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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