Social responsibility in practice: an Italian case from the early 20th century

The purpose of this study is to examine the ideals informing the social strategy of Marzotto, an Italian family business in the textile industry, during the rise and fall of the fascist regime and to compare it with the main concepts of social responsibility theory that developed from the 1950s onwards. Because Italy at that time was a family-based economy, subject to a dictatorial government, it offers an interesting context of investigation that is similar to various contemporary emerging countries.

Using a company’s public social report and various published histories, the historical case study of this Italian family business and its pioneering social strategy is reconstructed. Through the identification of the social practices and the ideals underlying the strategy, the analysis finds similarities and differences with the traditional concepts from social responsibility literature.

The study finds that Marzotto’s social strategy traces some dimensions of social responsibility theory for it was a voluntary and discretional act by the business owner; it was based on the necessary balance between economic and social aims; and it was focusing only on social issues. Instead, the “social” spectrum is found to have a different meaning in the Marzotto strategy with respect to the “social” in the traditional theory because it was limited to a local level and limited groups of stakeholders.

By showing the relevant role of business-owners in social responsibility awareness, this study has implications for contemporary practice. It suggests that the educating business-owners about social responsibility and the development of bottom-up rather than top-down social initiatives will be crucial in contemporary similar contexts. The results also open to new research opportunities on corporate social responsibility in the past to explain contemporary differences among its implementation in different countries.

The research brings awareness to social responsibility in the past in a context other than traditional Western countries and to its differences and similarities with the established social responsibility framework. It is the first study on past social practices that makes use of primary sources to support the analysis.