fundamental proven business principles are

fundamental proven business principles are

fundamental proven business principles are

fundamental proven business principles are
fundamental proven business principles are

fundamental proven business principles are

1. Institutionalization

By sharing control, there is a better chance of transparency, real oversight, and accountability. However, no one really likes sharing control, especially Greeks. Institutionalization means sharing control by establishing a professional board of directors instead of a rubber-stamp board. Rubber-stamp boards notoriously contributed to the corruption and subsequent scandals of Enron, Tyco, WorldCom, Adelphia and many more corporations in the United States and elsewhere. A truly professional board will include men and women who are respected, competent, enthusiastic, and willing to roll up their sleeves and word hard. And, most important of all, for a professional board, disagreement is a virtue, not a vice.

2. Solid business practices

A CSR business must have solid business practices embedded into its entire operations, including a real mission statement, strategy, and business plan.

3. A company of citizens

A CSR business must cultivate “a company of citizens” where all employees are welcomed into the corporation as morally competent agents, seen as specially qualified for intelligent work, rather than as mere units of labor.

4. Legal checks and balances

Only a system with legal checks and balances will effectively encourage and enforce corporate responsibility.

The successful road for any business that wants to become a CSR company is not a romantic, flower-strewn path with an expansive vista, nor is it easily navigable. The successful CSR company must navigate down the narrow and winding lane of business ethics with its many procedures and laws, avoiding the potholes of sloppy and ineffective business practices, and the soft-shoulders of greed and unethical behavior.

To summarize, the components which contribute to a CSR business are institutionalization, sharing control, establishing a professional board, oversight, full disclosure, transparency, profits, sound procedures, a company of citizens, and satisfied customers.

The challenge of moral capitalism for all businesses is to tip the weight of wealth creation toward humanity’s more noble possibilities in society. But, in order for moral capitalism to be achieved, a business must first be able to operate in an environment of economic freedom.

There are a number of highly respected global institutions that report economic indexes annually on the majority of countries around the world, including measurements on government bureaucracy, corruption, bribery, tariff barriers to trade, income and corporate taxes, government expenditures, the enforcement of contracts, regulatory burdens, labor market regulations and black market activities, including piracy of intellectual property rights. Their indexes reveal that those countries with the most economic freedom are more prosperous and have higher rates of long-term growth than those with less economic freedom. Economic freedom, therefore, is one of the greatest challenges facing today’s world, particularly with the globalization of business. Economic liberty.

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Posted on: April 15, 2020, by :