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Corporate Social Responsibilityi is another “catch-phrase” that has been created, or at least utilized, seemingly to inspire guilt among those who are successful and whose innovation tends to benefit them the most financially. The corporate entities that are established within the community developments will be wholly or mostly owned by the Foundation in charge of the community development project(s). In this fashion, they can be integrated with, rather than working for or against the local economic system.

As a corporate shareholder or stockholder, the community has a vested interest in both the success of the corporation and the success of the community. The new business model of the corporate entities allows them to provide a direct community benefit in different ways. This voice will be given a platform through the local foundation offices, as set forth earlier in the The Philippine Government Model wherein the citizen can first make their voice heard. From this stage, the appropriate representative of the foundation will have the ability to present the voiced concerns of the citizen up to the level where it will be reviewed and recommendations made for action. In this way, the incorporated body and its subsidiary corporate entities can be held in check in much the same way as the government will be, through a direct and enforceable voice of the peopleii.

In cases where a citizen wishes to form their own corporation or introduce some new innovation on to the marketplace, they will have the opportunity to have their efforts fully funded and the ability to start their corporate entity with a global presence ready for their products and/or services through the existing community developments. In return, the foundation will retain majority ownership of the corporate entity as is expected in a free-market economic system as is a very standard benefit for a majority investor or funding agency or body. The owner(s) and developer(s) will retain a portion of the corporate entity based on the result of the negotiations for funding, and that amount shall remain en perpetuity as their portion of the profits from the corporate proceeds. Thus, there will still be ample justification for people who are innovative and wish to start their own corporate pursuits.

In return, the corporate entities as shall be formed, may also be required to provide real-world activities for participating students, commit to a certain percentage of the corporate proceeds being established for the shareholders … the community members within the voluntary association in this case, hiring members largely from within the community development(s) and any and all other such restrictions as shall be determined in the negotiations for funding of the corporate entity.

Furthermore, funding for these pursuits will be substantially easier to acquire and process as a matter of internal auditing, and the profit marginsiii for the innovators and producers, will, in some cases, be substantially larger than they would otherwise have in the open market systemiv. The developers will be free to make the necessary operational decisions for their products and/or services while the foundation(s) and/or the governing body will provide a more global market and all of the benefits of a global “Cooperative” (in the legal sense of the word) as a preexisting global customer base for the direct benefit of the corporate entity.

In cases where the innovators may be more skilled at innovation and designv than they are at corporate governance and/or marketing, the foundation and/or governing body will have the additional benefit of being able to build a fully functional corporate organizational structure replete with all of the requisite departments for the products and/or services of the innovators. Conversely, in cases wherein the innovators are capable and have the necessary corporate infrastructure in place, they will be allowed ... even encouraged to establish their own corporate structure and the foundation and/or governing body will retain its seat(s) on the board and only intervene as may be necessary on behalf of the corporate interests and/or the interests and/or concerns of the local citizenry and the general populace through the foundation centers.

The proceeds of the Corporate Entity normally assigned to the shareholders and/or stockholdersvi, will be invested in a Private Hedge Fundvii The Fund(s) will then be utilized as a means to provide for a positive return and the complete funding of many of the Social Assistance Programs and other tangible benefits to the residents of the Community Developments (and the Isolated Community Service Centers) so membershipviii within the organization, however the final system is established, will need to be voluntary and should include an agreement to accept the invitation to join the foundation and/or governing body without any subsequent demand of membership, though with the subsequent benefits being granted only for those that do elect to participate voluntarily in a fully voluntary association.

i Corporate Social Responsibility is about the corporations giving back to the community. In the traditional, for-profit business model, this often leads to a direct conflict between the corporation, the board of directors, the shareholders and stockholders and the general public. In the economic model as practiced in the Community Developments, the Foundation and/or governing body is in fact, the majority shareholder or stockholder and as such, has a vested interest in the success of the corporate entity and the community as a whole.

ii Actionable complaints by Citizens will be given voice ultimately through the Ombudsman Program and/or the Citizen Review Board, where the individual votes of the respective parties will be weighted based on standards as have been established, and final decisions will be made.

iii Even allowing for the differences between Gross Profits, Operating Profits and Net Profit margins, the actual innovators will generally be able to retain larger personal gains than they would in the more traditional markets no matter what the net profits may be. Profit sharing for the innovators is generally established based on Net Profit Margins with some allowance given for Operating Profits that will be reintroduced in areas such as Research, Development and potentially even to support the Vocational and/or Technical training programs for citizens of the community development who have both the aptitude and desire to learn in such an environment.

iv This is especially true in the earlier stages of the development of the corporate entity when most organizations will go through a period of struggle through their initial phases of growth and development.

v Remember, you are unique ... just like everybody else! All people are unique, which is why the adaptive nature of the community developments is so important for their success. In this case however, it has been the collective experience of most of the experts on staff, that innovators and inventors are not always the best people to run the corporate interests. As such, not only will the foundation and/or governing body provide the necessary funding for these corporate entities, but also the necessary staff to run the corporate entity and to provide the necessary support staff as is required by the innovators.

vi Even under the current economic models, this position of the foundation and/or governing body really is little more than that of being the majority shareholder as they will have funded the majority (if not the entire) cost of the corporate entity. As such, the utilization of Net Profits in whatever fashion should not even be an issue that needs to be addressed. However, given the cries about socialism and fascism and communism, it does seem prudent to differentiate between them and the principles of operations regarding a board of directors and/or shareholders.

vii A Hedge Fund is generally a private investment group. Each and every member of the Community Developments and the Isolated Community Service Centers will be offered an opportunity to become members of the Hedge Fund as shall be established for and on behalf of the citizens. The hedge fund will further distribute the proceeds from trades back into the community through Social Assistance Programs and even for the direct financial benefit of all adult residents of legal age and/or legal capacity as an adult, flesh and blood, man or woman.

viii Voluntary Membership in a Private Association allows for the protection of the individual, the protection of the association and substantially more freedom in regards to financing, funding and other matters of importance when it comes to assisting people in improving their personal lives and/or for the ultimate goal of establishing a system that allows for the true economic and social freedom for all of the people of the world.

 

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