ETHICS Corporate Ethics &

Religious Belief

Systems

By:-

Jay Parekh(138)

Rohan Raut (141)

Vivek Rawat(142)

Vaibhav Shah(152)

Kunal Parikh(164)

Ethics

• In simple words it defines “The rules and principles that define right

and wrong conduct”

• Ethics refers to well-founded standards of right and wrong that

prescribe what humans ought to do.

Business Ethics

It is the study of standards of business behavior which promote

human welfare and the good.

Ethics in the workplaces helps ensure that when leaders and

managers are struggling in times of crises and confusion, they retain

a strong moral compass.

Religion and Business Ethics

Religions, through the values they embody, often build the basis for

what is considered right and wrong

Religion produces both formal and informal norms and provides

people with a freedom/constraint duality by prescribing behaviors

within some acceptable boundaries and such norms, values, and

beliefs are often codified into a religious code such as the Gita,Bible

or the Koran

Such values often provide guides for what are considered ethical

behaviors for most of the worlds religions

Importance

It is important for employers to recognise that employees do not leave

their religious beliefs at the entrance to their place of work

It is the aim of board of directors to create and maintain ethical work

culture throughout the organisation

They have to be aware that those from different religious traditions

may have dissimilar ways of behaving and these may be in conflict

with currently drafted corporate policy and guideline

Islam and Business:Conflict and Collaboration

Islam and business

Conditions are set on business behaviour, it must not

Be greedy

Seek monopoly or manipulate the market

Exploit the poor

Trade in forbidden goods and services Alcohol / drugs / tobacco

Gambling

Deal in pork products

Engage in ‘usury’

Islam and charity

Charitable giving is one of the five pillars of Islam

It binds the community together

‘Zakat’ tax is the means of re-distribution

2.5% of capital assets above a minimum – payable once a year

Usually collected by governments e.g Saudi Arabia

Nowadays left to individual believer

Vast majority of firms are family firms

The role of corporate giving as opposed to individual giving is

unclear and needs definition – 1% of profits is a minimum

Islamic Banking

Famous Jewish banks prospered

Islam prohibits charging of interest

Banks to work as partner in a clients business

The Indian Connection

• India has second largest population in the world

• Muslims in India do not use banking sector

• India has substantial need for inward investment

• UAE has meagre 1% share of FDI in India, so permitting Islamic

Finance can fulfill a sizeable portion of India’s investment needs.

Judaism

Judaism originated in the Middle East over 3500 years ago

According to information published by The Jewish People Policy

Planning Institute, there were around 13.9 million Jewish people in

the world in 2013, most residing in the USA and Israel.

Jews believe that God appointed the Jews to be his chosen people in

order to set an example of holiness and ethical behavior to the world.

Kabbalat Shabbat – Jewish holy day

Kabbalat (Reception of the Shabbat) Shabbat (related to Hebrew

verb cease, rest)

Every week religious Jews observe the Sabbath, the Jewish holy day,

and keep its laws and customs.

Sabbath starts a few minutes before sunset on Friday and runs until

an hour after sunset on Saturday, so it lasts about 25 hours.

The idea of a day of rest comes from the Bible story of the Creation:

God rested from creating the universe on the seventh day of that first

week, so Jews rest from work on the Sabbath.

Kabbalat Shabbat – Jewish holy day

Shabbat is a time with no television, no rushing to the demands of the

telephone or a busy work schedule.

People don't think about work or other stressful things.

In order to avoid work and to ensure that the Sabbath is special, all

activities like shopping, cleaning, and cooking for the Sabbath must

be finished before sunset on Friday.

Case study – Malden Mills

December 11, 1995 – Massive fire completely destroyed three

buildings at Malden Mills in Lawrence

$300 million insurance money

Company president Aaron Feuerstein announced that he would

rebuild in Lawrence, and he promised to keep his employees on the

payroll during the time it would take to reconstruct the plant

Feuerstein, a devout Orthodox Jew, explained that he drew on Jewish

tradition when faced with the crisis: When all is moral chaos, this is

the time for you to be mensch – “ Where there is no one to be

mensch, a responsible leader, then you be one”

Case study – Malden Mills

$25 million to keep his employees on the payroll

$100 million in addition to the insurance settlement to build a textile

factory

Feuerstein struggled to maintain family control of the company. He

needed to raise $92 million by August of 2003 to satisfy his creditors

We insist the business must be profitable, but we also insist a

business must have responsibility for its workers, for the community

and the environment.

He lost control of the company in July of 2004

Impact of Hinduism on businesses

• Hinduism is a cluster of religious traditions that evolved in India between

3,000 and 1,500 B.C.

• One of the central doctrines of Hinduism is Karma

• Five yamas mentioned in yogasutras are –

1. Ahimsa

2. Satya

3. Asteya

4. Brahmacarya

5. Aparigraha

• Positive attitude towards businesses & wealth, yet it is not the ultimate goal

Impact of Hinduism on businesses

Deities are regarded as legal entities who can fight their case through

the trustees or managing board

Many devotees in India keep deities as partners in their businesses

Many businesses are in names of deities & gods (Although

businesses aren’t named after god if they deal in items which are

prohibited in religion)

Impact of Hinduism on businesses

People with high religious morale don’t invest in shares which are into

tobacco, cigarettes, liquor and non-veg hotels

Eg.

1. ENAM securities offloaded shares of RIL when it acquired stake in

EIH Ltd.

2. Reliance retail ditched its plans to enter into chicken restaurant

business

Impact of Hinduism on businesses

Impact on work places –

Separate veg cafeteria

Holidays

Prayers

Companies like McD, KFC, Pizza hut had to change their menu in

India

Christianity and Business:

Christianity and business

Some important principles outlined in the Old Testament and the New

Testament of the Bible

One should not desire to get another’s goods or labour for less than

its worth

One must not try to obtain a good price for his own wares by extortion

If buying from the poor, purchaser must pay the full price that the

goods are worth to him

Christianity and Companies

Several companies are openly in support of Christianity

Incorporate Christian ethics related practices:

Examples:

Providing cards printed with Bible quotes with every meal on board

Keeping closed on Sundays for employees to spend time with family

and attend prayers at Church

Fashion retail outlet

Founded by Chang family

Owners are devout Christians

Print “John 3:16” on the bottom of their shopping bags

Provoked criticism when it released a slew of religious-themed

tees emblazoned with slogans such as:

"Jesus ♥ You”

"Holy”

"Three Words to Live by: Prayer, faith, and trust”

Conclusion

Like it or not, good or bad but religion highly impacts our society & it impacts

the ways in which businesses are run …