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It is widely agreed by proponents of shareholder and stakeholder capitalism that firms are needed to create long-term value. While they debate whose interests this value creation should serve and how it should be measured, they rarely question the concept of value itself or whether firms should have this social role. This consensus is striking since the meaning of value is often unexplored and inadequately defined. This Element addresses that gap and challenges this consensus. It explores the nature and meaning of value, examines how value creation became the social role of firms, and asks whether firms should have this social role. It shows that the role of firms is not to create economic value for shareholders or stakeholders but to provide goods and services in ways that are consistent with social values. The analysis also offers a new, relational theory of the firm to help enable this paradigm shift.
Meaningful work is a central determinant of employee well-being, motivation, and performance, yet little is known about how abusive supervision undermines employees’ experience of meaningful work, particularly across hybrid/remote and office-based contexts. Adopting a resource-based perspective, this study examines how abusive supervision relates to meaningful work among hybrid/remote and in-office employees via reducing three key resources: autonomy, self-efficacy, and belongingness. Using cross-sectional survey data from 512 employees in Spain and Portugal, we tested a parallel mediation model comparing hybrid and in-office workers. Although abusive supervision did not directly relate to meaningful work in either group, it strongly reduced the three key psychological resources, which significantly reduced meaningful work. All mediational pathways were significant for both groups; however, indirect relationships were consistently stronger among hybrid workers. These findings suggest that hybrid/remote working employees are more vulnerable to abusive supervision due to heightened dependence on supervisors in contexts characterized by physical distance.
Emerging research indicates that mātauranga Māori (Indigenous Māori knowledge and worldview) can meaningfully inform leadership practices and organisational decision-making, contributing to economic, social, and environmental outcomes. However, research investigating the potential link between organisations that integrate mātauranga Māori into their practices and employees’ perceptions of psychosocial safety climate (PSC) remains unexplored. This rich case study within an Aotearoa/New Zealand secondary school collected data from multiple sources to examine how mātauranga Māori shaped perceptions and the enactment of PSC. It found that mātauranga Māori has a reciprocal relationship with PSC and can act as a complementary framework by embedding tikanga (Māori cultural values) that enable relational trust, collective responsibility, and a holistic approach to psychological health and safety. This study’s contribution advances the PSC literature by demonstrating that Indigenous perspectives offer novel insights and cultural value in PSC development, reinforcing the importance of culturally responsive practices for employees’ well-being.
This chapter explores the practical applications of the capability approach (CA) in organisational settings. The chapter presents real-world examples of how the CA can be implemented at various levels – individual, team, and organisational – through initiatives such as guided conversations between supervisors and employees about work values, reflective dialogues and workshops, capability counselling sessions, leadership awareness training, and boardroom support. By presenting real-world examples, this chapter aims to provide insight into the practical applicability of the CA and how its adaptable framework can be tailored to various organisational settings. We hope that the examples inspire readers, as they address pressing societal challenges that affect us all, calling for urgent reflection and collective action.
This chapter discusses the integrative aspects of the CA in two dimensions. The CA has had tremendous reach and influence in a relatively short period of time because of its productivity in being integrated into a wide range of academic disciplines and professional practices, including well-being at work. This integration is largely possible due to its informational openness to diverse forms of knowledge, both relevant facts and diverse values of people. This openness is due to at least two ethical reasons. To avoid violence, such as causing or tolerating deprivations of well-being and inequity. To engender the legitimacy of any policies and programmes informed by the CA, in presenting how to integrate them, the discussion focuses on identifying the core components and concepts of the CA as a starting point. The latter part of the chapter discusses the integration of the CA in daily practice, where individuals deal directly with the well-being of individuals. There is also a focused discussion on conversion factors and commodities, providing encouragement not to be limited by existing categories.
This chapter applies the capability approach (CA) to explore work capabilities across diverse occupations and countries. In a globalised world of work, the CA offers a human-centred framework for understanding how individual agency and structural conditions interact to shape people’s opportunities at work. The chapter begins by outlining the CA and its relevance to work and employment. It then examines key capabilities required in different occupations, focusing on how education, labour markets, workplace practices, and social policies support or constrain these capabilities. Cross-national and occupational comparisons highlight the variation in work capabilities across different contexts. In conclusion, the chapter offers recommendations for creating inclusive and enabling work environments that are relevant to policy and practice. By analysing work through the lens of the CA, this chapter contributes to a deeper understanding of how to expand human capabilities in the workplace and promote decent, empowering work across global contexts.
In this introductory chapter, we explain the application of the capability approach (CA) to the work domain. Sen, the founder of the CA, argues that justice and well-being can best be expressed in terms of capabilities. Capabilities are the possibilities or freedoms people have to realise ‘doings and beings they have reason to value’. Our view in this book is that if workers can realise this in their work, then people can be who they want to do the things that add value for themselves and their working environment. This contributes to well-being and flourishing at work. Sen’s starting point from practical situations fits well with work where improvements also occur from the actual context of that work. Concepts such as diversity, contextuality, and inclusivity, which are important aspects of the CA, are also crucial for work where everyone can flourish. The theories and conceptions that are relevant to the foundation and positioning of the approach are briefly discussed. The chapter starts with an anecdote from Sir Christopher Wren, which serves as a metaphor for the topics discussed in the chapter and the book as a whole. The chapter ends with a brief overview of the book.
Capability is the informational focus of the theory of justice developed by Sen. This means that, according to this theory, people’s relative advantages and disadvantages should be assessed in terms of their capability. I present and discuss some of the investigational requirements that this entails. A key challenge here is that a capability relates not only to what people actually end up being and doing that is of value to them (achieved functionings) but also to what they are in fact able to do, irrespective of whether they choose to realise such an opportunity. This seems to produce a paradox in Sen’s writings – capability assessment being quite complex on the one hand but surprisingly simple on the other. Drawing on what Sen has to say on the relationship between capability and human rights, I offer a possible explanation for the apparent paradox. Two case studies are given, showing some methods that may be used to assess capability and how the validity and relevance of the resulting evidence can be assessed. I conclude by suggesting that Sen’s capability approach can be considered a realist and non-ideal theory of justice and that specific approaches to capability assessment should be in line with this.
This chapter explores the capability approach (CA) in relation to decent work (DW) and flourishing at work, presenting a nuanced framework for understanding and enhancing employment quality. Decent work encompasses job security, fair wages, safe working conditions, and respect for workers’ rights. Flourishing at work extends the concept of DW by considering how work contributes to well-being, personal growth, and fulfilment. Combining the frameworks of DW and flourishing at work with the CA offers a comprehensive understanding of the role of work in human development. The connections among capabilities, DW, and flourishing at work are deeply intertwined, as all three concepts focus on enhancing human well-being, dignity, and growth potential. By integrating DW, capabilities, and human flourishing, policymakers, organisations, and civil society can move beyond compliance with minimum standards (decent work), centre human agency and diversity, and aspire to lives of emotional, psychological, and social well-being.
Human flourishing is a fundamental goal of most societies, and various theories have approached this concept, including the International Classification of Functioning, Disability, and Health (ICF), the job demands-resources (JD-R) model, self-determination theory (SDT), and the integrative model of behavioural prediction (IMBP). These theories focus on different aspects of well-being and the factors that influence an individual’s ability to lead a fulfilling life. This chapter aims to explore the capability approach (CA) and examines how it complements and connects with these existing theories. This chapter demonstrates how, by emphasising the importance of individual capabilities and human agency, the CA broadens the applicability of these theories. Unlike classical models that focus primarily on analysing situations, the CA highlights the broader context, aiming to enhance flourishing by considering situational determinants and the impact of contextual factors on an individual’s ability to make meaningful choices. This chapter contributes to a more nuanced understanding of human flourishing by illustrating the synergies between the CA model and other theoretical models. It argues that to be truly comprehensive and effective in the real world, theories must embrace the transformative potential of the CA.
Corporate governance involves the rules and practices that direct and control the decision-making of a corporation. The allocation of discretionary decision rights to individuals in organisations directly connects corporate governance with the principles of contributive justice. In this chapter, we start from Amartya Sen’s The Idea of Justice to provide a perspective on organisational justice and explore the process towards achieving contributive justice as far as determined by the patterns of corporate governance of the organisation. Specifically, we argue that just corporate decision-making needs to build on the contribution of stakeholders to the corporation. This argument is captured by a conceptualisation of justice in terms of contributive justice (see Chapter 3). The emphasis on contributive justice within corporate governance is further developed in a generalised stewardship theory as a model of governance that orients stakeholders towards advancing the collective benefit. The generalised stewardship approach to corporate governance particularly emphasises the contributive aspect of organisational participation, emphasising not only transparency and ex post accountability on the distribution of resources and outcomes but also ‘process accountability’, equity, and integrity.
This chapter builds on two papers published in 2016 that were the first to define and operationalise sustainable employability (SE) in a questionnaire (the CSWQ) in terms of the Capability Approach (CA), published by a consortium of the authors of this chapter. In this chapter, we first briefly summarise the research reported in these papers and then present research that has been conducted since then. We update and further develop the relationship between SE and the CA. In reporting follow-up research since 2016, we first present the results of a Delphi survey among experts and discuss some constructive critical remarks that have been published in the scientific literature. We discuss the conceptual and empirical steps taken since 2016. We distinguish between studies with a focus on 1) methodological aspects, both conceptual and measurement properties of the capability instrument, 2) specific target groups and 3) specific contexts and situations. The chapter concludes with a discussion and suggestions for future research in this area. In addition, two appendices have been added with the CSWQ (Appendix 2.1) and a conversation guide for the practical application of the CSWQ in the consultation room (Appendix 2.2).
This chapter explores the concept of decent work from the vantage point of the Global South, arguing for a universal yet context-sensitive framework grounded in the capability approach (CA) and decolonial thinking. Drawing from the South African historical experience, it critiques how notions of labour and dignity have been shaped by colonialism, apartheid, and persistent structural inequalities. The chapter positions the CA not as an individualistic or Western framework but as one that emphasises relationality, emancipation, and context-based capabilities. In dialogue with decolonial theory, the CA enables a pluriversal conception of decent work that is historically grounded and socially just. The concept of parrhesia, or courageous truth-telling, is presented as a shared ethical commitment within both frameworks, facilitating critical interrogation of hegemonic labour norms. Through this lens, decent work becomes a transformative and reconstructive pursuit – one that confronts structural violence and fosters human dignity, inclusion, and epistemic justice.