1. financial Responsibility
2. legal Responsibility
3. moral Responsibility
4. Philanthropic Responsibility
The financial Responsibility is the responsibility of a business to make money. The Legal Responsibility is the responsibility to obey the letter and the spirit of the law. The moral Responsibility is the responsibility …show more content…
This means that businesses must attend to the financial, Legal, moral, and Philanthropic responsibilities in that order. This does not mean that the financial responsibility to maintain a profitable business always trump the other three. It means that a business which is profitable must also act within the bounds of the law, and that they must act within the bounds of ethics. At the bottom of the list, a business might be required to behave philanthropically.
Triple Bottom Line
Another theory of corporate social responsibility is the Triple Bottom Line. Like the CSR theory , Triple Bottom Line works on the assumption that the corporation is a member of the moral community, and this gives it social responsibilities. This theory focuses on sustainability, and requires that any company weigh its actions on three independent scales: financial sustainability, social sustainability, and ecological sustainability.
These three tabulations are all aimed at long-term sustainability. financial sustainability must focus on the long term because this is the nature of a constant company. A decision which creates an financial benefit in the short-term, but causes long-term harm, would likely reduce this bottom line to such a degree that the action would be …show more content…
They are based on multi-stakeholder involvement and each year an increasing number of companies adopting the guidelines to improve their reporting. . The guidelines serve to provide many benefits such as the ability to lessen environmental and social impacts, and to make easy stakeholder understanding of slight performance and intercompany performance comparisons. Further benefits include improved understanding of opportunities and connected risks, improving long-term strategies and highlighting the connections between financial and non-financial