Types of social responsibility

The major idea in corporate social responsibility is that companies have multiple responsibilities to sustain. These responsibilities can be established in a pyramid, with basic responsibilities closer to the bottom. As a business occur lower-level responsibilities that obligate it to shareholders and the law, it can move on to the higher level responsibilities that benefit society. Corporate social responsibility divided into four types:

1. Economic Responsibilities:

A company's first responsibility is economic responsibility -- that is mean, a company needs to be primarily disquieted, with revolving a profit. This is for the simple fact that if a company does not make money, it won't last, employees will lose jobs and the company won't even is able to think about taking care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first needs to make sure that it can be profitable. [5]

2. Legal Responsibilities

A company's legal responsibilities are the requirements that are placed on it by the law. Next to assuring, that company is profitable, ensuring that it obeys all laws is the most important responsibility, according to the theory of corporate social responsibility. Legal responsibilities can sequence from securities regulations to labor law, environmental law and even criminal law.[5]

3. Ethical Responsibilities

Economic and legal responsibilities are the two big commitments of a company. After a company has met these basic requirements, a company can concern itself with ethical responsibilities. Ethical responsibilities are responsibilities that a company puts on itself because its owners believe it's the right thing to do -- not because they have an obligation to do so. Ethical responsibilities could include being environmentally friendly, paying fair wages or refusing to do business with oppressive countries, etc. [5]

4. Philanthropic Responsibilities

If a company is able to occur all of its other responsibilities, it can begin meeting philanthropic responsibilities. Philanthropic responsibilities are responsibilities that go above and beyond what is simply required or what the company believes is right. They involve making an effort to benefit society -- for example, by donating services to community organizations, engaging in projects to aid the environment or donating money to charitable causes. [5]