Reconnecting Management Theory and Social Welfare : A Humanistic Perspective - Dignity as the Missing Link

Utilitarianism arguably provides the philosophical justification for suboptimal management theory. We provide a historical perspective on the development of management theory from its utilitarian basis, and highlight the missing conceptual link between management theory and human dignity. We argue that the notion of human dignity has been erased from economics and management despite its societal importance and eminent relevance in other social sciences. While management theory thus gained parsimony, we argue that the inclusion of human dignity in the theoretical precepts of management theory will: a) improve management theory in general, b) align it more directly with the public interest, and c) strengthen its connection to social welfare creation. We outline the notion of dignity, discuss its historical understanding, and explain its relevance in the context of management theory. Furthermore, we outline a framework of paradigmatic assumptions along two dimensions: a) understanding human dignity as unconditional or conditional, and b) understanding social welfare as wealth creation or well-being creation. We derive alternative management theory archetypes. Finally, we discuss these archetypes’ theoretical implications for management research and suggest how management theory can be shifted to contribute towards social welfare creation more directly