Section Nine - Analysing the External Environment - Business and the Social Environment (CSR Pyramid)

Question 1

Traditionally, who’s needs were prioritised in the decision making process? And how has that changed in the present?

Answer 1

Traditionally, the decision-making process put the needs of shareholders first which meant that the business was concerned with its profits above all else. However, now it’s considered normal for businesses to balance the other stakeholders’ needs with those of the shareholders during the decision-making process.

Question 2

What is the CSR Pyramid showing?

Answer 2

It shows what society expects from a business. The model can be used to analyse business decisions and to assess whether they are made out of necessity (economic and legal responsibilities) or in a voluntary capacity (ethical and philanthropic responsibilities).

Question 3

What does the CSR Pyramid look like?

Answer 3