Photo by Los Muertos Crew on

Subsidiarity is one of the principles of Catholic Social Teachings. The principle emphasizes the importance of decision making and action at the local level.

In business, this means empowering employees and including immediate communities in decision making and problem solving. The decision though must be aligned with the values and goals of the enterprise.

In modern business parlance, subsidiarity is stakeholder empowerment.

How can businesses practice subsidiarity?

Delegate decision-making
Engaging and support local communities
Supporting employee initiatives
Clear communication channels

I know of 2 organizations, one advocates American values and the other European. One of them, I will not name it, does not allow supervisors to make decisions. All decisions have to go through the board. The other, allows for more elbow room. In terms of success, the less controlling company is more successful. Just for clearer perspective, they are direct competitors

Subsidiarity allows people to become more responsible, empowered, creative and cooperative, which leads to better performance

#catholicenterprise #CST

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s