Addressing the Crises of Modern-Day Capitalism through Responsible Management: A Call for Multidomain Microfoundations Research

Abstract

Recently, a growing number of scholars have argued the case for “responsible management,” an approach that seeks to foster a world that is more livable for everyone. Responsible management scholars have highlighted the role of irresponsible managers in perpetuating global inequalities, major ethical breaches, and the escalating climate emergency, among other dysfunctions of contemporary capitalism. Thus far, these researchers have analyzed these problems primarily from macro-organizational and societal perspectives. These perspectives largely overlook key developments in microfoundations research that may offer more nuanced person × situational explanations of why some managers choose to address these problems responsibly, whereas others continue to fuel them. To address this shortfall, we call for new multidomain microfoundations research to illuminate the cognitive and affective bases of decision makers’ judgments and choices regarding responsible (and irresponsible) management behaviors. Specifically, we encourage work that advances understanding of the extent to which, and in what ways, managers (and other organizational stakeholders) can overcome the cognitive and emotional complexities inherent in meeting the ethicality, responsibility, sustainability, and management imperatives of responsible management. We hope our essay will stimulate discoveries that enrich theory and inform the design of interventions that accelerate progress toward a form of capitalism that is fairer and more sustainable.