Entrepreneurship has long been associated with innovation, risk-taking, and the pursuit of success. But what if there was a deeper, more meaningful approach to business—one that combined profitability with a commitment to values, ethics, and human flourishing? This is the essence of principled entrepreneurship, a concept that challenges the traditional view of business by placing the human person and moral values at the center of economic activity.
Andreas Widmer, an expert in entrepreneurship and a former Swiss Guard who served under Pope John Paul II, has dedicated his career to promoting this holistic approach to business. Through his work at the Catholic University of America’s Busch School of Business and as the founder of the Ciocca Center for Principled Entrepreneurship, Widmer advocates for a model of entrepreneurship that not only creates wealth but also upholds human dignity, encourages creativity, and contributes to the common good.
But what exactly is principled entrepreneurship, and how can it reshape the way we think about business?
What Is Principled Entrepreneurship?
At its core, principled entrepreneurship is about creating value for others through business practices that are grounded in ethical principles and respect for human dignity. Unlike profit-driven models that focus solely on financial gain, principled entrepreneurship seeks to balance profitability with a deep commitment to the well-being of employees, customers, and society at large.
The concept was inspired by Charles Koch’s “market-based management” philosophy, which emphasizes creating value in a way that benefits not just the business, but everyone involved. It’s a model that encourages businesses to contribute to economic growth while fostering an environment where people can thrive.
In practice, principled entrepreneurship involves a commitment to five key pillars, each of which plays a vital role in building a business that is both successful and morally sound.
The Five Pillars of Principled Entrepreneurship
- Creating Value for Others
The first pillar of principled entrepreneurship is rooted in the idea that businesses exist to serve others. This means that the primary focus of any entrepreneurial venture should be on creating value for customers, employees, and society as a whole. It’s not about extracting as much profit as possible; rather, it’s about finding ways to solve problems and improve the lives of others through your business.
This approach challenges the common misconception that business success is a zero-sum game, where one party must lose for another to gain. In principled entrepreneurship, success is measured by how much value is created for all stakeholders. The more value you create, the more your business will grow—and the more positive impact you will have on the world.
For entrepreneurs, this means constantly asking, “How can I help?” Whether it’s through providing a better product, offering exceptional service, or creating meaningful jobs, the goal is to contribute to human flourishing.
- Human Dignity and Respect
The second pillar emphasizes the importance of treating everyone with dignity and respect. In a world where businesses are often seen as cold, profit-driven machines, principled entrepreneurship calls for a human-centered approach. Employees are not just resources to be used—they are individuals with inherent worth, talents, and potential.
Respect for human dignity should be reflected in all aspects of business operations, from fair wages and safe working conditions to fostering a positive, inclusive workplace culture. This pillar encourages leaders to see their employees as co-creators in the mission of the company, not just cogs in a machine. When people feel valued and respected, they are more engaged, productive, and innovative.
This commitment to human dignity also extends to customers. It’s about understanding their needs, treating them with respect, and delivering value in a way that enhances their lives. Companies that operate with this mindset build trust and long-lasting relationships with their customers, leading to sustained success.
- Work as a Path to Human Flourishing
The third pillar of principled entrepreneurship is based on the belief that work is not just a means to an end—it’s a path to personal growth and human flourishing. This concept is deeply rooted in the idea that work is a form of participation in the creative power of God, where individuals use their talents to contribute to the world.
For entrepreneurs, this means creating an environment where employees can grow, learn, and develop their skills. It’s about offering opportunities for personal and professional development, as well as fostering a sense of purpose in the workplace. When people feel that their work has meaning and that they are contributing to something greater than themselves, they are more likely to find fulfillment in their jobs.
In this way, work becomes more than just a way to earn a living—it becomes a source of personal and spiritual growth. This is a radically different approach from the traditional view of work as a burden or a necessary evil. Principled entrepreneurship sees work as a path to becoming more fully human.
- Stewardship and Responsibility
The fourth pillar of principled entrepreneurship is stewardship—the idea that businesses have a responsibility to care for the resources they are entrusted with. This includes not only financial resources but also natural resources, human resources, and intellectual capital.
Stewardship is about using these resources wisely and sustainably, ensuring that they are not wasted or exploited for short-term gain. This pillar encourages businesses to think long-term and to consider the impact of their decisions on future generations. It’s about balancing profitability with responsibility, ensuring that business growth does not come at the expense of people or the planet.
Entrepreneurs who practice stewardship are mindful of their environmental impact, they invest in their employees’ development, and they build businesses that are resilient and sustainable over the long term. By doing so, they contribute to the common good and help create a more just and equitable world.
- The Economy Exists to Serve People, Not the Other Way Around
The final pillar of principled entrepreneurship is a powerful reminder that the economy exists to serve people—not the other way around. This principle flips the traditional narrative, which often places the economy above human needs, and argues that economic systems should be designed to promote human flourishing.
This means that businesses should not be solely focused on maximizing profits or shareholder value at the expense of people’s well-being. Instead, economic activity should be a tool for improving lives, strengthening communities, and building a better future for everyone.
Principled entrepreneurship calls on business leaders to rethink their priorities and to place human dignity and the common good at the center of their decision-making. This shift in mindset can lead to more ethical, sustainable, and impactful businesses that contribute to the overall health and well-being of society.
The Power of Principled Entrepreneurship in Action
Principled entrepreneurship is not just a theoretical concept—it’s a powerful framework that can be applied to real-world business challenges. Andreas Widmer’s career is a testament to this approach. Having been a part of successful ventures in the technology sector and leading philanthropic efforts, Widmer has seen firsthand how businesses that operate with principles can achieve remarkable success.
Take, for example, the story of Art Ciocca, an entrepreneur who revolutionized the wine industry by taking an unconventional approach to business. Ciocca’s company became the second-largest wine producer in the world by eliminating sales quotas and incentives—a radical departure from the norms of the industry. His principled approach, which focused on creating value for customers and respecting his employees, led to unprecedented success while also fostering a positive corporate culture.
This example highlights the transformative power of principled entrepreneurship. By focusing on long-term value creation, human dignity, and stewardship, businesses can achieve sustainable growth while making a meaningful impact on the world.
Building a Better Future Through Business
In today’s fast-paced, profit-driven world, principled entrepreneurship offers a refreshing and necessary alternative. It challenges us to think beyond the bottom line and to consider the broader impact of our actions on individuals, communities, and society as a whole.
By adopting the principles of value creation, respect for human dignity, work as a path to flourishing, stewardship, and the primacy of people over profits, entrepreneurs can build businesses that not only succeed financially but also contribute to a better, more just world.
For leaders, entrepreneurs, and aspiring changemakers, principled entrepreneurship is not just a path to success—it’s a way to create lasting, meaningful change. In a world that often prioritizes short-term gains, this approach offers a model for how business can be a force for good, helping both individuals and society to thrive.
