Integral ecology

Arizmendiarrieta Foundation, the reasons for more humane companies

The priest José María Arizmendiarrieta was an exceptional case for his effectiveness in promoting companies, which today turn out to be a business group of reference in Europe. Following in his footsteps, the Arizmendiarrieta Foundation is today based on the principles of Christian humanism, without losing sight of the needs arising from business competitiveness.

Juan Manuel Sinde-June 1, 2024-Reading time: 5 minutes

Photo by Jason Goodman on Unsplash.

The now Venerable José María Arizmendiarrieta stood out for his ability to apply the principles and values of the Social Doctrine of the Church in the context of the mid-twentieth century in a small town in Gipuzkoa. He knew how to reconcile convictions rooted in a deep faith with a pragmatism reflected both in his objectives ("The ideal is to do the good that can be done, not the good that is dreamed of") and in his approaches to bring together people of different political, economic and social sensibilities ("Ideas separate, needs unite").

Among the approximately 400,000 priests scattered throughout the world, who shared the same formation, he was an exceptional case for his effectiveness in promoting companies, which today turn out to be a reference business group in Europe.

This double reference to the principles of Christian humanism and the needs derived from business competitiveness are today the vectors of the company's business proposals. Foundation Arizmendiarrieta, heir to the priest who gave it its name.

The Social Doctrine of the Church and the enterprise

Perhaps it is worth recalling, therefore, some of the principles of the Social Doctrine of the Catholic Church that are particularly applicable to the business world:

- Respect for the equal human dignity of all people (because they are all children of God). It implies that all people in the company must be treated according to this condition, regardless of their responsibility or their position in the company's hierarchy.

- Search for the common good, which implies giving priority to the needs of the collective project over the (legitimate) interests of the various stakeholders (workers, shareholders, etc.).

- Promote the participation of workers in management, results and ownership, so that work is an opportunity for the realization and development of human capabilities.

- Maintain criteria of internal solidarity among the different groups mentioned above, making the company a community of people and not just an organism for producing goods and services.

- Maintain policies of solidarity with the community in which it operates.

As a consequence, it would mean accepting that the priority objective of a company is not to obtain maximum short-term profits for its shareholders, but to satisfy the people of the different stakeholders in a balanced way.

On the other hand, however, it is necessary to take into account the characteristics of the competitive scenario in which companies currently operate. In this regard, we can emphasize that in recent decades two major factors have changed this scenario for companies in general: the accelerated progress of scientific discoveries and their technical applications, and the globalization of the economic processes of production, distribution, financing and consumption.

Reasons from the business point of view

Within this framework, following the reflections of various groups of people representing different economic, political and social sensibilities, the reasons for more humane companies from a business point of view would be the following:

As a consequence of the aforementioned scientific-technical development, the role of people in companies has changed radically, and the proper management of knowledge and innovation, which resides precisely in them, is of vital importance.

Therefore, they play a critical role in the competitiveness and success of all types of companies by contributing their intelligence, concerns, creativity, empathy and ability to work as part of a team.

3. The globalization process requires, on the other hand, that companies and countries that cannot compete via costs must seek other elements of competition, based on constant improvement in quality and new value propositions for their customers, which, in turn, depend on people, thus reinforcing the importance of people.

4. But to ensure its leading role, in this context, a new business model is needed that facilitates and enhances the knowledge and involvement of all agents in a shared project.

5. On the other hand, it is considered that change must be built on trust, based on transparent, truthful and systematic information and on a management model that encourages participation in the "day to day". This trust must be shared among the company's community, the groups with which it interacts and the public administrations.

6. It is therefore necessary to introduce cultural and organizational changes in companies, which implies significantly adapting the traditional relationship model between employers and workers, in order to formulate a common project that will have a positive influence on competitiveness and value creation for the company. It is therefore essential to ensure that people have a decent salary, training for the future, adherence to the business project, job satisfaction, and the social cohesion that facilitates teamwork.

7. The proposed change implies understanding the objectives of business in a broad sense and not only as the pursuit of maximum short-term profit. Progress should be made in formulas for international success in which the company is conceived as an organism that satisfies a constellation of interests in a balanced way, while also taking into account ecological and human rights issues.

8. In any case, the responsibility for change lies with everyone, but especially and to a greater extent with those who hold power in the company, highlighting the importance of the exemplarity of entrepreneurs and managers and progress in the cultural change towards teamwork, honesty in relationships and openness to the changes necessary for the sustainability of the company.

9. Without forgetting that experience indicates that in order to promote participation it is necessary to generate favorable environmental conditions on the part of public institutions and economic and social agents, in the sense of favoring a socio-productive model that prioritizes social, economic and environmental sustainability and the collective interest over individual interest.

10. Emphasizing, however, that the change towards this new model is not only a matter of legal regulations, nor is it automatic, but that it is necessary to manage and work internally on the corporate culture, which first requires the commitment of the company's top management so that the new culture is designed and organized in such a way as to achieve the participation and commitment of all workers and their representatives.

11. It implies, therefore, the initiative of managers and employers, who are responsible for initiating the change, although for the effective implementation of this model of participation, it will need to attract the support of the people who form part of the company and the interest of their representatives, taking into account the powers of information and consultation attributed to them in the Workers' Statute.

Conclusions

All this would lead us, in short, to the search for a balance between:

-A humanistic business model, with the values described above.

-An advanced business model that enhances and takes advantage of people's knowledge and skills to achieve a competitive and sustainable company.

-A business model that takes into account in its design and operation the strengths and weaknesses of the local culture and is susceptible of being promoted by the public institutions involved.

It is important to underline, in any case, that experience shows that change in the company in the proposed direction requires deep convictions from a humanistic, if not transcendent, point of view, so that they take root with sufficient strength to avoid being aggravated by cyclical difficulties. Instrumental approaches aimed exclusively at improving competitiveness are therefore not enough.

The authorJuan Manuel Sinde

President of the Arizmendiarrieta Foundation

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