San Patrignano: how to inspire entrepreneurship for social change

Filippo Giordano, PhDProfessor of Social Entrepreneurship, Università BocconiFaculty member Master NP&Coop SDA Bocconi School of Management

Narrow view The shift of managerial

competencies and market-based attitude to the not-for-profit actors

A way to improve nonprofit operational efficiency and effectiveness

Extended view SE concept as a new, independent

and inter-sectorial field of inquiry

The ability to actively contribute to social change with creativeness, innovation and economic sustainability

→Crisis of the traditional welfare state→Increasing of social and environmental issues

A complex concept: “the search for a single definition was a sterile activity” (Nicholls, 2008)

Drivers

Current perspectives in Social Entrepreneurship

Defining Social Entrepreneurship

Social entrepreneur Who

Social enterprise How

Social entrepreneurship

What

- process- outcome

- managerial approach- legal approach

- characteristics- motivations

Who are the Social Entrepreneurs

Schuyler (1998): “individuals who have a vision for social change”

Thompson, Alvy and Lee (2000): “people who realize where there is an opportunity to satisfy unmet need”

Dees (2001): “…play the role of change agents in the social sector”

Leadership for sustainability Vision. (House, 1977 and Rafferty & Griffin, 2004).

Character and integrity. (‘Walking the talk’, Fry 2003, Followers to look first at who a leader is, Pfeffer 2003).

Work as a calling or altruistic goal. (‘Calling’ is described as the experience of transcendence, Pfeffer, 2003).

Humility. humility is the manifestation of spiritual values

Conscience and values. They derive commitment from their own conscience and internalized values (Bass, 1998)

Trust. (Dirks & Ferrin, 2002)

Concern for others. Leaders align to the follower’s needs, motivate and, involving them in decision-making (Shamir et al., 1998).

Motivation of followers. Leaders focusing on spiritual values often evoke latent motivation in others that enhance their satisfaction and productivity

Source: Sharma 2014

Vincenzo Muccioli: a sustainable leadership Vincenzo Muccioli was a visionary, positive and volcanic person and

this energy is still felt inside the community Muccioli had charisma and the capacity to emphatically connect to

people. He valued people’s skills and attitude, allocated tasks and

responsibilities, and increased progressively autonomy to working groups.

He personified the mission; thus there was always coherence between values and behavior.

In the vision of Vincenzo Muccioli, all who lived and worked in it or that looked at it in search of help and support owned the community

…from a charismatic leadership…

…to a shared leadership

SE as organization

Pure philanthropic organization

Social Enterprise

Pure commercial organization

Orientation To the social mission To market demand

Aim Social value Economic value

Beneficiaries No (or limited) prices for services offered

Market prices

Funds Donations and public funds

Capital market

Worforce On a voluntary basis Salaried workers

Hybrids as organizations that embed multiple institutional logics

The hybridity of SEs is manifested clearly in the challenges associated with managing the tensions between social mission and commercial goals (Adams and Perlmutter 1991, Young 2012) and the impact on mission, strategy, growth, partnerships, and performance evaluation (Doherty, Lyon, Haugh 2013).

Current streams of research: understanding internal dynamics (Pache, Santos 2013) and how does hybridity impact on the outcomes

Social enterprise as hybrid organization

Hybrid organizational structures For profits with non profit subsidiaries

– to better handle commercial and social activity

– to receive donations and maximize mission achievement

Non profits with for-profit subsidiaries– To have additional source of revenue

– To operate with less legal obligations

Other structures– Nonprofit with Non profit subsidiaries

– Nonprofit/nonprofit Partnership

– Nonprofit/for-profit partnerships

Two international leading cases

San Patrignano as hybrid organization

Pure philanthropic organization

San Patrignano

Pure commercial organization

Orientation To the social mission To market demand

Aim Social value Economic value

Beneficiaries No (or limited) prices for services offered

Market prices

Funds Donations and public funds

Capital market

Worforce On a voluntary basis Salaried workers

SP Rehabilitation Community Cooperative

SP Farm Cooperative

SP Sport AssociationSP School Association

San Patrignano (SP) Foundation

The hybrid organizational structure of San Patrignano

The governance of San Patrignano

SP Rehabilitation Community Cooperative

SP Farm Cooperative

SP Sport Association

SP School Association

San Patrignano (SP) Foundation

Managerial committee Social committee

Secretary

Social entrepreneurship as a process

Social Entrepreneurship

Social expected value as key to evaluate opportunities

Innovations targeting social change

Orientation towards social value maximization

Emphasis on innovation Path breaking

orientation Ability to discover

unmeet social needs Independence in

decision making and sustainability

San Patrignano as a social entrepreneurship experience

One of the largest drug rehabilitation communities in the world Innovative solutions to a social issues, replicable and scalable The success rate of the rehabilitation program is 72% (worldwide

average 18%) 20,000 people helped since its foundation The live-in community, currently housing some 1500 youths from all

over the world, is a totally self-sufficient mini city Tension towards innovation and focus on social impact (es. social bond,

microcredit project)

Thank you