a company is to make profit for himself, not for the investors, publics, or their own country. Entrepreneurs will do their best to promote growth rate and investors will have their share. However, the outcome may be the same, the motivation is different.
  Another question is that what actually is a good’s “fair price”? One may say that it is the price that is a little higher than costs, which can “represent the true value of the goods and services” and let businessmen earn profit simultaneously. But the price of the goods and services should depend on the invisible hand of the market. We’re now in an era of free market economy, the economic activities should base on the mechanism of supply and demand; that is to say, when the supply is unable to meet the demand, the price will get higher. In this situation, the price may be very high, but the quality of the goods or services didn’t become better, and is very likely to become lower.
  Friedman’s word somewhat can be a conclusion: “(management is) to make as much money as possible while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical customs.”
  Second is legal responsibilities. Businessmen have to obey the law and regulations. Although this responsibility is very fundamental, Taiwan didn’t have related laws so far. The only relevant regulation is the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies.

In order to assist companies listed on the Taiwan Stock Exchange Corporation ("TWSE") and GreTai Securities Market ("GTSM") (collectively referred to as "TWSE/GTSM listed companies") to fulfill their corporate social responsibility initiatives and to promote economic, social and environmental balance and sustainable development, the TWSE and GTSM hereby jointly adopt the Principles to be followed by TWSE/GTSM listed companies.

  The principle aims to help companies exercising corporate governance, fostering a sustainable environment, preserving public welfare, and enhancing disclosure of corporate social responsibility information. The conception is good, but it doesn’t have any compulsion, which means the company which didn’t follow the rules won’t get any punishment.
 Generally speaking, if Taiwan didn’t have laws about CSR, why would we expect entrepreneurs to accomplish CSR?

Archie B. Caroll&Ann K. Buchholtz (2008). Business, society, and stakeholders: Corporate citizenship: social responsibility, responsiveness, and performance. In Melissa Acuna (Ed.), Business & society: Ethics and stakeholder management, 7th edition (pp.40-49). Mason: South-Western

Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies. Announced on February 2nd, 2010. Amended on August 22, 2011. Retrieved October 20, 2013, from Law Source Retrieving System of Stock Exchange and Futures Trading:

11 意見:

陳奕臻 提到...

This annotation is really detailed and completed. I can understand the two parts Vivien introduced in this article. However, it seems that there is only analysis of Carrol's theory. If you can connect her theory with your own stand point, this annotation will become much more better. But this article has been very well in my opinion.

Lisa Yu 提到...

1.In the paragraphs of economic responsibilities,although there is the invisible hand of the market, the quality of the products should be promised, which is the basic responsibility. The businessmen cannot sacrifice others' lives in order to make money.

2.In the 4th paragraph, what is the motivation different? I think both of them are for money.

3.In the 5th paragraph,
what actually is a good’s “fair price” → what actually a good’s “fair price” is
an era of free market economy → an era of free market for economy
It is my suggestion.

4.In the part of legal responsibilities, If there are no laws, do the businessmen not have to have the social responsibility? They can do things according to the standard of the public. For example,they cannot pollute the enviroment.

5.I think that the citation from Carrolld doesn't support your points, which is the weakness. You should pick the better citation to support the argument.

陳靖雯 提到...

I think the way you choose to present is quite interesting. And I suggest that you can add more body language to catch the audience.

Kevin.Yeh 提到...

Your last sentence" if Taiwan didn’t have laws about CSR, why would we expect entrepreneurs to accomplish CSR?" has just precisely fitted the problem of Taiwan economy turmoil.

陳奕臻 提到...

You only have very few of time to prepare. But you give me a logical and clear representation. It's great. But maybe that's because you felt nervous, sometimes your speed of speaking would become fast. It made me can't understand some of your sentences. However, you have did this well.

Claire Ke 提到...

Although it is a formal presentation, it will be more impressive if you add some smiles on you face or do some body languages. It is quite interesting that you two choose the topic because I think we as students are seldom in touch with business things such as this.

Zoe Chang 提到...

your time of preparation is little, yet you perform your idea in a rather clear way. i would suggest that if you add some body language to your speak, it would be more impressive.

蘇俞臻 提到...

The way you and Lisa spoke in turn was impressive.Next time you can not only add some body languages but also make your voice a little louder, this might enable you to look more confident on stage.

蔣雅如 提到...

I like the way you two present your speech. It was interesting that you spoke in turn. Since you talked about CSR, a more difficult and serious topic at least for me, maybe you can use body language or other way to catch audience's attention.

鄭詠哲 提到...

The way you presented your topic by turn was an eye-opener for me. It's just like a chat. However, sometimes I couldn't heard your voice clearly.

Emma 提到...

I t is good that you point out the supply and demand don't balance, and that could male entrepreneurs difficult to be responsible to expectation in society. But still, I cannot figure out your main point in the topic in your presentation.