In mainstream business and economics, prizes such as the Presidential Medal of Freedom are understood as special types of incentives, with the peculiar features of being awarded in public, and of having largely symbolic value. Informed by both historical considerations and philosophical instances, our study defines fundamental theoretical differences between incentives and prizes. The conceptual factors highlighted by our analytical framework are then tested through a laboratory experiment. The experimental exercise aims to analyze how prizes and incentives impact actual individuals’ (...) behavior differently. Our results show that both incentives (monetary and contingent) and prizes (non-monetary and discretional rewards) boost motivation to perform if awarded publicly, but only prizes crowd in motivation promoting virtuous attitude. (shrink)

The main emphasis of this new book from Luigino Bruni is a praise of heterogeneity, arguing that society works when different people are able to cooperate in many different ways. The author engages in a novel approach to reciprocity looking at its different forms in society, from cautious or contractual interactions, to the reciprocity of friendship to unconditional behaviour. Bruni'ss historical-methodological analysis of reciprocity is a way of examining the interface between political economy and the issue of sociality, generally characterized (...) by 'two hundred years of solitude' of the homo economicus. This historical analysis exposes an absence and this book looks at the reasons why among the many forms of reciprocity present in the civil life economics has chosen to deal just with the simplest ones. The second part of the book is an analysis of the interactions of the three forms of reciprocity faced with a forth strategy; the non-reciprocity. (shrink)

It is a truism that a market economy cannot function without trust. We must be able to rely on other people to respect our property rights, and on our trading partners to keep their promises. The theory of economics is incomplete unless it can explain why economic agents often trust one another, and why that trust is often repaid. There is a long history of work in economics and philosophy which tries to explain the kinds of reasoning that people use (...) when they engage in practices of trust: this work develops theoriesoftrust. A related tradition in economics, sociology and political science investigates the kinds of social institution that reproduce whatever habits, dispositions or modes of reasoning are involved in acts of trust: this work develops theoriesofsocialcapital. A recurring question in these literatures is whether a society which organizes its economic life through markets is capable of reproducing the trust on which those markets depend. In this paper, we look at these themes in relation to the writings of three eighteenth-century philosopher-economists: David Hume, Adam Smith, and Antonio Genovesi. (shrink)

Happiness is the pivotal concept of Italian economic thinking during the latter half of the eighteenth century. This essay proposes to demonstrate that the two main Italian groups of political economists of the time developed the theme of happiness following rather interesting complementary patterns. The Milanese group worked along eudemonistic eighteenth-century lines, moving from a hedonistic perspective: individual happiness provides the starting point. The Neapolitan side was based, in its turn, on an original reinterpretation of the Aristotelian and Scholastic tradition; (...) Neapolitan authors attempted to update that tradition and bring it into line with the new scientific method: civil economy is the result of that effort. In both cases, the canons of the "new science" are naturally woven into the political and economic discourse; political economy, in particular, is indeed elaborated by making use of those canons. In fact, this has the further incidental consequence of creating a continuum between political economy and technological applications of science. The emphasis on technical matters among reformers and political economists more generally stands out as typical of Italian enlightenment. It is, further, a special character of the Italian tradition, generally speaking, that the study of the polity in the light of the principles of the new science is not conducive to any purely mechanical view of the economy and society. It leads rather to a civic conception implying a quite sophisticated blend of institutional interactions, which is aptly described by Antonio Genovesi's term economia civile; it is a conception that can be traced easily through the Italian tradition in later periods well into the nineteenth century. Pubblica felicità and economia civile are the terms that best describe and qualify the system of political economy developing in Italy particularly during the latter half of the eighteenth century. As indicated above, we shall limit the discussion in this essay to the Milanese and the Neapolitan cases: the former group mainly reflects an emphasis on happiness and, more particularly, on public happiness; the latter is known for its peculiar use of the phrase civil economy. This statement, however, holds within limits, for the two terms do in fact apply in some sense to both the Milanese and the Neapolitan experience, as we shall see. Newtonianism had a role in the development of political economy in Italy throughout the eighteenth century. At the same time, however, it would be impossible to understand the relationship between Italian political economy and the Scientific Revolution without taking the Italian tradition of physics and mechanics, and in particular the contribution of Galileo, into account. The main achievement of Galileo, as far as physics is concerned, is as much experimental as intellectual, especially as it concentrates on showing the effectiveness of mathematical reasoning in developing ideal cases. In that sense we can speak of a Galileo-Newtonian tradition. The frame of reference and the intellectual sources for the present treatment are twofold. On the one side is a large current of thinking that can be termed moral Newtonianism; on the other side we have the developments of sensism and materialism in eighteenth-century thought. These two currents of thinking developed their influence in Italy, and they were a driving force in the flourishing of economic thought especially during the latter half of the eighteenth century. At the same time, this essay shows that the oeconomy that flourishes in Italy, within that frame of reference, is largely a development of the theme of happiness, and of public happiness more precisely, within a "constitutional" setting. A locus classicus of moral Newtonianism is to be found in Adam Smith's Essays on Philosophical Subjects and more particularly in his essay on the history of astronomy. Following Hume on the method of the new science and on the connection or association of ideas, Smith is led to emphasize the idea of connection, thus turning a treatment of the physical world into something of interest in the realm of morals and politics. He is, in fact, dealing with natural philosophy: "Philosophy is the science of the connecting principles of nature" (Smith 1976–95, vol. 3, sec. 2). (shrink)

This book provides essential reading for anyone with an academic or professional interest in business ethics today.

The place of self-concern in Christian love is studied, beginning with Fénelon's extreme claim that in perfect love for God one would desire nothing for its own sake except that God's will be done. This view is criticized. A distinction is made between self-interest (desire for one's own good for its own sake) and other sorts of self-concern; and it is argued that self-concern has an important role in the Christian virtues, but that self-interest has a less important role than (...) other sorts of self-concern. Finally, it is argued that Eros and Agape are not opposites, but Agape includes a certain sort of Eros. (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)

Management theory and practice are facing unprecedented challenges. The lack of sustainability, the increasing inequity, and the continuous decline in societal trust pose a threat to ‘business as usual’. Capitalism is at a crossroad and scholars, practitioners, and policy makers are called to rethink business strategy in light of major external changes. In the following, we review an alternative view of human beings that is based on a renewed Darwinian theory developed by Lawrence and Nohria. We label this alternative view (...) ‘humanistic’ and draw distinctions to current ‘economistic’ conceptions. We then develop the consequences that this humanistic view has for business organizations, examining business strategy, governance structures, leadership forms, and organizational culture. Afterward, we outline the influences of humanism on management in the past and the present, and suggest options for humanism to shape the future of management. In this manner, we will contribute to the discussion of alternative management paradigms that help solve the current crises. (shrink)

Commodities and Capabilities presents a set of inter-related theses concerning the foundations of welfare economics, and in particular about the assessment of personal well-being and advantage. The argument presented focuses on the capability to function, i.e. what a person can do or can be, questioning in the process the more standard emphasis on opulence or on utility. In fact, a person's motivation behind choice is treated here as a parametric variable which may or may not coincide with the pursuit of (...) self-interest. Given the large number of practical problems arising from the roles and limitations of different concepts of interest and the judgement of advantage and well-being, this scholarly investigation is both of theoretical interest and practical import. (shrink)

In this introductory article, we discuss the need for a rethinking of the theoretical foundations of management and the practice of business strategy in view of a range of social, environmental and ethical challenges that highlight the limits of ‘business as usual’. Calls for a reconsideration of current approaches have come to the fore in the fields of management, accounting, marketing and finance and we briefly review them here. We then introduce the four papers included in this special issue, each (...) of which answers previously unechoed calls from different field of business research. We highlight how each paper contributes to novel perspectives on a future for business - perspectives that more adequately reflect the challenges faced today by both the private sector and society at large. Areas for further research are indicated as well. (shrink)

This conceptual paper analyses the arguments which have been made in favour of a transition towards humanistic management. In order to reconcile economic as well as moral arguments an integrative model of humanistic management is presented. This model outlines prospective lines of empirical research especially in the area where business conduct is profitable but not humanistic.

This paper reviews and develops the ethical analysis of human resource management (HRM). Initially, the ethical perspective of HRM is differentiated from the "mainstrea" and critical perspectives of HRM. To date, the ethical analysis of HRM has taken one of two forms: the application Kantian and utilitarian ethical theories to the gestalt of HRM, and the application of theories of justice and fairness to specific HRM practices. This paper is concerned with the former, the ethical analysis of HRM in its (...) entirety. It shows that numerous theoretical shortcomings exist, least of which is the disregard of stakeholder theory. These deficiencies are explored and, as such, the analysis is advanced. It is argued that such ethical analysis is outside the scope of the modern corporation. A third way in which ethics may be applied to HRM is suggested. Ethical concerns are used as a basis to develop minimum standards against which HRM, in its various guises and practice, may be evaluated. Yet, even when judged by these standards, HRM is seriously lacking. This begs the question, not of whether HRM is ethical, but of whether HRM can be ethical. (shrink)

A repackaged edition of the revered author's classic work that examines the four types of human love: affection, friendship, erotic love, and the love of God—part of the C. S. Lewis Signature Classics series. C.S. Lewis—the great British writer, scholar, lay theologian, broadcaster, Christian apologist, and bestselling author of Mere Christianity, The Screwtape Letters, The Great Divorce, The Chronicles of Narnia, and many other beloved classics—contemplates the essence of love and how it works in our daily lives in one of (...) his most famous works of nonfiction. Lewis examines four varieties of human love: affection, the most basic form; friendship, the rarest and perhaps most insightful; Eros, passionate love; charity, the greatest and least selfish. Throughout this compassionate and reasoned study, he encourages readers to open themselves to all forms of love—the key to understanding that brings us closer to God. (shrink)

:A common justification offered for unequal pay is that it encourages socially beneficial productivity. G. A. Cohen famously criticizes this argument for not questioning the behaviour and attitudes that make those incentives necessary. I defend the communal status of incentives against Cohen's challenge. I argue that Cohen's criticism fails to appreciate two different contexts in which we might grant incentives. We might grant unequal payment to someone because they demand it. However, unequal payment might be an offer instead. I claim (...) that incentives as offers promote the ideal of society as a cooperative venture for mutual advantage. (shrink)

Public services worldwide have been subject to externally imposed reforms utilizing tools such as financial incentives and performance targets. The adverse impact of such reforms on a public service ethos has been claimed, but rarely demonstrated. Individuals within organizations work beyond their formal contracts of employment, described as Organizational Citizenship Behavior (OCB), to further organizational interests. Given New Public Management reform and the subsequent contextual changes in the way in which public sector organizations are managed and funded, the present study (...) theorizes that OCB directed towards the organization may be ‘crowded-out’. This article tests the relationships between public service ethos and OCB and it presents empirical evidence from a study in England ( n = 433) of the ability of each dimension of this ethos to predict OCB. (shrink)

The notion of dignity as that which has intrinsic value has arguably been neglected in economics and management despite its societal importance and eminent relevance in other social sciences. While management theory gained parsimony, this paper argues that the inclusion of dignity in the theoretical precepts of management theory will: improve management theory in general, align it more directly with the public interest, and strengthen its connection to social welfare creation. The paper outlines the notion of dignity, discusses its historical (...) understanding, and explains its relevance in the context of management theory. Furthermore, it proposes a framework of paradigmatic assumptions along two dimensions: understanding human dignity as unconditional or conditional and understanding social welfare as wealth creation or well-being creation. I propose alternative management theory archetypes and discuss these archetypes’ theoretical implications for management research. I also suggest how management theory can be shifted to contribute toward social welfare creation more directly. (shrink)

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)

Behaviorism is consistent with the assumptions of perfect competition, with the homo economicus model, and with a form of ethics that enshrines market-based notions of utility, justice, and rights and encourages rational maximizing. Economics and business courses foster this deficient form of ethics, assuming an overriding desire for money, which, according to MacIntyre and Aristotle, crowds out the associative virtues. These beliefs, often associated with Taylor and Friedman, lead to such practices as incentive compensation, which would be effective only if (...) employees were homines economici and thus rational in the sense of knowing how to satisfy whatever desires they have. Against Davidson’s view that psychology cannot be a natural science, Aristotle believes that there can be a teleological, if not exact, science of behavior. Aristotle believes that emotions and objectives may be rational or irrational. But rationality—phronesis, practical wisdom—is not a matter of applying algorithms. Doris questions whether character generates the first premises of an agent’s practical syllogisms, while Haidt has argued that we often act on emotions rather than on the basis of the reasons that we claim motivate us. Aristotle agrees that many people are not virtuous and that weakness of the will is a common occurrence, and he agrees that emotion drives actions. But if you are virtuous, your emotions and desires support your rationality. Aristotle gives us reason to reject the notion that people are homines economici and to treat them as rational deliberators, in part by creating an appropriate culture. The claim that it is in the nature of human beings to deliberate rationally is in part aspirational, but also in part scientific—in Aristotle’s modest sense. (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)