Policies and Strategies in Business Value-Creating Organizations

This conceptual paper seeks to demonstrate that, just as individuals in a Social System are responsible for their own actions and behavior with respect to the other individuals in the system, Organizations, as vital entities (following Beer’s Viable System Model) that make up the Social System, must also necessarily be held accountable for the economic and non-economic consequences of their actions. The complex “decision-action” interaction leads the organization to behave as a cognitive entity, as a vital unitary system, that must be held “socially responsible” for its own actions, as these are produced, in turn, by its own decisions. This results in the necessity and inevitability of CSR. Specifically, the MOEST demonstrates that the action of every BVCO assumes a Corporate Governance that specifies stakeholder objectives and environmental constraints, in this way defining the various levels of CSR. The present study deals with the following topics: 1. In what sense are Business Value-Creating Organizations (BVCOs) cognitive and vital systems, and thus responsible actors in the Social System? To demonstrate this, Beer’s VSM and Mella’s MOEST (Organization as an Efficient System of Transformation) are used; 2. How does the interdependence among objectives, decisions and controls function? In this regard, this paper will examine in particular the role of policies and strategies in producing the management dynamics in organizations. 3. The CSR as representing a fundamental variable in the strategy of BVCOs, as corporate ethics and reputation is based on this.