Humanistic management: When profit-making leads to shared prosperity
In today’s profit-focused corporate landscape, humanistic management offers a refreshing vision: business as a force for societal good, not just profit.
This approach prioritizes ethical principles, employee well-being, and the common good over solely financial goals. It advocates that business should benefit all stakeholders, particularly employees, rather than merely enriching shareholders.
In nations like the Philippines, corporate growth often fails to reduce socioeconomic inequality. The wealth disparity raises an important question: Can business management help create a more inclusive economy?
Humanistic management answers “Yes,” emphasizing that while profit is essential, it should align with social and ethical values. Profit thus becomes a tool for empowerment and development rather than an end in itself.
Three management levels
Three levels of management thinking indicate progress toward humanistic management: instrumentalism, collaboration, and humanism.
Instrumentalism sees employees mainly as resources for business goals, often prioritizing profit over job security and growth. Collaboration values employees as business partners, emphasizing teamwork and productivity. Humanism, the highest level, respects employees as individuals and aims to foster their holistic development through the activities of the business.
Business leaders who embrace humanistic management can cultivate a culture of integral human development — supporting economic, social, and moral growth among its workers and stakeholders. Ethical leadership is key to this approach, modeling transparency, integrity, and responsible decision-making, which builds trust within the organization. A strong ethical culture, once established, serves as a lasting moral compass, encouraging employees to contribute to a mission benefiting society.
Pandayan Bookshop’s example
This humanistic approach is not just theoretical. During the second Shared Prosperity Summit held Oct. 9 by the Management Association of the Philippines (MAP) at Shangri-La The Fort, Gerardo “Jun” Cabochan shared his management team’s humanistic management practices at Pandayan Bookshop. The company is a retail chain with 150 branches spread throughout Luzon. Its head office and distribution center are in Paso de Blas, Valenzuela City.
Most of its branches are Bagwis awardees of the Department of Trade and Industry for upholding the rights of consumers while practicing responsible business. Pandayan has also won the Productivity Olympics of the National Wages and Productivity Commission of the Department of Labor and Employment.
Its customers recognize the excellent service provided by Pandayan Bookshop. The employees are reliable, honest, cheerful, and care about customers.
The company supports employees in achieving character development and a meaningful life of service to the company and the community. It also supports employees in their aspirations to have their own house and land, to have their children study in good schools, to eat healthy food, to wear decent clothes, and to go for a walk with their families every now and then.
To achieve this, the company provides employees with formation and role modeling, incentive compensation, memberships in two cooperatives and family-friendly benefits. Pandayan Bookshop demonstrates that prioritizing fair treatment and financial inclusion builds resilient, loyal workforces while producing positive business results.
Distributive justice
Humanistic management aligns with the Philippine Constitution’s mandate for businesses to contribute to the common good and distributive justice. This alignment strengthens the case for businesses contributing to the Sustainable Development Goals (SDGs), addressing socioeconomic issues through ethical practices, decent work, and fair wages.
By doing so, companies not only enhance their social impact but also secure long-term financial stability. In summary, humanistic management redefines business as a partner in shared prosperity. By fostering ethical values and supporting employee well-being, leaders can create companies that succeed financially while contributing meaningfully to the community. This approach empowers businesses to be catalysts for positive social change, transforming them into engines of prosperity for all.
Dr. Benito Teehankee is the Corazon C. Aquino Professor of Business and Management at De La Salle University. He is Chair of the Shared Prosperity Committee of the Management Association of the Philippines.
