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Strategy Maps: Converting Intangible Assets into Tangible Outcomes by David P. Norton, Robert Kaplan

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C H A P T E R    S I X

REGULATORY AND SOCIAL PROCESSES

COMPANIES MUST CONTINUALLY earn the right to operate in the communities and countries in which they produce and sell (see Figure 6-1). National and local regulations—on the environment, on employee health and safety, and on hiring and employment practices—impose standards on companies’ operations. At a minimum, to avoid shutdowns or expensive litigation, companies must comply with all these regulations on business practices.

Many companies, however, seek to go beyond complying with the minimal standards established by regulations. They wish to perform better than the regulatory constraints, so that they develop a reputation as an employer of choice in every community in which they operate. ...

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