2. Corporate social responsibility

Chapter 2


by: josavere


With the Digital Revolution, a world is generated in which virtual and physical manufacturing systems cooperate with each other in a flexible way at a global level; It is no longer an option to work in isolation due to the clear evolution towards collaboration, not competition. In January /2020, the Davos Forum, speaking of CONSCIOUS CAPITALISM, defined the purpose of a fourth industrial revolution company: "involve all stakeholders in the generation of shared and sustained value, including local communities and society".

Social responsibility is a matter of everyone on the planet, especially the privileged by reason of the development of his country, his family, level of study, occupation, social status, and their role in society. We all have a moral obligation to contribute what we can to improve the quality of life of all people contributing to sustainability.The consensus of all the countries of the world is needed, with greater responsibility for the most developed and those that most affect well-being for violating human rights and for attacking nature with reprehensible practices.

Companies that obtain benefits from people (clients and workers) must focus on WINS-WINS relationships, returning part of their profits, jealously taking care of the safety and well-being conditions of their workforce, operating in the most comfortable work environments so that the people feel happy in your company and make happiness a contagious collective that radiates to their colleagues, families, clients and other audiences with whom they interact.

A corresponding government to provide the best living conditions, collecting taxes and redistributing equitably with generating an infrastructure environment to meet basic needs such as food, education, clothing, housing, and second-order or social type that satisfy through living. Must do leading by example so with absolute rectitude, prioritizing the common good and with full transparency, avoiding all forms of corruption.

Businesses and citizens generating taxes received by the government MUST take care of their contributions (mandatory by law) selecting neat rulers being stolen or wasted.

T, bowed them to suffer all kinds of abuses beginning with the difficulty in receiving timely and without " stealing both " old-age pensions and receive great scorn and mistreatment of society.

As is so common, rulers who buy votes in their lust for power at any cost; media sold for different reasons, parents who "get " posts for children without proper preparation, corrupt prosecutors and judges, ignorant who sell their votes, businessmen who get " whatever", sites that sell sports leaders, even to Olympic and World Championships, referees selling results and many other misdeeds expressed confidence and better control is exercised by coworkers. Corresponds to a code, a way of thinking, and practical implementation.

As people have individual qualities that allow them to be more efficient in certain types of jobs and in turn, may have different types of needs to be met, the companies require executives with great leadership structure to enable teams to achieve concrete results in terms of value generation to meet the various stakeholders who interact in them, namely: customers, employees ( and their families ), partners, government, suppliers and the community, in general, starting with the neighbors, integrating social and economic in the pursuit of sustainability. Managerial wisdom is to balance these groups of people, primarily respecting nature, conserving, and remembering that our passage through it is temporary, with the immense responsibility to better respect the right of future generations.

The big problems of the world: the concentration of wealth, as measured by the coefficient of Gini1, and corruption, as measured by Transparency International, a result of human nature and ambition of some, creates imbalances that greatly affect labor-management relations and accrue to countries and obviously, in humanity, especially in a globalized world. In search of solutions have been different doctrines approaches to private properties of one party and another, with emphasis on state ownership, with major failures that end up in all sorts of abuses by those who have the weapons and other mechanisms of oppression. As a bribe to make weapons and sell them, others besides the undue advantage, use them to oppress human beings and forget their basic needs as such, compounding the chaos resulting from the lack of decent jobs, the main source of growth staff, as it is provided under conditions of fair treatment and fair wages.

The lack of occupancy, the fruit of no inclusive societies soon becomes a generator of all violence, justified by the need to get money to meet basic needs and worse, exercised by people who have not had access to education, because as Simon Bolivar said: " an ignorant people become a blind instrument of its own destruction " which makes easy for all kinds of abuses prey, often well camouflaged via religions, unscrupulous politicians, rulers and generally by those with power, so it is not legitimate. As a result, with the level of unemployment, quality of life is affected all society, in some cases and others suffering loss causing violence (kidnappings, murders, robberies, rapes, and other

Youth " cannon fodder " for abusers, becomes the reason for the need to meet their own needs of their age and the victim ends up sacrificing his life in some cases; going to prisons (universities of crime), or falling into vices and suffering discrimination in a society that rejects, losing a potential resource that nest compassion is pigeon and nest pain will like serpent-like said the master Guillermo Valencia. The children, whose character is formed from the womb to the first eight years of life that often repeated Don Reynaldo Lopera Arrogate, through the foundation CEPAS, in many cases the result of irresponsible parenthood, with girls, just in the stage of physical and mental development old-age, after they make their own way that circumstances alls, large engines social level decomposition, which threatens the quality of life, the essence of all human activity and affects the degree of happiness of the generated society, the most important indicator of global development, the calculation was developing and which ultimately will prevail in the world.

The inability of governments, except in highly developed countries to address the problems of ignorance, poverty, corruption, environmental destruction, and welfare in general, requires thinking about the common good, with entrepreneurs who return to society part of what is achieved through the implementation of CSR.

Kofi Annan, Secretary-General of the United Nations, the World Economic Forum in Davos, Switzerland 1999 defined CSR as a new vision of the implication and importance of the work of the company in the globalized world in which we live and took shape final in 2000 in New York.

The search will remain constant for the generation of value through the application of technology that allows us to further increase the productivity of labor, the keeper of the last century, with the productivity of the executive team to achieve a synergy that allows high-efficiency levels are specified in products and services available to many with a quality that is considered a right of the consumer, including advisory services for the purchase and after-sales corresponding to involve society masses who are today excluded. For that authentic leaders are needed, characterized by their ability to service and true apostles of development for managing companies that want to adapt to a world and changing markets. This is crucial to select and retain appropriate human talent for his mission, committed to the vision and respectful of the values; should receive trust, be understood, listened to, and involved in responsible for preparing the best deal to their customer’s interdisciplinary team, positioning the brand as an intangible asset of great value.

The selection, training, and retention of the team that involves large capital investments for tax purposes treated as costs and expenses, which affect profitability in the short term, but for the purposes of valuation of the company are capitalized investments are part of a called intangible intellectual capital whose benefit is obtained in the long run, it explains, in large part, the difference between the market price of a stock and its intrinsic value.

To prepare a strategic plan three basic questions arise: 1) Where are we? 2) Where do we go? 3) How are we going to do?

The answers have to be very clear, the result of much objective analysis, which forms the solid foundation to make a good diagnosis to make the right decisions when defining the strategies to follow to accomplish the mission and look for the vision, corporate values respecting.

The first question is not answered easily; comprehensive, clear, and sufficient information (at least seven years to talk about statistical trends) is required based on the basic financial statements and their accompanying notes: income statement, balance sheet, statement of changes in equity, statement of sources and uses funds, supplemented by information very quiet for obvious reasons, cash flow, the most important financial management tool. Recall that the financial statements of a legal nature are equivalent to the past and a photograph at the year-end, the company for which you can prepare. What matters is the good use given to this information as it serves to make projections with a good probability of occurrence to allow for simulations to facilitate decision-making. Applying statistical information properly, we can calculate correlation indicators that tell us that variables can be projected to serve as support of the Holistic Model planning using the financial analysis designed by josavere.

To place your feet on the ground, we must realize that the ability to ask is, unlimited in human nature, while the potential to have limits, depending on the particular company. Furthermore, as its executive group has the ultimate responsibility, to preserve the company above all ( love your neighbor as yourself ) so we, deal with CSR, integrating corporate strategy, resulting from a careful analysis of an interdisciplinary group using the  DOFA matrix that analyzes the strengths and weaknesses ( internal ); opportunities and threats ( external) confirming them with Scorecard indicators, to find the optimal combination of the three disciplines of value generation: operational excellence, customer intimacy, and product innovation complementing it with the cash flow projection in colloquial language, the ability to produce money after expenses involving incorporate compliance with CSR commitments and calculating the proposed measure as value generation.

I end with an illustrative graph, in my opinion, of the main long-term objective that all countries in the world should set themselves, taken from: https://www.youtube.com/watch?v=XkpmWi9foUU , which measures the beneficial development of the material and spiritual aspects as a whole.

Gross Inner Happiness, designed in Bhutan, is a much broader measure of quality of life than GDP. It is based on four pillars, which are the ones that inspire each Bhutanese government policy: sustainable and equitable socio-economic development, preservation and promotion of culture, environmental conservation and good governance.

The idea of Jigme Singye Wangchuck, fourth King of Bhutan, "the way to measure progress must be based on something more than the flow of money, since" the true development of human society is found in the complementation and mutual reinforcement of the development material and the spiritual.

In Bhutan, every two years, a survey is conducted with 180 questions, using nine dimensions: psychological well-being, time use, community vitality, culture, health, education, environmental diversity, standard of living, and good governance. In this small nation, which in 2007 was the second fastest growing economy in the world, education and moral values prevail over economic ones. They believe that the economy must be at the service of all people and must not be based on the accumulation of material wealth of the strongest.

The British NGO New Economics Foundation created the Happy Planet Index in 2006. This index, which measures life expectancy, the ecological footprint and well-being in general, highlights that the "happiest countries are not necessarily the richest". In 2006, Bhutan was found to be the eighth happiest country out of 178 surveyed.

1) Gini coefficient measures the degree of inequality in the distribution of wealth and income in a country. In the unlikely event of total inequality, its value would be one (1); in the case of total equality, the value would be zero (0).
2) Huguette Labelle, Chair of Transparency International in its report urges those public institutions, more transparent and more accountable "powerful" officials ". Governments need to integrate actions to combat corruption in all public places' decision-making. "Priorities include improving rules on political financing and lobbying so that public expenditure and procurement should be transparent and public bodies should be more accountable to the people; argued that the results this year (2012) demonstrate that companies continue to pay the high cost of corruption, so it is expected that the world's governments to take a more mature stance against the abuse of power.

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