Community-Based Enterprises in Italy: Definition and Governance Models

Abstract

In recent years, a new form of co-operative business is taking shape in Italy: the community-based enterprise, a community acting collectively at both management and business level, to pursue common goals. Community-based enterprises grow on a system of networks of free relationships among the members of a local community, with a high degree of reciprocity; when individuals work together in a business systems, relationships become social relationships. The complex of the community members’ relationships, objectives and expectations towards the company reflects necessarily on governance models that should follow a multistakeholder pattern. Multistakeholdership implies a direct and active participation of subjects bearing conflicting interests in the decisional process. This paper describes community-based enterprises in Italy, draws their governance models, and emphasizes how the passage from opening to different stakeholders to implementation of multistakeholder governance is very slow and difficult to put into practice.

Keywords: Community-based enterprises, Cooperatives, Corporate governance

JEL Classification: M1, M14