{"id":15927,"date":"2023-05-19T14:57:37","date_gmt":"2023-05-19T18:57:37","guid":{"rendered":"https:\/\/evol.wp.vortexdev.com\/?post_type=toolbox&p=15927"},"modified":"2023-08-01T11:15:56","modified_gmt":"2023-08-01T15:15:56","slug":"reconciling-profits-and-social-responsibility-issues-and-challenges","status":"publish","type":"toolbox","link":"https:\/\/evol.wp.vortexdev.com\/en\/toolkit\/reconciling-profits-and-social-responsibility-issues-and-challenges\/","title":{"rendered":"Reconciling profits and social\u00a0responsibility: issues and challenges"},"content":{"rendered":"
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The purpose of a business has traditionally been to make profits. But today, performance is not measured solely in numbers: it is judged by a series of factors that reach well beyond simple financials. <\/em><\/p>

Salmata Ouedraogo presents this new reality, where profits and social responsibility are two sides of the same coin.<\/em><\/p>

Dr. Ouedraogo is a professor in the department of economics and administration at Universit\u00e9 du Qu\u00e9bec \u00e0 Chicoutimi. Her research explores sustainable development from an economic perspective.<\/em><\/p>

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A new definition of sustainable development<\/h5>

The definition of sustainable development generally accepted since the 1990s is as follows: \u201cDevelopment that meets the needs of the present without compromising the ability of future generations to meet their own needs.\u201d<\/em><\/p>

But this definition essentially refers to the physical and material needs of individuals. <\/p>

Salmata Ouedraogo prefers that of the Organisation Internationale de la Francophonie \u2014 it is more recent (2016), and, crucially, more comprehensive:<\/p>

Sustainable development is \u201can effort targeting continuous improvement of the quality of life of citizens by taking into account the indissociable character of the environmental, social, economic, and cultural dimensions of development from a perspective of intra- and inter-generational equity.\u201d<\/em><\/p>

This broader way of seeing sustainable development is beneficial, because a narrow vision of sustainable development does not make it possible to prevent a form of non-monetary poverty: an equity gap. <\/p>

In short, the addition of fundamental and nonmaterial notions such as culture, quality of life, and happiness are enriching, in every sense of the word. And as a result, performance evaluation grids for businesses need to be revised.<\/p>

The new way to look at a company\u2019s performance<\/h5>

A company is not judged solely on its profitability; it is also judged on the impact it has on society and stakeholders. <\/p>

In this, there are two opposing currents of thinking.<\/p>

1. The first sees a negative connection between sustainable development and financial performance.<\/strong> It starts from the principle that the business has neither the skills nor the knowledge to make sustainable development profitable, which negatively affects a company\u2019s profitability, possibly even its competitiveness.<\/p>

2. The second, on the contrary, sees sustainable development as an opportunity to boost profitability. <\/strong>This is the point of view of Salmata Ouedraogo, for whom competitiveness, financial performance, and environmentally responsible management are perfectly reconcilable.<\/p>

The increase in stakeholders<\/h5>

Another factor to consider is the increased number of stakeholders who have an eye on a company\u2019s affairs, and who want to weigh in, judge, and be heard. <\/p>

From this point of view, corporate management has grown increasingly complex in recent decades. Gone are the days when management happened behind closed doors and companies weren\u2019t accountable to shareholders.<\/p>

With the Internet, it is easy to find out everything there is to know about a business. And with social media, people can readily express themselves about businesses. <\/p>

This creates what Dr. Ouedraogo identifies as a paradox, i.e., that businesses must satisfy stakeholders with sometimes divergent, even incompatible, interests:<\/p>