Is there another way but a utopian one?
Rudi Rozman, University of Ljubljana
Each socioeconomic system is determined by three connected elements: ownership of production means, governance (control) of the enterprises and their basic goal. Within presently prevailing system the ownership is basically private and the relationships between owners and non-owners are determined. The enterprises can be governed by owners themselves or by trustful people, who govern enterprises in the interest of owners. The goal of enterprises is profitability.
The basic socioeconomic relationships - especially those connected to ownership - reflect within organization of enterprises. Organization is defined as a set of relationships among members of a social unit (e. g. enterprise), which enables the existence and development of such a unit and assures rational achievement of the social unit's goal. Thus, organization (structures and processes) is framed by socioeconomic relationships, which holds especially true for governance (and management) function and structure.
We can see through history that the socioeconomic systems were established, which at a certain period of time best develop the production means and thus contribute to the welfare of people. The socioeconomic system forces the enterprises to follow its criteria; by following them they maintain the system. Thus the production means develop to a degree where the existent basic relationship have to change. Change of basic relationships within the socioeconomic system also influences the change of the organization of the enterprise.
The author wonders whether we are not wittnesses of such changes nowadays. The nature of ownership is changing. Instead of the ownership of capital we emphasize the ownership of knowledge. Instead of profitability we emphasize social responsibility and ethics. The number of advocates of governance by stakeholders is increasing. Different organizational phenomena (e.g the role of mission statement connected to social responsibility; networks instead of competition; trust instead of mistrust; creativity and inovation, etc) could be interpreted as signs of qualitative change of our society.
On this basis the author will speculate on a possible future socioeconomic system (to which the present changes are pointing) characterized by the mentioned three elements: ownership by »society«, governance by stakeholders or perhaps collectives, and by social responsibility. Different stakeholders will try to agree on different goals; it is the author's hypothesis that different criteria could also be represented in a joint quantitative form.
However, the author will put more emphasis on the organizational changes within and between the enterprises. The enterprises join in different forms of network. Between network members there do not exist market relationships anymore but the organizational relationships of higher rank are established. Not by competition but by trust the relationships between organizations will develop. Within enterprises people will act to satisfy their highest needs, resulting in creativity and innovation. The survival and development will not be possible by isolated units and individuals, by egoism but in cooperation with others and working to their good. The organization of enterprises- and within it governance and management - will change. Author will speculate about different changes within the organization consistent with the imagined socioeconomic system.
He will also try to show that in the long run the basic criteria of effectiveness changed from being stronger in the battle for survival, over the today's profitability and ownership to social responsibility and ethics tomorrow. The possibility of the realization of author's model or similar models is connected to the answer to the philosophical question: is the nature of the man changing? The author believes that people will change if the survival of them and mankind will depend on their cooperation, if the socially responsible and ethical way will become the most »profitable«, or even the only alternative for survival.