Entrepreneurial** experiences indicate the need of: shaping - organizing - functioning of the FOUNDATION DIAKONIA (FD).
- Management ***
Shaping: FD serves for the realization of a formerly anticipated and shaped program.
Organizing: FD accepts the growth of a man’s personality in the life environment, which is organized by the idea of respecting solidarity and moral values.
We would like to draw attention to only two necessary values: ethics**** and subsidiarity*****
Acting: FD is focused on finding the means: financial, technological, scientific …, as well as investing in already prepared and evaluated programs. It is focused on the realization and implementation of the projects. Taking the full responsibility for the realization of the project accompanied by a quality and professional supervision implies the responsibility of the entrepreneurship. Transparency of all FD’s activities is the reflection of ethical qualities and subsidiarity of the activities.
The scope of activities is the Republic of Croatia and Bosnia and Herzegovina, with the possibility of expansion “Euro: Center-Southeast” CEFTA-NEW CEFTA.
The factors of FD’s activities encompass narrow and broader groups depending on the activity requirements of each project. They are defined by the status-rules and the code of conduct of FOUNDATION DIAKONIA. These rules are in compliance with the EU regulations.
** Entrepreneurship is the totality of entrepreneur’s organizational, supervisory, leadership and managerial activities. The aim of entrepreneurship is to make employees active, activate their common abilities by giving them general aims, value system, appropriate organization structure as well as the possibility of enhancement and development as an answer to the changes. Entrepreneurship provides constant stimulus and is a quality factor of social development. Entrepreneurship stimulates creativity and initiative, risk taking, daring, trust in people, the need for independence and autonomy and finally, motivation for active involvement in changes. Energy as the source of all activities. (Econom.lexicon)
The relation between work and capital very often indicates the signs of conflict and it changes with the changing of the social and economic environment.
Previously there was a conflict between capital and work because workers used to put all their energy at disposal to a group of entrepreneurs who were led by the principal of maximal gain and who used to keep salaries for the performed work at the lowest possible level.
These days the conflict is obvious in new and perhaps more disturbing aspects: scientific and technological progress and market globalization, which are normally the sources of a development and progress, now expose workers to the danger of being abused by the grindstones of economy and a crazy search for productivity.
The relation between work and capital is also obvious in participation of workers in the ownership, in managing the ownership and its profits. What’s more, everybody can on the basis of one’s work consider oneself, and with full right,”joint owner” of a big workplace where everybody is doing their best. To reach this aim it is sometimes necessary for the worker and the owner to join their work forces as much as possible. In this way they would be able to produce a huge spectrum of interbodies, with economic, social and cultural aims: the bodies that would have real autonomy in relation to authorities; which would reach their specific aims in their interpersonal loyal cooperation, respecting the needs for common welfare; which would be according to their shape and substance like living communities.
New work organization in which knowledge is more appreciated than the ownership of the means of production witnesses in a concrete way that work due its subjective characteristics- means involvement: it is necessary to “cast an anchor” at this idea in order to estimate the right position of work in the production process.
The relation between work and capital is also divided with respect to the notion of private property, the law related to it and its application.
The right to private property is dependent on the principle of general purpose of goods and it should not be the reason to prohibit work and progress of others.
Property that is gained mostly by work should serve the work itself.
Private and public property as well as different mechanisms of economic system must be at the economy’s disposal in order to serve the man and therefore fulfils the principle of general purpose of goods.
The occurrence that is obvious in developing countries in the last few years is the expansion of the phenomenon of “informal” or “latent” economic activities. This indicates a signal of economic growth, which gives hope but raises ethical and legal questions as well.
Social teaching of the Church accepts equitable profit function as the first indicator of good business operation of a firm. When a firm makes a profit, it means that production factors have been used in the right way. However it doesn’t diminish the awareness of the fact that profit doesn’t always show that a company serves the society in the right way. For example, it is possible that the economic indicators are good, but on the other hand the people, who are the most valuable asset of a company, are humiliated and their dignity hurt. It is an occurrence significant for companies in socio-cultural systems that are characterized by the abuse of people and whose aim is to avoid the responsibility of social justice and which fail to respect the workers’ rights. It is necessary for the justified focus on profit within a company to be balanced with much-needed protection of dignity of people performing different tasks in the company.
If it is acceptable to seek for fair profit in economic and financial operations, practicing usury should be morally condemned. Economic incentive is the reflection of human intelligence, the necessity to meet in a creative and cooperative way the human needs. Creativity and cooperation imply the right understanding of entrepreneurial competition: cum-patere or joint search for more suitable solutions in order to get appropriate answers to the needs which are becoming more and more obvious.
The feeling of responsibility which results from free economic initiative is not only obvious as an individual virtue which is extremely necessary for the person’s development, but also as social virtue necessary for a solidarity oriented community. Important virtues are involved here: diligence, hard work, sensibleness, taking risks, worthiness of trust in development and fidelity in interpersonal relationships, strength while making tough and painful decisions which are necessary for joint activities of a company and overcoming hard times.
From the social point of view, the entrepreneur and the manager play a crucial role because they are the centre of the network of technical, commercial, financial and cultural relationships that feature modern reality of companies.
Entrepreneurs and managers cannot exclusively focus on economic aim of the company, on the criteria of business effectiveness, on the necessity to take care of the capital taken as the totality of the means of production. Their duty is also to show respect for the workers’ dignity.
Workers are the company’s most valuable asset, the crucial factor of the production. Free market is a socially important institution due to its ability to guarantee effective results in the production of goods and services. Activities of the state and other authorities have to be coordinated with the principle of subsidiarity and the appropriate environment for free performance of economic activities has to be created. These activities also have to be inspired by the principle of solidarity and should set autonomy limits of the involved parties/sides in order to protect the weaker.
Solidarity without subsidiarity can easily degenerate into social help, while subsidiarity without solidarity risks the encouragement of selfish localism.
Basic principles of the state in the economic field is to define the legal framework that is able to regulate economic relations in order to guarantee in this way original conditions for free economy. Free economy implies certain equality between parties, so that neither of them is so powerful that it is capable of practically imprisoning the other side. Market and state should cooperate and complement each other. Free market can offer beneficial effects to the community only if there is an organized state that establishes and directs its economic growth, which also promotes just and transparent regulations and which is fast to react promptly when needed. This is especially important when market is unable to achieve the desired results in efficiency or especially when it comes to introducing in practice the principle of redistribution.
The forms of property which were unknown in the past might start playing an important role in the process of economic and social development. However, the traditional forms of property cannot be forgotten. Personal property is not the only lawful form of possession. The ancient form of common property is also very important. In spite of the fact that it is present in economically developed countries it features in a special way the social system of a number of indigenous peoples. It is a form of property that permeates deeply the economic, cultural and political life of these indigenous peoples, forming thus the basis of their survival and welfare.
However, defense and value of joint property should not diminish the awareness of the fact that this form of property is also subjected to development.
(Compendium Soc. Teaching of the Church KS 2005)
1. Activity focused on achieving specific, previously set aims but by efforts of the others.
M is a process of directing activities of the others towards a certain task fulfillment.
M combines production factors in order to achieve specific aims. The basic management functions are: planning, organizing, staff appointment, managing and control.
M has revolutionized the nature of business in the last 100 years. Throughout this period management revolution has changed life as much as the car and telecommunications industry have. There is a difference between management and leadership. Leadership is just one of the functions of management. M deals with “mastering complexity”, while leadership with “mastering changes”.
2. Management board of the company. A group of people that controls business operations. It includes the president and other members of top management.
Management means transforming the income sources into welfare by shaping, balancing, manageability and the development of the social system.
(F. Malik, Management: Das A und O des Handwerks FAZ Buch)
****Ethics (Greek ethos- custom, habit, importance, temperament) moral teaching has as a task not only to teach us what moral is, what its components are, but to take a critical attitude towards the existing moral practice as well. Furthermore, its task is not only to indicate different points of view, but also to evaluate and point at the right and truthful values. Critical-philosophic ethics should not primarily show what moral judgments people make about certain characteristics and actions, or focus only on the description and analysis of already existing norms, but should also focus on finding new ones.
(B. Klaić, Dictionary of Foreign Words)
Solidarity attaches great importance to the inner sociability of a person, equality of every person in dignity and in right of people and nations to a common path towards more and more obvious unity.
The process of speeding up interdependence among people and nations has to be followed by the efforts on ethical-social field. Even additional efforts have to be encouraged in order to avoid ominous consequences of the state of injustice of global dimensions which could have a negative effect on everybody.
Solidarity has to be understood in its value of social principle which regulates institutions and on the basis of which the structures of sin that rule the relationships between people and nations have to be overcome and transformed into solidarity structures, by creating suitable legal measures i.e. - market rules and regulations.
Each individual is a measure of work dignity. A man is a social being, religious and sensible and in relation with other human beings. The quality and spiritual health of human relationships depend on each person’s physical and spiritual conditions. If a man decides upon committing an evil deed, its consequences are immediately transferred onto the others. This is the source of different forms of coexistence- institutions, the structure, and organizations and in this way they become participants of the “common” Sin entrepreneurship Ethics or “Sin structures”. The consequences are the feeling of incapacity and misunderstanding for changes.
Entrepreneurship ethics is the basis of a permanent success. Ethical principles cannot be avoided because every man is invited to do morally well! So what is needed is a lasting, personal as well as common endeavor in morally righteous life and integrity.
(compendium: Soc. Teaching of the Church, KS 2005)
***** Subsidiarity is a very important principle of social philosophy. Subsidiarity understood in a positive way as economic, institutional, legal help provided for the smallest social units is followed by the whole number of negative implications. It is required from the state to restrain itself from promoting those things that would actually reduce the living area of smaller but crucial cells of the society. Their initiative, freedom and responsibility should never be excluded.
The principle of subsidiarity protects people from misuse of higher social institutions which encourages help for certain individuals and by mediation of activities help them develop their tasks. This principle imposes itself because every person, family and mediating body has something specific to offer the community. It has been confirmed from the experience that denying subsidiarity or even limiting it in the name of so called democracy or the equality of each member of the society restricts or sometimes denies the spirit of freedom and initiative.
The principles of subsidiarity are in disagreement with forms of centralization, bureaucratization, assistentiaziation, unjustified and exaggerated presence of state and public machinery „that intervene directly and take the responsibility from the society; assistance state results in the loss of human energy and encourages the excessive growth of public machinery that are more ruled by bureaucratic logic than by care for serving clients, which is also followed by huge increase in costs.”
The failed or unsuitable acceptance of economic initiative or its public task contributes in some way as monopoles to diminishing the importance of the principle of subsidiarity.
(Compendium: Soc. Teaching of Church, KS 2005)
The principles of solidarity and subsidiarity are one of the principles of EU integrations. Subsidiarity, which is considered important also in EU discussions, shows that it is necessary to activate people, their organization into smaller and bigger groups. Starting with the man as individual, the structure of society itself is also changed, which is not only the magic word but also the question of time for the South-east of Europe. This sign of time is so present that it has to be used. It is normal that the importance of subsidiarity is still not taken seriously neither on practical nor theoretical level and there are many obstacles to achieve subsidiarity, especially due to mentality that was being created throughout the first part of the century of totalitarianism according to which citizens expect that the state is responsible for their problems, which results in weakly developed institutions of civil society and paralyzing society and immoral familism.
Through the FOUNDATION DIAKONIA we are trying to change ourselves, to swap place with each other and to jointly change the whole situation in the area of Southeast of Europe. It is a long and slow process; however, this attempt is a step forward which is becoming obvious every day. Globalization and regionalization are frameworks of contemporarity and subsidiarity. Decentralization or regionalization indicate the possibility of considering population, perspectives and the question whether it is the problem of transition or is it the problem of global dimensions.
We persistently want to lay emphasis on the fact that with us there are specific conditions for applying subsidiarity that is necessary to respect and it is impossible to copy everything from USA or directly from Europe!