Civil Economy and Organisation: Towards Ethical Business Management

99 Pages·2020·1.182 MB·English

by  Roberta Sferrazzo

Civil Economy
and Organisation
Towards Ethical
Business Management
Roberta Sferrazzo
Civil Economy and Organisation
Roberta Sferrazzo
Civil Economy and
Organisation
Towards Ethical Business Management
Roberta Sferrazzo
Department of Management
Audencia Business School
Nantes, France
ISBN 978-3-030-59021-5 ISBN 978-3-030-59022-2 (eBook)
https://doi.org/10.1007/978-3-030-59022-2
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Reface
ReseaRch aims and Objectives
In this book, I will try to go beyond the classic organizational and mana-
gerial logic focused exclusively on “bureaucracy,” “hierarchical control,”
and “performance,” by considering these managerial leverages as instru-
ments that are liable to generate a loss of gratuity in workers’ behaviors.
Currently, several scholars are trying to re-conceptualize management
assumptions in different ways (Ghoshal 2005; Gladwin et al. 1995; Hahn
et al. 2010). For example, some academics are following this direction by
proposing a humanistic management style (Acevedo 2012; Dierksmeier
2016; Melé 2003; Melé and Schlag 2015; Pirson 2017; Spitzech 2011),
focusing on the promotion of “human dignity” in management theory.
Moreover, other scholars argue that no organization can work exclusively
based on contracts and that all organizations need motivation that goes
beyond profit and material incentives (Boltanski and Chiapello 2005;
Bruni and Smerilli 2009; Pirson 2017). People do not only follow the
logic of homo oeconomicus in business organizations insofar as they are
influenced not only by the aim of making profit, but also by emotions,
feelings and other irrational elements (Nugent and Abolafia 2006; Simon
1955, 1957, 1987; Thaler 2016).
In this book, I share the position of these academics by proposing a
shift from a company based on the aforementioned traditional leverages,
to another type of organization, one that is based on self-control, equality,
and liberation. I used an interdisciplinary approach to achieve this, recall-
ing some concepts belonging to other research fields, such as philosophy,
v
vi PREFACE
sociology, anthropology and psychology. In my view, the use of an inter-
disciplinary approach constitutes one of the strength points both of this
book and of future research on management and organization studies. I
think that a “leadership and managerial revolution” is necessary to create
a culture of collaboration and sharing to face the challenges of our com-
plex, volatile and turbulent business environment. Specifically, these four
book’s chapters show organizational behaviors and leadership styles that
appear more coherent with the Civil Economy approach. I will examine
this in further depth below.
the civil ecOnOmy tRaditiOn
In the last decade, scholars have rediscovered the Italian tradition of Civil
Economy and the different vision of the market it offers, one that is
anchored on reciprocal assistance in market exchange relationships. So far,
scholars are discussing Civil Economy especially in the fields of the history
of economic though and in economics and philosophy (Becchetti and
Cermelli 2018; Bruni 2013; Bruni and Porta 2003; Bruni and Sugden
2000, 2008; Bruni and Zamagni 2016; Pabst 2018). Nevertheless, this
book proposes looking also at business ethics and organizational studies
through the lens of Civil Economy, especially considering the notion of
virtue provided by civil economists. In particular, I set forth an organiza-
tional model that derives from Civil Economy, i.e. the agape-based orga-
nization1 (Sferrazzo 2019, 2020).
The Civil Economy Italian tradition was born in Italy in the eighteenth
century, founded by Antonio Genovesi (1713–1769) after having obtained
the first chair in Economics at the University of Naples. I think it is impor-
tant to rediscover the thought of this Italian civil economist for business
ethics and organizational studies, especially for his vision centered on “rec-
iprocity” in market exchanges, which in my opinion can be applied also to
social relations within organizations.
Genovesi’s account of human nature derives from the Mediterranean
tradition. Using Newtonian motifs, Genovesi argues in his Diocesina that
two forces govern the social nature of humankind: “self-love (forza con-
centriva)” and “love of others (forza diffusiva)” (D’Onofrio 2015: 457;
1 For more details concerning the ‘agape-based organization’ see Sferrazzo (2019, 2020).
PREFACE vii
Genovesi 1973: 42–43; cf. Guasti 2006: 392–393).2 In the Lezioni, he
calls these two forces the “forza coattiva” (coercive force) and “forza dif-
fusiva” (directive force). He points out that “those who pretend that one
of these forces is born from the other are mistaken […] These two forces
in us are both primitive and tied together” (Genovesi 1973: 42). In fact,
he stresses: “Two opposing forces are in the heart of man in all circum-
stances of this world, the concentrative and the diffusive… each of these
forces operating alone destroys man: the concentrative force isolates him
from his fellow men; the diffusive force disconnects him from himself and
destroys him” (Genovesi 1779: 203–204). Therefore, Genovesi’s theory
of action is based on the idea that any phenomenon, whether human,
social, or physical, can be understood as an equilibrium between these two
forces, namely the attractive and the repulsive.
All this highlights the differences between Genovesi and both
Mandeville’s and Hobbes’ egoistic conceptions of man. In fact, Genovesi
argues: “Hobbes founds all on forza concentriva, and the forza diffusiva
springs only from a higher degree of the concentriva, that is fear” (Genovesi
1766: 36). Moreover, in Genovesi’s view, economic relations are founded
on reciprocal assistance, which means that each agent helps the others to
satisfy their desires. In this manner, he emphasized economic relationships
directed toward both public happiness and civic virtues, claiming: “noth-
ing is truer: the first spring of art, opulence, happiness of every nation is
the good custom and virtue” (Genovesi 1824: 210).
Today, some scholars (Anderson 1993; Sandel 2012, 2013) claim that
reciprocity can be achieved only in a social sphere that includes politics,
family, and the volunteer sector, one that is, in short, external to the mar-
ket. In the tradition of Civil Economy, the market is also considered a
domain of social life, a place where people can cooperate for mutual advan-
tage. Therefore, following the Civil Economy approach, virtues and intrin-
sic motivations can flourish both inside and outside the marketplace.
Organizations can be seen also as places where friendly relations can
spontaneously arise, and this relates to the concept of friendship as
expressed in the Civil Economy tradition. Indeed, according to Genovesi,
as he claims in the chapter “On Public Trust,” the concepts of reciprocal
confidence, public trust, mutual assistance, and friendship are
2 The concept of contrasting force, operated also by Galileo and other scientists at that
time, became the key element of Newton’s theory of mechanics, whose third law claims that
for every force there is an equal and opposing force.
viii PREFACE
interconnected and constitute the preconditions for civil and commercial
society (Genovesi 2005: 751–785).
With this in mind, the aim of this book consists in discovering how
leaders can help people to “flourish” within organizations. To achieve this,
I have identified several paths to follow in the organizational context.
the stRuctuRe Of the bOOk
In the first chapter, I will frame the Civil Economy tradition within the
Business Ethics’ field (Sferrazzo 2020). In the last decade, scholars have
rediscovered the Italian tradition of Civil Economy and the different vision
of the market it offers, one that is anchored on reciprocal assistance in
market exchange relationships. So far, scholars are discussing Civil
Economy especially in the fields of the history of economic though and in
economics and philosophy. Nevertheless, this chapter proposes looking
also at business ethics and organizational studies through the lens of Civil
Economy, especially considering its connections with (a) the agapic form
of love, (b) Sen’s capability approach and (c) the Thomistic virtue of docil-
ity. This chapter constitutes that premise to show, in the following chap-
ters, the “agapic,” “liberating” and “docile relational” leadership styles.
The second chapter explores the dynamics of love within models of
leadership in organizations. In the philosophical literature, three forms of
love are discussed, i.e. eros, philia and agape; here, I focus on the latter to
delineate a new model of leadership: the “agapic” one. To achieve this,
through an empirical study, I examine which leadership attitudes are ori-
ented towards an agapic form of love. The study consisted of 29 semi-
structured interviews, conducted in vivo with both leaders and managers
of a French multinational company. I discovered that leaders’ agapic atti-
tudes generate interpersonal relationships based on fraternity and gratuity
moreover, they are strongly related to sharing everything, to the adoption
of subsidiarity logics, and to fostering reciprocal learning. From the find-
ings, it emerged also a strong relation between the agapic leadership style
and the Christian tradition.
To date, the promotion of a more humanist form of management has
taken place through the adoption of “New Forms of Work Organization”
(NFWO) (Longoni et al. 2014). These consist, for example, in the seminal
reflections of Peters (1988, 1993), the works from Human Relations
movement (e.g. McGregor 1960; Maslow 1943; Lewin 1952 or Herzberg
2008), the participatory model of management (Gilbert et al. 2017), the
“third type of company” (Seriyex and Archier 1984), the adhocracy and
PREFACE ix
the mission organization models (Mintzberg 1990), the model of agile
management (Barrand 2012), the holacracy model (Robertson 2015),
and the innovative model of “liberated companies” (Carney and Getz
2015). In the third chapter, I analyse both the organizational model of
liberated companies and the liberating leadership in depth. The capability
approach (CA) developed by Amartya Sen, indeed, focuses on the enhance-
ment of people’s capabilities, i.e. their real freedom to choose a life course
they have reason to value. Applying the CA to the organizational context,
the focus of human resource management is transformed, shifting away
from the needs of the organization to the freedom of the individual. This
shift happens also inside “liberated companies,” firms with an organiza-
tional form that allows employees the complete freedom, along with the
responsibility, to take any actions they decide are best.
Another leadership style which appears coherent with the Civil Economy
logic is the “docile relational” leadership, derived from a Thomistic virtue
ethics perspective. I analyse this in the fourth chapter. Indeed, acting in a
docile relational way means that leaders must be aware, on the one hand,
that they can learn from their followers and, on the other hand, that they
must give the possibility to their followers to learn from them. In other
words, the leader has to operate with a spirit of cooperation, grounded in
mutual assistance. Individuals, in fact, are aware that everyone needs each
other, also within organizations. Furthermore, this is also a way to read
organizational learning through the logic of reciprocity. This logic is also
coherent with the perspective of Thomistic virtue ethics where the help of
others is necessary to develop virtues. Aquinas emphasized the necessity of
relations between master-disciple and between friends to learn virtue,
regardless of context. For this reason, we can easily associate this modus
operandi within organizations to docile relational leadership for the fact
that prudence can be acquired only through a relationship grounded on
reciprocity. Hence, within organizations, it is possible to recognize docile
leadership in action in the presence of three factors: (1) when leaders help
the followers in their needs; (2) when both followers and leaders are will-
ing to learn from each other and accept their reciprocal help; (3) when
both followers and leaders acquire the virtuous maturity to help others in
their virtuous advancement.
In the book’s conclusions, I will briefly resume all the chapters treated
and discuss some future research prospects.
Nantes, France Roberta Sferrazzo
x PREFACE
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