Valero’s “Enterprise Politics”: a model of humanistic management and corporate governance

The purpose of this paper is to present and interpret the “Enterprise Politics Model (EPM)” developed by Professor Antonio Valero, Founder and first Dean of IESE Business School, University of Navarra, Spain.

Drawing from a careful reading of Valero’s writings in their original context and some developments of these by his followers, this paper systematically presents and discusses the key ideas of Valero’s model for management and corporate governance.

The main features of Valero’s philosophy of the firm and of senior management can be summarized in four points: the firm as a community of persons; the firm as an intermediate social institution serving the common good of society; the different nature of political and technical practice, which leads senior management to exercise practical reason – not only science or technique, and at the same time a kind of political art, or wisdom; and the role and responsibility of entrepreneurs and top management. Valero emphasizes the political nature of management and, from a practical perspective, suggests a global analysis based on four big areas of governance: business activity, managing structure, institutional configuration, and professional community. He makes his model applicable by developing “political procedures”.

Valero’s “EPM” is an original humanistic approach to management and corporate governance, with implications to business education. Valero’s contributions were based on his business and teaching experience and in a deep humanistic background, but adopted an intuitive outlook and need further conceptual development, actualization to contemporary business context and empirical research on the relationship between this model and performance.

Valero’s “EPM” is a practically oriented humanistic approach to management and corporate governance which can be a realistic alternative to conventional, and often criticized, approaches to management and corporate governance. In fact, it has already been successfully applied in several companies.

In a context of growing discontent toward capitalism and the role of business in society, the “EPM” – discussed in this paper – shows how business might be run and organized to be socially responsible, contributing to the common good and respecting individual rights and flourishing.

The paper discusses, systematizes and interprets an innovative way of understanding management and corporate governance.