Abstract

Considering human beings as “human resources” or “human capital” means that they are used only as a means of generating financial value. There is, however, an alternative approach emerging in management theory and practice, according to which all employees are considered and treated as persons and as ends in themselves; i.e., individuals with dignity. The paper shows that a personalistic approach might contradict the principles of short-horizon profit maximization, but still support the long-term economic sustainability of the company—but only in the case that the latter is not just considered another “managerial tool” aimed at maximizing performance, but is rather deeply rooted in the company’s DNA as part of its ethos. The fundamental principle of such an organization is implemented mutual love. Ideally, all employees and even external stakeholders will share the same value-set. Key to sustaining such a culture is the leader. When top managers focus on establishing and maintaining this type of culture they should follow a “servant-leadership” model. The paper proves the logic of the above-described approach and what it means in terms of day-to-day management, focusing on the leader–employee relationship.