The Pyramid of Carroll

a consumer notices a difference between these two states, as it had been expressed in the literature review, (see section 8.2.2). If the ‘Current state’ indicates a reality of something, we then propose that the consumption of fast fashion apparel harms the environment. Furthermore, if the ‘Ideal state’

indicates that a consumer wants a society in which the apparel is sustainable, then we propose that both the consumption of apparel and the disposal of apparel can help decrease the harm on the environment, in terms of waste and in terms of pressuring manufacturers to meet large quantities of demand.

Hereby, will this section elaborate on each layer and presume how the pyramid can be complementary to Consumer Behavior with its themes and concepts.

Figure 2. Carroll’s Fourth-layer Pyramid.

Source: Screenshot taken from Business and Society Review 113:1 1–41

9.2.1 Economic Responsibilities

Beginning with the first layer, that of, the ‘Economic Responsibilities’ as expressed previously is fundamental and is the primary incentive for firms. This should be understood as profit-making should be condoned in the premises of goods and services at a reasonable level (Carroll, 1991). But in our modern world profit-making has changed such as maximizing profits. This can be seen in the fast fashion apparel industry, where apparel retailers are trying to gain a quick profit by introducing quick-response, enabling consumers to be nudged towards overconsumption (see section 8.2.3). This shift in nature stems from the apparel industry changing its strategies going from a market-driven to a product-driven approach. As mentioned earlier by speeding its manufacturing process to introduce goods to the consumers at a fast pace (see section 6.1.3). That being said, a basic understanding of how firms are withholding their economic responsibilities, in general, can be sought by whether the shareholders are satisfied. One way this information can be retrieved is through observing given

corporations balance sheets and its dividend. The dividend implies the amount of capital the shareholders are receiving from a company which is derived from the overall profit that a company has made. And, it should be mentioned that this observation may hold difficulties in that shareholders can differ in terms of how much stake they have in a given firm. This basically implies that it can be vague whether or not all shareholders are becoming satisfied. However, this will be taken into consideration and might be discussed upon in the analysis. Although economic responsibilities are determining shareholder satisfaction it is also intended to treat external stakeholder’s satisfaction, namely, the consumers in this case. Here we can see that the price of a product or service is one of the important factors that can affect consumer’s satisfaction and buying behavior. This was unfolded in consumer involvement, prescribing how consumers may become dissatisfied if a service or product prices are too high. But in turn that consumers are willing to be involved or pay more when they believe it is going to a good cause. Thus price can determine a consumer’s attitude and buying behavior toward a corporation.

9.2.2 Legal Responsibilities

The second layer disputes that businesses are expected to operate within the frames of the law and regulations in a given country where operations are undergoing or finding place. This basically means that businesses can pursue profits without violations of federal law, cited in Geva 2008 (Carroll, 1991). This has also been deemed as expectations stemming from the stakeholders and the society for companies. As it has been expressed that employees have the responsibility to seek those laws that apply to the type of activities and operations a corporation is pursuing.

As expressed previously (see section 6.2). it has been discovered that the relatively newly emerged fast fashion phenomenon is harming the environment and leading to unethical labour practices among other factors. Therefore, it would be interesting to analyze whether companies are withholding the laws and regulations in those respected countries. Here it should be noted that many corporations nowadays have deliberately chosen less developed countries to exploit not only to get access to a larger workforce but also for the belief that the regulations set for these countries were of lesser consequence, see section 1.

9.2.3 Ethical Responsibilities

Followed by ethical responsibilities which also depicts both economic and legal responsibilities (Carroll, 1991). They are also entailing that activities and practices should be condoned on the premises of the societies acceptance. This has been defined as “those activities or practices that are expected or prohibited by society members even though they are not codified into law” cited in Geva 2008 (Carroll, 1991, p. 41). However, ethical responsibilities are separated from the legal responsibilities in the sense that activities and practices are not bound by law but by behavior, standards, norms, and expectations that are derived from the civil society. Moreover, it can be said that the ethical responsibilities are going beyond the law by the belief that businesses should operate its practices and activities under the premise of what is morally ‘just’ and ‘fair’ (Carroll and Buchholtz, 2012). It has been observed that some apparel brands are manifesting this approach by adopting Codes of Ethics, Codes of Conduct, and Zero-waste to combat garment issues, and SAC to both improve upon sustainable apparel and environmental issues (see section 6+). On the other hand, the fast fashion machine also makes it difficult to act ‘fairly’ and ‘just’ for workers in the manufacturing productions since businesses are using an intensive workforce to meet demand at a fast pace, (see section 6.1.3. This way of approach is lessening the product life cycle which in turn is providing unethical labour practices and health scarcities in the supply chains. On the contrary, the literature review on, cause-relating and green marketing indicates that consumers are willing to pay more for goods and services they believe are trustworthy and transparent.

9.2.4 Philanthropic Responsibilities

The last layer, that of, philanthropic responsibilities are designated actions that are performed by the expectations of the society. But are not demand-based, like the economic, legal, and ethical responsibilities (Geva, 2008). Indicating that it is a matter of choice to volunteer in activities that support an issue. This can be exemplified by being a ‘good corporate citizen’ where companies’ are involving themselves in acts or programs where human welfare can be improved or promoted upon.

Programs on improving welfare, such as financially supporting the society and community by donation means. Although this layer can be seen similar to the ethical responsibilities, it still differs in the sense that philanthropic responsibilities do not deal with ‘what is moral or ethical to act’ (see

section 6.1.2). Instead are contributing to society by choice but it should be noted that the more

‘social power’ businesses are gaining the more expectancy from the society will there be for businesses to contribute to the society. As it was put ‘putting something back to the society’ (see section 6.1.2). This can be seen in the apparel industry with the acts they are adopting such as complying with the ILO and its Act on various elements such as, Modern Slavery Act that represents the prevention of forced labour in the supply chains or SAC that represents sustainable apparel production. This layer would be very interesting to investigate further, now that the exploration has already demonstrated revelations. Such as the case with Zara’s supplier chains in Brazil working overtime that may indicate being in breach of the ILO act about Modern Slavery (Butler, 2015) (see section 1.). It could be said that when philanthropic responsibilities are met, corporations can gain an increase in customer satisfaction. In the sense that it will be a win-win situation, as corporations are both meeting consumer needs on sustainability while improving the society by contributions.

Although this framework is leaning more towards the managerial aspects it can still be considered relational in the sense that the layers of the pyramid represent the pressures influenced by society.

The buildup is thus based on the importance of the degree such as philanthropic responsibilities being a matter of choice to the next two layers; economic and legal responsibilities being a requirement and lastly ethical responsibilities an expectancy (Geva, 2008). Moreover, the question is then how is this related exactly to the world of consumers. Considering the ethical responsibilities, it can be assumed through the extensive history provided by the apparel industry, Marketing, and Consumer behavior, that consumers purchase decisions may be greatly affected through CSR. Moreover, due to the aspects of consumer’s perceiving ethical behavior as crucial, when evaluating its purchasing decisions (see section, 6.2.4).