About Humanistic Management
Why Humanistic Management is the Way forward
The fundamental reason why humanistic management is beneficial to all stakeholders is that it has a profoundly liberating effect on a company and, consequently, on all - internal as well as external - stakeholders.
The debate about corporate responsibilities is primarily framed as a sacrifice that companies should make in order to be good corporate citizens. This proceeds along the lines that a company would be better off without all those less desirable stakeholders who demand proper conduct but do not generate revenue. These stakeholders have gained sufficient power, though, to seriously harm a company, so it must pay attention to how it is perceived by the public; it must invest in gaining and maintaining an image of moral integrity.
While this view confirms that a negative reputation can cost a company dearly, its reasoning is flawed. In this view, ethical corporate conduct is an investment in reputational risk avoidance in order to steer clear of the costs that may result from a negative image; it is not motivated by normative, ethical evaluation or the outcome of stakeholder dialogue; it is not rooted in wanting to do what is right.
Humanistic management means getting the priorities right from the outset and emancipating the company, firstly, from the restraints of a one-dimensional goal set - profit maximization - and, secondly, from the permanent apprehension of being exposed to the harsh public response that may follow losses of legitimacy. Through this, humanistic management helps enterprises emancipate themselves, allowing for a more comprehensive self perception that reshapes the organization's role in society. Humanistic management helps companies think and act as corporate citizens one would want in one's community.
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