In Corporate, Translations

Subsidiarity is the principle that establishes a balance between business freedom and government intervention. It guarantees that individuals and associations forming political communities or business initiatives have the resources to practice their freedom and autonomy

Throughout this entry, we will respond to one key question, from a more practical viewpoint: what is subsidiarity and how does it affect business development?

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What is subsidiarity and how does it affect business development?

It is middle ground in which businesses can develop freely, with the government intervening only to a necessary extent, that is at the core of subsidiarity

In recent years, a new form of capitalism has been on the rise. Its aim is to address social needs while protecting innovation and private sector development.  

But who determines the extent to which private resources should be used for the common good? Subsidiarity regulates this responsibility to avoid potentially dangerous extremes. 

Organizations and business owners must not be deprived of their capital for social issues to be solved. That is a responsibility of the State. However, these individuals and organizations should not exclusively base their actions on self-interest either. 

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