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nomic in nature. However, there may be some activities that would not be
included. A corporation's actions would fall outside of the economic domain if
(i) they are not intended to maximize profit (or minimize loss) when a more
profitable alternative exists, or (ii) they are engaged in without any real consid-
eration of the possible economic consequences to the firm. In terms of the
outcome or results, if the activity produces a decline in profits or share value,
this may be an indication of a non-economic motive, but may also merely repre-
sent a flawed business decision (and the action would still be considered to fall
within the economic domain).
Legal Domain
The legal category of CSR pertains to the business firm's responsiveness to
legal expectations mandated and expected by society in the form of federal,
state, and local jurisdictions, or through legal principles as developed in case
law. In this context, legality may be viewed in terms of three general categories:
(1) compliance, (2) avoidance of civil litigation, and (3) anticipation of the law.
The first legal category, compliance, can be further sub-pided into three types:
passive, restrictive, and opportunistic. The first type of compliance is of a pas-
sive or accidental nature the company is doing what it wants and just happens
to be complying with the law. For example, if the speed limit is fifty-five miles
per hour and one drives at or below fifty-five miles per hour because one be-
lieves it is safer to do so and not because of the speed limit, one is passively ally motivated. complying with the law. If there is a safety standard for a certain product that a
company would have adhered to even if the legal requirement did not exist, the
company is in a passive compliance mode. If the motivations of the corporation
are being analyzed by the newly proposed model, passive compliance by the
corporation, due to its unintentional nature, would place it outside of the legal
domain. This would be the case despite such motives being potentially labeled
as legal under Carroll's Pyramid Model. If outcomes were being analyzed, the
corporation would fall within the legal domain even if it passively or acciden-
tally complied with the law.
The second type of compliance, referred to as restrictive compliance, occurs
when a corporation is legally compelled to do something that it would not other-
wise want to do. If one is in a hurry and would like to drive sixty-five miles per
hour but one does not do so because of the fifty-five miles per hour speed limit,
one is restrictavely or intentionally complying with the law. The payment of
taxes, tariffs or duties is often done reluctantly and, therefore, restrictively.
Although a company may want to pollute at higher levels or sell goods with
fewer safety warnings, the law may prohibit it from doing so, leading to restric-