San Patrignano: how to inspire entrepreneurship for social change

1. San Patrignano: how to inspire entrepreneurship for social change Filippo Giordano, PhD Professor of Social Entrepreneurship, Università Bocconi Faculty member Master NP&Coop SDA Bocconi School of Management

2. Current perspectives in Social Entrepreneurship A complex concept: “the search for a single definition was a sterile activity” (Nicholls, 2008) Drivers • Crisis of the traditional welfare state • Increasing of social and environmental issues Extended view Narrow 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 • The shift of managerial competencies and market-based attitude to the not-for-profit actors • A way to improve nonprofit operational efficiency and effectiveness

3. Defining Social Entrepreneurship Social entrepreneur Who - characteristics - motivations Social enterprise How - managerial approach - legal approach Social entrepreneurship What - process - outcome

4. 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”

5. Leadership for sustainability Source: Sharma 2014 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

6. 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

7. …from a charismatic leadership…

8. …to a shared leadership

9. SE as organization

10. Social enterprise as hybrid organization 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

11. 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 • Nonprofitwith Non profit subsidiaries • Nonprofit/nonprofitPartnership • Nonprofit/for-profit partnerships

12. Two international leading cases

13. San Patrignano as hybrid organization

14. The hybrid organizational structure of San Patrignano San Patrignano (SP) Foundation SP Sport Association SP Rehabilitation Community Cooperative SP Farm Cooperative SP School Association

15. The governance of San Patrignano San Patrignano (SP) Foundation Secretary Managerial committee Social committee SP Sport Association SP Rehabilitation Community Cooperative SP Farm Cooperative SP School Association

16. Social entrepreneurship as a process Entrepreneurship Social • 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

17. San Patrignanoas a social entrepreneurshipexperience • 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)

18. Thankyou