The organic model and ethical banking: The importance of identity

Abstract

Purpose: The aim of this work is to highlight the advantages of applying the Organic Model to organizations. It considers the example of European Ethical Banking, which came about as the result of the impetus of this model. This work highlights the trajectory of Ethical Banking in Spain and examines why it has not been affected by a crisis that triggered the disappearance of dozens of centennial Savings Banks.

Design/methodology: An exploratory methodology is used, consisting of a bibliographic search for the influence of the Organic Model on the creation of European Ethical Banking. The history of Ethical Banking in Spain is also analyzed, contrasting it with that of the Savings Banks in the same period. Interviews are included with prominent individuals associated with Ethical Banking and the Organic Model.

Findings: The Organic Model places paramount importance on Identity in organizations. Ethical Banking and the Savings Banks had similar fundamental impulses, but the latter gradually lost their identity. This work relates the crisis that led to the disappearance of the Savings Banks to their loss of Identity. In the same context, Ethical Banking was reinforced in Spain.

Originality/value: The structural division of the Organic Model to analyze organizations (with their own culture and identity, people, processes and resources) facilitates the fulfillment of their purpose and preserves the influence of values in decision-making. The Organic Model provides coherence to the members of the organization and aligns them with its identity. The economic results are not the ultimate goal, but the consequence of efficiently carrying out the mission, and at the same time they provide positive value to society, culture and the environment. It is a shared benefit.