Jewish business ethics
Encyclopedia
Jewish Business Ethics is a form of applied Jewish ethics
that examines ethical issues that arise in a business environment.
, there are more commandments concerning the kashrut (fitness) of one's money than the kashrut of food. These laws are developed and expanded upon in the Mishnah
and the Talmud
(particularly in Order Nezikin
). Laws concerning business ethics are delineated in the major codes of Jewish law (e.g. Mishneh Torah
, 12th c.; Shulhan Arukh, particularly Choshen Mishpat
, 16th c.). A wide array of topics on business ethics are discussed in responsa
literature and in musar literature
.
Rabbi Yisrael Lipkin Salanter (19th century), founder of the Musar movement in Eastern Europe, put a great deal of emphasis on business ethics, and taught that just as one checks carefully to make sure their food is kosher, so too should one check to see if his money is earned in a kosher fashion.
49b and 50b) and later codes (Rambam, Mekhira, Chapter 12) expand on this verse to create a series of specific laws prohibiting ona'ah, monetary deception. The prohibition is on the sale of an article at so much more, or to the purchase of an article at so much less, than its market value that fraud or the taking of an undue advantage is presumed. A discrepancy of one-sixth enables the wronged party to secure the cancelation of the sale or purchase; that is, an article worth six money-units in the market may not be sold for seven or bought for five (B. M. 49b). It seems that overcharge by the merchant selling to the consumer was the most frequent instance in which the application of the rule was called for; the claim had to be made as soon as the buyer had had an opportunity to show his purchase to a merchant or to one of his friends. It is said that R. Ṭarfon taught at Lydda that the discrepancy must amount to one-third to justify an action, whereupon the merchants rejoiced; but when he extended the time for rescission to the whole day they demanded the restoration of the old rule.
Either seller or purchaser, whether merchant or one in private life, may make the complaint, notwithstanding the opinion to the contrary of R. Judah ben Ilai. The purchaser imposed upon may ask either for rescission of the transaction or for the return of the excess paid by him.
In the case of changing money it was suggested that a lack in weight of even one in twelve should be sufficient ground for complaint, but the prevailing opinion fixed here also the ratio of one in six. Within a great city the time for complaint extends until the money in question can be shown to a money-changer; in villages, where no money-changer is to be found, until the eve of the Sabbath, when the party deceived is apt to tender the coin in payment for his purchases.
In B. M. iv. 10, the Mishnah proceeds: "As there is 'wronging' in buying and selling, so there is 'wronging' in words; a man may not ask, 'What is this article worth?' when he has no intention of buying; to one who is a repentant sinner it may not be said, 'Remember thy former conduct'; to him who is the son of proselytes one may not exclaim, 'Remember the conduct of thy forefathers'; for it is said, 'Thou shalt neither vex a stranger, nor oppress him'" (Ex. xxii. 21). In a baraita (B. M. 58b) which follows this section the subject is further developed. "When a proselyte comes to study the Law one should not say, 'He that ate the meat of fallen or torn beasts, of unclean and creeping things, now comes to study the Law that was spoken by the mouth of Omnipotence!' When trouble or sickness comes upon a man, orwhen he has to bury his children, none should say to him, as Job's friends said to Job, 'Where is thy fear of God, thy trust, thy hope, and the innocence of thy ways?'" The baraita forbids also practical jokes. "If ass-drivers come to one for fodder, one may not send them to N. N. to buy it, knowing that N. N. never sold hay or grain in his life."
On the authority of R. Simeon ben Yoḥai, it was said that wronging by words is worse than wronging in trade, for the Scripture as to the former, but not as to the latter, commands, "Thou shalt fear thy God": R. Eleazar says, because one injures the man himself, the other affects only his property; R. Samuel b. Naḥman says, because in one case there is opportunity for restoration, in the other there is not. The Talmud then dwells upon the unpardonable sin of "blanching the face of one's neighbor in public," and closes with the admonition that under all circumstances a man should beware of "wronging" his wife, because her tears are ever ready to accuse him before the throne of God.
, literally "stealing of the mind/knowledge"), refers to a kind of dishonest misrepresentation
or deception
. The prohibition on geneivat da'at is attributed to the Talmudic sage Samuel of Nehardea
in Talmud Chullin (94a): "It is forbidden to mislead people, even a non-Jew." One Midrash
states that geneivat da'at is the worst type of theft
because it directly harms the person, not merely their money. In rabbinic exegesis
, the law is associated with Gen. 31:26 and II Samuel 15:6.
Rabbi David Golinkin
has explained the principle's application to business ethics
as follows:
(Leviticus 19:14) prohibits "placing a stumbling block before the blind
." Jewish tradition sees this as a figuratively expressed prohibition against misleading people. When it comes to business ethics, Rabbi David Golinkin
has pointed to the following examples of what this principle prohibits:
authored a responsum in 2008, approved by Conservative Judaism
's Committee on Jewish Law and Standards
, which argued that Jews are obligated to pay their workers on time, strive to pay their workers a living wage, and "to treat their workers with dignity and respect." The responsum prohibited "publicly yelling at, mocking, or otherwise embarrassing workers; forbidding employees from speaking their native languages at work; banning all bathroom breaks; changing work hours or adding shifts without advance notice; or making improper sexual comments or advances toward workers."
Enforcing laws regarding the proper treatment of workers in the food industry has been central to the efforts of Conservative Judaism's Hekhsher Tzedek commission.
, regarding an employee's obligation to report wrongdoing on the part of his or her employer. He concluded that "In any case of wrongdoing, there is an obligation to rebuke the person doing wrong if it can be assumed there is a reasonable chance the rebuke will be listened to, and the rebuke can be administered without substantial personal cost to the reporter."
Jewish ethics
Jewish ethics stands at the intersection of Judaism and the Western philosophical tradition of ethics. Like other types of religious ethics, the diverse literature of Jewish ethics primarily aims to answer a broad range of moral questions and, hence, may be classified as a normative ethics...
that examines ethical issues that arise in a business environment.
Textual sources for Jewish business ethics
In the TorahTorah
Torah- A scroll containing the first five books of the BibleThe Torah , is name given by Jews to the first five books of the bible—Genesis , Exodus , Leviticus , Numbers and Deuteronomy Torah- A scroll containing the first five books of the BibleThe Torah , is name given by Jews to the first five...
, there are more commandments concerning the kashrut (fitness) of one's money than the kashrut of food. These laws are developed and expanded upon in the Mishnah
Mishnah
The Mishnah or Mishna is the first major written redaction of the Jewish oral traditions called the "Oral Torah". It is also the first major work of Rabbinic Judaism. It was redacted c...
and the Talmud
Talmud
The Talmud is a central text of mainstream Judaism. It takes the form of a record of rabbinic discussions pertaining to Jewish law, ethics, philosophy, customs and history....
(particularly in Order Nezikin
Nezikin
For Jewish law on damages, see Damages Nezikin or Seder Nezikin is the fourth Order of the Mishna...
). Laws concerning business ethics are delineated in the major codes of Jewish law (e.g. Mishneh Torah
Mishneh Torah
The Mishneh Torah subtitled Sefer Yad ha-Hazaka is a code of Jewish religious law authored by Maimonides , one of history's foremost rabbis...
, 12th c.; Shulhan Arukh, particularly Choshen Mishpat
Choshen Mishpat
Choshen Mishpat is the Hebrew for "Breastplate of Judgement". The term is associated with one of the four sections of Rabbi Jacob ben Asher's compilation of halakha , Arba'ah Turim. This section treats aspects of Jewish law pertinent to finance, torts, legal procedure and loans and interest in...
, 16th c.). A wide array of topics on business ethics are discussed in responsa
Responsa
Responsa comprise a body of written decisions and rulings given by legal scholars in response to questions addressed to them.-In the Roman Empire:Roman law recognised responsa prudentium, i.e...
literature and in musar literature
Musar literature
Musar literature is the term used for didactic Jewish ethical literature which describes virtues and vices and the path towards perfection in a methodical way.- Definition of Musar literature :...
.
Importance of business ethics
Avot de-Rabbi Natan teaches that “character is tested through business.” A widely quoted tradition from the Talmud (Shabbat 31a) teaches that in one's judgement in the next world, the first question asked is: "were you honest in business?"Rabbi Yisrael Lipkin Salanter (19th century), founder of the Musar movement in Eastern Europe, put a great deal of emphasis on business ethics, and taught that just as one checks carefully to make sure their food is kosher, so too should one check to see if his money is earned in a kosher fashion.
Requirement of accurate weights and measures
According to the Book of Leviticus (19:35-36): “You shall not falsify measures of length, weight, or capacity. You shall have an honest balance, an honest weight, an honest ephah, and an honest hin.”Prohibition of monetary deception (ona'at mamon)
Leviticus 25:14 teaches: “When you sell anything to your neighbor or buy anything from your neighbor, you shall not deceive one another.” The Talmud (Bava MetziaBava Metzia
Bava Metzia is the second of the first three Talmudic tractates in the order of Nezikin , the other two being Bava Kamma and Bava Batra. Originally all three formed a single tractate called Nezikin , each Bava being a Part or subdivision...
49b and 50b) and later codes (Rambam, Mekhira, Chapter 12) expand on this verse to create a series of specific laws prohibiting ona'ah, monetary deception. The prohibition is on the sale of an article at so much more, or to the purchase of an article at so much less, than its market value that fraud or the taking of an undue advantage is presumed. A discrepancy of one-sixth enables the wronged party to secure the cancelation of the sale or purchase; that is, an article worth six money-units in the market may not be sold for seven or bought for five (B. M. 49b). It seems that overcharge by the merchant selling to the consumer was the most frequent instance in which the application of the rule was called for; the claim had to be made as soon as the buyer had had an opportunity to show his purchase to a merchant or to one of his friends. It is said that R. Ṭarfon taught at Lydda that the discrepancy must amount to one-third to justify an action, whereupon the merchants rejoiced; but when he extended the time for rescission to the whole day they demanded the restoration of the old rule.
Either seller or purchaser, whether merchant or one in private life, may make the complaint, notwithstanding the opinion to the contrary of R. Judah ben Ilai. The purchaser imposed upon may ask either for rescission of the transaction or for the return of the excess paid by him.
In the case of changing money it was suggested that a lack in weight of even one in twelve should be sufficient ground for complaint, but the prevailing opinion fixed here also the ratio of one in six. Within a great city the time for complaint extends until the money in question can be shown to a money-changer; in villages, where no money-changer is to be found, until the eve of the Sabbath, when the party deceived is apt to tender the coin in payment for his purchases.
Prohibition of verbal deception (ona'at devarim)
Leviticus 25:17 teaches: “Do not deceive one another, but fear your God, for I the Lord am your God.” Since Leviticus 25:14 was understood as referring to monetary deception, the Talmud concludes that Leviticus 25:17 refers to verbal deception, "ona'at devarim."In B. M. iv. 10, the Mishnah proceeds: "As there is 'wronging' in buying and selling, so there is 'wronging' in words; a man may not ask, 'What is this article worth?' when he has no intention of buying; to one who is a repentant sinner it may not be said, 'Remember thy former conduct'; to him who is the son of proselytes one may not exclaim, 'Remember the conduct of thy forefathers'; for it is said, 'Thou shalt neither vex a stranger, nor oppress him'" (Ex. xxii. 21). In a baraita (B. M. 58b) which follows this section the subject is further developed. "When a proselyte comes to study the Law one should not say, 'He that ate the meat of fallen or torn beasts, of unclean and creeping things, now comes to study the Law that was spoken by the mouth of Omnipotence!' When trouble or sickness comes upon a man, orwhen he has to bury his children, none should say to him, as Job's friends said to Job, 'Where is thy fear of God, thy trust, thy hope, and the innocence of thy ways?'" The baraita forbids also practical jokes. "If ass-drivers come to one for fodder, one may not send them to N. N. to buy it, knowing that N. N. never sold hay or grain in his life."
On the authority of R. Simeon ben Yoḥai, it was said that wronging by words is worse than wronging in trade, for the Scripture as to the former, but not as to the latter, commands, "Thou shalt fear thy God": R. Eleazar says, because one injures the man himself, the other affects only his property; R. Samuel b. Naḥman says, because in one case there is opportunity for restoration, in the other there is not. The Talmud then dwells upon the unpardonable sin of "blanching the face of one's neighbor in public," and closes with the admonition that under all circumstances a man should beware of "wronging" his wife, because her tears are ever ready to accuse him before the throne of God.
Geneivat da’at (“stealing a person’s mind”)
Geneivat da'atGeneivat da'at
Geneivat da'at or g'neivat daat or genebath da'ath is a concept in Jewish law and ethics that refers to a kind of dishonest misrepresentation or deception...
, literally "stealing of the mind/knowledge"), refers to a kind of dishonest misrepresentation
Misrepresentation
Misrepresentation is a contract law concept. It means a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality...
or deception
Deception
Deception, beguilement, deceit, bluff, mystification, bad faith, and subterfuge are acts to propagate beliefs that are not true, or not the whole truth . Deception can involve dissimulation, propaganda, and sleight of hand. It can employ distraction, camouflage or concealment...
. The prohibition on geneivat da'at is attributed to the Talmudic sage Samuel of Nehardea
Samuel of Nehardea
Samuel of Nehardea or Samuel bar Abba was a Jewish Talmudist who lived in Babylonia, known as an Amora of the first generation; son of Abba bar Abba and head of the Yeshiva at Nehardea. He was a teacher of halakha, judge, physician, and astronomer. He was born about 165 at Nehardea, in Babylonia...
in Talmud Chullin (94a): "It is forbidden to mislead people, even a non-Jew." One Midrash
Midrash
The Hebrew term Midrash is a homiletic method of biblical exegesis. The term also refers to the whole compilation of homiletic teachings on the Bible....
states that geneivat da'at is the worst type of theft
Theft
In common usage, theft is the illegal taking of another person's property without that person's permission or consent. The word is also used as an informal shorthand term for some crimes against property, such as burglary, embezzlement, larceny, looting, robbery, shoplifting and fraud...
because it directly harms the person, not merely their money. In rabbinic exegesis
Midrash
The Hebrew term Midrash is a homiletic method of biblical exegesis. The term also refers to the whole compilation of homiletic teachings on the Bible....
, the law is associated with Gen. 31:26 and II Samuel 15:6.
Rabbi David Golinkin
David Golinkin
David Golinkin is a rabbi, author and President and Rector of the Schechter Institute of Jewish Studies, Israel. He is a major halachic authority in the Masorti movement in Israel....
has explained the principle's application to business ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
as follows:
We would call it false packaging or false labeling. The Talmud gives a number of specific examples: One should not sift the beans at the top of the bushel because he is “deceiving the eye” by making the customer think that the entire bushel has been sifted. It is forbidden to paint animals or utensils in order to improve their appearance or cover up their defects (Bava Metzia 60a-b).
We are all familiar with this kind of ruse. A wholesaler takes an inferior brand of shirt and puts on Pierre Cardin labels. You buy a box of perfect-looking tomatoes or strawberries, only to discover upon opening the box at home that they were packaged with the bad spots facing down. And we all know how used cars are touched up and polished for the sole purpose of overcharging the customer. Such behavior is clearly forbidden by Jewish law.
Putting a stumbling block before the blind
A statement in the TorahTorah
Torah- A scroll containing the first five books of the BibleThe Torah , is name given by Jews to the first five books of the bible—Genesis , Exodus , Leviticus , Numbers and Deuteronomy Torah- A scroll containing the first five books of the BibleThe Torah , is name given by Jews to the first five...
(Leviticus 19:14) prohibits "placing a stumbling block before the blind
Blindness
Blindness is the condition of lacking visual perception due to physiological or neurological factors.Various scales have been developed to describe the extent of vision loss and define blindness...
." Jewish tradition sees this as a figuratively expressed prohibition against misleading people. When it comes to business ethics, Rabbi David Golinkin
David Golinkin
David Golinkin is a rabbi, author and President and Rector of the Schechter Institute of Jewish Studies, Israel. He is a major halachic authority in the Masorti movement in Israel....
has pointed to the following examples of what this principle prohibits:
"A real estate agent should not dupe a young couple into buying a home with structural faults simply in order to make a fast buck. A stockbroker should not sell his client a bad investment just to collect the commission. A salesman should not convince his customer to buy an expensive item he really has no use for."
Treatment of workers
Rabbi Jill JacobsJill Jacobs (Rabbi)
Jill Jacobs is the Executive Director of Rabbis for Human Rights-North America. She is a Conservative rabbi and the author of There Shall be No Needy: Pursuing Social Justice through Jewish Law and Tradition...
authored a responsum in 2008, approved by Conservative Judaism
Conservative Judaism
Conservative Judaism is a modern stream of Judaism that arose out of intellectual currents in Germany in the mid-19th century and took institutional form in the United States in the early 1900s.Conservative Judaism has its roots in the school of thought known as Positive-Historical Judaism,...
's Committee on Jewish Law and Standards
Committee on Jewish Law and Standards
The Committee on Jewish Law and Standards is the central authority on halakha within Conservative Judaism; it is one of the most active and widely known committees on the Conservative movement's Rabbinical Assembly. Within the movement it is known as the CJLS...
, which argued that Jews are obligated to pay their workers on time, strive to pay their workers a living wage, and "to treat their workers with dignity and respect." The responsum prohibited "publicly yelling at, mocking, or otherwise embarrassing workers; forbidding employees from speaking their native languages at work; banning all bathroom breaks; changing work hours or adding shifts without advance notice; or making improper sexual comments or advances toward workers."
Enforcing laws regarding the proper treatment of workers in the food industry has been central to the efforts of Conservative Judaism's Hekhsher Tzedek commission.
Whistleblowing
Rabbi Barry Leff authored a responsum in 2007, approved by Conservative Judaism's Committee on Jewish Law and StandardsCommittee on Jewish Law and Standards
The Committee on Jewish Law and Standards is the central authority on halakha within Conservative Judaism; it is one of the most active and widely known committees on the Conservative movement's Rabbinical Assembly. Within the movement it is known as the CJLS...
, regarding an employee's obligation to report wrongdoing on the part of his or her employer. He concluded that "In any case of wrongdoing, there is an obligation to rebuke the person doing wrong if it can be assumed there is a reasonable chance the rebuke will be listened to, and the rebuke can be administered without substantial personal cost to the reporter."
Additional Reading
- The Challenge of Wealth: A Jewish Perspective on Earning and Spending Money, Meir TamariMeir TamariDr. Meir Tamari is an economist and author. He is a seminal figure in the field of Jewish business ethics and was among the first individuals to give university courses, write scholarly works, and establish study centers in this field.-Biography:...
, Jason AronsonJason AronsonJason Aronson is an American publisher of books in the field of psychotherapy. Topics dealt with in these books include child therapy, family therapy, couple therapy, object relations therapy, play therapy, depression, eating disorders, personality disorders, substance abuse, sexual abuse, stress,...
Inc., 1995 - The Business Bible: 10 New Commandments for Bringing Spirituality & ethical values into the workplace, Wayne Dosick, Jewish Lights Publishing