If there were only one truth¸ you couldn't paint a hundred canvases on the same theme.(Pablo Picasso)

What does a CSR solve?

There are seven specific statutory articles which define the CSR nature of an enterprise.

Let us take a look at three of them:

1) CSR statutes provide that profit making must be strictly limited.
The primary objective of a CSR enterprise’s Board of Directors is to ensure the enterprise’s sustainability and integration in the long term, involving all of the partners and adhering to sustainable consumer regulations both on the ecological and economic fronts, and not an objective geared towards making profits for shareholders alone. As such, the shareholders’ power is somewhat cropped. What could be more harmful to a business than to see management decisions being imposed, the sole purpose of which is to maximize shareholder profit alone?
According to Armadif, sound management of a CSR enterprise in the medium and long term requires the existence of an effective Board of Directors, capable of motivating the CEO and his/her team based on the experience of its various members; but also an efficient Board of Directors which will act as a sounding board, questioning the strategic proposals put forward by its President, with the Board being comprised of at least 50% independent administrators, with a rotation of the administrators in the range of 20% per year.

2) CSR statutes provide that employees should be integrated in its capital
Achieving success tomorrow is reliant on support from all parties. Integrating all of the enterprise’s players must be done with the sole purpose of a value-add for all. We do not talk about “people’s plans,” but rather “COMPANY plans” in which employees also intervene, as a stakeholder in the enterprise’s value.
According to Armadif, it is essential not only to integrate them into the enterprise as shareholders, but also to ensure that their opinions in their specific remit are taken into account at the management level.

3) Reinvestment of profits
Under a CSR enterprise, it is not enough just to state that dividend distribution will be limited; increasing capital may be a differed manner of making a profit. Consequently, we must ensure that these profits are truly reinvested in the enterprise - for example in R&D or in staff training, with a view to increasing development potential.
According to Armadif, this ongoing reinvestment ensures the enterprise’s sustainability, through allocating substantial resources for the development of new products and services.

The advantages for the CSR enterprise

In the medium term: The CSR enterprise is able to attract and motivate quality employees who believe this form of business approach will provide them with an opportunity to further their career, as well as fairer remuneration. Attracting skilled staff is problematic today. It will be crucial tomorrow.

In the long term: Since this change in paradigm is inevitable, those who only act on this later on will expend their energy as well as much more money in the forced integration of this concept, whereas those who will have already integrated it will be able to channel their energy towards conquering new areas in the market. (As Darwin said, “It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change.”)

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