‘Capitalism is becoming less and less social. This aspect of it, of which we were proud in Europe, is fading”, says Piergaetano Marchetti, a notary and professor at Bocconi University. He has long been involved in developments in Italian family capitalism at Mediobanca, working alongside the great industrial families such as the Agnellis, Pirellis and Pesentis during the time of Enrico Cuccia. He is a man of culture, currently president of the Piccolo Teatro, with a great passion for classical music and history, and a staunch Europeanist. He remains extremely active to this day, both professionally, “What does Marchetti think?” is a common question in business conversations in Milan, but also in the cultural sphere and in his civic engagement.

His observation, which is entirely valid, marks the beginning of a lengthy interview with Raffaella Calandra in Il Sole 24 Ore (7 June). It is an authoritative starting point for reflection on the changes that are radically altering the Italian and international economic landscape, and  a form of capitalism that loses its social conscience ultimately jeopardises its acceptability, and its competitiveness, the moment it renounces its values and culture.

Even during the second half of the nineteenth century, the history of Italian entrepreneurship had distinct social dimensions. Examples include the paternalistic capitalism of the Crespi family, whose workers’ village in Crespi d’Adda remains a clear testament to this to this day; the Marzotto family, who constructed an ideal town complete with schools and amenities in Valdagno alongside their large textile factory; and Alessandro Rossi, who erected a monument to ‘The Weaver’ in the main square in Schio. This continued over time with investments and initiatives in healthcare, welfare and social security by the Olivettis and the Pirellis, followed by major public enterprises such as Eni and Finmeccanica. Social capitalism emerged. This recognises that the factory, a place of harsh work, toil and conflict, must also have a strong focus on people, and museum and corporate archives are full of examples of this.

From the post-war period onwards, the often acrimonious disputes between management and trade unions have led to significant improvements in pay and the quality and safety of working conditions. The situation has further improved due to a widespread ‘social’ culture, which is also evident in the world of cooperatives and credit institutions, such as co-operative banks and agricultural and craft credit institutions. This has given Italian businesses distinctive traits that have enhanced their competitiveness, alongside their characteristics of resourcefulness, innovation and a modern corporate culture.

Of course, it is a history not without its dark sides (from illegal hiring practices, which still persist as recent news reports show, to workplace accidents and tax evasion).  But it is also a history that, despite its ups and downs, including the extreme conflict of the 1970s, has endowed the enterprise, and industrial enterprise in particular, with distinctive characteristics that continue to shape our understanding of work, industrial relations, and the positive ties between business and the local community.

Marchetti is right to point out that, somewhat critically, ‘in an era of nationalism and of power at the international level increasingly resting with Big Tech, there has been a shift in stance on sustainable development, with a move to align with the US presidency’. And that the battle for a sustainable future is therefore highly topical and must be made socially and economically acceptable.

Despite the oversimplifications, mistakes and extremism surrounding the Green Deal, which have caused serious difficulties for large sectors of European industry (notably the automotive sector), Europe has not abandoned its environmental and social concerns in its fundamental policies. A large proportion of Italy’s most open, dynamic and innovative companies now incorporate environmental and social sustainability into their business and production decisions, as well as their positioning in international markets. This is evident from the presence of our companies at the top of international financial rankings, where sustainability is recognised as a key asset.

In other words, upholding values creates economic value. Two factors help to reinforce this approach: the close ties between businesses and the local areas from which they draw the culture and skills essential for productivity and competitiveness, and the large number of family-run businesses that have fostered a culture of solidarity and social commitment. We might even call these businesses ‘reformist’. This is also evident in the generational transition and the growing trend towards professional management within these businesses. A sound, responsible family business with a corporate culture that informs managerial decisions.

Anyone familiar with businesses, networks, production chains and regions characterised by great resourcefulness, linked to the quality of production and products, knows that the ‘ethos of the lathe’ (of work well done, specialisation and ‘hands that think’) still prevails over financial excess. In other words, a corporate culture founded on quality of work and a focus on people ultimately triumphs over a passion for financial speculation.

In a rapidly changing world where high-risk finance is becoming entrenched and technological developments are giving rise to an unscrupulous new class of technologists, Italian family businesses still display a deep-rooted commitment to a value system that rewards ‘doing, doing it well and doing good’. The annual seminar of the Symbola Foundation, which opens on Friday in Mantua, will focus on ‘gentle patriotism’ and Italian excellence. The seminar will be attended by a large number of small, medium and large enterprises, and will share stories along these lines.

From this perspective too, our business community is deeply European, bound by the synthesis of values, customs, cultures and laws that hold together liberal democracy, the market economy and solidarity, namely freedom, innovative entrepreneurship and social inclusion. ‘We must hold on to this Europe,’ Marchetti concludes, ‘which remains a bastion of capitalism with a strong social dimension.’ It is a vision of a new future, beyond the obsessions of high-tech superpowers.

(photo Getty Images)