Towards a Human Centered Theory and Practice of the Firm

In this paper we review the challenges to the current economic system, and proceed by presenting two competing paradigms- the economistic and the humanistic paradigm of business. We then develop the consequences of the humanistic view for the theory of the firm and the practice of the firm. We examine business strategy, governance structures, leadership styles, and organizational culture and illustrate them based on global case examples. In this manner we contribute to the discussion of alternative theories of the firm centering the debate on authentic human needs and its consequences for management theory.