Religious Teachings and Business Ethics - Essay Example

Introduction This essay will explore to what extent religious teachings have a place in the formation of business ethics. Ethics is a that governs a person or group in respect to what is right and wrong. For better or worse, most people obtain their sense of right and wrong through the transmission of religious values. Throughout human history mankind has sought social order and ethical direction from religion. How do our religious beliefs impact business practices In order to examine this complex issue, first it is necessary to develop a historical perspective by identifying historical figures and philosophies that have shaped the effect religion has had on business practices around the world. Next, specific religious beliefs and systems will be examined using four distinct ethical constructs. The Utilitarian approach holds to the ideal that societies should strive for the most good fro the most people. Jeremy Bentham eighteenth century philosopher wrote "The greatest happiness of the greatest number is the foundation of morals and legislation" (Fisher & Lovell 2003, p. 95). The writer / philosopher John Stuart Mills also wrote extensively on Utilitarianism (Daft 2005). Individualism is viewed as the essentially opposite of Utilitarianism. The Individual approach maintains that right moral choices lead to what is in the best long term interest of the individual. German economist and sociologist Max Weber's influential essays on capitalism emphasized individual efforts and the accumulation of personal wealth (The Free Encyclopaedia 2007). The Moral Right approach values fundamental human rights and identifies six moral sub categories; free consent, right to privacy, right to freedom, of conscious, right to free speech, right to due process and the right to life and safety (Daft 2005). Finally, the Justice approach promotes the idea of moral decision making and is based on standards of equity, fairness and impartiality. Daft identifies three distinct forms of justice(2007). Distributive justice governs the right of people to be treated fairly without discrimination based on arbitrary characteristics. Procedural justice proscribes that rules should be applied consistently and compensatory justice argues that people should be compensated for injury and loss (Daft 2007). Certainly all four of these perspectives can be identified in most major world religions. Historical Perspective In order to set a proper stage for the discussion of religion and its place in business ethics it is important to provide an overview of the historical influences on the matter. One of the first moral codes to impact mankind stemmed from the religious society of Judaism. In the books of the Bible there are plentiful references as to how the faithful should conduct themselves in relation to their neighbours, family and friends. The figures in the Old and New Testaments of Bible; Solomon, David, Moses and Jesus of Nazareth; were most certainly well known for their ethical teachings. Important philosophers and ethical teachers can be identified throughout human history. The Greek philosopher Aristotle had a tremendous impact on business and ethics in both the eastern and western worlds. He is widely considered the father of economics despite the fact that he had great distain for trade. Aristotle referred to those who engaged in business for profit as "parasites" believing that all trade was a form of exploitation (Donadson & Werhane 1999) Also known for his emphasis on virtues; Aristotle's ideas have been applied to business practises throughout history. His moral virtues include, among others; prudence, temperance, liberality and truthfulness. These virtues have endured through the ages and have wide appeal in the business world. Many later philosophers adapted the virtues, first identified by Aristotle, and applied them to their own ideology. Thomas Aquinas, primary philosopher of the Catholic Church, wrote of the four cardinal virtues of prudence, temperance, justice and fortitude. Aquinas was more specific in his discussions of business practices and condemned unfair trade and the charging of interest (The Free Encyclopaedia). This aversion to interest payments goes back to the Old Testament where references are made regarding the sinful nature of charging interest to fellow Jews. Later, Mohamed would also condemn the practise of charging interest which endures in the Islamic culture to this day. Just as western business ethics have their roots in Aristotle, Thomas Aquinas, and holy books such as the Bible, eastern cultures also have business ethics that are deeply rooted in age old religious practices and beliefs. Shosan Suzuki, a sixteenth-century Zen priest is thought to be responsible for the development of capitalism in Japan. Suzuki taught that people should become "living Buddhas" and that honesty was the most important quality for business people. Later, economic philosopher Baigan Ishida, expanded on Suzuki's views on spirituality and honesty. This philosophy eventually evolved into the modern Japanese business system and has shaped the predominant management style of present day Japan (DeMente 1993). The fundamental philosophical influence in Japanese culture is that of the Shinto religion. Shinto is an ancient belief system without formal texts and teaches all things are spiritually connected. Shinto promotes the idea of spiritual unity and believes all human relationships should be governed by mutual harmony. This ancient religion maintains that all people are responsible for all others (DeMente 1993 p. 34). Chinese philosopher Confucius has had a major influence on eastern business ethics and practises in China, Korea, Japan and Vietnam. His teachings and ideas were similar to Aristotle in that Confucius had ideas about moral codes, virtues and aspiring to personal and social perfection. The Golden Rule of "do unto other as you would have them do unto you" can be traced directly to Confucius (The Free Encyclopaedia). Eastern religious traditions have had tremendous impact on the development of business practices in Asia and around the world. Ethical Constructs To compare religious frameworks and their effects on the business practices in various cultures it is necessary to understand how these beliefs relate to fundamental business ethics. The four basic business managerial values identified by Daft in his basic text on management are Utilitarian, Individual, Moral Right and Justice (2005). The following discussion of business ethics will examine eastern and western religious practices in relationship to these four ethical ideas. The Utilitarian approach maintains the importance of the group and the Individual approach values the importance of the individual. The Moral Right approach emphasises human rights and the Justice approach focuses on legalistic aspects of ethical business behaviour. In order to put religion and business ethics into perspective it is important to view religion in an objective non-biased manner. Using a theoretical framework to study religious influences on business is helpful in maintaining a balanced perspective. Utilitarian The Utilitarian approach promotes the idea that it is most ethical to create a society or system where the good of the group is the most important value. Utilitarianism holds that the good of the many outweighs self interest in individual success (Daft 2005). According to Donaldson and Werhane, John Stuart Mills proposed that purpose for all moral action is to achieve happiness (1999). Mills believed that Utilitarianism would ultimately produce the greatest happiness for the greatest number of people. Certainly when Karl Marx wrote his Communist Manifesto he was promoting utilitarian ideals, however, Marx focused more on the negative consequences of a "non-utilitarian" society through his examination of worker and social alienation. Marx is notorious for his aversion to organised religion but it is interesting to note that Marx's famous statement that "religion is the opium of the people" is often misquoted and misinterpreted. The original statement, written in the preface to his Contribution to the Critique of Hegel's Philosophy of the Right, actually makes Marx sound more tolerant and understanding of religion than popular history might lead us to think. "Religion is the general theory of this world, its encyclopedic compendium,its logic in popular form, its spiritual point d'honneur, its enthusiasm, its moral snaction, its solmn complement, and its universal bias of consolation and justificationReligious suffering is, at one and the same time the expression of real suffering and the protest against real suffering. Religion is the sigh of the oppressed creature, the heart of the heartless world and the soul of the soulless conditions. It is the opium of the people." (The Free Enciclopedia) Marx recognized the profound relationship between economics, business, labour and government even though his ideas were at odds with the Protestant religious values of his day. Nowhere is the Utilitarian ideal more aparent than in Japan. In Japanese business the good of the company is of the utmost importance. Where did this value of community and group success come from It is clear that these values run deeper than basic social norms. Japanese business practices are filled with tradition, formalities and rules of etiquette that can be directly traced to religion. As a matter of fact, DeMente proposes that work is the primary religion of Japan (1993). Wa, which can be translated as "peace and harmony" is one of the most important words in the Japanese language. The concept of Wa originated in the Shinto religion. Loosly translated Shinto means "the way of the Gods". Much of Japan's management style is founded on the Shinto business idea that harmony and unity should govern the relationship between management and employee. The Japanese workforce is driven by the fundamental values of unselfishness and harmonious behavior (DeMente 1993). The expression jibun ga nai which means "I have no self" is unique to Japanes culture. The Japanese people have spent centuries repressing their individual emotions and desires in favor of group. This ideal has shaped Japan into one of the most successful economies in the world. The Japanese consider their company or kaisha to be much more than just a place to work. Japanese workers view their companies more like a family and display fierce loyalty and pride in regard to their workplace. As a matter of fact, in Japan, ones status is more dependent on which company one works for rather than on ones actual profession. Japan's utilitarian business approach, grounded in Shinto philosophy has shaped the Japananese economy into an immensly successful, productive and powerful machine. Their great success however, is not without it's price to the Japanese people. Younger Japanese students and workers are finding the traditional system restrictive as they struggle to find their own identities in a ridgid communal system. After repressing the self for so long, it is difficult for them to interact spontaneously with each other. Due to their long history of strict adherence to a very specific set of social norms they struggle with free expression of ideas (DeMente 1993 ). In addition, many young Japanese professionals emotioanlly fold under the immense pressure to work for a prestigious company where status is determined for life. Individual Approach The Individual approach focuses on moral choices of the individual and values individual self interest as the highest ethical position. Max Weber's Protestant Ethic and the Spirit of Capitalism promotes individualism and openly discusses the profound influence of Puritan values on development of capitalism (The Free Encyclopaedia 2007). Unlike Karl Marx, who believed capitalism and worker alienation created the need for religion, Weber believed quite the opposite. He developed the "Weber thesis" in which he proposed that it was spontaneous mass action on the part in individuals driven by the Protestant Ethic that was the driving force behind capitalism. In Weber's classic work on the protestant ethic he identifies the influences of Calvinism, Puritanism and Protestantism on western economic culture. He compared the influence of the Catholic Church with Protestant Reformation. Weber concluded that people behaved differently when they believed their salvation was assured by the grace, sacraments and the authority of the Catholic Church. Weber said that after the Protestant Reformation people were uneasy about their spiritual salvation and did more to reassure themselves that they were among the "elect". "In the absence of such assurances from religious authority, Weber argued that Protestants began to look for other 'signs' that they were saved." (The Free Enciclopedia 2007). Economic success essentially took the place of the concept of grace taught by the Catholics and the Protestant Ethic was born. Later Weber's colleague Ernst Troeltsch, a theologian, expanded on Weber's work. His Social Teachings of the Christian Churches was a comprehensive study of the mutual influence between the social forces of the church and society (The Free Encyclopedia 2007). He addressed specific social issues in relation to Christain ethical values and idea. He discussed specific social and economic issues including possessions, work, trade, family and even slavery (The Free Encyclopedia 2007). His influence on modern bussiness ethics has been far reaching and like Weber, he believed that religion has a profound effect on society, economics and specific business practices. In our modern world, bothe the positive and negative effects of the Protestant Ethic and its capitalistic values can be seen throughout Europe and the world. The economics of capitalism and the values and ethics of Individualism is prevelant throughought Europe and the United States. Capitalism has created great wealth and prosperity for many, however some are left in poverty to struggle on their own in this "individualist" system. It seems, like in Japan, great economic success always has a price. Moral Right The Moral Right approach holds the value of human rights in the highest regard. This ideology is demonstrated by the Catholic Church through its endeavours in social justice and fair labour practices around the world. The catechism of the Catholic Church has specific teachings on the subject of human rights and conducts "social justice" projects across the globe. Pope Leo XIII issued the Church's first socioeconomic ethical commentary in 1891, On Capital and Labour (Catholic Social Teachings 2007). In his essay the Pope incorporated the teachings of Karl Marx and Friedrich Engles proclaiming the dignity of workers and their right to organise unions. Later, in his discussion titled On Human Work, Pope John Paul II proposed that the main purpose of work was to express human dignity (Catholic Social Teachings 2007). This willingness to take public stance on economic and business issues has become the hallmark of Catholic social justice ministry. Catholic activism can be seen in their many social justice projects especially in Latin America. But their involvement is not always welcomed by the local economic / business culture. In the 1970's Archbishop Oscar Romero became involved in the plight of the peasant plantation workers. At this time only a few peasants owned land. Most farmland had been taken by more powerful landowners with the help of the government. As the landowners grew more rich and powerful, everyone else lived in extreme poverty. The Catholic Church began working with the peasants not only to relieve their suffering but to help them organise and win basic human rights. The powerful landowners, backed by a corrupt government, saw this as a threat to their power and economic success. They launched a campaign of random violence against the peasants and the Catholic Church (Windley-Daust 2007). A reign of terror fell across El Salvador and Archbishop Romero became more directly involved in the peasant workers cause. His weekly homilies condemning the injustice and the violence were broadcast over the radio and those in power became increasingly fearful of Romero's influence on the working peasants. Eventually, in March of 1980 Romero was shot through the heart while saying Mass (Windley -Daust 2007). Around the world, the Catholic social justice ministry provides relief, development and legal assistance to some of the poorest people on earth, agricultural workers. The Catholic Church is involved in socioeconomic projects designed to assist agricultural workers in Africa, South America and the United States. It is common for conferences of Catholic Bishops to write letters political leaders in an effort to effect social and economic change in their respective countries. It is clear that these Catholic endeavours are not always popular with the predominant business culture, as demonstrated in El Salvador in the 1970's and 80's. Justice The Justice approach maintains that moral decisions must be based on standards of equity, fairness and impartiality. The Catholic Church has not always been viewed as a champion of justice. The history of the Catholic Church is scarred by ethical and judicial scandals like the one involving the Knights of Templar. Recently, the Vatican re-published the complete heresy trial of the Knights of the Templar (The Free Encyclopaedia). generating much popular discussion about the mysterious Knights and their treatment at the hands of King Philip and Pope Clement V. It is said that as the knight's military power increased, so did their wealth. They acquired valuable property and began to operate a primitive banking system throughout Europe. King Philip of France tortured and killed many of the Knights due to his fear of their economic power. It has long been rumoured that Pope Clement V and the Catholic Church feared the Knight's economic power as well. Historians believe that Philip owed debts to the Templars to support his own war with England. The King used accusations of heresy to have the Knights arrested and under torture he extracted confessions. He seized their assets and riches and it has been said through the ages that he did so with the full knowledge and blessing of the Catholic Church. The role of Pope Clement V and the Catholic Church in the destruction of the Knights of Templar has been widely discussed and debated especially since the recent popularity of Dan Brown's novel The DaVinci Code. The recently republished manuscripts of the papal trial of the Templars includes a long ignored document showing that Pope Clement V initially absolved the order of heresy, however the debate over the Churches involvement in their fate is not likely to be resolved anytime soon. It appears that most likely the Church and King Philip of France, arrested, tortured and destroyed the Templars to put an end to their banking practises rather than their heresy. Conclusion Historically, religion has played a vital role in the development of ethical business practices. Throughout the world, religious practises and customs impact the way we do business with one another. In our technological, age the world has become small and on any given business day, a manager might place a telephone order with a customer service representative based in Pakistan, teleconference with a Chinese quality assurance team over lunch and then wrap up the day with a series of e-mails to a technical consultant based in the United States. The more our global our economy becomes the more important it is to develop an understanding of different religions and their resulting business practises. As it has been discussed, most business practices are firmly rooted in the religion of the predominant culture therefore it is important for all managers to embrace cultural differences when doing business. Managers must be sensitive to cultural needs of their own workers as well as individuals from other companies. More often than not, organised religion has led societies to intolerance and war rather than harmony and peace but throughout history it seems the one place where societies are willing to overcome their prejudice is in the market place. Mankind's saving grace has always been trade. Making efforts toward understanding different religions and cultures is not only ethical and good for the cultural relations ...it's good for business. Bibliography Daft, RL 2005, Management, Thompson, Southwestern Australia DeMente, BL 1993, Japanese Etiquette & Ethics in Business, NTC Business Books, Illinois Donaldson, T & Werhane, P (ed.) 1999, Ethical Issues in Business, Prentice Hall, Florida Fisher, C & Lovell, A 2003, Business Ethics and Values, Prentice Hall, Harlow Catholic Social Teachings, Office for Social Justice, [Online] Available at: http://www.osjspm.org/economic_justice_for_all.aspx Windley-Daost, J (ed.) 2007, Primary Source Readings in Catholic Social Justice, St. Mary's Press, Winona The Free Encyclopaedia 2007, Wikipedia, [Online] Available at: http://en.wikipedia.org/wiki Read More