The integration of personalism into business ethics has been recently studied. Research has also been conducted on humanistic management approaches. The conceptual relationship between personalism and humanism , however, has not been fully addressed. This article furthers that research by arguing that a true humanistic management is personalistic. Moreover, it claims that personalism is promising as a sound philosophical foundation for business ethics. Insights from Jacques Maritain’s work are discussed in support of these conclusions. Of particular interest is his distinction (...) between human person and individual based on a realistic metaphysics that, in turn, grounds human dignity and the natural law as the philosophical basis for human rights, personal virtues, and a common good defined in terms of properly human ends. Although Maritain is widely regarded as one of the foremost twentieth century personalist philosophers, his contribution has not been sufficiently considered in the business ethics and humanistic management literature. Important implications of Maritainian personalism for business ethics as philosophical study and as practical professional pursuit are discussed. (shrink)

The paper critiques the relationship between personalist ethics and institutional economics, and accepts that institutional economics can be difficult to reconcile with humanistic management that builds on personalist ethics. Even so the paper connects impersonalist ethics with institutional economics. On this ground, the paper demonstrates how theory and practice of personalist humanist management can lean on impersonalist ethics, i.e., institutional economics. Three pathways are laid out for such leanings. It is argued that to understand these alignments is important to improve (...) the success of humanistic management, when a market economy context is given. The paper further contends that personalist humanistic management may imply abandoning the market economy when it positions itself in opposition to institutional economic reasoning that underpins the market economy. (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 the work of Karl Polanyi, the negative effects of a self-regulating market economy are described as being limited by societal forces such as the policies of the welfare state. With the decline of the modern welfare state since the late 1970s, social activities of business firms are increasingly regarded as an important complement to or even as a substitute for welfare state policies by a part of the literature. However, and controversially, another stream of argumentation regards these activities as (...) being aimed at advancing the reach of market forces. To fully grasp the ambiguous nature of the social activities of business, in this paper I provide an account of affirmative as well as of critical interpretations of these activities throughout the history of modern capitalism. On this basis, the power of critique to disentangle the diverse motivations that underlie the social engagement of business is highlighted as a condition for facilitating a role of business in society that balances economic and social considerations. (shrink)

This paper grounds the theory of any type of firm in the science of control and communication described as cybernetics. It is also grounded in the physiological and neurological limitations of humans to receive, store, process and act upon data to coordinate their activities. To overcome limitations in the market failure theory of the firm identified by leading scholars, Transaction Byte Analysis is introduced. TBA is based on economising bytes rather than costs and is applicable to all types of organisations (...) of any specie. TBA is shown to subsume Transaction Cost Economics and explain why firms exist as hierarchies or in other forms. Inconsistent and contrary behaviour in humans are recognised. Cybernetic laws show how to minimise these problems and allow people with limited ability to transact bytes to improve their ability and reliability to manage complexity in social institutions. TBA is used to provide answers to questions raised by Zingales in his search for “new foundations” to explain how different types firms arise in the new economy. (shrink)

In order to enable firms to successfully deal with issues of corporate sustainability, the firms' stakeholders would need to participate in sustainability accounting and management. In practice, however, participative sustainability accounting and management are often unfeasible. The resulting consequence is the risk of misbalancing single aspects of sustainability. The purpose of this article is to show that reflexivity in sustainability accounting and management, that is, an ongoing reflection on the relationship between the goals of corporate sustainability and the overarching objective (...) of sustainable development can, at least, mitigate this problem. Reflexivity has the potential to initiate processes of collective learning and could eventually bring about the realization of business models that integrate economic, ecological, and social considerations. (shrink)

A variety of theories of management and organizational studies have failed to consider the human being in his or her integrity and, thus, fall short of being humanistic. This article seeks to contribute to the recovery of a more complete view of the human being in management, learning from classical humanism developed throughout Western Civilization, from the Greek and Roman Philosophers and the Judeo-Christian legacy to the Renaissance. More specifically, it discusses several relevant aspects of this Classical humanism, which can (...) aid in re-thinking management. These include a realistic epistemology and metaphysics, and the human being as a whole. Classical humanism also entails the consideration of the human action as a unity with both internal and external dimensions, ethics understood as a guide for good life, society viewed as a community of people, and being open to beauty and transcendence. (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)

Why has responsible management been so difficult and why is the chorus of stakeholders demanding such responsibility getting louder? We argue that management learning has been framed within the narrative of economism. As such, we argue that managers need to be aware of the paradigmatic frame of the dominant economistic narrative and learn to transcend it. We also argue that for true managerial responsibility, an alternative humanistic narrative is more fit for purpose. This humanistic narrative is based on epistemological metaphors (...) and ontological insights that integrate the latest insights from evolutionists suggesting that humans only survived by being responsible. This understanding has consequences for responsible management learning in that it focuses on dignity literacy, balance orientation, as well as creativity and innovation for the common good. We argue that managerial learning within a humanistic paradigm is more likely to lead to ethical and sustainable business conduct. (shrink)

Corporate governance is a theme that is important to Business Ethicists for various reasons. It relates to how and for whose benefit corporations are governed, to how important corporate decisions are taken, and to how organizational cultures are “managed.” In this article, it will be argued that in each of these respects, corporate governance relies on particular identity constructs that need to be questioned. In fact, it will be argued that the way in which corporate governance initiatives address the various (...) crises of capitalism, allows us to gloss over some crucial ontological questions that could precipitate a more rigorous questioning of capitalist practices. The article will plot the limitations of the kind of thinking that we encounter within the corporate governance realm, and expose its problematic assumptions by exploring a selection of Deleuzoguattarian concepts. It will be argued that the challenges facing corporate governance relate to the relationship between identity crises and crises of control. We will argue that a better understanding of the nature of capitalism could open new avenues for ethical questioning of contemporary corporate practices, and put the various “crises” that capitalism faces in a new perspective. (shrink)

This study examines the impact of bank corporate governance reforms in the wake of the financial crisis. These reforms correspond to criticism of shareholder-focused agency-based corporate governance practices and a renewed focus on the stakeholder impact of corporate governance lapses in the financial sector. This study differs from previous studies of corporate governance in the financial sector in using performance indicators that proxy the interests of customers and the community. Drawing on data from 134 countries over an eight-year period from (...) 2004 to 2011, we find that the post-crisis corporate governance reforms in the banking sector appear to be effective in promoting greater bank attention to non-shareholder stakeholders’ interests. This study provides a means to conceptualize measures of bank performance from a stakeholder perspective in order to test emerging ideas about governance effectiveness in the financial sector. (shrink)

The new features of the business environment have expanded the concept of organizational learning capability. In today’s competitive business environment, OLC has been recognized as an essential means to gain a sustainable competitive advantage. However, the effective development of that capability has not been sufficiently analyzed in the organizational learning literature. Prompted by a recent paradigm shift in the organizational sciences, this research explores the link between altruism and OLC testing a wider picture that includes two intermediate steps: Relationship Conflict (...) and Organizational Trust. To check our hypotheses, we used structural equations to analyze data from a survey of Spanish firms with recognized excellence in human resource management. Results indicate that organizational trust mediates on the altruism—OLC relationship; however, such linkage is not mediated by relationship conflict. Findings suggest that altruism and trust should be promoted in organizations in order to boost OLC. (shrink)

The study investigates how board cultural diversity (BCD) affects bank stakeholder engagement through improved corporate social performance (CSP) and whether banks' corporate social responsibility (CSR) strategy mediates the relationship between BCD and banks' social performance. Adopting an international sample of 379 banks from 2010 to 2019, we found that BCD improves engagement in socially responsible issues in the banking sector. Moreover, we show a mediating role of strategic CSR on the relationship between BCD and banks' social performance. Hence, we contribute (...) to the research on the role of corporate governance mechanisms as drivers of CSR engagement. Furthermore, based on the mediation effect of strategic CSR, we advance the discussion on the link between BCD and banks' social performance. Our findings provide implications for banks and policy-makers, indicating the opportunity to promote cultural diversity, which supports socially responsible banking, while a CSR strategy positively impacts the stakeholder approach in the banking industry. (shrink)

The most common way of managing cultural heritage recently takes form of cultural routes as they seem to offer a new model of participation in culture to their recipients; they are often a peculiar anchor point for inhabitants to let them understand their identity and form the future; they offer actual tours to enter into interaction with culture and history, to build together that creation of the heritage, which so is becoming not only a touristic product, but, first of all, (...) the space for cultural, social and civic activity. Yet, so far, according to what we know, the research problem concerning the method of cultural route organization into solid structures or more of the networked nature, has not been deliberated. A question arises, what values are brought by routes and how to organize routes to be the carriers of the values important for communities, where routes are functioning. And, as a consequence, if, from the point of view of the values of local communities, organizing solid route structures or organizing more widely-spaced, network-based routes would bring effects and what those effects would be. Thus, the posed question is of course scientifically imprecise because a network is a type of structure but presents a given direction for the development of cultural route structures. Our objective here is to present a certain solidity and rigidity of structure with dynamic and smooth understanding of the network. The research presented in the article is based on 3 case studies. We have selected for this purpose the three largest cultural routes in Poland, organized to various degrees. The outcome of the research was referred also to other cultural route organization research. (shrink)

The Corporate Social Performance (CSP) model (Wood, Acad Manag Rev 164:691–718, 1991) assesses a firm’s social responsibility at three levels of analysis—institutional, organizational and individual—and measures the resulting social outcomes. In this paper, we focus on the individual level of CSP, manifested in the managerial discretion of a firm’s principles, processes, and policies regarding social responsibilities. Specifically, we address the human resources management of employees as a way of promoting CSR values and producing socially minded outcomes. We show that applying (...) the humanist philosophy to the managerial discretion of a business organization leads to the creation of an “autonomy supportive work environment”—as defined by the self-determination theory—which in turn, facilitates the internalization of social values, citizenship behaviors, and cooperation. The objective of promoting self-determination at work (i.e., the core of a humanist management) fits well with the ontology of social responsibility since autonomy and consideration of individuals as moral actors are central tenets. Furthermore, we show that applying humanistic management philosophy to the discretion of managers can lead to socially responsible outcomes. First, intra-organizational stakeholders (e.g., employees) are treated with respect and focus is put on their well-being, satisfaction, and self-actualization at work. Second, as employees’ need of self-determination is addressed by managers, it is likely that pro-social behaviors toward other stakeholders of the organization will be adopted, leading to socially responsible outcomes for extra-organizational stakeholders (Gagné, Motiv Emot 77:58–75, 2003). Thus, this paper ultimately posits that humanistic management applied to the HRM can be a solution for developing and maintaining socially responsible outcomes as determined at the individual level of the CSP model, through managerial discretion. (shrink)