José María Arizmendiarrieta: the company at the service of the human beingArizmendiarrieta Foundation, the reasons for more humane companiesAmong 400,000 priests in the world at mid-century, Arizmendiarrieta's genius was not in his theoretical contributions but in the practical applications derived from his faith, in the legislative framework and in the competitive scenario of the time.
Continuing with this orientation, the ideas of Arizmendiarrieta have today a possible application in conventional companies in the participative inclusive business model that we at the Arizmendiarrieta Foundation are promoting: it is a model that, inspired by the principles and values of Christian humanism, seeks to humanize companies while improving their competitiveness to ensure that they generate profits and social value in a sustainable manner.
It has arisen from the proposal of different groups of people related to business and the economy in general, from different trade union, political and business affiliations, who have reflected in various seminars organized by the Arizmendiarrieta Foundation and other institutions on the characteristics that companies that base their competitiveness on the development of the people who work in them should have.
Thus, in 2018, the Navarre and Basque parliaments approved motions (without the character of law) in which they urged the respective autonomous governments to promote two variants of an inclusive participatory model with very similar characteristics. Insisting, in both cases, that it is not a rigid model, but must be adapted to the specific circumstances of each company, both in terms of its internal situation and its needs to compete successfully in the global market.
This has generated, on the other hand, new variants, which maintain the backbone of what was initially proposed but are better adapted to different regulatory and cultural contexts.
The following is the variant that UNIAPAC, an association that brings together 43 organizations of Christian entrepreneurs and managers, with more than 40,000 members worldwide, has decided to disseminate among its associates. The axes and characteristics of the proposed inclusive participatory model are as follows:
Axis 1
To formulate a project shared by the owners, managers and professionals/workers of the company, which improves the company's competitiveness, is beneficial in the long term for all, and in which the sustainability of the collective project is given priority over the interests of any of the aforementioned groups. This would entail:
Set annual objectives that demonstrate the advantages of the new model, improving both profitability for shareholders and overall compensation for employees.
2. To allocate a significant percentage of the company's profits to improving its solvency, investment in new equipment, R&D&I activities and training of all members of the company.
3. Increase the percentage of sales revenues destined to finance R&D&I activities, when the results allow it.
Axis 2
Modify management practices and corporate culture, in which transparency of information, collaboration and trust among all its members are the main pillars of the project, for the sake of greater competitiveness and sustainability, which would include:
4. To create a climate of trust from the management through a policy of information transparency, with regular information to workers, through their representatives, on the most important variables and policies of the company, except those that could be strictly confidential.
5. To implement an organizational and participative management model that encourages the participation of workers, contributing their knowledge and experience in improving the production process and promoting innovation and long-term business sustainability.
6. Program and develop systematic training plans, with specific objectives for the workers, including both technical and management training, with the purpose of intensifying the training processes and accreditation of competencies of the people of the company, extending them to as many of them as possible, after the pertinent agreements with their representatives.
7. Promote remuneration policies that do not generate excessive inequality and that favor social cohesion. It is recommended that, when circumstances allow, remuneration should include a share in results that can reach the entire workforce.
8. Establish periodic systems of evaluation and continuous improvement of the satisfaction and needs of the people who work there. One reference could be to carry out a systematic survey every two years.
9. Prioritize (without exclusivity) internal promotion to assign functions of greater responsibility and use objective criteria of merit assessment and possibilities of contribution when selecting among the various candidates, giving adequate response to the training plans carried out by employees/workers.
10. To make decisive progress towards wage equality between men and women.
11. To seek formulas that favor the reconciliation of professional and family life for all without detriment to business development.
Axis 3
To move towards overcoming the dynamics of confrontation between capital and labor by creating a climate of trust and agreement on the business project that allows the progressive participation of workers in management processes related to their skills and, if circumstances permit, a share in the company's results.
12. To implement participative management systems, with appropriate procedures and tools, that encourage innovation and organizational changes. This would include providing regular information to workers' representatives on the company's progress, results, threats and opportunities, as well as on the most important projects to be developed, consulting and evaluating their opinions and suggestions in this regard.
13. To study, when the new company model has advanced sufficiently and there is a common project between all the parties for its development, the creation of monitoring and control commissions where all the members of the company are represented.
14. Progressively establish formulas for variable employee participation in the results, taking into account the company's short and long term problems.
Axis 4
Concern for the social impact of business actions and involvement in some of the social problems of the environment. It would entail:
15. Maintain a policy of fiscal honesty, without incurring in tax fraud and tax evasion and without the use of tax havens, so that the public resources necessary to face the economic and social challenges of the Community are not diminished.
16. Participate in the reflection, evaluation and, if possible, implementation of social policies aimed at the labor integration of less qualified workers who may be excluded from the productive processes as a result of the incorporation of new technologies or their personal situation, especially in times like the present, of profound technological changes.
17. To collaborate with the corresponding public administrations for the permanent adaptation of vocational training, continuing education and university training to the needs of companies, taking a leading role in the establishment of dual training plans, internship experience, service programs and appropriate apprenticeships. Establish for this purpose a permanent and regulated communication between the business world and the training world in order to improve the employability of graduates, as well as to respond to the needs of the business world.
18. Dedicate a percentage of profits to social responsibility activities, valuing the involvement of workers in the different projects and counting for this purpose with the workers' representatives in the company.
19. Encourage intra-entrepreneurship and an internal culture that stimulates entrepreneurial vocations among the company's professionals and managers, in order to provide continuity and generate new projects that contribute wealth and employment for the community.
The practical application of this proposal is specified in the work carried out jointly with Euskalit, the Basque Foundation for Management Quality, which is available for consultation at here.
As an example of companies that have put into practice the recommendations of the aforementioned model are the companies in the Basque Autonomous Community and the Autonomous Community of Navarre that have been awarded the Arizmendiarrieta Sariak Awards, granted by our Foundation on the basis of a technical assessment carried out by professional evaluators and an independent Jury in each case. We would like to point out that they were the following. In the Basque Country: Alcorta Forging, Salto Systems, AB Laboratorios de Biotecnología, Egamaster, Grupo Zigor, Ingeteam and Cadinox and in Navarra: Hidrorubber, Seinsa, Conor Sports and IED.
President of the Arizmendiarrieta Foundation
