For Humanistic Management and Against Economics

Sigmund Wagner‐Tsukamoto

doi:10.1111/basr.12152

Abstract

AbstractThe 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.

Highlights

Criticism that economics, which sees itself rooted in the tradition of Smith’s Wealth of Nations, is inhumane and unethical is not a rarity throughout history
Ethical aspiration towards common good and the good society cannot be exclusively claimed by personalist humanistic management
The paper discussed three pathways as to how personalist humanistic management can lean on impersonalist ethics that we know as economics: (1) The mutual gains program of economics; (2) the economic systemizing of traditional ethics, which may reflect principles of personalist humanistic management, in institutional economic structures that frame a market economy; and (3) the economizing of ethical expectations of personalist humanistic management in processes of capital exchange, as ethical capital

Summary

Introduction

Criticism that economics, which sees itself rooted in the tradition of Smith’s Wealth of Nations, is inhumane and unethical is not a rarity throughout history In business research such arguments regularly flared up over the past decade or so around the concept of humanistic management. The argument is that an understanding of institutional economics as impersonalist ethics conceptually grounds personalist humanistic management and improves the practical success of personalist humanistic management – when a market economy context is given. In this way, the paper contributes to debate on business and society by spelling out how personalist humanistic management can lean on economics.

Personalist humanistic management: definitions and key features

Personalist humanistic management outside the market economy

Conclusions