Interview: Heiko Spitzeck Humanism in Business: Perspectives on the Development of Responsible Business in Society TT: We are in the studio today with Dr Heiko Spitzeck, Lecturer in Corporate Responsibility here at Cranfield School of Management. Heiko, you have put out a book Humanism in Business, just out, Cambridge University Press. Interesting book in business, in particular. Tell me about the book; where does it come from? HS Well it all started with a little wine and cheese session back in Switzerland where I did my PhD, with a couple of colleagues. We were interested in getting a fresh perspective on business because we recognised that in the German speaking area; a lot of the business ethics schools were fighting each other for their approach. And instead of moving forward on their agenda in general, they were bogged down in conversations about what is the right approach for business ethics. So we thought why don’t we elaborate on a philosophical travel – let’s say – applied to business, where we think about the common routes of human life and philosophic thought instead of getting into these different struggles that business ethics schools have gone into. And it was more than a feeling we had to explore humanism and we reached out to practitioners and theoretical people in the field and academics to say how can we put this together and how does humanism apply to business? TT So more of a foundation – a foundation to share conversations about business ethics? Was it somewhat neutral? I get the feeling that it is a kind of Esperanto of ethics – it’s a kind of general common language. Would that be fair to say? HS Well I think in an academic discipline you always have to at least clarify the routes where you are coming from; if you are utilitarianism or if you are coming from a deontological background. And we thought humanism is not like building up barriers between different disciplines, but looking more at the common ground which we see increasingly necessary in a globalised world. And business is one of these drivers in a globalised world. So we end up with value conflicts and whether we look at what makes us different from each other, we said hold on a moment, instead of making differences, why don’t we concentrate on what is common to all human life on the planet – whether we are in China or Brazil or the UK? TT So what is the ‘ism’ of humanism? Heiko Spitzeck HS Well I think that is the spelling out of the roots and saying this is the philosophical framework we work with, and we go back on the human being – what is common to all the humans – ‘let man be the measure of all things’. And these are our roots. You can criticise that as you can criticise any other ‘ism’ but at least it is spelt out and it is not implicit like is current practice with a lot of academic work in economics and management. TT So reading the book you seem to have a tremendous range of people talking about humanism. One thing I was taken with for most of them is the lack of a transcendent. There is no recall or invocation of something not of this human world – have I understood that correctly? HS Yes. We think there might be a god, but instead of posing all our luck and faith into the hands of a god or a belief, we think what we can be sure of regarding a rational thought etc, is that we are all humans, we experience this life together - we experience empathy with other people. We don’t know if there is a god. We don’t exclude the possibility, so I strongly believe you can be a Christian humanist. And actually in Barcelona one of our contributors comes from the Catholic background and he looks at humanism in business from a Christian perspective. We have Greg Epstein in this book who is the Humanist Chaplain of Harvard University who argues that if we take pride in our own religion, it’s like taking pride in our own theories without acknowledging the fact that other people have bright thoughts as well. And if we capitalise on the broader scale we might achieve more in the long run. TT So is another word for it then rationality, or rationalism? HS Definitely it’s a rational approach, but it’s also an approach which you can apply rational thought on furthering your self interest; you can apply rational thought on the interest of your community or your particular nation; and you can apply rational thought on the furtherance of human progression overall. And I think we are more at the last level I mentioned – further the human wellbeing and dignity of all humans. TT So the human addition of reality? HS Yes. TT Right. Some critics would say that maybe it’s too anthropocentric; it’s too human oriented and there is too much concentration on the foreground, the foreground of existence being the human, and less or not enough on the background of what it is we are embedded in – Knowledge Interchange Podcast Page 2 Heiko Spitzeck the context we are embedded in. How would you respond to that? HS Well I think whether we look at nature and the sustainability movement, I think the flowers and plants and animals don’t start the discussion about what is our value in the world? So it is all happening in our minds. So it’s our mind we have to control and its happening in the human mind and that is why we come down to humanistic thought. Because it’s the value discussion we have about the value of the natural environment to us, enabling us – like Brundtland put it – the wellbeing of the future generations to come, as well as take into account how our children and grandchildren can approach life here on this planet if they have the same position. TT So it’s not because the background of the ecology is not important, it’s because the debate about the ecology is our debate – that we are having that debate? HS Yes, correct – it’s a human debate. TT So then why should business people in particular, this is humanism in business – those last two words – why should managers be interested in this? HS Because if you start from the wrong philosophical assumptions and a lot of, in my view, the current economic thought is based on utilitarianism: the greatest good, for the greatest number. You have a few in power who decide what is the greatest good for the greatest number and then we run with it. We can see that this model of thought has led to severe problems in our actual lives regarding climate change, poverty, etc. So breaking free from that, we suggest basically another philosophical grounding of economic and management thought, which is based more on how can we foster human wellbeing on a global scale; which means on the one hand including sustainability thought, the necessities of life I would say. What is necessary for every human being on this planet to have? The conditions of a good life. And then if you have that assured like in a lot of developing countries, then it are the quality of life aspect. How can we increase the quality of life of all humans within our territories? TT So in terms of the practical aspects – and there are practical aspects in the book, diagrams and tips and so on – what, or how, could the average manager put some of this into practice:? What could they do on the Monday morning? HS Well on the Monday morning – one model which is currently very heavily discussed is social entrepreneurship. People like Mohammed Yunis who got the Nobel prize for a business idea, Peace Nobel Prize, who contributed to our book as well; we have Knowledge Interchange Podcast Page 3 Heiko Spitzeck two Nobel Laureates and one of them is Mohammed Yunis. I think they can serve as a template for the manager, saying how do you evaluate a business if you take financials aside? How do you evaluate what real contribution does our business do to humanity? What are the positive impacts we have, what are the negative impacts? How can we leverage the positive ones, and how can we minimise the negative ones? And these are questions which normally social entrepreneurs ask themselves when they set up their business plans; and venture philanthropists ask how can we ramp up this idea? How can we make credit available to the poorest of the poor in a lot of countries? And as you can see with Yunis’ idea of micro credits, it’s bred in territory: it’s applied to Brazil, it’s applied to Africa. You see Citigroup taking it up as a foundation and saying OK, how can we foster this spread of micro credit. Which for me, and I guess for my colleagues as well, the fellow editors and authors of this book, would be a sign of humanism in practice. So how can we foster the wellbeing by the business we do? TT So in terms of teaching business ethics, and I am not sure whether you ally the two together, this provides a new paradigm for teaching business ethics? HS Yes TT And business ethics, is that secondary now? Is there a new paradigm with humanism? HS No, I think business ethics is a very general term. You can have utilitarian business ethics, you can have deontologic business ethics – you can have whatever kind of business ethics. And maybe the German speaking area, the fight they have is basically along these lines of ideology they are following. Humanism is, like I said, getting down the barriers and saying you can be of a utilitarian background primarily, you can be of a deontological background – all your arguments are valuable in the discourse for business ethics, so let’s bring them forward and see how they can best be aligned with creating human value. TT So where is the next book-where does this research take you? What would you like to do now with this? HS Well we have already started – it was kind of funny because at one of the biggest management conferences last year we organised a session on humanism in business and my colleague and I were very surprised to see more than 100 people coming into the auditorium at eight o’clock in the morning, which is kind of unusual. And they were all interested in the agenda. So we are now planning a book series looking at the different issues. One is humanistic Knowledge Interchange Podcast Page 4 Heiko Spitzeck management in practice, so a collection of case studies showing how do organisations really do it and why would we consider them to be humanistic instead of being just socially responsible or sustainable. Another book is looking at the financial crisis with the running hypothesis that the banks who were doing well are managed more humanistically and more down to ground to human value creation than banks who drifted off and focused on profitability only. Another book is looking at humanistic management education which is a very actual topic because the UN announced a principles for responsible management education which Cranfield is also part of. And I think a lot of my academic fellows on the teaching side, they would look for something to show how we can put that into practice and how can we educate our students? So these are the three books we currently have in the pipeline and there are more. TT Heiko Spitzeck, thank you very much. HS Thanks very much Toby for the talk. Knowledge Interchange Podcast Page 5