Resting as it does on the principle of freedom, today’s global economic system is in need of a global economic ethos of responsibility so as to assure its social and ecological sustainability. Not all ideas of freedom, however, are equally amenable to conceptions of cosmopolitan responsibilities. This article examines how quantitative versus qualitative notions of freedom respectively respond to this challenge. Simply put, quantitative models hinder the integration of responsibility into models of economic rationality whereas qualitative conceptions advance it. As (...) a consequence, efforts to promote a humanistic paradigm of economics and management fare better when oriented at a qualitative idea of freedom. Cast along the lines of a qualitative conception of freedom, corporate responsibility more readily takes on a cosmopolitan dimension apt to meet the needs of the current age of globality. (shrink)

We sketch out two basic paradigms informing banking practice: the economistic paradigm focusing on profit maximization and the humanistic one, serving the common good. We then highlight paradigmatic cases to explore how each of these business models fared during the quasi-natural experiment of the financial crisis. We find that many humanistic banks outperformed traditional economistic banks. Despite the uneven playing field humanistic banks fared remarkably well with regard to traditional financial performance judgements, muting criticisms of competitiveness. We find that overall (...) both paradigms can provide a basis for successful banking as long as social and financial value generation are blended. We conclude by providing lessons learned for better banking. (shrink)

In business ethics journals, Kant’s ethics is often portrayed as overly formalistic, devoid of substantial content, and without regard for the consequences of actions or questions of character. Hence, virtue ethicists ride happily to the rescue, offering to replace or complement Kant’s theory with their own. Before such efforts are undertaken, however, one should recognize that Kant himself wrote a “virtue theory” (Tugendlehre), wherein he discussed the questions of character as well as the teleological nature of human action. Numerous Kant (...) scholars argue that Kant already erected precisely the kind of integrative moral architecture that some of his modern interpreters (while aiming to supersede him) wish to construct. For business ethics, this divergence of scholarly opinion is of crucial importance. It shows first that the standard portrayals of Kant’s ethics in business ethics textbooks—as rigidly deontological, narrowly individualistic, and hence unsuitable for the specific demands of corporate agency—might have to be revised. Second, discussions in the business ethics literature on stakeholder-engagement and managerial decision-making likewise stand to gain from a more nuanced picture of Kant’s moral philosophy. Third, a reassessment of Kant’s ethics with regard to questions of personal character and moral sentiments might also lead to a more favorable view of the relevance of his ethics for managerial practice. Last, but not least, the many current attempts to reconcile Kant’s freedom-oriented philosophy with virtue theories stand to benefit considerably from a better understanding of how Kant himself conceived of one such synthesis between the formal and substantial aspects of morality. This, ultimately, could lead to an important overlapping consensus in the academic literature as to the role and relevance of virtuous conduct in business. (shrink)

This conceptual article suggests a reexamination of current governance structures, specifically those of unitary boards after the financial crisis of 2008.We suggest that the existing governance structures are based on an outdated paradigm of business, rooted in economics. We propose an alternative paradigm, a more humanistic paradigm, which allows conceiving alternative, network-oriented governance structures. As hierarchical firms grow larger and more complex, the risk of failure increases from biases, errors, and missing data in communication and control systems. These problems are (...) exacerbated by information overload on senior managers, directors, and their respective regulators. In contrast to traditional corporate governance, network governance introduces a division of power via multiple boards, checks and balances, and active stakeholder engagement. We argue that those features could have prevented the stresses and failures of financial firms in 2008, since they were anticipated by both individuals within firms and external commentators. However, those exposed to risks possessed insufficient influence in either governing and/or regulating firms to take corrective action. (shrink)

Presently it is en vogue to search and research business models heedful to concerns of social, moral, and ecological sustainability. On the view here defended, however, we ought not to strive for piecemeal corrections but for a thoroughgoing paradigm change of the predominant economic theories and practices in favor of a genuinely ‘humanistic management.’ This very call for humanistic management serves as an introduction into this paper. The article then lays out a concept of humanistic management in three methodologically distinct (...) steps, description – ascription – prescription, before addressing potential challenges to the approach of humanistic management and, finally, pointing out some of its practical implications. The article hence proceeds as follows: From a critique of the reductionist description of economic agency given in conventional economics, the paper moves on to the ascription of freedom and responsibility by and through human actors, which appears essential for any attempt at re-integrating moral prescriptions into economics and, by extension, management theory. The resultant, dignity-centered humanistic management conception is then defended against challenges from postmodern authors and defendants of ‘deep ecology’. Afterward, the article presents some normative postulates for management practice ; last, the main findings of the paper are summarized. (shrink)

We identify a normative paradox of responsible management education. Business educators aim to promote social values and develop ethical habits and socially responsible mindsets through education, but they attempt to do so with theories that have normative underpinnings and create actual normative effects that counteract their intentions. We identify a limited conceptualization of freedom in economic theorizing as a cause of the paradox. Economic theory emphasizes individual freedom and understands this as the freedom to choose from available options. However, conceptualizing (...) individuals as profit-maximizing actors neglects their freedom to reflect on the purposes and goals of their actions. We build on the work of pragmatist philosopher John Dewey, who distinguishes between habitualized and creative problem-solving behaviors, conceptualizes knowledge construction as a process of interdependent scientific social inquiry, and understands actors as having the freedom to determine what kind of people they wish to be. We apply pragmatist theory to business education and suggest equipping students with a plurality of theories, supplementing neoclassical economics with other economic perspectives and views from other disciplines on economic behavior. Moreover, we suggest putting students into learning situations that require practical problem solution through interdependent social inquiry, encouraging ethical reflection. In doing so, we contribute by linking the problematic conceptions of freedom identified in economic theorizing to the debate on responsible management education. We conceptualize a pragmatist approach to management education that explicitly re-integrates the freedom to discursively reflect on the individual and societal purpose of business activity and thereby makes existing tools and pedagogies useful for bringing potential freedom back into business. (shrink)

This article explores how both corporate governance and corporate social responsibility can be improved by using insights from complexity theory. Complexity theory reveals that decentralized governance architecture is required for firms to absorb competently the increased intricacies, variety of variables, and objectives introduced by CSR. The current predominant form of centralized governance based on command-and-control hierarchies copes with complexities by reducing data inputs. This approach results in firms reducing their objectives, concerns, and insights about CSR. Firms with a decentralized “network” (...) form of governance architecture are used to illustrate how the data inputs of each manager can be reduced through the decomposition of decision-making labor to improve the capability of the firm to intelligently absorb and manage complexity. Network governance also introduces a division of powers with stakeholders to facilitate information flow and strengthen incentives to manage the enterprise to enhance both shareholder value and CSR. (shrink)

In order to provide context and ground for a future assessment of the manifold overlap and possible differences between the Humanistic Management Project and the Weltethos Project, this article offers a comprehensive assessment of the history, arguments, and relevance of the Weltethos Project as applied to economics and business. A literature review of foundational documents on “Weltethos” and “Weltethos for business” outlines essential elements and arguments from two main Weltethos Project pioneers. It first recounts how its founder, the theologian Hans (...) Küng, has launched a fruitful academic and public discourse spanning almost three decades since 1990, including the presentation of the Manifesto for a Global Economic Ethic by world leaders at a joint event with the UN Global Compact at the UN headquarters in New York in 2009, calling for business to serve human dignity. Then, the agenda of Claus Dierksmeier, Küng’s academic successor and a philosopher with foundational contributions to the Humanistic Management Project, is assessed both in regard to Weltethos motifs and Humanistic Management arguments, spanning from Dierksmeier’s conception of qualitative freedom as the foundation of unity in diversity to his effort to reframe economic theory and ethics, the inclusive and innovative practices of Humanistic Management, and to the capability approach. The article ends by highlighting how these two different approaches to Weltethos commitments converge in their care for human dignity, the idea of globally responsible freedom, and the capacity for dialogue as a learning process for creative change leadership. (shrink)

The articles comprising this thematic symposium suggest options for exploring the nexus between freedom and unfreedom, as exemplified by the British abolitionists’ anti-slavery campaign and the paradox of freedom. Each article has implications for how these abolitionists achieved their goals, social activists’ efforts to secure reparations for slave ancestors, and modern slavery. We present the abolitionists’ undertaking as a marketing campaign, highlighting the role of instilling moral agency and indignation through re-humanizing the dehumanized. Despite this campaign’s eventual success, its post-emancipation (...) phase illustrates a paradox of freedom. After introducing mystification as an explanation for the obscuring rhetoric used to conceal post-emancipation violations of freedom during the West’s colonial phase, we briefly discuss the appropriateness of reparations. Finally, we discuss the contributions made by the articles in this thematic symposium. (shrink)