Religious views on business ethics
Encyclopedia
Many faiths have extensive literature and legal code on the accumulation and use of wealth; and many businesses rely on these ethical guidelines, both as a result of the religious beliefs of owners and managers, and as a way of ensuring that their actions meet the otherwise unwritten ethical standards of local communities.
In Christianity
, the basis of this theology
is the Old Testament
and the New Testament
.
For example, Jesus
asked his disciples, "If you lend to those from whom you hope to receive, what credit is that to you?" Luke
6:34. Although this may be a general injunction to disinterested benevolence, it has also been read as a condemnation of interest
or usury
. Jesus referenced this especially when one lends to another believer, the idea being that, as a Christian with an eternal mindset, ultimately God
is our rewarder and lending to a fellow believer should be left to God to reward over collecting nominal interest.
The Protestant Ethic and the Spirit of Capitalism
is a book written by Max Weber
, a German economist and sociologist, in 1904 and 1905 that began as a series of essays. Weber felt that Protestants were more prone to individualism
and had been active supporters of capitalism.
However, there is also a Catholic tradition of business ethics, as seen in the social doctrine of the Church
, the organization Legatus
, and the encyclicals Rerum Novarum
and Centesimus Annus
.
Researchers in the theory of religious economy
have found insight in the 1985 paper Market Economy and Ethics by then Cardinal Joseph Ratzinger, which attempts to demonstrate the relationship between trust-based economies and faith-based morality. Press articles have argued that Ratzinger's paper was the first to predict the 2008-2009 economic crisis.
is the Torah
; here there are more commandments concerning the kashrut
(fitness) of one's money than the kashrut of food (see 613 Mitzvot
). These laws are developed and expanded upon in the Mishnah
and the Talmud
(particularly in Order Nezikin
), and are then delineated in the major codes of Jewish law (e.g. Mishneh Torah
, 12th c.; Shulkhan Arukh, particularly Choshen Mishpat
, 16th c.). A wide array of topics on business ethics are discussed in the responsa
literature.
Rabbi
Yisrael Lipkin Salanter (19th century), founder of the Mussar movement
in Eastern European, taught that just as one checks carefully to make sure their food is kosher, so too should one check to see if their money is earned in a kosher fashion (Chofetz Chaim
, Sfat Tamim, chapter 5). The teachings go much further: there is a widely quoted tradition (see for e.g. Kitzur Shulkhan Arukh 62:1; originating in Talmud
Shabbat 31a) that in one's judgement in the next world, the first question asked is: "were you honest in business?"
Key principles in Jewish business ethics include the requirement of accurate weights and measures, the prohibition of monetary or verbal deception, the prohibition against misrepresentation (geneivat da'at
), and the prohibition against putting a stumbling block before the blind
. The principle of Torah im Derech Eretz is often understood to require people to engage in productive labor while also warning against materialism
.
, the basis of these laws is the Qur'an
, and they are amplified in the Hadith
.
Muslim wealth ethics include avoidance of the exploitation of people in need through lending them money at interest (riba
) and prohibitions against false advertising
; under Islamic law
, if a vendor sells an item by making false claims about it, the customer has the right to have the transaction cancelled.
(best known for Small is Beautiful
(1972), a Buddhist approach to economics) wrote Good Work in 1979 where he explored business ethics particularly from the perspective of employees. Schumacher suggested a number of alternate approaches to conventional business, including the example of a company (the Scott-Bader Corporation) where the owner transferred the shares of the corporation into a trust, with instructions to the trustee that the company should be run to benefit the employees. Other Buddhist texts emphasise the role that work can take in gaining enlightenment - one of the elements of the Noble Eightfold Path
set out by the Buddha is 'Right Livelihood' which prohibits occupations associated with violence (such as arms dealing), but all the elements (conduct, speech etc.) will apply to the daily conduct of any person in their work.
Christian business ethics
Christianity
Christianity is a monotheistic religion based on the life and teachings of Jesus as presented in canonical gospels and other New Testament writings...
, the basis of this theology
Theology
Theology is the systematic and rational study of religion and its influences and of the nature of religious truths, or the learned profession acquired by completing specialized training in religious studies, usually at a university or school of divinity or seminary.-Definition:Augustine of Hippo...
is the Old Testament
Old Testament
The Old Testament, of which Christians hold different views, is a Christian term for the religious writings of ancient Israel held sacred and inspired by Christians which overlaps with the 24-book canon of the Masoretic Text of Judaism...
and the New Testament
New Testament
The New Testament is the second major division of the Christian biblical canon, the first such division being the much longer Old Testament....
.
For example, Jesus
Jesus
Jesus of Nazareth , commonly referred to as Jesus Christ or simply as Jesus or Christ, is the central figure of Christianity...
asked his disciples, "If you lend to those from whom you hope to receive, what credit is that to you?" Luke
Gospel of Luke
The Gospel According to Luke , commonly shortened to the Gospel of Luke or simply Luke, is the third and longest of the four canonical Gospels. This synoptic gospel is an account of the life and ministry of Jesus of Nazareth. It details his story from the events of his birth to his Ascension.The...
6:34. Although this may be a general injunction to disinterested benevolence, it has also been read as a condemnation of interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
or usury
Usury
Usury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
. Jesus referenced this especially when one lends to another believer, the idea being that, as a Christian with an eternal mindset, ultimately God
God
God is the English name given to a singular being in theistic and deistic religions who is either the sole deity in monotheism, or a single deity in polytheism....
is our rewarder and lending to a fellow believer should be left to God to reward over collecting nominal interest.
The Protestant Ethic and the Spirit of Capitalism
The Protestant Ethic and the Spirit of Capitalism
The Protestant Ethic and the Spirit of Capitalism is a book written by Max Weber, a German sociologist, economist, and politician. Begun as a series of essays, the original German text was composed in 1904 and 1905, and was translated into English for the first time by Talcott Parsons in 1930...
is a book written by Max Weber
Max Weber
Karl Emil Maximilian "Max" Weber was a German sociologist and political economist who profoundly influenced social theory, social research, and the discipline of sociology itself...
, a German economist and sociologist, in 1904 and 1905 that began as a series of essays. Weber felt that Protestants were more prone to individualism
Individualism
Individualism is the moral stance, political philosophy, ideology, or social outlook that stresses "the moral worth of the individual". Individualists promote the exercise of one's goals and desires and so value independence and self-reliance while opposing most external interference upon one's own...
and had been active supporters of capitalism.
However, there is also a Catholic tradition of business ethics, as seen in the social doctrine of the Church
Catholic social teaching
Catholic social teaching is a body of doctrine developed by the Catholic Church on matters of poverty and wealth, economics, social organization and the role of the state...
, the organization Legatus
Legatus
A legatus was a general in the Roman army, equivalent to a modern general officer. Being of senatorial rank, his immediate superior was the dux, and he outranked all military tribunes...
, and the encyclicals Rerum Novarum
Rerum Novarum
Rerum Novarum is an encyclical issued by Pope Leo XIII on May 15, 1891. It was an open letter, passed to all Catholic bishops, that addressed the condition of the working classes. The encyclical is entitled: “Rights and Duties of Capital and Labour”...
and Centesimus Annus
Centesimus Annus
Centesimus Annus was an encyclical written by Pope John Paul II in 1991, on the hundredth anniversary of Rerum Novarum...
.
Researchers in the theory of religious economy
Theory of religious economy
The economics of religion or, especially in sociology, religious economy applies socio-economic theory and methods to explain the religious behavioral patterns of individuals, groups or cultures and the social consequences of such behavior...
have found insight in the 1985 paper Market Economy and Ethics by then Cardinal Joseph Ratzinger, which attempts to demonstrate the relationship between trust-based economies and faith-based morality. Press articles have argued that Ratzinger's paper was the first to predict the 2008-2009 economic crisis.
Jewish business ethics
The basis of all Jewish lawHalakha
Halakha — also transliterated Halocho , or Halacha — is the collective body of Jewish law, including biblical law and later talmudic and rabbinic law, as well as customs and traditions.Judaism classically draws no distinction in its laws between religious and ostensibly non-religious life; Jewish...
is the Torah
Torah
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...
; here there are more commandments concerning the kashrut
Kashrut
Kashrut is the set of Jewish dietary laws. Food in accord with halakha is termed kosher in English, from the Ashkenazi pronunciation of the Hebrew term kashér , meaning "fit" Kashrut (also kashruth or kashrus) is the set of Jewish dietary laws. Food in accord with halakha (Jewish law) is termed...
(fitness) of one's money than the kashrut of food (see 613 Mitzvot
613 mitzvot
The 613 commandments is a numbering of the statements and principles of law, ethics, and spiritual practice contained in the Torah or Five Books of Moses...
). 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...
), and are then 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.; Shulkhan 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 the 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.
Rabbi
Rabbi
In Judaism, a rabbi is a teacher of Torah. This title derives from the Hebrew word רבי , meaning "My Master" , which is the way a student would address a master of Torah...
Yisrael Lipkin Salanter (19th century), founder of the Mussar movement
Mussar movement
The Musar movement is a Jewish ethical, educational and cultural movement that developed in 19th century Eastern Europe, particularly among Orthodox Lithuanian Jews. The Hebrew term Musar , is from the book of Proverbs 1:2 meaning instruction, discipline, or conduct...
in Eastern European, taught that just as one checks carefully to make sure their food is kosher, so too should one check to see if their money is earned in a kosher fashion (Chofetz Chaim
Yisrael Meir Kagan
Yisrael Meir Poupko , known popularly as The Chofetz Chaim, was an influential Eastern European rabbi, Halakhist, posek, and ethicist whose works continue to be widely influential in Jewish life...
, Sfat Tamim, chapter 5). The teachings go much further: there is a widely quoted tradition (see for e.g. Kitzur Shulkhan Arukh 62:1; originating in 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....
Shabbat 31a) that in one's judgement in the next world, the first question asked is: "were you honest in business?"
Key principles in Jewish business ethics include the requirement of accurate weights and measures, the prohibition of monetary or verbal deception, the prohibition against misrepresentation (geneivat da'at
Geneivat 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...
), and the prohibition against putting a stumbling block before the blind
Lifnei iver
The Hebrew phrase "before the blind" is a way of referring to the concept of a stumbling block in rabbinical texts. The origin comes from the Hebrew Bible where Leviticus instructs "Thou shalt not curse the deaf, nor put a stumblingblock before the blind , but shalt fear thy God: I am the ...
. The principle of Torah im Derech Eretz is often understood to require people to engage in productive labor while also warning against materialism
Materialism
In philosophy, the theory of materialism holds that the only thing that exists is matter; that all things are composed of material and all phenomena are the result of material interactions. In other words, matter is the only substance...
.
Muslim business ethics
For IslamIslam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
, the basis of these laws is the Qur'an
Qur'an
The Quran , also transliterated Qur'an, Koran, Alcoran, Qur’ān, Coran, Kuran, and al-Qur’ān, is the central religious text of Islam, which Muslims consider the verbatim word of God . It is regarded widely as the finest piece of literature in the Arabic language...
, and they are amplified in the Hadith
Hadith
The term Hadīth is used to denote a saying or an act or tacit approval or criticism ascribed either validly or invalidly to the Islamic prophet Muhammad....
.
Muslim wealth ethics include avoidance of the exploitation of people in need through lending them money at interest (riba
Riba
Riba means one of the senses of "usury" . Riba is forbidden in Islamic economic jurisprudence fiqh and considered as a major sin...
) and prohibitions against false advertising
False advertising
False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or...
; under Islamic law
Sharia
Sharia law, is the moral code and religious law of Islam. Sharia is derived from two primary sources of Islamic law: the precepts set forth in the Quran, and the example set by the Islamic prophet Muhammad in the Sunnah. Fiqh jurisprudence interprets and extends the application of sharia to...
, if a vendor sells an item by making false claims about it, the customer has the right to have the transaction cancelled.
Buddhist business ethics
There is also a history of applying Buddhist principles to business. E. F. SchumacherE. F. Schumacher
Ernst Friedrich "Fritz" Schumacher was an internationally influential economic thinker, statistician and economist in Britain, serving as Chief Economic Advisor to the UK National Coal Board for two decades. His ideas became popularized in much of the English-speaking world during the 1970s...
(best known for Small is Beautiful
Small Is Beautiful
Small Is Beautiful: Economics As If People Mattered is a collection of essays by British economist E. F. Schumacher. The phrase "Small Is Beautiful" came from a phrase by his teacher Leopold Kohr...
(1972), a Buddhist approach to economics) wrote Good Work in 1979 where he explored business ethics particularly from the perspective of employees. Schumacher suggested a number of alternate approaches to conventional business, including the example of a company (the Scott-Bader Corporation) where the owner transferred the shares of the corporation into a trust, with instructions to the trustee that the company should be run to benefit the employees. Other Buddhist texts emphasise the role that work can take in gaining enlightenment - one of the elements of the Noble Eightfold Path
Noble Eightfold Path
The Noble Eightfold Path , is one of the principal teachings of the Buddha, who described it as the way leading to the cessation of suffering and the achievement of self-awakening. It is used to develop insight into the true nature of phenomena and to eradicate greed, hatred, and delusion...
set out by the Buddha is 'Right Livelihood' which prohibits occupations associated with violence (such as arms dealing), but all the elements (conduct, speech etc.) will apply to the daily conduct of any person in their work.
Christian references
- Biblical Business Ethics: Exploring Secular Ethical Values & Alternative Christian Approaches, David Bertch, Terry Martin, Dyna Martin, Works Press, 1994. ISBN 0-9634472-3-8
- Business By The Book: The Complete Guide Of Biblical Principles For The Workplace, Larry Burkett, Nelson Reference; Updated edition 1998, ISBN 0-7852-7141-4
- God is my CEO: Following God's Principles in a Bottom-Line World, Larry S. Julian, Adams Media Corporation, 2001, ISBN 1-58062-477-4
- Full value: Cases in Christian business ethics O.F. Williams and J. W. Houck, San Francisco, CA: Harper & Row, 1978
- Profit at Any Cost? Jerry Fleming, Baker Books, 2003. ISBN 0-8010-1259-7
- Quaker Business Ethic: A Plumb Line Guide to Practical Applications in Business and Industry, Phillip Hartley Smith, Diamond Library Publications, 2001. ISBN 1880876760.
- Good Business: Ethics at Work, Quakers & Business, 2000. ISBN 0953970604
Jewish references
- You Shall Strengthen Them: A Rabbinic Letter on the Poor Elliot N. DorffElliot N. DorffElliot N. Dorff is a Conservative rabbi. He is a professor of Jewish theology at the American Jewish University in California , author and a bio-ethicist....
with Lee Paskind, The Rabbinical Assembly, NY - Free Enterprise and Jewish Law: Aspects of Jewish Business Ethics Aaron Levine, Ktav Publishing House, 1980. ISBN 0-87068-702-6
- Case Studies in Jewish Business Ethics Aaron Levine, Ktav Publishing House, 1999. ISBN 0-88125-664-1
- The Jewish Ethicist Asher Meir, Ktav Publishing House, 2005. ISBN 0-88125-809-1
- Business Ethics: A Jewish Perspective Moses L. Pava, Ktav Publishing House, 1997. ISBN 0-88125-582-3
- The Challenge of Wealth, Meir Tamari, Jason Aronson Inc., 1995. ISBN 1-56821-280-1
- With All Your Possessions: Jewish Ethics and Economic Life, Meir Tamari, Free Press, 1987. ISBN 0-02-932150-6
- Al Chet: Sins in the marketplace, Meir Tamari, Jason Aronson, 1986. ISBN 1-56821-906-7
- Torah Guide for the Businessman, S. Wagschal, Philipp Feldheim Inc, 1990. ISBN 1-58330-139-9
Muslim references
- Islamic Business Ethics Rafik Issa Beekun, The International Institute of Islamic Thought
- Islam and the Economic Challenge M.Umer Chapra
- The Problem With Interest Tarek El Diwany
- Distributive Justice And Need Fulfilment in an Islamic Economy Munawar Iqbal, The Islamic Foundation, Leicester, UK
- Islamic Commercial Law: An Analysis of Futures and Options Mohammad Hashim KamaliMohammad Hashim KamaliMohammad Hashim Kamali is professor of law at the International Islamic University of Malaysia. He has taught Islamic law and jurisprudence there since 1985....
, 2000 ISBN 0-946621-80-2 - Banking Without Interest Muhammad Nejatullah Siddiqi
Buddhist references
- Good Work E.F. Schumacher (1979, Harper & Row, New York, ISBN 0-06-013857-2)
- Ways of Work Nyingma Centers (1987, Dharma Press, California, ISBN 0-89800-178-1)
- Putting Buddhism to Work Shinichi Inoue (1997), Kondansha, New York, ISBN 4770021240
External links
- A Model Course in Jewish Business Ethics
- Aryeh KaplanAryeh KaplanAryeh Moshe Eliyahu Kaplan was a noted American Orthodox rabbi and author known for his "intimate knowledge of both physics and kabbalah." He was lauded as an original thinker and prolific writer, from studies of the Torah, Talmud and mysticism to introductory pamphlets on Jewish beliefs and...
: The Torah view of Money - Business Ethics Center of Jerusalem
- Further Reading links to books on Buddhism, Christianity, Confucianism, Hinduism, Islam, Judaism, Secular Postmodernism, Shintoism, and Sikhism from the book "The Gods of Business".
- Excerpt from Islamic Business Ethics (PDF)
- Islamic Business Ethics: Book Review
- Islamic Finance
- Jewish Association for Business Ethics
- Money: An anthology - Chassidic source material
- Muslim Business Club - Business done the Islamic way