Role of Religious Ethics in Prevailing Business Framework - Essay Example

Role of Religious Ethics in Prevailing Business Framework and Section # of Introduction Business and economics have turned into key driving strengths in modern societies, in both the domestic and the intercontinental context. United with contemporary skills and technologies, they progressively form the thoughts and actions of people and influence increasingly spheres of life such as the fields of telecommunications, research and development, biotechnology, politics, and education. Consequently, the larger is their impact, the larger is the necessity and importance to certify that they build up “in the correct path,” if they are not to be discarded to an indecisive fortune. Management for business and economics should come from both aspects of “external” and “internal.” From external aspects as in terms of political force, legal directives, sociocultural practices and education. From internal aspects as in terms of positive faith and conduct of business companies and people, self-regulation of business unions, etc. The external aspect alone cannot accomplish this direction because it requires the inner responsibility of business nor is the internal aspect adequate because business, like any societal group, is only a sole element of society and needs supplementary external management and guidance. Nonetheless, the internal aspect is becoming more significant as the economic players have the benefit of more autonomy and thus abide by more accountability. In this period of fast globalisation and secularisation, where authority is moving away from its conventional hub in the West, the world will be inestimably poorer, more unsafe, and more brittle and most of all, more directionless —lacking the essential sense of rationale to help direct its voyage — if it is with no strong religious aspect. Given the tremendous challenges of globalization and secularization, it appears definitively prudent to place the religious approaches to business ethics into the global framework. This sets far above the ground standards, of which, until at present, the realistic and theoretical accomplishments of business ethics have fallen noticeably undersized. Necessity of Religious Guidance Business is component of the societal order. Its prime rationale is to fulfill material and human needs by manufacturing and dispensing goods and services in a proficient style. How this function is carried out the ways as well as the closing stages is central to the entire society. Along with the development in material wealth in the business world, there is rising in some sectors a value system which is damaging to the healthy development of human beings: self-interest and fraudulence are tending to replace bigheartedness and honesty. As a result, there is verification that goodness and moral customs are declining in their relevant societies. Part of the trouble is an ambivalence regarding what is believed correct and erroneous and economic relationships have not fled this impact. Since the free market structure, akin to others, is open to mistreatment, it can be used for self-centered benefits, or for well being. Therefore, an ethical framework is needed in which business can function openly and honestly and follow and value the regulations. Take the example of Enron that was the placard kid of the corporation and the management overlooked the reason that why they were in business. They were there to serve up clients, investors, workers. And they started to suppose they were in business to take out the utmost quantity of capital for the management, and that was a serious and incurable error ( Sen, A. 1987). Common Principles of Business Ethics in All Religions Four chief principles reappear in the text of the religions and form the foundation of any human dealings in business. Justice: The primary imperative is justice which can be termed as conduct, equality, use of power in maintenance of right. Almost all beliefs agree that God created the universe and that justice should symbolize the relations between its residents. An honest dealing between each other is persistently restated in the Scriptures as are Gods forgiveness and justice in his dealings with human race. Mutual Respect: The subsequent principle mutual respect or care and selflessness for others are also intrinsic in the ethical philosophy of every religion. The word care has many connotations in different languages. But, as is apparent from the interpretation of Scripture, the God of justice and kindness is also the God of care and love. What Scripture expresses as love and care is here recognized as mutual respect or reciprocal consideration. The function of this has come to mean that self gain and interest only has a position in the society in as much as it considers the benefits of others. The neighbour in the business framework can be defined as any corporate or individual with whom the company comes into contact in the route of business life. Of supreme significance in this value is the worker (Webley, 1993). Stewardship: Another principle shared by religions is that of stewardship (trusteeship) of Gods creation and all that is in it. It is an abundantly assorted universe: "...and it was good". The Scriptures give evidence to the attractiveness and marvels of natural world as symbols of Gods kindness and providence. Man is set over it all with entrusted accountability a steward charged with its concern and proper utilization for which he will have to provide explanation. Honesty: The next principle innate to the value system of all the religions is honesty. It integrates the models of straightforwardness and trustworthiness and covers all features of relations in human life expression. It is just beyond accurateness; it is a mind-set which is well encapsulated in the word "Veracity". Truth and honesty are essential in all dealings between businesses and people. It is stressed that fraudulence is an abomination and violates the fundamental laws of God. In business dealings, "true scales, weights, and standards" are to be employed (Webley, 1993). “Nothing is made by God for mankind to ruin or demolish.” Religious Teachings to Business Ethics A “Simple Approach” tackles the relation between religion and business ethics by incorporating the cognitive and normative-ethical aspects included in the issues and challenges business ethics are facing today. The further globalization and secularization proceeds, the bigger and more multifaceted the practical and ethical challenges turn out to be. “International transformations” are highly multifaceted processes far from being understood in their deepness and far-reaching effects for both international and local civilization. Religious ethics does not highlight rationality, self-sufficiency, or outcomes in the similar way that philosophical ethics does. To a certain extent, religious ethics is more related with the models such as care and the harmony of mankind. Secondly, religious education offers a particular objective for human society-an ethical vision that is regularly missing in the study of business. There is a lot in the Christian religion and its teachings that are appropriate to the area of management schooling and to business ethics more generally. There is no truth in the notion that religion is related chiefly with spiritual affairs relating to another world, instead that religious education has long wanted to influence the present mind sets of individuals, trying to teach people to work with compassion. “God’s creation is all for a true, just and righteous purpose. It is not for mere whim or sport.” Perceptibly there are a lot of methods of explaining business ethics. Here the improvement of a religious framework is suggested because it presents a number of benefits, particularly in the background of globalization, civilization and religious assortment and pluralism. Islam has offered approaches into how to deal ethically with matter such as the wealth distribution, the utilization of natural resources, environment protection, fair prices, labor practices relations and, and fraud. Islam and Christianity propose "a penetrating lens through which to inspect the moral character of the economy and of our organizations and those who administer them." Islam and Christianity are always emphasizing on Principle of Beneficence – do what is “Good”. This teaching makes a moral perspective and potential solution to an ethical problem acceptable. This teaching is also related to the ethical Principle of Utility, which states that mankind should try to produce the largest proportion of good over immorality possibilities in the world. This law demands that ethical theories must struggle to achieve the maximum amount of goodness because mankind profits from the most goodness. Islamic teachings emphasize on the principle of “Least Possible Harm”- deals with circumstances in which neither choice is favorable. In this case, a person should decide to do the slightest harm probable and to do harm to the least number of people. For example, in the Hippocratic Oath, a doctor is first charged with the legal responsibility to "do no harm" to the patient since the doctors principal duty is to offer helpful handling to the patient rather than to impose more distress upon the patients. So according to these teachings, business must not hurt their employees, shareholders, society and related small businesses. Christian teachings emphasize on the principle of Respect of Autonomy that individuals should be allowed to be able to make certain decisions that are applicable to their lives. As individuals definitely have the understanding of their lifestyle, they have a right to decide for themselves. So, the higher management of the company should not pressurize its employees to do illegitimate jobs, although these jobs are in favour of the company’s interests. Both religions stress upon the principle that individuals should stick to their responsibilities and duties when analyzing a moral problem- this is also the Principle of Deontology. This connotes that individuals must stick to their obligations to other persons or society. This principle provides a special basis for duties and responsibilities. If the management of Enron had followed this principle, lot of people would not have been in trouble form the demise of Enron (Zimmerman, 1988). Enron may be the main egregious example. But when you look at the behaviour of the management, who for the preceding few years were taking great accountability for what was occurring at the company, the huge achievement they get pleasure from -- being on the title of every newspapers, magazine, on television -- unexpectedly now appearing before assembly and saying, "We didnt see, know, we werent part of it, we didnt understand." Thats a lack of accountability. This is not just a business humiliation or even a political one, but it is a cultural problem. I see this as an example of the morals of new economy organizations. This is an ethical dilemma where in the novel economy we have freed many of the dictatorial limitations; weve authorized a lot of testing. And unluckily in the procedure of doing this, executives have taken benefit of some of their brand new liberty. And I think the dishonesty and stretching the hurdles of suitable behavior has consequences. And I see this as element of a wider, collective dilemma of the winner gets all. We have constructed a culture, we have an understanding of a civilization in which only the very crowned contestants, only the very crowned business icons, only the very renowned performers really perceive themselves as being very victorious. And thats depressing because that drives public to attempt to go for the excessive wealth, for the great achievement, more willingly than settling for achievement in a lot of further terms. There are religious concerns here, not just moral ones. Being very straightforward, the Bible -- biblical teachings -- denounces in the extreme terms the actions of Enron executives: selfishness, greediness, dishonesty, deceitfulness, and the harshest type of handling of employees. This is openly opposing to Christian faith. Christian teachings stresses that such decision should be taken that can bring greatest benefit to the mankind. An individual has numerous solutions available but he must select such solution which is in the favour of most people regardless of his personal feelings and interest. For example organizations may plan to shut one plant in a city because of low sales but on the other hand great number of persons will become unemployed. So the company must think about the consequences of that also and it is possible that the company make certain changes in its operations, value chain, reduce its expenses and revamp its production line, thus making products that are affordable to the residents if that city or may be a country. Islamic teachings emphasize that rights of the society should be given priority and must be protected. These rights are morally correct and much stress is given on them as large population will be affected. For example, businesses should not do any harm to the environment of the society affecting the health of its residents, caring for the society in which they operate. These are just not the right of the society and its atmosphere but of its residents also, for example Americans have the right to select their religion and it is held in their constitution also, but on the other hand the Nazi government did not uphold it and persecute Jews. Today many Multinationals are emphasizing on just profit making, they do not care for the society and its residents, like workers have to work for long hours, their wages are very low, some are polluting the environment also, some are hiring children (especially in Pakistan) to reduce their expenses and make large profits, employees are not given medical facilities, some are working in extreme harmful atmosphere and their health is at stake. To earn, people are compelled to bring their children to work with them instead of sending them to schools thus large population remains uneducated. Also in these societies, the proportion of crime is very high, people do not care for the rights of others also, kidnapping and robbery is very common, people kill others for money. The situation prevails in many nations of Asia and Africa. If religious teachings are followed, there would not be such hatred, dissatisfaction, cruelty, selfishness and the businesses and the society will in operating in ideal conditions (Bellah, Madsen, Sullivan., Swidler,Tipton, 1992). AN ETHICAL FRAMEWORK FOR BUSINESSES If by “capitalism” is intended an economic structure which distinguishes the elementary and optimistic responsibility of business, the marketplace, personal property and the resulting accountability for the ways of production, as well as liberated human creativeness in the economic segment, then the respond is definitely in the affirmative. Even supposing it would possibly be more suitable to say a “business economy”, “marketplace economy” or simply “open economy.” But if by “capitalism” is intended a structure in which autonomy in the economic sector is not limited within a well-built juridical skeleton, which places it at the examine of human liberty in its entirety, and which sees it as a special facet of that liberty, the core of which is moral and religious, then the respond is undoubtedly pessimistic. Employing the all above teachings, we can create an ethical framework for any kind of business, or company in the world. This framework is divided into key four components as the business has relationship not only with their shareholders but the society too (Küng, H. 1998). Business and Political Economy Business is component of the societal order. Its prime rationale is to fulfill material and human needs by manufacturing and dispensing goods and services in a proficient style. How this function is carried out the ways as well as the closing stages is central to the entire society. Contest between industries has generally been revealed to be the most effective way to ensure that resources are not exhausted, costs are reduced and prices are reasonable. The State has an obligation to see that markets function efficiently, competition is continued and innate monopolies are synchronized. Industry will not seek out to aggravate this. All economic structures have faults; that based on liberated and unbolted markets is morally impartial and has huge prospective for well being. Private venture, occasionally in partnership with the State, has the prospective to make well-organized and sustainable use of capital, thereby creating prosperity which can be employed for the profit of everyone. There is no fundamental disagreement between good business doing and profit. Profit is one measure of effectiveness and is of supreme significance in the functioning of the organization. It provides for the preservation and enlargement of industry, thus expanding service chances, and is the means of a higher living customs for all individuals as and inducement to work and be innovative. It is from the income of business that society can rationally levy taxes to fund its wider wants. As business is a joint venture of people of untrustworthy gifts they should never be judged as just a subject of production. The conditions of their service will be constant with the uppermost standards of human self-esteem. The well-organized utilization of resources will be guaranteed by the business. Resources engaged by businesses include finance, technology and land and renewable reserves. All are significant and most are inadequate. Business has an accountability to upcoming generations to develop the value of goods and services, not to humiliate the natural surroundings in which it functions, and seek to supplement the lives of those which are employed. Short-term productivity should not be pursued at the expenditure of long term feasibility of the business. Neither should company procedures disadvantage the wider society (Frederick, 1999). The Policies of a Business Business doings engages human relations. It is the difficulty of balancing the sensible interests of those concerned in the procedure: i.e. the shareholders that produce moral problems. The guiding principles of the business will consequently be based on the standards embarked in the sections above and especially: The board of directors will be answerable for examining that the company functions within the correspondence and fortitude of the rules of the states in which it works. If these laws are rather less rigorous in some parts of the world where the business operates than in others, the higher customs will normally be applied everywhere. The panel will issue a written declaration regarding the purposes and operating guidelines of the establishment, and their relevance. It will set out perceptibly the farm duties of the corporation towards the diverse stakeholders concerned with a business, its workers, shareholders, lenders, clients, contractors and the society (local and national government).The foundation of the relation with the chief stakeholders shall be sincerity and evenhandedness, by which is predestined honesty, in all connections, as well as dependability in all promises made on behalf of the establishment. The business shall preserve an ongoing association with all groups with which it is concerned. It will offer effectual way to converse information affecting the stakeholders. This relation is based on faith. The paramount do to be adopted in relations with itstake holders can be summarized as: Consider the societal effects of business decisions e.g. plant shut down, selection of any new location or extension of present ones, and the consequences on minor businesses. Not accept any kind of bribery, other dishonest or humiliating practices in business (Coleman, 1990). Owners (Shareholders) The shareholders accept the risks of possession. The selected directors must: Guard the interests of owners of the company. See that the companys financial statements are accurate and well-timed. See that owners are kept updated on all most important incidents influencing the company. Conduct of Individuals at Work Employees of a Firm must: Employ the decisions of the higher authority to whom he is accountable which are legitimate and in agreement with the companys guidelines in assistance with coworkers. Evade all exploitation of control for individual profit, advantage or status and particularly reject bribes or other incentives of any kind intended to maintain fraudulence or to break the law, not utilize any information obtained in the business for individual profit or for the advantage of family members or outside links. Disclose the information to his superiors every time his business or monetary interests become engaged with those of the corporation. Be actively apprehensive with the difficulties and troubles of juniors, treat them equally and guide them efficiently, promising them a right of rational access and plea to those to whom their immediate boss is accountable. Bring to the notice of superiors the likely consequences on workers of the companys prospect plans so that such consequences can be completely taken into account. Conclusion Given this ethical framework, and above religious teachings, businesses can be honest, and provide a benefit not only for the society but ultimately it affects ultimately the business also. If the society in which it is operating is free from all these issues, the businesses will also flourish and the effect will trickle down to the residents of the society, the nation and ultimately the whole world. References Bellah, R. N., Madsen, R., Sullivan, W. M., Swidler, A., Tipton, S. M. (1992). The Good Society. New York: Random House. Coleman, J. S. (1990). Foundations of Social Theory. Cambridge, MA: Belknap Press. Fischer, J. M. (1986). Moral Responsibility. Ithaca, NY: Cornell University Press. Frederick, R. E. (1999). A Companion to Business Ethics. Malden, MA/Oxford: Blackwell Publishers. French, P. A.(1984). Collective and Corporate Responsibility. New York: Columbia University Press. Journal of Business Ethics. (1997). Country- and Region-Related Reports. October Issue. New York/Oxford: Oxford University Press. Küng, H. (1998). A Global Ethic for Global Politics and Economics. New York: Oxford University Press. Sen, A. (1987). On Ethics and Economics. Oxford: Blackwell. Webley, Simon. (1993). A Global Ethic, The Declaration of the Parliament of World’s Religions. London. Zimmerman, M. J. (1988). An Essay on Moral Responsibility. Totowa, NJ: Rowman and Littlefield. Read More