The participants at this roundtable session noted that, today more than ever, there is a need to formulate responses capable of addressing the impacts of the enduring economic crisis. Statistics were cited indicating that, in Italy, absolute poverty affects over 4 million people, of whom around 1 million are minors, with another 13 million people at risk. In addition, in Italy and Europe, new forms of poverty predominantly involve segments of the population that – from once relatively protected positions – have become vulnerable, thus giving rise to new states of fragility and need. New processes of impoverishment are emerging characterized by a marked generational inflection, involving mostly young people and large families. It was thus seen as incumbent upon the business community, the public sector, and the public at large to embrace a new sense of responsibility and to engage with the need for developing new models and strategies based on social cohesion, sustainability, and innovation. The challenge – it was submitted – will be to reach those affected, identifying their real needs and gauging priority areas for action, the creation of jobs for young people being identified as one such. Unavoidably, however, instilling a sense of human and social responsibility towards others is a fundamental underpinning for all efforts of this nature.
It was observed that this interplay of old and new aspects of poverty brings the welfare model face-to-face with the need for change. With the typical European welfare state judged as no longer providing responses that meet societal demands, the participants underlined the necessity of developing a model marked by greater social cohesion – hence, a true and proper welfare society, involving all stakeholders, citizens, institutions, and businesses. Furthermore, it was stressed that welfare considerations are not confined to those relating to monetary benefit entitlements, but also include health, personal care and assistance, and – since future pensions are unlikely to be capable of matching previous earnings levels – any issues of access to health treatment that might arise. The participants were of the view that, faced with an ageing population trend, studying concrete ways to enable people to benefit from an integrated welfare package with the right mix of services is one of the most pressing priorities.
It was highlighted that the private sector is reacting to the crisis by developing a new sense of social responsibility, with the most key elements of a social impact business model identified as accountability vis-à-vis all affected persons, along with an emphasis on partnerships and interchange within organizations, thereby enabling the creation of a shared review system between the various actors involved in joint activities and objectives. In this regard, one initiative, cited as a very interesting example from the point of view of reconciling business imperatives with social support, involved a French supermarket chain that sells misshapen or discolored but still nutritionally sound fruit and vegetables, which would otherwise be thrown out by producers, at a discount of 30%. The first to benefit from this have been agricultural producers, whose sales have risen, as well as less well-off segments of population and the supermarket chain itself, which has seen its customer base increase fivefold.
The march of progress was acknowledged as wreaking havoc on longstanding processes, trades, and customs, with responses to such major changes stemming from human, technological, and social evolution. Yet it was conceded that digitalization also brings possible solutions, as it provides the only means by which to scale the system. In the medium to short term, it was envisaged that many more goods and services will be produced with less human labor. There is increasing support for the idea of a minimum guaranteed income level, along with the need to reflect on the relationship between work, income, and the fulfillment of people’s aspirations. A reassessment of the relationship between individuals and their community, which should bear in mind the ethical and human implications of the technological revolution, was also seen as essential. It is thus necessary to develop ways of creating jobs even in this scenario, by, for instance, designing selective public measures that reward those who create employment, including through hybrid public, private, and NGO schemes.
The not-for-profit/community sector was characterized as undergoing an enormous transformation, with some 80,000 nonprofit organizations today trading goods and services on the market. Entrepreneurship has hence already become a tool for generating social wellbeing. On the other hand, in the for-profit sector, the pursuit of social objectives can help generate competitiveness. Accordingly, those businesses that are a cross between the two represent an interesting mechanism, as they are able to reconcile growth with new models of welfare.
In conclusion, it was noted that new and virtuous international initiatives are emerging that could serve as role models, such as Action Tank. Set up six years ago, it brings together a number of multinationals, public-sector organizations, several NGOs specialized in combating poverty, and academia, with the aim of developing socially beneficial projects in France. Action Tank has trialed its approach in different fields, ranging from child nutrition to the construction of social housing, through to insurance and mobility, with every project preceded by an important pilot phase. Its goal is to reduce the cost of access to certain products and services and redesign them, taking into account the specific needs of the target group while maintaining a high standard. The key motivation that drives the founders of Action Tank and inspires companies to become project partners is the opportunity, for the latter, to recapture a sense of purpose in their business activities, and a renewed conviction that their endeavors are not aimed at the mere pursuit of profit, but at giving thousands of people the possibility of accessing products and services that will improve their quality of life.