Carroll's Pyramid Theory Model

1 Introduction

1.1 Problem Definition and Objectives

In the fast changing globalized economy society, CSR has become a very important concept which attracts worldwide attention. Nowadays, there are more than 90% of the Fortune 500 companies have clear and plan in detailed CSR initiatives. (Kotler & Lee, 2005). And in international companies today, CSR is even seen as strategy to gain competitive advantages and a long term key to success. According to the CSR report by Reputation Institute (2016), large companies have shown their strong attention and disclosed substantial investments in CSR initiatives. Company’s decisions on CSR activities are impacting the company in a long run of success, as well as reputation and brand image etc. (Prado

Carroll 's pyramid theory model (1991) is a very useful tool for analyzing the importance of CSR’s function, and CSR impact in corporations. Considering that CSR has raised more and more attention inside corporations as well as in society, it is the most important to understand the growing importance of CSR and sustainability issues and understand the impact of CSR.

In this internship report, the main objective is to use the theoretical CSR model to compared with Volkswagen CSR projects in practice, and their impacts and differences will be reviewed and

B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders, Business Horizons 34, 39–48.

2.2 General Impact of CSR

According to the CSR definition (Carroll, 1979), corporate social responsibility means corporations should not be only charge to create profit and be responsible for shareholders, and meanwhile, corporations should take more responsibilities for workers, consumers, environment and communities.

If people do not pay much attention on social responsibility, corporations can be very harmful to the society and environment. Chemical manufacturing factories have been exploded and spilled oil to the oceans in the past years; forests are destroyed especially in developing countries for maximized economic. (Zhu, Sarkis, and Kee-hung, 2007, pp. 1041-1052) It indeed brings financial benefit but also has changed the local ecosystems. Air pollution and climate changes can also be attributed in large part to corporations. (Zhu et al., 2007, pp. 1041-1052)

There are many management works of social responsibilities which companies can do to make changes. For example, from suppliers ‘side, the core is to protect the legitimate rights and interests of laborers, which can include non-discrimination, non-child labor, non-forced labor, safety and health work environment and system etc. (Boraiko, Beardsley, and Wright, 2008, pp.