Redefining Firms in a Crisis Era: A Conceptual Framework for a Humanistic Approach Post-COVID-19

Abstract The fight against COVID-19 has been a significant global challenge with profound health, economic and social consequences, launching a VUCA (‘volatility’, ‘uncertainty’, ‘complexity’, ‘ambiguity’) era. The crisis highlighted resource shortages and uncertainty, prompting a reevaluation of the role of firms in society. Abandoning the guise of a mere profit generating tool, firms emerged as essential social actors, able to provide crucial resources during economic and relational famine. This shift determined a rethinking of capitalism, where the challenge was not just profit maximization for shareholders, but the inability to generate profits or to change the way to generate profits. To overcome the crisis, a common organizing approach was developed, enabling communities of people to work together for the common good. Analyzing the literature on corporate finalism, the paper explores how the fight against COVID-19 has reshaped the conception of firms as real entities dedicated to promoting the common good of stakeholders and society at large. The result is a more holistic model of firm and human being, aligned to the personalist principle, which overcomes both shareholder and stakeholder theories. Indeed, while these approaches have neglected crucial individual and corporate behavior to counteract the pandemic, the proposed theory seems to better address these issues, guaranteeing durability and growth during a profound economic and social crisis, such as COVID-19. Thus, the discussion contributes to the ongoing debate on the corporate purpose and provides useful insights for managers and corporate governance bodies, inspiring a more virtuous form of capitalism that promises a better future.