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 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. 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The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland P 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 RefeRences Acevedo, A. (2012). Personalist business ethics and humanistic management: Insights from Jacques Maritain. Journal of Business Ethics, 105(2), 197–219. Anderson, E. (1993). Value in ethics and economics. Cambridge: Cambridge University Press. Barrand, J. (2012). Le manager agile. Agir autrement pour la survie des entreprises. Paris: Dunod. Becchetti, L., & Cermelli, M. (2018). 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