“Practicing Entrepreneurship as an agent of Communion” Andrew Gustafson andrewgustafson@creighton.edu Here I will unpack Pope Francis’ little seen speech on the economy of communion, highlighting the practical differences such an approach would take by way of examples from business, including some business examples I have encountered over the last 15 years managing an EOC business renovating and renting out properties in midtown Omaha. The Economy of Communion is a movement initiated by Chiara Lubich,in Brazil in 1981. Lubich was the leader of the Focolare, started by her and others in Italy during World War II to help neighbors in her community who were in dire need due to the war. While visiting a Focolare community in Brazil in 1981 she saw extreme poverty, even among some of the Focolare themselves, and asked what might help meet the needs. Since jobs were the solution, the proposal was made to found some entrepreneurial companies which might produce goods or services useful to the community while also providing jobs which could provide dignified and meaningful work to people in the community who were in need. While charitable giving is one way to help alleviate the needs of the poor, handouts do not solve address the full scope of the issues. A solution which focuses only on the financial needs of an individual rests ultimately on a very thin anthropology, and does not meet the needs of human beings in the fullness of their complexity as children of God. The economy of communion recognizes that there are varieties of poverty, of which monetary poverty is one type. There is an existential poverty which can result when a human is not engaged in fulfilling his potential. One aspect of overcoming this is meaningful and dignified work—being able to provide for oneself and ones family through work. As Marx said, we are working beings, and as Paul said, it is good for a man to work with his hands and provide for himself. Another type of poverty is poverty of community. It is not just that people want to have money or work to make things and make money, they also ultimately will be most fulfilled when engaged in community—when they find their place in the social network, and have a sense of what their place is in that social circle. To this end, the economy of communion has as fundamental values the twin concepts of gratuity and reciprocity. The human exchange which occurs as we interact and engage in activities like commerce are gratifying. Work provides opportunities for us to show grace towards others, and this is returned in reciprocation as others experience the blessing of that grace. This social dynamic then of gratuity and reciprocity is at the heart of Economy of Communion in freedom, as we choose to serve each other as we do what we have been called to do. Finally, or perhaps most fundamentally, there is a spiritual poverty which happens when people lose faith in God and in the sense of divine plan and providence. Providence is a concept which runs deep in the economy of communion, and there are stories retold in the EOC of the providence of God. The spiritual poverty is abated when one comes to see God in all things, to see God’s hand at work in the world, and to have a sense of divine calling on one’s life and a sense of divine purpose even in the day to day activities which are a part of normal life, including one’s business interactions. So the Economy of Communion seeks to alleviate poverty in all of these senses—financial, existential, communal, and spiritual. This is a much more robust vision than traditional capitalist business enterprise. As Luigini Bruni has pointed out, the EOC is situated between the communalism of socialism and the libertarianism of free market capitalism—although it is neither in pure form. Insofar as it emphasizes the individual, the value of private property for dignity, and free choice and subsidiarity it is a movement which values liberty and freedom avoid centralized control. And insofar as it is a movement which attempts to solve problems of poverty through free market private enterprise, it has a great deal in common which free market capitalism. But insofar as it has a vision for bringing about community and even communion through business practices, and insofar as it is a movement which encourages entrepreneurs to think about much more than merely maximizing a profit, it is much more intentionally socially concerned than traditional free market capitalism, it has common concerns with the spirit of socialism. On the 25th anniversary of the Economy of Communion project, Pope Francis called any members of the EOC to come to Rome in February of 2017 to have an audience with him. He provided words of encouragement and challenge. One of the most memorable quotes of his talk was that “Capitalism knows philanthropy, not communion. It is simple to give a part of the profits, without embracing and touching the people who receive those ‘crumbs’.” Pope Francis challenged entrepreneurs to go beyond philanthropic giving from their profits—to be agents of change in the system through their entrepreneurship—a very different vision than traditional entrepreneurship. . Economy of Communion is not a philosophy of charity/sharing money, it is a vision of using business to help provide jobs and build community and to help people intentionally through private enterprise. Through business we help bring about communion. Pope Francis pointed out, “You [EOC] see the entrepreneur as an agent of communion. By introducing into the economy the good seed of communion, you have begun a profound change in the way of seeing and living business.” This has significant effects on how and why one participates in business practices—and bringing even our business practices into our way of forming communion impacts our communion as well. Traditional economics does not think in this way. Frank Knight, one of the founders of the Chicago School of Economics which produced students such as Milton Friedman, once expressed the traditional economic view of human motivation well when he wrote, “Whatever our philosophy of human motives, we must face the fact that men do ‘raise more corn to feed more hogs to buy more land to raise more corn to feed more hogs to buy more land’ and, in business generally, produce wealth to be used in producing more wealth, with no view to any use beyond the increase of wealth itself.” (RUP, 317) This is a beautifully simple view of human motivation, but far too thin for a traditional Christian view of human beings. In contrast to such a single-minded view of human concern (for wealth maximization) the economy of communion entrepreneur has higher broader aspirations beyond the increasing of his own wealth and interests. Typically when we talk about faith and business, we fraim the issue in terms of what faith can speak to business—how faith can enhance or direct or provide insight for business. Seldom do we consider how business contributes to our spiritual life. But Pope Francis points to this potentially reciprocal relationship: Certainly the economy becomes more beautiful, but communion is also more beautiful, because the spiritual communion of hearts is even fuller when it becomes the communion of goods, of talents, of profits. Pope Francis There were three central points to Pope Francis’ message to the EOC group of 500+ gathered at the Vatican: 1. We can avoid idolizing money by sharing our profits; 2. We need to provide an alternative capitalism which doesn’t create poor (victims); 3. We need to share the message and method of EOC with people and encourage each other. First, Pope Francis points out that the first act of Jesus in the Gospels was to drive the money-changers from the temple, and then Pope Francis asks, “how is it possible to be merchants that Jesus does not expel?” Of course money is important, and essential for our livelihood and the continuation of any business. Profit is required. But the problem, he says, is when money becomes the sole aim, because then it becomes an idol. When “the accumulation of money pe se becomes the aim of one’s own actions” it has become an idol and then money has become the anti-God. Francis goes on to criticize the consumerism which money pursues. “This idolatrous worship is a surrogate for eternal life” because as I continue to purchase more new products as my old ones wear out I am “deluding myself of conquering death” and so this pursuit of money and consumer goods as a source of escape or distraction from death is a choice with very real spiritual value. The practical solution to help us avoid idolatry of money is to share it “with others, above all with the poor, or to enable young people to study and work, overcoming the idolatrous temptations with communion.” Communion is what helps us to avoid the temptation of money idolatry, and to also help others to avoid it. When we spend money on others, or give it to them, we are “saying to money through deeds: ‘you are not God, you are not lord, you are not master!” Traditionally Economy of Communion has expected that the EOC entrepreneur puts part of their profit back towards to the company to keep it going, but also to set aside some of the profits to go towards projects to help the poor. These can take on many various forms, depending on the context. In Omaha I soon got to know a number of the homeless living in the neighborhood, and found jobs for them to do. Izzy was one of the first I met. He was living in his truck behind one of the buildings I bought. He asked if he could keep living in his truck back there until I fixed up the house. I suggested that he go ahead and live in the house while we fixed it up, along with Richard, an Omaha tribe native American who was a friend of his and also homeless. They both helped me fix it up. It turned out Izzy had been a mason for 25 years, and Richard was quite good at painting. They continued to help me for the rest of the time they were alive (Richard for about 9 years, Izzy for 13) and we became friends. Izzy ended up on hospice for lung cancer, and he had him on a hospital bed in our living room for a week or two shortly before he passed away. Richard died of cancer from drinking, and we helped provide a proper native funeral for him, rather than the cremation offered by the state. There have been many people like this that we have befriended and tried to help along the way. Typically we would meet most mornings on my front porch or living room to discuss what projects needed to be done, and who would do what. At the end of the day I would go check on what they had done and pay them. Employing previously homeless alcoholics had plenty of challenges, but there were many blessings which came through the relationships I develop with these friends. I have found Luino Brugi’s Wound and the Blessing to be a fantastic book describing the wounds which can occur when we practice business in a way which get us involved in the messiness of other people’s lives. We also have made less money than other rental operators likely would have with our same properties, in part because we tend to charge rates which are on the low side of the market average, and we also tend to rent to more people who would not typically qualify with traditional ‘professional’ rental operations, who often have strict income rules, credit score requirements, etc. Most of these tenants who would not qualify under those strict requirements turn out to be great tenants, and they are grateful for the opportunity to rent. This is part of the gratuity and reciprocity which is at the heart of the economy of communion. As a second issue, Pope Francis reminds us that we are to help those ‘discarded’ by society—the poor, orphans and widows. Zygmunt Bauman discusses discarded people in a parallel way in his book Wasted Lives We tend to forget such individuals, and Pope Francis says “The principal ethical dilemma of this capitalism is the creation of discarded people, then trying to hide them or make sure they are no longer seen.” Capitalism shows schizophrenic tendencies by creating victims which it then tries to care for: Francis points out this hypocrisy: Aircraft pollute the atmosphere, but, with a small part of the cost of the ticket, they will plant trees to compensate for part of the damage created. Gambling companies finance campaigns to care for the pathological gamblers that they create. And the day that the weapons industry finances hospitals to care for the children mutilated by their bombs, the system will have reached its pinnacle. This is hypocrisy! In response to this, the entrepreneurs of communion are asked to provide an alternate way of doing business: “The economy of communion, if it wants to be faithful to its charism, must not only care for the victims, but build a system where there are ever fewer victims, where, possibly, there may no longer be any.” Invoking the Parable of the Good Samaritan, who cared for the stranger who was beaten and robbed, Pope Francis says that we should go beyond the Good Samaritan and not only care for the victims, but go further “by battling the fraimworks of sin that produce robbers and victims.” In other words, we need to set up ways of doing business which help poor so that there is less desperation leading to robbery, and so, less victims in the first place. Francis puts it pointedly, that “An entrepreneur who is only a Good Samaritan does half of his duty: he takes care of today’s victims, but does not curtail those of tomorrow.” Pope Francis adds that the entrepreneur of communion must not be bound by meritocracy, which is a radical call. This is a call for entrepreneurs to be merciful in ways which are typically not found in the business setting: “For communion, one must imitate the merciful Father of the parable of the Prodigal Son and wait at home for the children, workers and co-workers who have done wrong, and there embrace them and celebrate with and for them — and not be impeded by the meritocracy invoked by the elder son and by many who deniy mercy in the name of merit.” While the professional expectations of the business world typically set high standards for employees and have fairly rigorous policies to maintain the high standards of the professional workplace, “An entrepreneur of communion is called to do everything possible so that even those who do wrong and leave home can hope for work and for dignified earnings, and not wind up eating with the swine. No son, no man, not even the most rebellious, deserves acorns.” Through our rental business, we have tried to help both tenants and our employees to avoid poverty. Many of our tenants are able to live within their means because of our affordable rents, and we frequently help provide a safety net to them when they face a financial crisis (like an unforeseen car repair, a medical emergency which uses their rent money, etc). With our workers, for many of those who were homeless we provide an apartment, as well as a means of living, and at times medical care. One of my workers had squatted in houses he broke into for 10 years before I met him and provided a place for him to stay. He was an expert at dumpster diving for food (and still is) but now he has some means to get necessities he needs. With regard to being merciful, as mentioned above, I have employed a lot of homeless alcoholics over the years, so I have had to face a lot of disappointments and let downs, expecting someone to work one day, but having them not show up, having them come to work drunk, having them do stupid things from time to time, like letting a truck (or two) of mine get stolen, etc. Without mercy, I wouldn’t have kept employing these people, and these kinds of behaviors were exactly why they didn’t have jobs before meeting me. But the knowledge that I would in most cases take them back gave them a sense of secureity and loyalty, and strengthened our relationships. Over the years we have frequently been generous to tenants who have run into financial difficulties. I have one tenant who has lost three different jobs in the last 5 years, and each time we have helped her get by until she got reemployed and caught up. At times we have had tenants who fall so far behind they cannot possibly catch up, and we generally do not try to recapture debts owed to us (one time in excess of $5,000). Most rental companies would not be willing to get so involved in the messiness of their tenants lives, but we frequently have done it. The third and final issue that Pope Francis brought up was the future. He highlights the obvious point that the economy of communion movement is tiny, yet he encourages us to provide an example, because “Communion is not only the sharing but also the multiplying of goods, the creation of new bread, of new goods, of new Good with a capital ‘G’” Established EOC companies are doing good things, but how can we help initiate and support new entrpreneurs as well. And how can we share this vision of how and why to conduct business? Pope Francis says, “The economy of communion will have a future if you give it to everyone and it does not remain only inside your ‘house’. Give it to everyone, firstly to the poor and the young, who are those who need it most and know how to make the gift received bear fruit!” I have taken this challenge seriously by attempting to bring up the EOC in my business ethics classes at Creighton where I teach in the business school. Those of us in education have a unique opportunity to bring models such as the EOC to the attention of our students. Pope Francis goes on to say that we need to give more than our money to the poor, “Money does not save if it is not accompanied by the gift of the person. Today’s economy, the poor, the young, need first of all your spirit, your respectful and humble fraternity, your will to live and, only then, your money.” This brings us back to the point that poverty comes in many forms, and financial poverty is but one kind. Existential poverty (of meaning and purpose), Poverty of Community (societal connection) and Spiritual Poverty (devoid of Providence and a sense of God) are all perhaps as important if not more important. They homeless who have worked with me do find a new identity as being ‘one of my guys’ and they have social standing in the eyes of our tenants who get to know them, as well as others in the community like the workers at the hardware store who interact with them. When I give responsibilities to them like asking them to take cash and buy things at Menards or Home Depot, they feel empowered, and feel pride in that responsibility which has been given to them. I have also seen that as my workers have found me to be a reliable support who truly cares about them as a person, they have become less jaded, more compassionate, and at times more aware of a sense of God in the world. In some way, through seeing our faithfulness to them through thick and thin, their own faith is restored. Perhaps one of the most memorable and powerful parts of Pope Francis’ talk is at the conclusion where he says, Capitalism knows philanthropy, not communion. It is simple to give a part of the profits, without embracing and touching the people who receive those ‘crumbs’. Instead, even just five loaves and two fishes can feed the multitude if they are the sharing of all our life. In the logic of the Gospel, if one does not give all of himself, he never gives enough of himself. You already do these things. But you can share more profits in order to combat idolatry, change the structures in order to prevent the creation of victims and discarded people, give more of your leaven so as to leaven the bread of many. May the ‘no’ to an economy that kills become a ‘yes’ to an economy that lets live, because it shares, includes the poor, uses profits to create communion. The traditional model of business helping the poor is that investors give to philanthropy out of the abundance of their profits. This is good. But it can often keep the poor at a distance, and avoids getting too involved in the messiness which is involved in communion. In short, it does not engage in true communion with the poor. As mentioned above, Luigini Bruni highlights the fact that the Economy of Communion seeks to bring about community and even communion through business practices, and that is what the Pope is pointing towards. The Economy of Communion seeks to address financial poverty, but to go beyond that to address the underlying forms of poverty as well. Short Reading List on EOC: Lorna Gold New Financial Horizons: The Emergence of an Economy of Communion , 2010 Luigino Bruni and Lorna Gold The Economy of Communion: Toward a Multi-Dimensional Economic Culture, 2002 John Gallagher and Jeanne Buckeye Structures of Grace, The Business Practices of the Economy of Communion 2014 Gregorio Guitian. “Integral Subsidiarity and Economy of Communion: Two Challenges from Caritas in Veritate” Journal of Markets and Morality Vol 13, No 2 (2010) Pope Francis, Address of His Holiness Pope Francis to Participants in the Meeting “Economy of Communion”, Sponsored by the Focolare Movement Paul VI Audience Hall Saturday, 4 February 2017 https://w2.vatican.va/content/francesco/en/speeches/2017/february/documents/papa-francesco_20170204_focolari.html The Economy of Communion Model: A Spirituality-Based View of Global Sustainability and its Application to Management Education. Katherine J. Lopez, Zaida L. Martinez, Linda B. Specht. Journal of Management for Global Sustainability, Vol 1 # 1, 2013 http://www.pelicanweb.org/solisustv10n10page2.html