Domènec Melé

Humanism in business is not only an alternative to economism but a way to human excellence. Humanism presented here revolves around the rich notion of “human person”, keystone of modern personalist philosophy and Catholic Social Teaching. From this perspective this book is offered to everyone, believer and nonbeliever alike. The person-centered humanism considers the human-wholeness, individual and relational, with subjectivity, self-determination, openness to transcendence, and with capacity not only to possess but also to give. It also highlights the uniqueness of each person, endowed with a high constitutive dignity and in continuous process of flourishing toward human plenitude. An attitude of respect and good will is due to non-personal beings, while persons deserve to be treated with justice and even with love of benevolence. The book is prepared in dialogue with mainstream of thought in business and business ethics and focused on exploring ways to improve some conventional views. It includes some proposals such as a person-based ethics, ethics understood as intrinsic to business activity, the consideration of the company as an organized community of persons, and the purpose of the company oriented toward the common good through a double mission, internal and external. It is also suggested substituting the notion of “stakeholder” for the richer one of “relationholder.”

Numerous ethical theories have been proposed as a foundation of business ethics, and this often brings about appreciable perplexity. This article seeks to identify specific problems for a sound foundation of this discipline. A first problem is this multiplicity of ethical theories, each with its own metaethics, often accepted without a serious discussion of their philosophical grounds. A second problem is the fragmentation of theories; some centred on duties or obligations, others on consequences, virtues, or moral sentiments. In addition, some theories focus on universal principles, while others take the singularity of each situation as their focal point. A third problem is that not every ethical theory covers the personal, organizational and societal dimensions of business ethics, and this introduces reductionism. These problems cannot be satisfactorily addressed through ‘ethical pluralism’, in which all theories are accepted, without falling into ethical relativism. ‘Ethical pragmatism’, which welcomes any ethical theory only on the basis of their practically, is also questioned. Furthermore, there is the problem of integrating ethics into business theory, which is often extrinsic to the economic function. After analysing these problems, the article concludes by exploring some proposals that might serve to build a sound and complete ethical theory which includes human goods (objective values), principles (or norms) and virtues. The necessity of reconsidering the human action for a closer integration of ethics into business theory is also suggested.

Industry 4.0, which is at the core of the Fourth Industrial Revolution, posits the challenge of humanizing it. Drawing upon Catholic Social Teaching (CST), this article offers a set of ethical and spiritual criteria for such humanization. The starting point is a positive attitude of CST toward technology, admiring it not only for its usefulness, but also as an expression of human creativity, ingenuity, and beauty. This entails a transcendent sense leading to praise the Creator. At the same time, CST warns that technology involves the risk of fostering a techno-centered worldview and calls for a humanistic-centered worldview. Other ethical criteria regard conducting technological developments with ethical guidelines, minimizing inside effects of technological implementations, managing technology for the common good, and introducing technology into the production process in respect of human dignity and favoring human flourishing.

This paper is the introduction to the Special Issue with a selection of papers presented at the 21st IESE International Symposium on Ethics, Business and Society, held in Barcelona, Spain, in July 2021. The Symposium focused on the future of work and how to promote dignity and human flourishing. This editorial introduction emphasizes how work has been studied over the centuries and how new directions have been considered in recent times. We suggest that dignity and human flourishing are particularly relevant in the current context and for the future of work. Finally, the papers that make up this special issue are introduced and summarized.

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.

Various organizational factors reported in the hitherto literature affect individual behaviour within a company. In this paper, we conduct a literature review thereof, and propose a notion of the “Organizational Moral Structure” defined as a comprehensive framework of interrelated organizational factors that condition, incite or influence good or bad moral behaviour of individuals within the organization. Drawing from a wide bibliographical review and our own reflection on recent business scandals, we identify seven constituents of the “Organizational Moral Structure”: 1) leader’s values and character, 2) vision and exercise of power, 3) corporate control systems, 4) internal network of influence, 5) organizational culture, 6) internal and competitive pressures, and 7) external influences. The “Organizational Moral Structure” is proposed as a reflective framework for humanistic management and as an invitation to further research in this field. We provide recommendations on how a manager oriented towards humanistic management can use the OMS to secure and promote well-being and dignity of company’s employees.

Quality is commonly applied to products and processes, but we can also define human quality in dealing with people. This requires first establishing what treatment is appropriate to the human condition. Through an inquiry into the characteristics that define the human being and what ethical requirements constitute a good treatment, we define “Human Quality Treatment” as dealing with persons in a way appropriate to the human condition, which entails acting with respect for their human dignity and rights, caring for their problems and legitimate interests, and fostering their personal development. With this in mind, we can distinguish between five different levels or degrees of HQT in organizations which can be characterized by the following terms: maltreatment, indifference, justice, care, and development.

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.

Loyalty within the firm, though praised by some, is criticized by others. An analysis of the historical and current significance of theconcept of loyalty can aid in both understanding its critics and responding to them. Loyalty in the business world is generallyunderstood in three ways: i) transactional retention, ii) sentimental attraction, and iii) willingness to commit oneself. In the third type,the commitment to adhere to a person, cause, or institution may contribute to human flourishing and therefore generate the humanvirtue of loyalty. The human virtue of loyalty is as far from fanaticism as it is from the betrayal of legitimate commitments freely undertaken. As with all virtues, its content must be rationally determined. Loyalty thus understood enhances the humanity of both persons and business firms and contributes to heightened cohesion and cooperation within the firm. Moreover, according to some recent research, managing a business on the basis of loyalty can enhance economic results.

The paper starts with a case study of a medium-sized company in which a strong and successful change in the organisational form and job design took place. A bureaucratic organisation with highly-specialised jobs was converted into a new organisation in which employees became much more autonomous in managing their own work. This not only entailed new techniques and managerial systems but also a new anthropological vision. Bureaucratic rules were reduced, but not eliminated completely, and management became less authoritarian. Employees could therefore apply greater entrepreneurial spirit, developing their talents in pursuit of the company’s common goals. It is argued that this new organisational form is ethically superior to the old, and reflects the basic requirements of the principle of subsidiarity. The ethical principle of subsidiarity holds that a larger and higher-ranking body should not exercise functions which could be efficiently carried out by a smaller and lesser body; rather the former should support the latter by aiding it in the coordination of its activities with those of the greater community. While the principle has usually been applied in a political context, this paper explores the principle as a moral base for organisational forms within business organisations. Finally, the principle of subsidiarity is analysed in the context of business organisations and proposed as an ethical guideline for organisational forms. This would help to mitigate the effects of those bureaucracies in which individuals, with their dignity, freedom, diversity and capacity for undertaking business activities with entrepreneurial spirit, are often not fully appreciated.

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

Power is one of the key ideas in management, and so is the concept of authority. However, most studies on power are rather instrumental, dealing with the place of power in management, and how to achieve it. Less attention has been paid to the essential concepts of power and authority themselves in management thought and how they have evolved. To clarify these concepts, and to better understand the notions of power and authority in management and their proper use in organisations, this paper goes back to one of the pioneers in management thought: Mary Parker Follett (1868-1933). She had an original vision of power, holding that genuine power is not ‘power-over’, but ‘power-with’. At the same time, she defended an authority based on function and responsibility. We explain what her account implies for management in theory and practice.

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 decision-making, 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.

Humanistic management is a people-oriented management that seeks profits for human ends. It contrasts with other types of management that are essentially oriented toward profits, with people seen as mere resources to serve this goal. This article reviews the historical development of humanistic management and the ever-increasing body of literature on the concept as well as the different meanings that scholars attribute to it. It then explores what form a genuine humanism might have by presenting seven propositions labeled as: 1) wholeness, 2) comprehensive knowledge, 3) human dignity, 4) development, 5) common good, 6) transcendence, and 7) stewardship-sustainability. Next, it looks at four characteristics of a humanistic ethos for managing business: the view of the individual and human work, the role of the individual in the society and in interacting with nature, the business firm, and the purpose of business in society. Finally, it presents some insights for the practice of humanistic management.

The macro-level business ethics in Scholasticism contrasts with modern Anglo-Saxon Capitalism, which is very influential worldwide. Scholasticism, developed between the thirteenth and the mid-seventeenth centuries, deals with key elements of free market morality, including private property, contracts, profits, prices, and free competition. For over 500 years Scholasticism tried to understand economic phenomena and business activities and reflected on them from an ethical perspective. Scholasticism offered the crucial lesson of the centrality of justice and the role of practical wisdom in considering market morality. Justice is seen as both a virtue and a principle, and commutative justice with the common good of society as the reference for the Scholastics, is regarded as being especially important.

An organizational culture can be defined as "Organizational Humanizing Culture" if it presents the following features: (1) recognition of the person in his or her dignity, rights, uniqueness, sociability and capacity for personal growth, (2) respect for persons and their human rights, (3) care and service for persons around one, and (4) management towards the common good versus particular interests. Current findings and generalized experience suggest that an organizational culture with these features tends to bring about trust and associability, which are basic elements for social capital (a sort of asset embedded in the relationships of individuals, communities, networks or societies).

Ethics in accounting and ethical education have seen an increase in interest in the last decade. However, despite the renewed interest some important shortcomings persist. Generally, rules, principles, values and virtues are presented in a fragmented fashion. In addition, only a few authors consider the role of the accountants character in presenting relevant and truthful information in financial reporting and the importance of practical reasoning in accounting. This article holds that rules, values and virtues are interconnected. This provides a sound approach to ethics in accounting, in which character and practical reasoning are crucial. Consequently, ethical education in accounting has to simultaneously include the knowledge of proper rules and principles and their correct application; values (understood as moral goods) and virtues, whose acquisition, in the view of the author, should be encouraged.

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