Microsoft Carroll′s CS Pyramid

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3.0 Microsoft

3.1 Microsoft Company Background

Microsoft Corporation is a multinational corporation with headquarters in Redmond,

Washington. It licenses, develops, manufactures, and maintains a vast array of computing-related

products and services through its numerous product subsidiaries. Microsoft was incorporated on

August 4, 1975, to create and distribute BASIC translators for the Altair 8800. By the mid-

1980s, MS-DOS and the Microsoft Windows operating systems dominated the home computer

software market. Microsoft is one of the world's foremost software companies. In recent years, it

has expanded into the video gaming sector with Microsoft and its sequel, the Xbox 360, and the

consumer devices and digital services markets. The Company's citizenship mission directs

Microsoft's corporate social responsibility (CSR): to serve the needs of communities globally

and fulfill our civic duties.

Moreover, charitable efforts of the Gates Foundation, which Microsoft co-founder bill

Gates formed, are also connected with Windows in the public's mind. The technological titan

received a lot of prizes and accolades for its responsible conduct. These include ranking number

one on Business Responsibility Magazine's 2018 list of the 100 World's Leading Citizens and

organizing number one for Environment and Social Score, which analyzes corporate

performance based on more than 200 categories.

3.2 Analysis of Microsoft’s CSR practices using Carroll’s Pyramid.

It is helpful to understand Microsoft's accountability to Profit, People, and Planet through

its CSR Analysis in 2022. By using this CSR Analysis, Microsoft's management in the year 2022

will be better able to understand their corporate social responsibility (CSR) obligations and
conduct their business according to internationally accepted best practices. The critical points of

the CSR case analysis are summarized here. With the help of Carroll's CSR pyramid, companies

can better understand their social obligation. Archie B. Carroll first presented the concept in

1979, emphasizing the four main components of corporate social responsibility (CSR) within the

framework: economic, legal, ethical, and charitable responsibilities (Lu et al., 2020). Since a firm

cannot meet its legal, ethical, or generous obligations if its economic goals are not met, that

responsibility sits at the base of the pyramid. As defined by Carroll, ethical and socially

responsible business practices that benefit the bottom line are all examples of CSR. A business

must maximize profits while adhering to legal requirements and, in addition, going above and

beyond in pursuit of other opportunities. In 1991, Carroll used a pyramidal structure to divide the

CSR model into four categories, each showing how companies may develop their moral

compass. Since its inception, the model's applicability in today's commercial world has been

widely recognized (Lu et al., 2020). Despite ongoing debate and criticism of the pyramid design

for failing to take context into account, the model can be used to make sense of the CSR

initiatives of any company. The model's accessibility facilitates its practical use for businesses,

which get insight into how they might strengthen their moral fiber to ascend to the pinnacle of

the pyramid. In sum, the model gives businesses a theoretical basis for building their CSR plans

and promotes a more integrated approach to CSR planning. With all of them, a company can get

the highest CSR rating. This report uses Carroll's pyramid model to examine Microsoft's CSR

strategies for the year 2022.

3.2.1. Economic responsibility of Microsoft in 2022

Microsoft will satisfy its economic duty in 2022 by concentrating on policies that

foster long-term commercial growth while meeting the established charitable,

environmental, and ethical criteria. A company weighs the effects of its economic decisions

on society as a whole. It offers society-necessary goods and services for a profit in order to

sustain corporate operations. In order to encourage investors to continue funding Microsoft's

operations, the Company must turn a profit by 2022, fulfilling what many would call a

fundamental social responsibility (Lu et al., 2020). In 2022, society will view Microsoft as

an institution that creates and sells goods/services to benefit all stakeholders.

3.2.3. Legal Responsibility

Microsoft adheres to applicable laws and regulations. Through the social compact,

governments establish specific regulations. Microsoft's approach to corporate social

responsibility recognizes governments as commercial stakeholders. This group of

stakeholders is significant since they directly impact the Company's business limits. The

corporation serves these interests through rigorous organizational methods. For instance,

Microsoft's corporate principles stipulate that human resource managers must adhere to

labor regulations (Lu et al., 2020). Environmental impact requirements, product safety

standards, and consumer protection laws must all be followed to comply with these

principles. These CSR initiatives demonstrate that Microsoft serves the needs of

governments as business stakeholders.

3.2.3. Ethical Responsibility

They are murky. Thus, results differ by Company. Management must make moral

corporate, consumer, employee, and environmental judgments. Reputation matters here.

Microsoft owes all stakeholders ethically. Microsoft must act ethically to meet its ethical

obligations. Microsoft treats all stakeholders as ethical customers, vendors, employees,

investors, and leadership ethics go beyond norms. Microsoft takes ethical responsibility by

following society's norms. Ethical requirements exceed legal ones, while rules and policies

are based on ethics (Lu et al., 2020). A company's bottom line depends on consumer

impression and word of mouth. Business leaders find this the hardest to track and control. 

3.2.4. Philanthropic Responsibility

Microsoft's philanthropic obligation in 2022 represents the Company's commitment to

improving the world. Microsoft volunteers in 2022 to meet its philanthropic obligations as well

as its legal and ethical obligations. The corporation donates a portion of its profits to charity.

Microsoft's ability to achieve societal and public expectations in 2022 is contingent upon its

philanthropic efforts. It enhances the Company's brand image and promotes stakeholder

confidence in business operations through efficient communication of philanthropic activities.

The Company's charitable efforts assist a wide range of stakeholders in a roundabout way.

Customers appreciate socially responsible firms, and staff is satisfied working for a socially

responsible company (Peloza & Shang, 2011). Investors profit from brand image improvement.

The Company's philanthropy directly benefits society and the public.

3.3 Challenges faced by the Company

Corporations struggle with CSR implementation and efficacy (Anyalebechi & Owugah,2022).

Practical work is difficult because CSR is expensive, and firms lack the funds to train workers

(Peloza & Shang, 2011). The biggest challenges for implementing and strengthening CSR are

usually believed to be a constant competitive strain, inadequate government and nongovernment

support, and high implementation costs (Anyalebechi & Owugah,2022). Customer and investor

assistance was another issue. Complementing this, the main obstacle in implementing CSR was
shifting old corporate practices to CSR agenda, which required executives' significant dedication

to controlling and altering their focus and behavior. CSR implementation also needed to be

improved by managers' inability to implement changes. Peloza and Shang (2011) suggest that

change involves commitment and hard work.

3.4 Covid-19: Its impact on the Company

As the world responds to COVID-19, Microsoft is working to protect employee safety,

community health, and customer productivity by providing technology and resources. A global

health improvement program, AI for Health, was officially unveiled on January 29, 2020. This

five-year pledge was established to equip NGOs, academic institutions, and other groups with

artificial intelligence and data science resources (Anyalebechi & Owugah, 2022). There have

been significant shifts in global conditions since then. There are more than 1.4 million COVID-

19 infections worldwide as of this writing. The crisis has demonstrated, unfortunately, that health

care is a global issue that touches everyone.

3.5 Evaluating Company’s CSR Practices

Microsoft is among the companies that care about the earth and its people enough to implement

policies and initiatives to improve social sustainability. It has made tremendous efforts in ethical

corporate practices and policies. The objectives of COSO's definition of internal controls are

production efficiency and productivity, The Trustworthiness of Financial Statements, and respect

for the rules and regulations in place (Peloza & Shang, 2011). Internal audits, numerous

authorization levels, and staff performance scorecards have helped Microsoft achieve this goal.

Microsoft's strict terms and conditions, internal controls, and screening and data protection
procedures generate client trust. The authorities must first get a warrant or court order from

Microsoft.

Conclusion

For long-term success, businesses must comprehend corporate social responsibility.

Microsoft now requires CSR in 2022. Microsoft improved its stakeholder perception in 2022 by

engaging in economic, legal, ethical, and philanthropic CSR activities. In 2022, Microsoft

received excellent media attention for its environmental, social, and stakeholder activities,

strengthening its market position. A corporation that gives back makes customers happy.

Employees are proud to work for a socially responsible company, and investors and shareholders

trust a company that can meet all stakeholders' needs without compromising economic goals.

Microsoft has increased its long-term development and profitability by spending strategically on

SR projects in 2022. Companies in today's interconnected world should work together to meet

the requirements of all parties involved, as doing so may ultimately benefit all parties involved.

Carroll's CSR pyramid model helps organizations ensure their long-term existence but does not

help them avoid CSR-business conflicts. The model only considers four CSR dimensions and

does not consider contextual factors affecting the firm's CSR strategy implementation.
 References

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Corporate Social Performance Model: A Case of Shell Nigeria. International Journal of

Development and Public Policy, 2(5), 183-201.

Baden, D. (2016). A reconstruction of Carroll’s pyramid of corporate social responsibility for the

21st century. International journal of corporate social responsibility, 1(1), 1–15.

Ditlev-Simonsen, C. D., & Wenstop, F. (2013). How stakeholders view stakeholders as CSR

motivators. Social Responsibility Journal, 9(1), 137-147.

White, I. C. (2016). Examining the corporate social responsibility orientation in developing

countries: an empirical investigation of Carroll's CSR pyramid. International Journal of

Business Governance and Ethics, 11(1), 42755.

Gholami, S. (2011). Value creation model through corporate social responsibility (CSR).

International Journal of Business and Management, 6(9), 148.

Lu, J., Ren, L., Zhang, C., Rong, D., Ahmed, R. R., & Streimikis, J. (2020). Modified Carroll's

corporate social responsibility pyramid to enhance the SME industry's organizational

performance. Journal of Cleaner Production, 271, 122456.

Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for

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117-135.