Capitalism and human resource management may initially seem to be opposing forces. Capitalism traditionally prioritises profit maximisation and economic growth, often at the expense of human and environmental resources. Meanwhile, human resource management focuses on well-being, collaboration, and ethics, seeking to create environments where employees feel valued and engaged. However, despite the seeming contradiction, it is possible to reconcile the two, provided a balanced approach is found.
The traditional model of capitalism is often driven by the maximisation of profit, which can sometimes lead to the exploitation of human and environmental resources. This approach tends to put pressure on wages, encourages excessive standardisation, and can even dehumanise workplace relationships. On the other hand, human resource management promotes respect, talent development, listening, and personal growth. It strives to create work environments where employees feel fulfilled and invested in the company’s success.
The key to marrying these two seemingly contradictory forces lies in the emergence of conscious capitalism. Conscious capitalism offers a middle ground, advocating for a purpose that extends beyond profit. The focus is on creating value for all stakeholders’ employees, customers, the community, and the environment. This approach also emphasises ethical leadership, where leaders prioritise long-term thinking, transparency, and kindness. A positive corporate culture that fosters human connection and collaboration can lead to improved economic performance. Companies like Patagonia, Danone, and Ben & Jerry’s demonstrate that it’s possible to achieve profitability while also making a positive social impact.
In addition, the rise of mission-driven companies offers a tangible way to integrate social responsibility with economic success. In countries like France, the introduction of the Pacte Law in 2019 enables businesses to become “companies with a mission.” By embedding a social or environmental purpose into their corporate statutes, these companies are legally bound to pursue both financial profitability and human values. This legal framework encourages companies to measure their social impact as rigorously as their financial performance.
Furthermore, numerous studies have shown that human resource management practices, such as prioritising well-being, inclusion, and skills development, directly contribute to better economic outcomes. When employees are satisfied and fulfilled, they are more productive, creative, and loyal. Companies that invest in the well-being of their employees tend to see higher levels of innovation and growth. Google and Salesforce are prime examples of businesses that have made significant investments in employee well-being and have subsequently reaped the rewards in the form of a thriving, innovative culture.
However, integrating capitalism with human resource management does come with its challenges. One of the main hurdles is the temptation of short-termism, where the pressure from shareholders can limit the scope for human-centred initiatives. Another challenge is maintaining the right balance between performance and employee well-being. A business that is overly focused on human factors without considering competitive performance may struggle. Moreover, companies must be sincere in their efforts to create a positive impact. There is a risk of “greenwashing” or “social washing,” where businesses use ethical practices as a marketing tool without genuine commitment to action.
Ultimately, achieving a “humanised” form of capitalism is not only possible but essential. It requires a shift in mindset from “more is better” to “better is better.” Businesses must make human capital a strategic priority, recognising the importance of shared value creation where both the company and society benefit. By adopting enlightened leadership, fostering transparency, and measuring success not only in terms of ROI (Return on Investment) but also ROH (Return on Humanity), organisations can navigate the union of capitalism and human resource management effectively.
In conclusion, capitalism and human resource management can be successfully reconciled by adopting more ethical and sustainable approaches such as conscious capitalism and mission-driven companies. Human-centred management not only enhances employee engagement and innovation but also leads to improved economic performance. The true challenge, however, lies in avoiding short-term thinking and superficial marketing tactics. Success should be measured not just by profit, but by the tangible human and societal impact created in the process.
Emmanuel Ekoumba Bayap.
