OR43 OPERATIONS RESEARCH SOCIETY CONFERENCE

UNIVERSITY OF BATH UK. SEPT 2001

Economy of Communion
Systemic factors in the rise of a new entrepreneurship
Keith T Linard
Director, Centre for Business Dynamics & Knowledge Management
University of New South Wales (Australian Defence Force Academy)
CANBERRA ACT 2601 AUSTRALIA
Tel: -61-2-6268-8347 Fax: -61-2-6268-8337
E-mail : keithlinard#@#yahoo.co.uk
(remove hashes to email)

ABSTRACT:
The "Economy of Communion" is an experience of social economy fostered by the
Focolare Movement, an ecumenical and inter-religious organisation that originated within
the Catholic Church in the 1940s and is present in about 180 countries. The Economy of
Communion is a global project involving over 750 businesses in a network of solidarity.
Businesses operating according to this paradigm seek to respond concretely to social
inequality, through partnership with the marginalized, whilst remaining commercially
viable in the market economy. They thereby seek to present a realistic social model to
the commercial world.
This paper identifies systemic factors which underlie the rapid development and
spread of this third way between capitalism and socialism. The study is part of a wider
review of the systemic underpinnings of such social movements, seeking to understand
why some succeed and impact the structures of society whilst others flower briefly then
stagnate or die.
Keywords: Business ethics; new economy; economy of communion; Focolare;
business dynamics.

Towards a Systems Theory of the Development of Ideas

The Economy of Communion is a business paradigm that has been described as a living
third way between Marxism and Capitalism grounded in a profound respect for the
individual dignity of the human person. Sprung from the spirituality and social praxis of
the Focolare Movement, the Economy of Communion
is not a realisation of a theoretical economic model drawn up by
economists, but it is rather generated by the practice of new man's behaviour
and by the necessity to face today's (social) problems it can be considered
as an attempt to overcome the dilemma between free market and centrally
planned organisations. (Ressl, 1995)
Table 1 illustrates not only the spread of the implementation of this paradigm, but more
significantly, the spread of the ideas that underlie it.
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Table 1: Rapidity of the spread and implementation of the Economy of Communion

Domains of Influence By 1990 By 2000

Businesses subscribing to this concept 0 750

Countries with EoC businesses / centres / studies 0 100+

Reported academic theses and dissertations (completed & in progress) 0 80+

National & International conferences 0 30+

Prestigious awards etc. by Universities, Governments, international organisations 0 15+

(E.g., UNESCO Peace Prize, Honorary Doctorates, addresses to UNO, Council of
Europe.)

Source: Volumes 1 to 13 of Economia di Communione. Diverse references.

When a social experiment, less than a decade old, is adopted by hundreds of

companies, is publicly praised by national Presidents (Italy, Brazil), is given the floor in
international Assemblies (Council of Europe, UNO) and is the basis for granting of
several Honorary Doctorates (La Salle University, Mexico, 1996 - Philosophy;
University of Lublin, 1996 - Social Sciences; National University of Buenos Aires, 1998
- 13 Faculties!; Catholic University of Milan, 1999 - Economics), the rapidity of the
diffusion of the idea cries out for systemic analysis. Three approaches to addressing this
question are applied:
Memetics (Dawkins, 1976; Lynch, 1998).
Knowledge selection (Heylighen, 1997, 1999)
Social economic systems theory (Pluta, 1988)
Some key systemic ideas from these three approaches are summarised below and,
in the light of these, systemic factors associated with the successful spread of the idea and
the practice of the Economy of Communion are identified. A preliminary model of its
key systemic relationships is presented.

Memetics the power of an idea

Richard Dawkins, Professor of the Public Understanding of Science at Oxford
University, coined this concept in his book The Selfish Gene (Dawkins, 1976). In
Dawkins thesis, memes are cognitive or behavioral patterns that tend to make copies of
themselves by transmittal from one individual to another, and are therefore replicators
analogous to genes. As examples, he suggests tunes, ideas, catch-phrases, clothes
fashions, ways of making pots or of building arches. Dawkins proposed the following
three characteristics for any successful replicators (Dawkins, 1982); Lynch (1998) has
proposed a mathematics for modelling these.
copying-fidelity: the more faithful the copy, the more will remain of the initial
pattern after several rounds of copying.
fecundity: the faster the rate of copying, the more the replicator will spread.
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longevity: the longer any instance of the replicating pattern survives, the more copies
can be made of it and hence the more successful it becomes.

Knowledge selection
Heylighen (1997, 1999) proposes criteria for understanding the propagation of ideas. He
is influenced by memetics, but also draws on general systems theory, especially
cybernetics. Heylighen posits four stages in the development and spread of ideas:
assimilation, in which the idea is first enunciated, understood and accepted; retention, in
which the idea is strongly encoded, e.g., due to its importance or repetition; expression,
in the sense of communication to others; and transmission, relating to the number and
diversity of modes by which expression takes place. He classifies these criteria according
to objective, subjective and inter-subjective factors. (Table 2)

Table 2: Criteria for successful knowledge diffusion

Selectors Objective Subjective Inter-subjective Meme-centered

Stages

Assimilation distinctiveness novelty authority self-justification

simplicity publicity
coherence formality

Retention invariance coherence Conformity self-reinforcement

controllability individual utility collective utility intolerance

Expression expressivity proselytism

Transmission publicity proselytism

Source: Amalgam of Heylighen (1997, 1999)

Social economics systems theory

Pluta (1988) undertook early work into systemic factors associated with the development
of grass roots movements such as the Mondragon movement in the Basque province of
Spain and the Antigonish movement of Atlantic Canada. Whilst this focused on micro-
level socio-economic developments (community or district level), high-level similarities
with the Economy of Communion phenomenon render Plutas systems model a useful
basis of comparison. Table 3 summarises the systemic factors that Pluta saw as crucial to
the success of such movements.
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Table 3: System factors in the success of Grass-Roots movements

Preconditions Economic Sub-System Social Sub-System

suitable environment (problem structures to mobilize human and intellectual, emotional and moral
crying out for a solution) non-human resources process of formulating ideology

charismatic leader institutional network adapted to social process of building

direct or coordinate the economic
and non-economic activities
ideological underpinnings
continuously re-evaluated in the
light of changing circumstances
networks of relationships
development of institutions to
preserve and propagate the
ideology

Source: Adapted from Pluta (1988)

Between Capitalism & Socialism - Diverse Stirrings

The 19th and early 20th century were a melting pot of ideas and experimentation in the
search for more just and equitable economic structures. Many of these, such as the
Fabian Society and the Distributivists, stayed in the realm of ideas, contributing to the
development of political society, some more and some less successfully. Some, such as
the Co-operative Movement, the Quaker businesses and the Friendly Societies
established businesses based around their ideal. Many have been successful at national or
international scales. But in their success they have generally merged with the prevailing
business ethos to the extent that their outward face to the world is indistinguishable from
that of their competitors. Others, if they still exist, remain at a local scale and do not
present a credible witness of a Third Way between the ideal of Socialism and the
success of Capitalism. Only a precious few, such as The Body Shop, have continued to
maintain and indeed build on their idealism as they move from local, to national and
international scale.

A Third Way
For more than a century, the term Third Way has been used by individuals, movements,
and parties on the right and the left of the ideological spectrum. In the late 19th century,
Pope Leo XIII called for a Third Way between socialism and capitalism that would put a
more human face on the free market. In the 1930s, the classical liberal economist,
Wilhelm Roepke, saw the Third Way as the free society that lay between socialism and
historical liberalism. Half a century later, Meidner (1980) suggested that Swedens
welfare state constituted this third way between American capitalism and Soviet
communism.
In the early 1990s, the Third Way became a popular mantra for politicians,
especially those on the left, who saw that their ideologies held reduced appeal in the
world that followed the collapse of the Soviet Union.
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Thus, British Prime Minister Tony Blair has frequently referred to his search for a Third
Way, even writing a booklet on the subject (Blair, 1998). Former US President Clinton
went so far as to declare in his 1998 State of the Union address: "My fellow Americans,
we have found a Third Way. Schroeder in Germany, Prodi in Italy and Government
leaders from the Russian Federation to Brazil have proclaimed as their own this new
vision of the last decade of the 20th century.
Business leaders also captured this mood for change. For example, at the 1994
International Systems Thinking Conference in San Francisco attended by some 1200
government and business executives from around the world, Peter Senge, author of the
popular management text The Fifth Discipline the art and practice of the Learning
Organisation, received an ovation for this comment:
"The world must move from the individualistic trading economy (capitalism)
and the economy of coercion (communism) to an economy of cooperation.
In such an economy, the individual does what he or she must to keep the
community going, while the community does what it can to keep the
individual going. In this economy, stewardship will be the new model for
leadership.
Religious leaders, also, had not forgotten their century old search for a Third
Way. Thus, the 7th World Assembly of the World Council of Churches, 1991, in its final
statements, included a call for the Churches to develop a Third Way of economics
between the centralist Marxist economy and the individualistic capitalist economy to
develop an economy based on the (Christian) Scripture.
In 1994, the 6th World Assembly of the World Conference on Religion and Peace
included in its final report a call to the religions of the world to work together to find a
new approach to economy, between the Marxist and capitalistic economies, an economy
of communion based on mutual love and respect for the dignity of the human person
In the midst of this mess of history, platitudes and polemics, the praxis of the
Focolare Movement provides a striking contrast with its Economy of Communion.
This is not an economic theory in search of supporters, but rather practitioners living an
ideal and creating an economic theory. It is not a localized phenomenon, as is evident
from Table 1. It is part of a global praxis a living Third Way.

Economy of Communion In Freedom1

The genesis of the Economy of Communion In Freedom lies with the foundress of the
ecumenical and inter-religious based organisation, the Focolare Movement.
The Focolare is an entity within the Catholic Church, formally approved in 1962
by Pope John XXIII. It's internal membership comprises some 150,000 - 200,00 people
who have extensive formation in and made a deep commitment to its spirituality. These

1
The following material on the Focolare movement and the Economy of Communion is drawn
from diverse sources, including: Araujo, 1997; Ferrucci, 2000a, 200b; Gallagher, 1997; Lubich, 1999,
2001; Pochet, 1985; Ressl, 1995; Wilkinson, 2000; Economia di Communione, Volumes 1 to 13.
Material from the Focolare Websites, detailed in the references, was used where corroborated by published
material. Specific references, generally, have only been given for quotes and tables.
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include some 50,000 who belong to other Christian denominations and to other Faiths. A
further 4 to 5 million live its spirituality with varying degrees of commitment. It is
present in over 180 countries. The Focolare would appear to be unique within any
Christian Church in that its statutes provide for adherents not only from within the
Catholic Church, but also from other Christian Churches, from other Religions and even
from people of good will with no religious belief. It has, for example, a committed
following within the Muslim American Society and Japanese Buddhist Rissho-Kosai-Kai.
The spirituality of the Focolare fosters a profound belief in the unity of the human
family, regardless of differences of race, nationality or religious belief. It emphasises the
ethic that its adherents should live a communion of goods, as a free and personal
choice, in the manner ascribed to first century Christians (Acts 2:44-45), so that none in
their community are in need.
The Focolare accepts the right to private property. At the same time it recognises
that, just as it would be outrageous for the parents of a family to eat fully whilst their
children starve, it is equally outrageous in our social family that there should be some
with plenty whilst others starve. Accordingly, since its origins in war ravaged Italy in
1943, the Focolare has sought to inculcate a culture of giving amongst all its members
from the children to the eldest. The committed core, about 5,000 people, live this totally
- a kind of Christian communism - putting all wealth in common, keeping only what is
essential for healthy living and giving the rest for communal distribution. Other internal
members, with greater or lesser radicalism live this communion of goods by giving of
their surplus to those in need. (Pochet, 1985; Gallagher, 1997)

Genesis of the Economy of Communion

When the foundress and president of the Focolare, Chiara Lubich, visited Brazil in 1991,
she faced the reality that the 200,000 Focolare members there included so many poor that
the traditional communion of goods, notwithstanding the heroic idealism of members,
was insufficient. Some remained homeless, others were unable to send their children to
school, or buy them clothes. The sick could not afford medical treatment.
This led to the idea of increasing the amount of money put into communion
by setting up business enterprises that would be entrusted to competent
people capable of making them work efficiently and profitably. (Lubich,
2000)
As a practical response to the evident poverty, Lubich launched a worldwide initiative
focussing on building an Economy of Communion - a program aimed at establishing
employment projects, based on the spirituality of the Focolare in particular, and on
Catholic social justice principles in general. In enterprises operating under this
framework, the profits (after just remuneration) would be distributed three ways:
A part of these profits would serve to bring ahead the business; a part to
help those in need, thus making it possible for them to live with a little more
dignity until they could find a job, or offering them a job in these very
businesses. Finally, a part of the profits would be used to develop structures
for the formation of men and women who desire to base their lives on the
culture of giving, new men and women, because without new people, it
is not possible to build a new society. (Lubich, 2000)
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This may sound utopian. However, within ten years the results are expressed in bricks
and mortar in the Araceli, Brazil, where Lubich first issued her challenge. A 50-hectare
industrial estate has been developed with the infrastructure required by modern
manufacturing or service industries. It is managed by a joint stock company, ESPRI,
which has more than 3,000 shareholders), many of whom are numbered among the poor.
By 1999, the industrial estate housed eight businesses run according to the philosophy of
the economy of communion, with a number of other ventures in the planning phase.
(Ferrucci, 2001a)

Diffusion of the Economy of Communion

The development of this utopian ideal is summarised in Table 2, spreading rapidly from
Brazil in 1991 to Focolare communities around the world. By the year 2000, over 750
firms were or were transformed according to the Economy of Communion philosophy.
In 1997, profits distributed from Economy of Communion businesses contributed to
helping more than 10,000 families in need (Ferrucci, 2001b) and to assisting in the
development of training and education structures in all continents. Data on job creation
is not available but, anecdotally, runs into thousands.

Table 2: Growth in Economy of Communion (EoC) businesses 1993-2000

YEAR Total EoC Latin Western Eastern North & Asia & Africa
Businesses America Europe Europe Central Oceania
America

1993 328 123 139 22 21 22 1

1994 403 139 186 22 27 27 1

1995 548 144 295 35 38 28 8

1998 654

1999 700 220 325 50 55 35 15

2000 768 >200 >300

Sources: Ressl, 1995; Ferrucci, 2001a, 2001b; Economy of Communion web site: http://www.edc-online.org/

Based on analyses from the 1995, approximately 35% of the firms were
producing goods and 65% operating in the service sector. Among the latter 20% were in
the business consulting field, broadly defined, with 10% each operating in the areas of
education, heath and engineering / architecture. Most were small to medium businesses
with annual turnover less than 20 million dollars. At the upper end of the scale was an
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Italian cooperative, originally employing three artisans, which had been transformed in
five years into a business employing 260 people. (Ressl, 1995)

Guiding Principles of the Economy of Communion

The economy of communion is based on entrepreneurs freely acting according to the
Focolare Movements communitarian principles. Entrepreneurs who want to participate
remain owners of their firms and keep the right to opt out of this new economy. They
freely put in common a share of their profit that, in conformity with the Focolare
Movement's spirit, is then used for the following three objectives.
One part of the profit is used for capital reinvestment. This serves to help this
social ideal penetrate the firm's activities and internal functioning. In addition, it aids job
creation, which the Economy of Communion sees as a fundamental solution to social
inequality.
The second part of the profit sharing is distributed to people who do not have the
means to meet their minimum needs (food, clothing, housing etc.) and who have no
possibility to raise the necessary funds. Everything that such a person receives is an
untied gift and corresponds to his or her true needs that are freely put in common by this
person. The aid aims to re-establish the material autonomy of the person in need. This
focus is not one of charity, but of mutuality based on the ethic that one does not have a
right to wealth whilst others starve.
This communication between the poor, who receive the one-third of the
Economy of Communion business, and the businesses themselves, must
grow. The poor must not become something abstract the poor are an
integral part of every Economy of Communion business because they are the
main beneficiaries. (We must seek to) create amongst these people and
ourselves an attitude of reciprocity, of true partnership. (Araujo, 1977)
The third part of the profit focuses on the long-term improvement of society, on the
elimination of the institutional roots of social injustice. The funds are mainly used for the
development of training centres and educational programs that introduce a wider
audience to this social ideal and give them the personal and technical skills to transform
their own lives in this way. They also assist in maintaining support relationships for
Economy of Communion businesses around the world.
The Economy of Communion, however, is not simply about the use of profits. It
demands a radical transformation in all business relationships, between the owners of
capital and employees, between managers and staff and between staff and clients. This is
evident from the Vision Statement, Annex A, prepared at a Congress of entrepreneurs
involved in the Economy of Communion in 1997.

A utopian ideal brought to life in a Brazilian steel foundry

This holistic nature of the Economy of Communion is exemplified in testimony given to
Pope John-Paul II in 1997 by Rudi Leibholz and his brother, Henrique, joint owners of a
local steel foundry with 75 employees. They were among the first Brazilians to embrace
this ideal of the Economy of Communion.
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In addition to allocating part of the profits to the poor, they appreciated that this
concept also demanded a radical change in relationships with their employees and
customers. They initiated a range of employee benefits including a pension fund and
medical plan, a company social worker and profit sharing dramatic changes in Brazil.
Rudi, with his wife and the social worker, undertook a program of home visits, creating
new relationships with the employees and their families. In the process, they understood
for the first time the depths of poverty of many of their employees. Because of
subsequent initiatives, over 70% of their employees now own their own homes.

Supporting structures the Focolare Movement

Each enterprise operating within the Economy of Communion does so freely,
independent of any control by the Focolare Movement. However, the spirituality of the
Focolare underpins its fundamental ideology. The Focolare structures promote the ideal,
provide the spiritual and ethical formation that underpins it, and provide encouragement
and moral support for the entrepreneurs and foster solidarity among the businesses.
A feature of the Focolare Movement itself is the decentralisation of responsibility
and initiative within its powerful unifying spirituality. It is organised into some 70
zones covering over 180 nations. In a matrix type framework, there are also 20+
branches, organised at international and zonal levels, which focus on different social or
religious spheres.
The New Humanity Movement is a branch whose charter is to foster the Focolare
ethic especially within the various economic sectors (education, health, the arts, etc). It is
organised on an international level, with a full-time secretariat, and with local secretariats
in every zone. It runs conferences and education programs and provides moral support
for entrepreneurs (or aspiring entrepreneurs) who are involved in the Economy of
Communion. It has also established a number of specialist bureaux, including the
International Bureau on Economy and Work. The latter is an accredited United Nations
NGO that acts as a coordinating think-tank for the Economy of Communion. It includes
experts from the areas of economics and management, including university academics,
senior government bureaucrats and senior private sector executive.

Developing a theoretical framework

The Economy of Communion is built from the lived experience of the Focolare.
However, a vibrant intellectual ferment has accompanied the growth in businesses, with
some 65 graduate, Masters and PhD theses (including at least two from the UK) written
since 1993 on diverse dimensions of the Economy of Communion, covering its
anthropology, sociology, economics, philosophy, psychology and theology. Many of
these theses and dissertations are published on the Internet (http://tesi.ecodicom/.com).
There are also annual international conferences, under the auspices of the
International Bureau on Economy and Work. The 1997 conference developed the interim
Vision Statement for businesses subscribing to Economy of Communion principles at
Annex A. The most recent conference, held in June 2001 in Genoa in anticipation of the
G-8 Summit, presented the Economy of Communion to 1,000 delegates.
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Systemic Factors Associated with Development and

Spread of the Economy of Communion
Drawing on the factors suggested by Dawkins, Heylighen and Pluta, the following are
seen to be the key systemic factors that underlie the successful and rapid spread of the
idea of the Economy of Communion. These factors are divided between the Focolare
base, which gave birth to and sustains the Economy of Communion, and the Economy of
Communion businesses themselves. Space does not permit a comparative analysis of
these factors with the models proposed in the works cited above.

The Focolare Movement Base

The Focolare Movement provides a critical philosophical and organizational support
framework for the Economy of Communion businesses.

Philosophical / Ideological
A profound belief in the unity of the human family, regardless of differences of race,
nationality or religious belief; and
Preparedness to give ones life for ones fellow human being, expressed in a culture
of giving.

Praxis
55 years of living, at a local scale, a personal communion of goods;
55 years of activity in local, regional and international, social justice projects; and
55 years experience in experiential based formation and training.

Moral Authority
A charismatic leader, Chiara Lubich, the foundress and president of the Focolare,
who initiated and continues to give priority to the Economy of Communion;
Endorsement within the Catholic Church by Pope John-Paul II and by local Bishops,
by leaders within other Christian Churches and other Religions;
Endorsement by academia in diverse cultures through the award of Honorary
Doctorates to Ms Lubich specifically for her work for the Economy of Communion;
and
Endorsement in the political sphere by parties of the left and the right in the European
Community and in Latin America.
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Organisation Structure
A strongly connected (by personal relationships and communication), but highly
decentralised cellular structure, present in virtually every nation;
A strongly coupled matrix of coordinating bodies based around the Branches and the
Zones, animated by a shared spirituality, personal relationships and communication;
The New Humanity Movement, with a full-time international secretariat, and zonal
secretariats, promoting the Economy of Communion; and
The International Bureau on Economy and Labour acting as a specialist think tank.

Infrastructure
Education / formation framework, at international and national levels with a
pedagogy strongly based on experiential / praxis approach;
Global and national communications networks (for example, every month there is a
global telephone conference call, linking all Zones, which includes an inspirational
meditation followed by, typically, 40 minutes of news of Focolare including
Economy of Communion activities around the world);
Publishing houses providing videos, books, journals and newsletters in many
languages;
Comprehensive and professional Websites in diverse languages; and
Centres of formation and training in many nations.

Membership Coverage
A committed core membership of 150,000 200,000;
Reasonably regular contact, face-to-face or by the various communications media,
with 4 to 5 million adherents or sympathizers;
through close links with the Muslim American Society and the Japanese Rissho-
Kosai-Kai (Buddhist) Movement, exposure of the Economy of Communion ideal to a
much wider audience estimated in excess of 8 million; and
A strong penetration of the Focolare ethic among young adults, coupled with the
idealism of the Economy of Communion, has tapped an enthusiastic youth response
evident in the profusion of academic research.

The Economy of Communion Companies

The entrepreneurs, employees and beneficiaries of the distribution of profits are linked,
not only through their involvement in the Focolare itself, but also through their own
experiences in giving life to this new social ethic. These experiences are widely shared
through ad hoc conferences, seminars, journals, newsletters and so forth. Significant
systemic factors supporting this, additional to the foregoing, include:
Diversity of totally independent businesses, allowing for experimentation in modes of
management, organisation and activity;
Forums and diverse communications channels for sharing ideas between stakeholders
in the diverse businesses;
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Idealism, supported by explicit appropriation of capital to organisation development,

promoting the development of a shared vision of the business amongst entrepreneurs,
management and staff;
Idealism, supported by explicit appropriation of capital for expansion and job
creation, promoting entrepreneurial risk-taking to broaden horizons;
Ethic which promotes quality staff management and quality client service; and
Impetus to develop relationships and to cooperate with other businesses, including
competitors;

Summary and Conclusions

The rapid spread of the praxis of the Economy of Communion prompted this study. Why
do some ideas, such as this, take off whilst other, arguably equally valid and important,
languish. Were there particular systemic factors that created the framework for success.
Figure 1 summarises the relationships between the Economy of Communion businesses
and the Focolare supporting structures that initiated and continue to nurture them, and the
relationships and among the businesses themselves. The praxis of the businesses in turn
gives witness to the values of the Focolare and challenges its adherents to emulate this
altruistic love in their environments..

Figure 1: Systemic interrelationships supporting Economy of Communion businesses

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The systemic factors identified are consistent with those suggested by Dawkins,
Heylighen in their respective models as preconditions for the rapid spread of new ideas.
They also are consistent with the complex set of preconditions that Pluta suggests must
be met for any genuine grass root movement to emerge and succeed.

________________________________________________________________

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Economia di Communione una cultura nuova. Volumes 1 to 13. Four-monthly Journal.

Citta Nuova Editrice: Rome.

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2001]

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http://www.focolare.org.au/Economy_of_Communion.htm [30 Nov 2001]

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[30 Nov 2001]

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ANNEX A

Guidelines for Economy of Communion Businesses2

1. Economy and Work.

The business is managed well so that profits will grow and be distributed to persons in
need beginning with those involved in the Culture of Giving for whom the initiative
exists, to help spread this Culture of Giving, and for expanding the enterprise. The
human person, not capital, is at the center of the business. For the business leaders, the
primary reward is the satisfaction gained from transforming the business into a close-knit
community. They create new jobs that sustain the members and their families while
contributing to people in need and society as a whole. They adopt programs to aid
employees in times of need. The company attempts to make the best use of each
employees talents and to create a climate conducive to personal creativity, risk-taking,
and fulfillment. All members of the organization become stakeholders and work together
to define and realize the goals of the enterprise. The business leaders make investment
decisions prudently considering all the typical business criteria and also inspired by a
deep personal desire to help persons in need and to create jobs.

2. The relationship with Customers, Suppliers, the Public and

Others External to the Company.
The enterprise works together with suppliers to provide useful and quality products and
services at fair prices. The members of the enterprise work to establish and strengthen
good and sincere relations with customers, suppliers, and the community. They engage
in fair play with competitors and maintain mutual respect when negotiating with suppliers
and customers.

3. Ethics.
The enterprise complies with the law and has ethical dealings with various institutions
such as tax-authorities, regulatory agencies, labor unions, etc. The work of the enterprise
provides a means for the inner growth of its members.

2
International Bureau of Economy and Work of New Humanity, 21 March 1997
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4. Health and the Value of Life.

Attention is given to the health and well being of every member of the business making
provisions for people with special needs. Excessive hours and days of work are avoided
so people will not become overly strained; adequate vacation is provided. The business
produces safe and environmentally friendly products and services. Throughout the life-
cycle of the product or service, the enterprise promotes conservation of energy and
resources. Working conditions suitable to the type of business are provided, such as,
adequate ventilation, lighting, acceptable noise levels. They follow appropriate safety
practices and respect the capabilities of every worker. The work environment is joyful
and friendly; mutual respect, trust, and consideration prevail.

5. Harmony in the Working Environment.

The enterprise applies management systems and organizational structures that foster
teamwork and personal development. Members keep the surroundings of the business as
clean and pleasant as possible, so that everyone (employers, employees, suppliers, and
customers) feels "at home" and may embrace and spread the same style.

6. Training and Education.

Recognizing that the human person is at the center of the enterprise, the business leaders
create opportunities for continuous learning and updating to enable the individual to
achieve personal and corporate objectives.

7. Communications.
The enterprise creates a climate which fosters open and honest communications with
opportunities for the exchange of thoughts and ideas between employees and managers.
It employs modern means of communication and information technology. Businesses
adhering to these principles remain linked at a local and international level to celebrate
successes and to learn from failures.

The Management
The business leaders create a vision, objectives, and plans for the enterprise together with
all members and carry out their plans using modern, people oriented management
techniques. Within the enterprise, the members maintain an atmosphere of mutual
respect, trust, and support for each other. They freely share their talents, ideas, and
know-how for the professional growth of their colleagues and the progress of the
business. They meet regularly to review the quality of the relationships among them.
The business leaders and members of the enterprise resolve difficult business situations
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together. The process of resolving these difficulties often has positive effects on the
members of the enterprise leading to greater creativity, productivity, innovation, and
maturity.

Biography
Keith Linard is Senior Lecturer in Project Systems at the University of New South Wales
and Director of the UNSW Centre for Business Dynamics and Knowledge Management.
Before joining academia he spent 12 years at senior executive level in the Australian
Public Service as Director Environmental Economics, Chief Finance Officer
(Management Improvement) and Assistant Secretary (Employment & Government).
During the 1980s he was intimately involved in the Australian Labor Governments
reform of the Public Service.