Tasubinsa is a "Special Employment and Occupational Center" constituted in accordance with Spanish Law where 90% of the workers have mental, sensorial or physical impairments of at least 30%. Its positive experience of more than 15 years provides entirely different responses from mainstream neoclassical theory (transaction cost theory, agency theory, and shareholder theory) to basic questions such as "What is a firm?", "What is its purpose?", "Who owns a firm?", and "What do a firm's owners seek?". The article discusses how (...) these different premises give rise to a distinctive corporate culture centered on the handicapped person. (shrink)

ABSTRACT:This article proposes a theory of the firm based on the common good. It clarifies the meaning of the term “common good” tracing its historical development. Next, an analogous sense applicable to the firm is derived from its original context in political theory. Put simply, the common good of the firm is the production of goods and services needed for flourishing, in which different members participate through work. This is linked to the political common good through subsidiarity. Lastly, implications and (...) challenges arising from the positing of work as the common good of the firm are explored. (shrink)

In a previous essay (Sison and Fontrodona 2012), we defined the common good of the firm as collaborative work, insofar as it provides, first, an opportunity to develop knowledge, skills, virtues, and meaning (work as praxis), and second, inasmuch as it produces goods and services to satisfy society’s needs and wants (work as poiesis). We would now like to focus on the participatory aspect of this common good. To do so, we will have to identify the different members of the (...) firm as a community, drawing from corporate citizenship literature and stakeholder theory. Afterward, we will explore both the manner and the intensity of these different members’ participation and its impact on the firm’s common good. (shrink)

In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of mammoth multi-national corporations operating in global markets. Nevertheless, it is precisely some of these same enormous, aggrandizing forces that have given rise to recent corporate scandals. These, in turn, raise questions about ethical systems that are focused too myopically on self-interest, or the interest of specific groups, locations or cultures. The obvious traditional (...) alternative to moral bellybutton gazing is the common good, which challenges the modern business enterprise to realize non-instrumental values that can only be attained in our life together. The common good dictates that leadership should be judged, first of all, according to moral criteria rather than professional competence. It helps correct the distorted prioritization of the maximization of profit in every business decision, recognizing that businesses have a multitude of rights and responsibilities, and the common good reminds us that the first of these is not always profit-making. (shrink)

This paper is an insighful critique of the shareholder and stakeholder models of organizational purpose. The authors emphasize that both these models fail to serve as an adequate basis for explaining the purpose of an organization and are unable to capture a fuller meaning of living in an organizational community. The paper thus endeavours to introduce into the mainstream of discussion a third model, based on the idea of the common good which draws inspiration from the communitarian Catholic tradition. The (...) first part of this paper traces the idea of common good as it relates to organizations. The second part engages the common good tradition with the shareholder and stake holder models. The paper goes on to describe common good within the organization through three propositions: fundamentality, excellence and integration. The authors reiterate, however, that the idea of the common good does not provide a micro-blueprint for managers, but rather an orientation or moral compass that directs organizational activity towards human development. (shrink)

The article starts by arguing that seeing the firm as a mere nexus of contracts or as an abstract entity where different stakeholder interests concur is insufficient for a “humanistic business ethos”, which entails a complete view of the human being. It seems more appropriate to understand the firm as a human community, a concept which can be found in several sources, including managerial literature, business ethics scholars, and Catholic Social Teaching. In addition, there are also philosophical grounds that support (...) the idea of business as a human community. Extending this concept, and drawing from some Phenomenological-Personalist philosophers, we propose that the firm should be seen as a particular “community of persons” oriented to providing goods and services efficiently and profitably. Being a “community of persons” emphasizes both individuals and the whole, and makes explicit the uniqueness, conscience, free will, dignity, and openness to human flourishing. This requires appropriate communication about and participation in matters which affect people’s life, and makes it essential to cooperate for the common good of the business firm and the society. (shrink)

According to the origin of the word "humanism" and the concept of humanitas where the former comes from, management could be called humanistic when its outlook emphasizes common human needs and is oriented to the development of human virtue, in all its forms, to its fullest extent. A first approach to humanistic management, although quite incomplete, was developed mainly in the middle of the 20th century. It was centered on human motivations. A second approach to humanistic management sprang up in (...) the 80's and centered on organizational culture. This implied a wider approach to the human condition while taking into account the influence of culture on behaviors and decisionmaking, but it is incomplete, too. There is a third approach to humanistic management, which is still emerging, that considers a business enterprise as a real community of persons. That means promoting unity and favoring the acquisition of human virtues. This humanistic management approach is a real challenge in order to achieve a higher moral quality in management, human virtues among people and more efficient organizations. (shrink)

Some virtue ethicists are reluctant to consider principles and standards in business ethics. However, this is problematic. This paper argues that realistic Personalism can be integrated into virtue-based business ethics, giving it a more complete base. More specifically, two principles are proposed: the Personalist Principle (PP) and the Common Good Principle (CGP). The PP includes the Golden Rule and makes explicit the duty of respect, benevolence, and care for people, emphasizing human dignity and the innate rights of every human being. (...) The CGP entails cooperation to promote conditions which enhance the opportunity for the human flourishing of all people within a community. Both principles have practical implications for business ethics. (shrink)

The encyclical proclaims the centrality of human development, which includes acting with gratuitousness and solidarity in pursuing the common good. This paper considers first whether such relationships of gratuitousness and solidarity can be analysed through the prism of traditional theories of social psychology, which are highly influential in current management research, and concludes that certain aspects of those theories may offer useful tools for analysis at the practical level. This is contrasted with the analysis of such relationships through Aristotelian virtue (...) ethics (in particular as interpreted by MacIntyre 1985 , 1998 , 1999 ), which is emerging as a strong force in the field of business ethics, and which has strong conceptual similarities with the ideas put forward by Benedict XVI. Aristotelian virtue ethics offers a better fit with the aims of the encyclical at the theoretical level but it presents a number of challenges at the practical level, which the paper suggests may be addressed through the integration in its analysis of human action of models derived from social psychology. (shrink)

This article deals with the idea of human communities in business, government and other economic institutions that are predicated upon compatibility and a mutual desire for the common good. It explores the notion that the greatest single contribution the 20th century might make is to improve the ways men and women live and work together. The achievement of such a worthy goal can increase the overall productivity of an economic system just as much as the most profound technological advances and (...) discoveries.There is a fine metaphysical distinction between the human being as an individual and as a person. This distinction is important in understanding the interaction between the common good of the economic enterprise and a common ethical ground. (shrink)

Businesses have long been admonished for being unduly focused on the pursuit of profit. However, there are some organizations whose purpose is not exclusively economic to the extent that they seek to constitute common good. Building on Christian ethics as a starting point, our article shows how the pursuit of the common good of the firm can serve as a guide for humanistic management. It provides two principles that humanistic management can attempt to implement: first, that community good is a (...) condition for the realization of personal good, and second, that community good can only be promoted if it is oriented towards personal good. To better understand which community good can favor personal good and how it can be achieved, we examine two recent humanistic movements—Conscious Capitalism and Economy of Communion—that strive to participate in the common good. From the analysis of these two movements, we identify a shared managerial willingness to adopt the two principles. Moreover, we also reveal that Conscious Capitalism and Economy of Communion present different ways of linking community good and personal good, and therefore, different means exist for firms to participate in the common good. (shrink)

The ongoing global economic and financial crisis has exposed the risks of considering market and business organizations only as instruments for creating economic wealth while paying little heed to their role in ethics and values. Catholic Social Teaching (CST) could provide a useful contribution in rethinking the role of values in business organizations and markets because CST puts forward an anthropological view that involves thinking of the marketplace as a community of persons with the aim of participating in the Common (...) Good (CG) of society. In the light of the CST tradition, and in particular Caritas in Veritate , this article investigates the thinking of some of the historical scholars of the Italian Economia Aziendale ( EA ), by focusing on the concept of azienda , in order to reinterpret in a more humanistic way the role of business organizations in society. By linking CST and EA , the dichotomy between for-profit and not-for-profit organizations and the stereotype of the so-called business amorality that has, for a long time, driven business managers can be transcended. The conclusions imply a forward-looking application of the ethical concepts embedded in the Italian science of EA. (shrink)

The theory of the social responsibility of the firm oscillates between two extremes: one that reduces the firm's responsibility to the obtainment of (the greatest possible) profit for its shareholders, and another that extends the firm's responsibility to include a wide range of actors with an interest or "stake" in the firm. The stakeholder theory of the social responsibility of business is more appealing from an ethical point of view, and yet it lacks a solid foundation that would be acceptable (...) to a variety of schools of thought.In this paper I argue that the stakeholder theory could be founded on the concept of the common good. First, I explain the foundations of the theory of the common good, the concept itself, how it relates to the individual good, and its role in the firm. Following that, I explain how the theory of the common good could be applied to the stakeholder theory. Finally, I draw some conclusions. (shrink)

ABSTRACT:Although Alasdair MacIntyre has criticized both the market economy and applied ethics, his writing has generated significant discussion within the literature of business ethics and organizational studies. In this article, I extend this conversation by proposing the use of MacIntyre’s account of the virtues to conceive of management as a domain-relative practice that requires and develops practical wisdom. I proceed in four steps. First, I explain MacIntyre’s account of the virtues in light of his definition of a “practice.” Second, I (...) examine his distinction between “practices” and “institutions.” Third, I explain what I mean by a “domain-relative practice” and defend the claim that it is helpful to conceive of management in those terms. Finally, I highlight several features of practical wisdom as a virtue developed in and integral to standards of excellence within management as a domain-relative practice. (shrink)

Despite the expansion of the regulatory state, we continue to witness widespread unethical practices across society. This paper addresses these challenges of ethical failure, misalignment, and dissonance by developing a conceptual framework that provides an explicit basis for understanding virtuousness and the common good directed toward the goal of eudaimonia or human flourishing. While much of the literature on virtuousness has focused on the organization, this paper uses a more comprehensive understanding that also incorporates the agent and the economy examined (...) through their relational order. The common good provides direction for guiding behavior of all the various stakeholders and the context for understanding virtuousness, while it is through virtuousness that the common good is effectively realized. Virtuousness and the common good are therefore in effect ‘two sides of the same coin.’ This paper develops a virtuousness–common good conceptual framework which explores the basis for harmonizing the goals of the individual, organization, and the economy. (shrink)

While dominant management thinking is steered by profit maximisation, this paper proposes that sustained organisational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. The leadership thinking of Kautilya and Ashoka embodies this principle. Both offer a common good approach, emphasising the leader's moral and legal responsibility for people's welfare, the robust interaction between the business community and the state, and the importance of moral training (...) of leaders in identifying and promoting the common good. We argue that the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. As Ashoka said: ‘A good deed is a difficult thing’. (shrink)

While dominant management thinking is steered by profit maximisation, this paper proposes that sustained organisational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. The leadership thinking of Kautilya and Ashoka embodies this principle. Both offer a common good approach, emphasising the leader's moral and legal responsibility for people's welfare, the robust interaction between the business community and the state, and the importance of moral training (...) of leaders in identifying and promoting the common good. We argue that the complex process of re‐orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. As Ashoka said: ‘A good deed is a difficult thing’. (shrink)

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)

This book provides an integrated and philosophically-grounded framework which enables a coherent approach to organizations and organizational ethics from the perspective of practitioners in the workplace, from the perspective of managers in organizations, as well as from the perspective of organizations themselves.

In a world facing multiple crises, our foundational institutions are failing to offer effective solutions. Drawing on the emerging consilience of knowledge, Michael Pirson debunks the fundamental yet outdated assumptions of human nature that guide twentieth-century management theory and practice - as captured in the 'economistic' paradigm - and instead provides an urgently needed conceptual and practical 'humanistic' framework, based on the protection of human dignity and the promotion of well-being. By outlining the science-based pillars of this innovative system, Pirson (...) provides a twenty first-century model for the responsible twenty first-century leader seeking sustainable ways to organize in a world of crisis. Highlighting relevant applications for research, practice, teaching and policy, this book is ideal for graduate students and professionals seeking to develop their understanding of responsible business, business ethics and corporate responsibility. (shrink)