Business Ethics

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Second definition: Business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community rather than being driven by the need to maximize profit for shareholders and owners (DTI, 2002)

SYNTHESIS.

Organizations that adopt commercial ventures to achieve social purposes

Blurring the boundaries between nonprofit and for profit.

Social enterprises and socially responsible organizations

Case Study Analysis

Why have all the attempts to defeat Mafia before Addiopizzo failed?

- Mafia's power:

- Fear: Mafia’s intimidating power is very high, so it is difficult to avoid them

- Cultural issue: Culturally accepted in Sicily, so it is hard to get rid of Mafia and the attempts failed. (The most difficult obstacle to overcome is the cultural acceptance of Mafia as a legitimate entity in the country/city.

- Accepted by society

- Government corrupted: Mafia’s social ties with high positions in different positions and influence on political power and on the police as well.

- Lack sense of community > very important driver

- Law and academic sectors were also corrupted

- Economic influence: economic incentives - the economic power is also very high, they have 7% of Italy’s GDP and 80-90% of people would pay the Pizzo.

- That is why corruption it is so dangerous and at the same time so difficult to contradict > this kind of drivers can also explain why people alone won't be able to change this situation.

- Before Addiopizzo the individuals were completely alone and no option to not pay the pizzo and that it is why it was moral acceptable to pay it. Institutions, public opinion did not help the sole person fighting the Mafia so he was naturally killed with very few reprisals for the mobs.

Why has Addiopizzo succeed?

Mix between:

- Lucky enough to be at the right place and at the right time:

- Environmental factors that help him to get this change: capable to leverage opportunities as financial crisis;

- But not just lucky > Resources:

- Leverage resources in order to fight against the mafia

[pic 5]

- Cultural Fit: Murders 1990s

- Opportunities: Financial crisis

As much as 80% of Sicilian businesses paid a pizzo, with payments ranging from 250 euros a month for smaller businesses to 30,000 euros a month for bigger firms, according to government officials.

However, things have changed during the current financial crisis.

The reasons: Some businesses closed and others were struggling to pay their own bills and debts, let alone protection money.

- Resources: How does Addiopizzo move within the difficult Sicilian environment to engage people and convince them to take action?[pic 6]

Communications with sceptical Stakeholder:[pic 7]

1. Very specific points of discussion

2. Simplicity vs. Transparency

3. Show the payoff

Steps:

- Pizzini:

- Target: all society

- Message (Symbolic):

- The target of posters is to enhance the passiveness of society and they are to blame for Mafia having so much power.

- Dignity is the keyword: is one of the most important values in Sicily, so this had a cultural impact. This first action was a symbolic one.

- Objective: Communicate to everyone who pays pizzi that it is not just a problem of specific group (Shopkeepers) of stakeholders, but a problem of society/all community

- But specially in Sicilia it was a value very important and say to someone that they are not dignity it is very offensive > so he has very cleaver using this as the first approach

- Letter(Symbolic):

- Addressing society but also business owners to fight back. There is a sense of dignity again and there is a common responsibility for all the actions.

- Consumers: The act of pay the pizzi it is not just a problem of shopkeepers, and consumers should be also liable, because they are subsidizing the mafia paying more for the product. Afterwards, the pizza is payed through the increased prices supported by the final consumer.

- Banner(Symbolic)

- All the people - population

- Website(Substantial): was very important because it had a lot of visibility, courage and was against a previous pro-banner aid.

- Meeting (Substantial) :

- The first contact with the real situation; where they understood the real need to act.[pic 8]

- First step when they did something real and concrete what motivate the internal team as well; they really understood which kind of strategy they should develop

- It was fundamental to create a network of business owners and the community in general to fight organized the Mafia structure.

- Here it starts the economic impact, always having the cultural one present.

- Strategy (Subs/symbolic): Anti-mafia certification - After the anti-racket certificate came, where the target is the consumers (in order for them to protect the anti-Mafia businesses) and this is a substantive action. Mafia did not retaliate against Addiopizzo because the Secret Services were protecting them.

Symbolic actions would not be enough, they had to send very clear message in order to make clear that