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The Myth of Responsibility: on Changing the Purpose Paradigm

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  • Friedrich Glauner

    (Eberhard Karls University of Tübingen)

Abstract

As part of our exploration of a new conceptual framework for an economy that works for 100% of humanity, this conceptual paper asks why all talk about the purpose of organizations seems to suffer from a certain bias, namely the bias of scarcity, and how this myth of scarcity influences our understanding of corporate responsibility. The mainstream understanding of corporate purpose always contains partly normative and partly functional aspects designed to cope with the purported problem of scarcity. According to economic and CSR reasoning, this bias concerning the purpose of business organizations triggers two quite distinct understandings of the essence of corporate responsibility. The economic view interprets it as responsibility towards the company, while CSR and business ethics argue that it reflects, or at least ought to reflect, a broader responsibility towards society. To overcome this responsibility gap, we need to affect a paradigm shift in economic reasoning, a shift which reconciles economic responsibility on the micro-level logic of raising profit with the greater demands of the meso, macro, and supra levels. Only then do we obtain a truly meaningful lever for changing real-world business practice from within the micro-logics of running a corporation. This paradigm shift requires a different mental model - a model of resource growth and natural abundance, rather than of scarcity - on the part of both economists and business ethicists. It can be labeled the economic model of future viability. This paper develops a conceptual argument for a future viable model of business practice which, first and foremost, takes seriously the need for the kind of micro-level decision-making which keeps individual organizations afloat, but which also, and crucially, delivers a solution for future viable business models and business behavior which breaks the apparent downward spiral of modern wealth creation, i.e. the spiral of continuous acceleration, disruption, concentration and resource exploitation, and which, thirdly, delivers a proper definition of purpose which can be applied in measurement systems which are free of biased assumptions of scarcity.

Suggested Citation

  • Friedrich Glauner, 2019. "The Myth of Responsibility: on Changing the Purpose Paradigm," Humanistic Management Journal, Springer, vol. 4(1), pages 5-32, July.
    • Handle: RePEc:spr:humman:v:4:y:2019:i:1:d:10.1007_s41463-018-0048-8
    DOI: 10.1007/s41463-018-0048-8
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    References listed on IDEAS

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    Cited by:

    1. Vanessa Schäffner, 2021. "Between Real World and Thought Experiment: Framing Moral Decision-Making in Self-Driving Car Dilemmas," Humanistic Management Journal, Springer, vol. 6(2), pages 249-272, July.
    2. Michael Pirson, 2019. "Managing Towards a World that Works for all," Humanistic Management Journal, Springer, vol. 4(1), pages 1-4, July.

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